Oct 1 2014
Eco Building Products, Inc., announced today that the after several months of certifying contractors, builders, realtors and modular home factories, the Company is now utilizing our credit facility to move from coating services only, to selling finished goods.
This was our plan all along and now that we have built a customer base, we are purchasing and building an inventory of finished good. The difference between coating services and selling finished goods can be as much as ten times the revenue on each sale. In addition to enabling the Company to purchase raw, this credit facility in effect will increase the speed at which orders for finished goods are processed and distributed to our customers. This inventory is being established to directly support special order business for The Home Depot retail locations active in the Northeast, and advanced framing lumber and panel products commonly used by Modular Home factories in and around the region.
Steve Conboy, President & Chief Executive Officer, Eco Building Products commented that "Eco's Northeast Region has been hard at work developing certified contractors, builder and modular factories that support our vision of raising the bar on how we build more defensively. Our VP of this region is Christian Tirone who comes with a background of over 20 years of Sales, Project Management and General Contractor experience in the Modular Homes Industry. At current, his primary focus is supporting Eco's efforts with The Home Depot between in-store training of their associates, and outside awareness that HD is a source for purchasing Eco Red Shield advanced framing lumber and panel products." With a newly revamped facility and lumber yard, new staff and management, and a second coating line soon to go live, ECOB's New Jersey facility continues to grow to meet the increasing demand.
Eco's Fair Lawn, New Jersey facility continues to purchase and replenish back-up inventory for HD in-stock reorders in support of the Eco Red Shield protected lumber retail sales program. This pilot program has now grown to include 107 selected stores in New York and New Jersey since early August 2014. While this program is still in its' infancy and continues to be fine-tuned by both companies, ECOB has manufactured and distributed over 63 stores resetting studs and 44 stores resetting plywood across the 107 retail locations, with no marketing support from The Home Depot yet.
With Eco Red Shield protected lumber becoming the standard within great companies like Future Home Technology servicing coastal communities, it is the perfect opportunity for Eco to start installing and turning a finished goods inventory. Mr. Conboy further noted that "Few understand how to take a new product to market that costs more than standard materials that previously were the norm. We are a company that is now reaching all markets in the US with orders now going as far south as Florida and into Hawaii. The fact that Eco's footprint can reach just about anywhere in the US without adding logistical cost is opening the door for more and more lumber brokers since only a few years ago we were only operating in California. We are and will remain a 'Defensive Value Added Interior Framing' product for above ground use. Look for our new ad campaign that highlights Eco's lumber protection being safe around children and in schools, as that alone separates us from the others that aren't. This builder transition reminds us at Eco of how in our lifetime we've watched the paint industry move from oil and lead based paints to water-based; furthermore it's hard to find paints that aren't cautious about VOC's and indoor air quality."