tbap business assistance industry trends tbap industry-wide projects ciwmb tire-derived business...
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TBAP Business Assistance
Industry Trends
TBAP Industry-Wide Projects
CIWMB Tire-Derived Business Assistance Program
ANNUAL REPORT
CIWMB Tire-Derived Product Business Assistance Program
The TBAP Program Goal: Strengthen Scrap Tire Recycling Infrastructure and Expand Market
Business Assistance
Industry-Wide Assistance Projects
The Team Managed by Board Staff + Prime Contractor
DK Enterprises, Tinney Associates Key Partners
30 Additional Subcontractors
TBAP Contract #1 (R.W. Beck - Prime) March 2006 – April 2009
29 Businesses Assisted
7 Industry-Wide Projects
TBAP Contract #2 (Manex - Prime) August 2008 – May 2011
One Business Assistance Cycle – Tentative Due Date: April 16, 2009
7 Industry-Wide Projects
CIWMB Tire-Derived Product Business Assistance Program
Location of the 29 TBAP “Grantees”
Blue = 7 Processors
Red = 22 TDP Firms
CIWMB Tire-Derived Product Business Assistance Program
Range of Products
Graphic Courtesy DK Enterprises
CIWMB Tire-Derived Product Business Assistance Program
Individual Business Assessment Synopsis
Dynamic, Driven & Diversified Small Businesses
Classic Small Biz Challenges Drive for Rapid Growth
Cash Flow Crunch
Opportunistic vs. Strategic Decisions
Developing Operational and Financial Systems
Added Twists Green Marketing Orientation
Role of Government Programs & Policies
Wide Range of Assistance Needs (and Competing Priorities)
CIWMB Tire-Derived Product Business Assistance Program
TBAP Business Assistance Delivery($3.14 million, 29 Firms)
Marketing 18%
Testing 11%
Technical 21%
General 17%Equipment 32%
CIWMB Tire-Derived Product Business Assistance Program
Case Study - Modular Rubber Drains
CIWMB Tire-Derived Product Business Assistance Program
Modular Rubber Drains Objective
Product Development and Spin-Off Venture
Assistance Feedstock Sources and Partnerships
Product Testing
Specification Development and Govt Sales Assistance
Website and Marketing Materials
Results Thriving and Growing Firm
CIWMB Tire-Derived Product Business Assistance Program
Case Study - Rubber Trails & Surfaces
CIWMB Tire-Derived Product Business Assistance Program
Rubber Trails & Surfaces Objective
Expand CA Operations and Product Line & Increase Sales
Assistance Feedstock and Partnership Strategies
Product Testing
Green Building Marketing Plan
Production Equipment
Results In Progress; Thriving Company with Growing CA Presence
CIWMB Tire-Derived Product Business Assistance Program
Case Study: Holz Rubber
CIWMB Tire-Derived Product Business Assistance Program
Holz Rubber Objective
Incorporate Recycled Rubber in Long-Standing Product Line
Assistance Feedstock Sourcing
Production Efficiency
Market Analysis and Assistance
Results Incorporation of Recycled Tire Rubber in Range of Products
CIWMB Tire-Derived Product Business Assistance Program
Case Study: Closed Loop Networking Showcase for
Walmart and Sam’s Club Buyers
CIWMB Tire-Derived Product Business Assistance Program
Closed Loop Networking Showcase for Walmart and Sam’s Club Buyers
Objective Provide Access to Big Box Retailer Sales Opportunities
TBAP Assistance Connection 11 CA TDP Firms Participated (7 TBAP Grantees)
Funding for 2 TBAP Firms Provided
DK Enterprises Developed and Organized (80 Exhibitors)
Results Experience Showcasing Products to Worlds Largest Retailer
Contacts / Sales Leads with Buyers, Merchants, and Suppliers
CIWMB Tire-Derived Product Business Assistance Program
Business Assistance Accomplishments
Tangible, Targeted Services Delivered
Partnerships Facilitated
Cohesive Team Approach
Continual Program Improvement
Strong Demand Expected for Next Assistance Cycle in April 2009
CIWMB Tire-Derived Product Business Assistance Program
CA Scrap Tire Industry Overview
CIWMB Tire-Derived Product Business Assistance Program
CA Scrap Tire Uses (2006)Total = 44.4 million PTE
Reuse, 5%
Crumb Rubber, 6%
RAC, 9%
TDA, 7%
TDF, 18%
Agricultural/ Other, 7%
Retread, 10%
Exported, 4%
ADC, 10%
Disposal, 25%
Source: CIWMB
CIWMB Tire-Derived Product Business Assistance Program
Tire-Derived Product Trends
Reuse and Retread Holding Steady
Ground/Crumb Rubber Growth Since 2006, Holding Strong
RAC, Turf/Athletic Fields, Mulch/Bark Driving Demand
Very Active Sector
Civil Engineering Landfill Applications Steady
State Supported Projects Growing
CIWMB Tire-Derived Product Business Assistance Program
TDP Trends (Continued)
TDF
Increases likely since 2006, recent short-term slow down
Landfill and ADC Sustained Use with Some Market-Driven Variability
Export
Exports to China surged since 2006, recent abrupt halt
CIWMB Tire-Derived Product Business Assistance Program
Broad Market Trends Dynamic, Changing Industry
Demand-Driven
Partnerships and Processor Capacity Adjustments
Items to Watch Public Perception of Health Concerns
State and Local Government Budgets
National Expansion of 40+ Fine Grind (Not Yet in CA)
Increasing Focus on Mainstream Manufacturing Markets & Big Box Retail
Global Economic and Financial Impacts & Uncertainties Scrap Tire Generation
Product Demand
Export Demand
Oil and Commodities Prices
CIWMB Tire-Derived Product Business Assistance Program
Scrap Tire Recycling Barriers
Need for a Strong Supply Infrastructure Business-Specific Barriers
Access to Quality Supplies at an Acceptable Price
Lack of 40+ Fine Grind Capacity in CA
Permitting/Storage Concerns
CIWMB Tire-Derived Product Business Assistance Program
Barriers (Con’t.)
Need to Facilitate TDP Sales in Some Areas
Low Customer Awareness and Understanding of Product Advantages
Challenges Leveraging Government and Green Initiatives
Need to Expand and Diversify TDP Markets
Need for Market Information
CIWMB Tire-Derived Product Business Assistance Program
TBAP Industry-Wide Projects
Co-Organized International Tire Conference (May 2008)
Facilitate TDP Sales Address TDP Barriers and Myths (Literature
Review Complete; Analysis Begins 2009)
Govt and Green Building Sales Training (Held May 2008 & TBA)
Quality Control Training (Held May 2008 & TBA)
Cooperative Marketing (Begins 2009)
CIWMB Tire-Derived Product Business Assistance Program
TBAP Industry-Wide Projects (Con’t.) Expand and Diversify TDP Markets
Feedstock Conversion – Target Mainstream CA Rubber and Plastics Manufacturers (Ends April ’09)
Construction Product Database Pilot Project (Ends April ’09)
Retailer and Manufacturer Supply Chain Outreach (Begins 2009)
Improve Market Inefficiencies (Begins Now)
Provide Up-to-Date Market Information Supply-Demand Inventory (Nov 2008)
TDP Market Analysis (March 2009)
TDP Market Analysis Update/Program and Strategy Review (Oct 2010)
CIWMB Tire-Derived Product Business Assistance Program
Questions?
Ed Boisson
RW Beck
(415) 499-0919
www.rwbeck.com
Denise Kennedy
DK Enterprises
(916) 480-0443
www.dkenterprises.us