Staci Cuccio, Flint Holbrook, Kevin Roewe, Jared Swart
A-1 Blasting, Inc. of Broken Arrow, Oklahoma, successfully fabricates oil field screens with seven to nine employees depending on demand. They plan to diversify by manufacturing above ground storm shelters designed to meet FEMA P-361 and NSSA standards. A second revenue driver will allow A-1 Blasting, Inc. to more efficiently use staff and capital assets as demand fluctuates for screens. The storm shelter industry in the Tulsa area is highly fragmented. Almost all direct competitors have drastically overdesigned shelters and are using more steel then necessary to protect occupants from wind and projectiles in accordance with FEMA standards. A-1 Blasting, Inc. will easily gain a price advantage on these competitors due to a more efficient design that minimizes material and labor while providing as much or more protection than competitors. A-1 Blasting, Inc. will differentiate from competitors by framing the interior of each shelter to resemble standard residential framing allowing the customer to finish the interior of the shelter to his or her tastes with sheetrock, plumbing, electrical, and insulation. Therefore, SHRC Shelters can be integrated seamlessly and serve as a functional room in a newly constructed home. The firm will offer three standard-sized shelters but can provide custom sizes, as the wall structure is standard across all models. A-1 Blasting, Inc. will use homebuilders who operate in the Tulsa area as distributors to reduce operating risk associated with leverage. Homebuilders can incorporate SHRC Shelters into stock homes or sell them to clients building custom homes. Distributors allow A-1 Blasting, Inc. to minimize fixed costs associated with sales, installation and marketing, which decreases the number of units A-1 Blasting, Inc. must sell to break even. Using homebuilders as distributors also creates a competitive advantage by allowing customers the option to purchase an A-1 Blasting, Inc. shelter before they even purchase a home, instead of only marketing as a garage-mounted unit. Homebuilders in the Tulsa area are expected to build about 4,800 homes in 2013, and the number of new homes is projected to have an average annual growth rate of about 7.0% over the next five years. A-1 Blasting, Inc. will likely acquire a 0.25% – 0.5% market share during the first year of operation and 1.5% – 3.0% during the third year of operation. Revenues in 2013 are projected at about $57,000 with an average annual growth rate of 186% over the first five years of operation.
A-1 Blasting, Inc. of Broken Arrow, Oklahoma, desires to expand manufacturing operations by adding an above ground storm shelters to their production. A market analysis must be conducted to determine what the market will accept in new products and what competitive edges can be attained. From the analyzed data, a market acceptable engineering design must be completed and the costs and sales must be projected.
Scope of Work
SHRC Shelters will perform market analysis to determine possible competitive advantages for a new storm shelter that A-1 Blasting, Inc. can produce. After the determination of the market concept engineering design, the storm shelter will be drawn and production costs will be analyzed. The storm shelter will be designed to protect occupants from damaging winds, hail, and flying debris. The storm shelter will have potential to function as a closet, pantry or garage storage unit. .