THE MARKET

 

The primary market focus for “PUBCO” is the global military and defense contractors that have a yearly value of one trillion dollars (USD).  The well known American economic show “Kudlow & Company” stated in their show on April 12, 2006 that the place to be positioned in is the military market place which will not experience any slowdown in growth for the long term future.  The secondary market is the equally large global commercial/industrial segments.

 

GROWTH IN YEARLY
UNITED STATES MILITARY SPENDING

 

                                  YEAR             AMOUNT IN BILLIONS (USD)

                                    2000                                  $289

2001                                  $310

2002                                  $343

2003                                  $396

2004                                  $399

2005                                 $421

2006                                $442 (Current Budget)

2007                                $460 (Projected Budget)

 

EXAMPLES OF GROWTH IN SELECTED MILITARY MARKET SEGMENTS (USD)

·        Homeland Defense to grow from $130 to $400 billion from 2006 – 2010

·        UAV (Unmanned Aerial Vehicles) to grow to $17 billion from 2006 – 2011

·        Missile market to grow to $103 billion from 2006 – 2015

 

EXAMPLES OF GROWTH IN SELECTED COMMERCIAL/INDUSTRIAL MARKET SEGMENTS (USD)

 ·        Global military and civil aircraft production from 2005 to 2014 will rise to one trillion dollars

·        Global nonturbine aircraft, maintenance, overhaul, upgrades and research from 2005 to 2014 will rise to two trillion dollars

·        Sensors market to grow from $12 to $25 billion from 2004 – 2009.

 

CONCLUSION

This Brief offers a micro-look at the immense potential global market place for the products that all four companies will offer.  Concentration has been on the military and military supplier market but the commercial market is equally large and diverse.  All four companies have in fact a very diversified industry sector customer base to draw upon.  To-date a total of 130 different market segments have been identified that our products can be sold to.  This means that we are not dependent on just one industry segment for sales, so if there is a down turn in one segment, such as telecommunications, we still have 129 other industry segments to sell to.   This base represents industry sales in the United States in the hundreds of billions (USD) of dollars per annum and growing. 

 

ESTIMATED THREE YEAR SALES FORECAST

  

STANDARD LOADS INC.

YEAR ONE:            $1,600,000      YEAR TWO:            $3,200,000      YEAR THREE:   $4,800,000

Major contracts such as global test equipment rental companies are not factored into forecast figures.  Currently bidding on a contract worth $3 – 4 million.

Estimated sales figures are based upon an average unit sale price of $2,500.00 over the range of 20 Watts to 1000 Watts and initial distributor sales but not the effect of having an extensive Rep. network.

According to one of our Manufacturer’s Rep. the average matured sales of the Electronic Load companies is about $50 million (USD) per year and we expect our matured sales to be 50% of this number.

The joint venture with a major global defense contractor has not been factored into forecast figures.

The Company’s products were well received in response to a limited survey of North American distributors with fifty-three (53) Distributors wanting our Product Information as soon as it is available.  Thirty-seven (37) United States Distributors and sixteen (16) Canadian Distributors. In North America there are an additional 550 distributors and 500 foreign distributors to be contacted.

There are three American Manufacturers Representatives ready to sign-up with Standard Loads.  Sales will ramp-up as new distributors and reps. sign-up to promote the product line.

 

TRUPOWER INC.

YEAR ONE:            $1,250,000      YEAR TWO:    $2,250,000            YEAR THREE:     $3,500,000

Major contracts such as military defense contractors are not factored into forecast figures.

The Company’s products were well received in response to a limited survey of North American distributors with fifty-three (53) Distributors wanting our Product Information as soon as it is available.  Thirty-seven (37) United States Distributors and sixteen (16) Canadian Distributors. In North America there are an additional 550 distributors and 500 foreign distributors to be contacted.

Estimated sales figures are based on Cardflex and Wattflex.

Labflex will be the third product to market.

Testflex, Ampflex and Voltflex will be a complete research and development program.

Trupower’s matured sales goal will be 5 to 10% of the estimated global marketplace.  A preliminary market study by the Canadian Industrial Innovations Centre (CIIC) concluded estimated yearly sales to be approximately $450 million – $1 billion.

ESTIMATED GLOBAL MARKET PLACE OF TRUPOWER’S PRODUCTS

 

PRODUCT	YEARLY SALES
CARDFLEX	3 BILLION
WATTFLEX	250 MILLION
LABFLEX	500 MILLION
TESTFLEX	750 MILLION
AMPFLEX	5 – 10 BILLION
VOLTFLEX	8 BILLION

Compiled by a Power Systems Design Engineer from General Electric Aerospace.

  

BOXFLEX INC.

YEAR ONE:            $500,000        YEAR TWO:    $750,000            YEAR THREE:     $1,200,000

Figures assume a joint venture with a major chassis company and its global distributors and manufacturers representatives.

Estimated matured yearly sales of this chassis division is $5,000,000

 

EAP INC.

YEAR ONE:            $400,000        YEAR TWO:     $1,000,000            YEAR THREE:     $1,500,000

 

Major contracts such as elevator and locomotive companies are not factored into forecast figures.

 

This product will only be sold in the United States which is a marketplace worth $5 billion (USD) per year.  Sales of these Resistors will be exclusively through a Manufacturers Rep. network.

 

Our private label resistor company sales in Canada is in the range of $2 – 5 million per year.  The United States marketplace is about ten times that of Canada making potential matured sales of EAP in the range of $15 – 30 million per year.  A major defense contractor  spun-off a resistor company in Europe which has hit matured sales of $20+ million (USD) per year.

NOTE:            For all product lines being sold through distributors, it is anticipated that all global distributors will be signed-up by the end of year 2.5.