MANUFACTURING & RECYCLINGREINFORCED PLASTICCARBON FIBER

BUSINESS OPPORTUNITIES

1 | Carbon Fiber Reinforced Plastic Manufacturing and Recycling

ABOUT THIS INDUSTRYCarbon Fiber Reinforced Plastic (CFRP) Manufacturing and Recycling is an emerging industry in the United States (U.S.) that produces and recycles carbon fiber, which is an important component in Aerospace Manufacturing. This industry has been identified by the West Virginia Forward report as an emerging technology for the state to focus business development efforts as the CFRP market is projected to grow by more than 10% a year for the next ten years.1 CFRP Manufacturing is mostly driven by Aerospace markets and new infrastructure technology developments. National demand, and the evolution of new technologies – such as CFRP replacement for steel rebar2 – provides expansive opportunity in this industry.

CFRP Manufacturing and Recycling comprises establishments primarily engaged in the manufacture of CFRP related materials or the recycle of these materials. CFRP products are an emerging technology that is seeing increasing applications. Many new uses are being discovered related to construction including CFRP replacement for steel rebar, CFRP wrap for steel and concrete beams and joists, and CFRP reinforced power and cell phone poles.3 Both transportation and defense related aerospace production also utilizes a large amount of CFRP materials and West Virginia is bordered by states heavily engaged in Aerospace manufacturing. It is estimated that Ohio, Pennsylvania, Maryland, and Kentucky produce 1.1 thousand tons of aerospace CFRP materials annually.4 The automotive industry also uses CFRP materials and is a potential driver for recycled CFRP components as recycled CFRP parts can cost auto manufacturers 30%-40% less money.5 CFRP Manufacturers and Recyclers can play a major role in the Advantage Valley’s significant automotive supply chain.

RATIONALE FOR STARTING, EXPANDING, OR LOCATING A CARBON FIBER REINFORCED PLASTIC MANUFACTURING AND RECYCLING OPERATION IN ADVANTAGE VALLEYThe CFRP Manufacturing and Recycling industry provides great opportunity for entrepreneurs and business leaders to be successful in the Advantage Valley Region. This is demonstrated by existing supply chain opportunities locally in the region and in neighboring states, unmet regional demand, profit opportunity, and relatively high-wages. Additionally, the Region is home to several important

OPPORTUNITIES IN CARBON FIBER REINFORCED PLASTIC MANUFACTURING AND RECYCLINGAdvantage Valley is an economic development organization and region that lies in the heart of the Eastern United States and encompasses two Metropolitan Statistical Areas (MSA) including Charleston and Huntington, West Virginia. Through an extensive research and stakeholder engagement process we have identified Carbon Fiber Reinforced Plastic Manufacturing and Recycling as a significant business opportunity for entrepreneurs and growing businesses in Advantage Valley.

1 McKinsey, West Virginia Forward2 Ibid.3 Ibid.

4 Ibid.5 Ibid.

Carbon Fiber Reinforced Plastic Manufacturing and Recycling | 2

research and resource institutions relevant to CFRP Manufacturing and Recycling including the Marshall University Robert C. Byrd Institute for Advanced Flexible Manufacturing; Chemical Alliance Zone; ChemCeption; Mid-Atlantic Technology, Research & Innovation Center; and the West Virginia Manufacturers Association. Entrepreneurs with knowledge of aircraft manufacturing, automotive manufacturing, engineering, or additive manufacturing can successfully enter the market and contribute to related supply chains.

The CFRP industry in the Advantage Valley Region has a presence related to recyclers who could operate in the CFRP industry, but does not currently possess any manufacturers of CFRP. The industry represents 15 recyclers in the Region realizing approximately $5.9 million in annual profit. Regional demand is strong at $22.9 million and only 34% of this is met in-region by existing businesses – demonstrating the significant market opportunity in the Advantage Valley Region. Job prospects are strong as well. Average earnings for the industry are relatively high at $58,884.

Key Data for the Carbon Fiber Reinforced Plastic Manufacturing and Recycling Industry in Advantage Valley

NAICS Code 335991 423930 Total

Description Carbon and Graphite Product Manufacturing

Recyclable Material Merchant Wholesalers

Total

# of Business Establishments 0 15 15

2017 Jobs 0 152 152

2022 Jobs Projection 0 142 142

2017-2022 Change 0 -10 -10

2017-2022 % Change 0% -7% -7%

2017 Total Demand $3,342,879 $19,600,901 $22,943,780

2017 Demand Met In-Region $0 $7,901,465 $7,901,465

2017 % Demand Met In-Region 0% 40% 34%

2017 Demand Met by Imports $3,342,879 $11,699,436 $15,042,315

2017 % Demand Met by Imports 100% 60% 66%

Average Earnings per Job $0 $58,884 $58,884

Industry Profit $0 $5,838,049 $5,838,049

ENTREPRENEURIAL SKILLS In addition to the opportunity-specific competencies described in Suggested Career Pathways, it is important that potential small business owners also demonstrate proficiency in key entrepreneurial and management competencies. The U.S. Department of Labor, Employment and Training Administration has identified the following competencies, which cross sectors, size, and typeof business.6

ENTREPRENEURIAL SKILLS MANAGEMENT COMPETENCIES

� Staffing

� Informing

� Delegating

� Networking

� Monitoring Work

� Supporting Others

� Motivating and Inspiring

� Developing and Mentoring

� Strategic Planning/Action

� Preparing and Evaluating Budgets

� Clarifying Roles and Objectives

� Managing Conflict and Team Building

� Developing an Organizational Vision

� Monitoring and Controlling Resources

� Principles of Entrepreneurship

� Entrepreneurial Process

� Leadership and Team Building

� Managing Growth

� Innovation and Invention

� Opportunity Orientation

� Research and Development

� Technology Transfer

� Planning

� Venture Analysis

� Stages of Planning

� Marketing

� Marketing Analysis and Strategy

� Product/Service Management

� Pricing

� Selling

� Promotion

� Financial Management

� Financing

� Accounting

� Money Management

� Business Management

� Operations Management

� Human Resources Management

6 https://www.careeronestop.org/CompetencyModel/competency-models/entrepreneurship.aspx and https://www.careeronestop.org/CompetencyModel/competency-models/building-blocks-model.aspx

3 | Carbon Fiber Reinforced Plastic Manufacturing and Recycling

Carbon Fiber Reinforced Plastic Manufacturing and Recycling | 4

SUGGESTED CAREER PATHWAYSThe most likely source of small business owners in Carbon Fiber Reinforced Plastic Manufacturing and Recycling is individuals with knowledge of aircraft manufacturing, automotive manufacturing, engineering, or additive manufacturing.

COMPETENCY PROFILE

� Knowledge that wholesale trade establishments engage in wholesaling products, including motor vehicles, furniture, construction materials, machinery and equipment (including household-type appliances), metals and minerals (except petroleum), sporting goods, toys and hobby goods, recyclable materials, and parts

� Knowledge of carbon and graphite manufacturing, including the manufacturing of carbon, graphite, and metal-graphite brushes and brush stock; carbon or graphite electrodes for thermal and electrolytic uses; carbon and graphite fibers; and other carbon, graphite, and metal-graphite products.

� Knowledge of carbon and graphite manufacturing of devices for storing electrical power (e.g., batteries), for transmitting electricity (e.g., insulated wire), and wiring devices (e.g., electrical outlets, fuse boxes, and light switches).

� Knowledge of mechanical processes, production, and machine operation

� Ability to operate vehicles and objects and appropriately troubleshoot, repair, and maintain mechanical equipment

� Proficient in customer and personal service, including the ability to resolve conflicts, settle disputes, and engage in team-based cooperation

� Excellent mechanical aptitude and physical coordination

CREDENTIALS AND EDUCATIONAssociate’s DegreesMachine Tool TechnologyIndustrial Electronics Technology

CertificationsNational Institute for Metalworking Skills (NIMS)Applied Industrial Technology CertificateSolid Waste Association of North AmericaAmerican Composites Manufacturing Association American Petroleum InstituteAmerican Welding SocietyInternational Fluid Power Society

Bachelor’s DegreesElectrical EngineeringMechanical Engineering

Advanced DegreesElectrical EngineeringEngineering Science and Mechanics Mechanical Engineering

TECHNICAL ASSISTANCEAdvantage Valley – Regional Economic Development Between Charleston and Huntington

The Advantage Valley Region is rich with organizations that support new and growing businesses. As an entrepreneur in the Region, we recommend connecting with your county-level economic development organization as the first point of contact to align resources for the launch or expansion of your business. If you are undecided as to where to locate your business in the Region, please contact us at Advantage Valley, and we can help guide you through the site selection process. Additionally, you may want to contact other groups including local / municipal economic development organizations; industry associations; chambers of commerce; workforce training and education institutions; and entrepreneurial support networks, accelerators, or incubators. A comprehensive list of these contacts is available through your county-level economic development organization or by contacting us at Advantage Valley. As a collective region, we are focused on supporting entrepreneurs and small businesses, and we look forward to connecting you with resources to streamline the formation and growth of your business in Advantage Valley.

5 | Carbon Fiber Reinforced Plastic Manufacturing and Recycling

CountyType of Support

Organization Address Website Phone

AllEconomicDevelopment

Advantage Valley

1045 Bridge RoadCharleston, WV 25314info@advanta-gevalley.com

http://advanta-gevalley.com/

304-342-6972

Boone County

EconomicDevelopment

Boone County Community and Economic Development Corporation

1 Avenue C, Suite 101 Madison, WV 25130

http://www.boonecounty-wv.org/devel-opment-office.php

304-369-9127

Cabell County

EconomicDevelopment

Huntington Area Development Council (HADCO)

916 5th Ave, Ste. 400Huntington, WV 25701

http://www.hadco.org/

304-525-1161

Clay County

EconomicDevelopment

Central Appalachia Empowerment Zone

4208 Wallback RoadClay, WV25043

http://www.caez-wv.org/

304-587-2034

Kanawha County

Economic Development

Charleston Area Alliance

1116 Smith St, Charleston, WV 25301

http://charles-tonareaalli-ance.org/

304-340-4253

Lincoln County

Economic Development

Lincoln Economic Development Authority

6888 McClellan St., 2nd Floor, Ste. 2, West Hamlin, WV 25571

http://www.lincolneda.com/

304-824-3838

Putnam County

EconomicDevelopment

Putnam County Development Authority

971 Street Route 34, Hurricane, WV 25526

http://pcda.org/

304-757-0318

Wayne County

EconomicDevelopment

Wayne County Economic Development Authority

25 Elm School Lane, P.O. Box 519, Wayne, WV 25570

http://www.wceda.org/

304-272-9050

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For more information, visit our website at www.advantagevalley.com.304-342-6972 | info@advantagevalley.com