TBAP Business Assistance Industry Trends TBAP Industry-Wide Projects

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


Location of the 29 TBAP “Grantees”

Blue = 7 Processors

Red = 22 TDP Firms


Range of Products

Graphic Courtesy DK Enterprises


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)


TBAP Business Assistance Delivery($3.14 million, 29 Firms)

Marketing 18%

Testing 11%

Technical 21%

General 17%Equipment 32%


Case Study - Modular Rubber Drains


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


Case Study - Rubber Trails & Surfaces


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


Case Study: Holz Rubber


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


Case Study: Closed Loop Networking Showcase for

Walmart and Sam’s Club Buyers


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


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


CA Scrap Tire Industry Overview


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


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


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


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


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


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


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)


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)


Questions?

Ed Boisson

RW Beck

(415) 499-0919

[email protected]

www.rwbeck.com

Denise Kennedy

DK Enterprises

(916) 480-0443

[email protected]

www.dkenterprises.us

Documents

TBAP Business Assistance Industry Trends TBAP Industry-Wide Projects