The Equipment Store is planning on opening an equipment sales, service and parts store in the existing vacant K-Mart building in Gallipolis, Ohio area early in 2018. It is our belief that the pending softening of EPA regulations regarding power plant emissions should increase the demand for coal, thus helping to restart our local coal industry and local economy. Executive Orders concerning pipeline construction and expediting permitting should also have a dramatic effect locally in the overall construction markets. These actions should help energize the service and commodities industries that produce new construction, both residential and commercial, which in-turn helps energize other sectors of our overall economy. With this upsurge in our local economy, a steady increase in demand for goods and services should be realized, including light to medium construction, agricultural equipment, personal recreational equipment, and professional and personal Landscape equipment. With a line of 7 different manufactures The Equipment Store fills the needs of everyone from the Homeowner to the small farmer to the small construction operator, to the timber Industry from small land clearing to major timber operations
Our target market includes the homeowner, weekend farmer small construction contractors, to large and small timber and land clearing operations. For over a decade there has clearly been a pent-up demand for small to medium sized agricultural, construction, forestry and recreational equipment. With possible employment increases in Gallia and the surrounding counties in major industries such as coal, oil & pipeline construction the amount of disposable income will increase exponentially with each mine opened or well drilled. We are targeting these industries, which are some of the highest paying in the United States.
The Equipment Store has secured full-service, dealership agreements with the following companies:
Husqvarna - Forestry, Timber and Landscape Equipment
Wacker-Neuson - Small to medium size construction equipment
Mahindra - Small to medium farm equipment
Titan Trailers - Suppliers of all types of Agriculture &construction trailers
TORO - Residential & Landscaping Equipment
Prentice Forestry Equipment - A total line of forestry equipment from Feller Bunchers, Trailer Loaders and Forestry Mulchers
Rayco – A complete line of Mid-Size Forestry Mulchers, Stump Grinders, Brush Chippers, Horizontal Grinders, and Aerial Trimmers
We have worked closely with their representatives in not only qualifying target markets, but also developing product selection, inventory volumes, anticipated sales and overall revenue streams, both in local and regional sales and rental markets. As an example, in 2016, in only the Gallia/Jackson/Lawrence county market, 200 “tractor” units were sold. Mahindra anticipates we will capture at least 10% of that singular market in our first year and with an improving economy, the number of small (under 40HP) tractors are up 18% in 2017 over 2016 and these numbers will only improve with an improving economy. The Toro Landscape line will benefit from the improved economy. With the coal mines and Oil & Gas industries starting to increase production (*an increase of 20% in June 2017 over all of 2016) the land clearing forestry mulchers produced by Rayco & Pentrice will be in demand for right of way work. As will the chainsaws form Husqvarna.
With the anticipated resurgence in our local/regional economy, The Equipment Store will be targeting those businesses that support the agri-business, coal, gas, oil and logging industries, as well as the employees of these industries. With the very recent expediting of construction and EPA permitting, SE Ohio should realize a surge in construction of transmission and distribution lines in oil & gas. Pending lessening of long-range emissions requirements should also get our power plants back and up operating at near capacity, thus increasing the demand for coal. This puts people back to work. This puts small businesses back in business that service these industries. It allows for remodeling / building new homes and purchasing personal use and outdoor equipment. The same applies for the small commercial and industrial users, and their employees. It will also help feed the continuity of our agri-industry. In all these markets, they will be buying, or renting, small to medium sized construction equipment, and small farms will be buying new implements and small to medium sized tractors. The Equipment Store will be poised to service these markets. Simply put, our target markets are the Construction, Farming, Landscaping, Timber and Forestry and Land Clearing industries and employees of these major markets.
The Equipment Store is planning to pursue the US Government & Ohio, Kentucky & West Virginia equipment market.
The US Government purchases thousands of pieces of equipment each year form dealers like us. The States of Ohio Kentucky & West Virginia will also purchase hundreds of pieces of equipment that will be purchased from dealers that are registered to bid. We believe we can sell an additional $250,000 of equipment through this outlet.
These numbers are not reflected in the overall sales forecast for each manufacture, but are in a separate line item.
The Equipment Store will have Manufacture trained mechanics for all brands sold.
The mechanics will also work on other brands of equipment that are not sold, in an effort to broaden the use of the shop area and for the possibility of selling new equipment to owners of other brands. We also plan to have a road service truck to work on equipment that can not be transported to our shop.
Sales Staff, Service Staff, Accounting Staff, Management Staff
Mahindra and Wacker-Neuson both have programs that include training at their home offices for the service, sales and management staff. Both also have ongoing web-based training that can be completed in-house, to keep everyone up to date. The accounting and office staff will be trained in our office on our sales and accounting software. Husqvarna & TORO have web-based training for the service & sales team and accounting as well.
Equity, Cash, Bank Loan & Investors
The owners plan raise r $2,500,000 of outside investment and / or bank financing.
We are working with Citywide Development to secure a SBA funded loan.
The details of this financing option are included.
We are also looking into having private investors help with financing of this project.
At the end of Yr-1, our investor(s) will realize a cash-on-cash return on their original investment and will continue to receive an annualized run-rate thereafter. The percentage of return will be negotiated. The owners reserve the right to cash-out the investor(s) at the end of yr-5.
At this time, we are also looking into the availability of government grants and funding for part of the cost of startup and training of staff.