Montgomery Tank & Fabrication | Application Preview
Montgomery Tank & Fabrication is seeking government grants to enhance its financial stability and expand its product offerings. The funding will be used to lower overhead costs, enabling the company to maintain a healthier profit margin and manage monthly expenses more effectively. This financial support would also allow for timely purchases of steel, reducing reliance on client payments.
The business plans to diversify by adding metal roofing and siding to its product line, responding to rising demand in both residential and commercial markets. New machinery will be needed for production, but the expansion is expected to increase profit margins, as it requires minimal manpower and will consolidate delivery costs.
Montgomery Tank & Fabrication prides itself as a key player in its rural community, contributing significantly through charitable donations and providing employment. Established in the 1970s and taken over by Samantha Pinder and her family in 2020, the business has a strong foundation backed by the extensive industry experience of co-owners Jarrod and Ricky. Despite experiencing growth initially, the company has faced challenges due to current economic conditions, which have impacted sales.
The application emphasizes that the business is the sole local provider of metal septic tanks and competes with few other manufacturers. Its unique product, featuring a tar coating for durability, offers a cost-effective solution to consumers. This competitive edge underscores the importance of supporting the business, which plays a vital role in maintaining essential services and products for the community.
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General Information
Business Registration Number: 84-4782072
Location: Montgomery, LA, United States
Length of Operation: 1-5
Number of Employees: 11-25 Employees
Annual Gross Income: $1M to $10M
Annual Gross Expense: $1M to $10M
Open to Loans: YES
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Funding Usage
I would use funding to reduce overhead to where we had a greater profit margin to help take care of our monthly expenses. I would also be able to purchase steel and not be met with a large bill in 30 days relaying on timely payments from our clients to be able to pay for our materials to make the products we sell. Which will help us remain in good standing with our vendors financially.
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Business Plan
We are planning on implementing other metal products to sell to offset tank sales when they are low. Metal roofing and siding are being considered as the popularity is growing for use in residential properties as well as commercial properties. Purchase of new machinery will need to be made to manufacture the metal siding, however by manufacturing and selling our metal siding our profit margin will be greater. Overhead will be low as it only takes one person to run the machine to bend the metal and since we are already driving to pick up coils of metal for our tanks, we will be able to combine orders for both so no additional costs on delivery/freight. By implementing another metal product we will be able to diversify and off set costs when demand is low for one of our products. We are a small, rural, family owned business that is a great access to our small community. We give generous donations to our school to help fund organizations for our students, we are the biggest business that our little town has as far as revenue and it’s been in business since the 1970’s when it started. It is a staple in our community and my family and I purchased it in March of 2020 as the previous owner was in his 70’s and was ready to retire. My husband, father-in-law and I purchased it together and have been able to keep it going for the last three years. Jarrod and Ricky have a combined 60 years experience in the industrial construction industry to give them the knowledge and capabilities to run this business. They have ran crews night and day in oil refineries, chemical plants, and fertilizer plants in repairing the equipment used to make their products in a timely manner as not to lose money for those plants. This allows them to be diligent in time management for crews to get the best possible production out of man hours and the knowledge of how to weld and fabricate our own products at the tank plant. I have a college degree and am very knowledgeable on the business end, from brainstorming new marketing techniques and branding to increasing sales and handling financing where it benefits us the most. We did a tremendous growth upon taking over the company in 2020 and 2021, however the economy has caught up with us and sales are down. I believe you should invest in us because our company is successful and will continue to grow and become more successful in the next 5 years if we can get help to make it through this difficult economic period and over the financial hardships that comes with purchasing and starting up a new business. Our community depends on us a lot to help provide for our town and for our schools to prosper, besides us there are only a few other small businesses in our town to help. Thank you so much for your time and consideration in investing in us. Sincerely, Samantha Pinder
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Self Identified Competition
Surprisingly we have no local competition, we are the only metal fabricating company that produces metal septic tanks. There is one other manufacturer located in Alaska that also has a facility in Washington State that supplies to the northern area of the United States. We supply metal tanks to businesses such as Stine, Coburns and Southern Pipe in Louisiana and Mississippi. We are looking to get our tanks into Georgia and Arkansas as well. Since we are one of the only metal tank providers in our region I feel like it is critically viable to support us to keep our product available to our already loyal customers. Our metal tanks are dipped in a tar coating to increase the longevity of the life of the tank. It is a cost effective alternative to the more expensive concrete tanks for consumers. If we go out of business then that will no longer be an option.
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Contact Applicant
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