Decatur Steel Industries | Application Preview
Decatur Steel Industries is seeking government grants to support its growth initiatives. The funding will be used to complete land development and acquire new materials handling equipment, enabling the company to increase its operational capacity and hire additional staff.
The business plan emphasizes that with the new land and equipment, Decatur Steel will be able to process a higher volume of materials, including sheet piling, pipe, casing, and pipe piling. Establishing a rail line will also enhance their ability to offer intermodal services, further diversifying their capabilities.
The rationale for granting the funds highlights the potential for a 4-5x increase in material handling volume, which directly correlates with revenue and profitability. This growth presents opportunities to expand into related services such as trucking, factoring, and intermodal transport.
In terms of competition, Decatur Steel does not face direct rivals since it focuses on providing value-added services rather than buying and selling steel. Its strategic location near a major manufacturer allows it to offer significant cost savings on transportation for customers, who no longer need to invest in their own facilities nearby.
The competitive edge of Decatur Steel lies in its unique position close to the Steel Dynamics Structural and Rail division, which sets it apart from similar facilities across the country. This proximity provides a first-mover advantage and enhances its customers' competitiveness in the market.
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General Information
Business Registration Number: 8000611409-001
Location: Decatur, In, United States
Length of Operation: 1-5
Number of Employees: 1-10 Employees
Annual Gross Income: $500k to $1M
Annual Gross Expense: $500k to $1M
Open to Loans: YES
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Funding Usage
This funding would allow us to finalize our land development, as well as purchase additional materials handling equipment, which would in turn expand our capacity and require the hiring of additional staff.
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Business Plan
With further land development, providing additional space, as well as the purchase of additional materials handling equipment and a rail line we will be able to process additional tonnage as well as process different materials, including but no limited to sheet piling, pipe, casing, and pipe piling. We will also be able to offer intermodal service with the addition of the rail line. With the proper strategic investment we have the opportunity to show a 4-5x increase in the volume of material in which we can handle. This additional volume direct correlates with revenues, and profits. As the volume increases the opportunity to expand into additional verticals associated with the services we provide. These include, trucking, factoring, and intermodal services.
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Self Identified Competition
We do not have and direct competitors, as we do not buy or sell and steel, we simply provide a value added service. With our strategic location near one of the largest structural, rail, and piling products manufacturers, as well as having our own trucks, we can provide our customers the opportunity to reduce or even eliminate the need to truck the material to their facilities located through out the US to be fabricated, or stored before being sold to their final customer. This provides not only a cost savings in transportation, but a competitive advantage because of location, and negates the need for them to make a substantial investment to open, staff, and operate their own facility within a close proximity to the manufacturer. Per the above response we do not have any direct competitors in our region. While similar facilities exist through out the country, we are the only one located near Steel Dynamics Structural and Rail division. This not only give us first mover status, but allows our customers to gain a competitive advantage over their competition.
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