Anticipating big moves ahead for the company, Eco Building Products president and CEO Steve Conboy sent out a letter to the company's shareholders Tuesday, providing a status update heading into the second half of the year and the mainstream national market as a whole.
"We now are gaining national attention with national supply chain via our primary client, a Major Big Box retailer," wrote Conboy.
Among recent developments, ECOB is operating under a lean, "supply-only" business model that'll provide coating services and special order sales for Eco Red Shield protected lumber.
Eco is also bracing for increased demand in the second half of the year, which is prompting the company to expand its supply chain capacity.
"We have positioned the company to scale as product demand grows," added Conboy. "We represent a breakthrough opportunity in a $100B worldwide industry, which is central to infrastructure development, while providing an ecologically friendly solution to key unmet needs in the space."
Among its methods for scaling are direct to consumer sales via the aforementioned big box customer, pre-packaged home infrastructures, and a high-margin affiliate program in which Eco will supply coating equipment and application chemicals to lumber manufacturers.
The company is also moving ahead with its aim to become a cash-flow positive business by reclassifying certain liabilities and increasing its access to capital, and it's gearing up for the big shift with a shift in branding as well.
"In our opinion, we feel that in order to be most effective in the manufacturing and distribution of a cost-effective, defensive lumber product, we change the perception that Eco Red Shield is a luxury commodity, and instead use targeted marketing and education to appropriately instruct the marketplace that Eco Red Shield is a critical component to large infrastructure planning going forward, and not using Eco Red Shield is exposing end users and insurance companies to significant additional safety risk and rehabilitation expense," added Conboy.