I am going to try and make updates on a weekly basis to keep shareholders better informed as we move the company forward on several projects.
We have begun the process of setting up the shared shop in Yakima Washington. The advantage of sharing a shop is 2 fold. We limit our need to own equipment of a diverse nature and better control our ability to ramp up and down the unpredictable world of R and D and manufacturing.
This location is not intended to be an actual "production facility". There is a huge “underutilization” world wide in ship yards and the associated production facilities. We can secure very competitive bids on a contract basis to assemble the vessels for overseas sales potential.If you consider the savings of shipping a finished project and the lower manufacturing costs of overseas yards, it gives us a huge competative edge.
We are strictly limiting the usage in Yakima to R and D and testing on the Columbia River. Once in the Columbia River at Richland, we are able to easily navigate the waters from Lewiston Idaho to the mouth of the Columbia River as a gateway to the Pacific Ocean.
With that said, we have the shop about half unpacked from our recent move 800 feet to the West. This will consolidate the operation of the teaming business as well as the ability for me to oversee any activities in the shop related to Radix Marine.
Kathy has set up a Face book page to keep shareholders better informed of activities and updating at the company. We will also be updating the website as time permits. At first the changes will be subtle, but then you will see significant changes to sections as they are brought online.
In the coming weeks, we will be uploading some pictures of the new shop area as we get it organized.
I am having a new sign made that we will being put on 28th Street to better identify the Office and shop areas. We had some signs at 3112 West Washington, but someone removed them in spite and no one seems to know where they went.
We continue to look at new opportunities to diversify the company and improve shareholder value.
Any suggestions you might have to improve communication, products, services or in diversifying the company, feel free to give us a call.
Look forward to more updates, I am actually having fun again and this is a blast working on the different projects.
As I promised, I am going to try and get in shareholder updates at least every 7-10 days.
We have continued to get the shared shop put in order so we can resume work on several R and D projects we have cultivated over the last several years. One of the major obstacles was to get natural gas into the hanger space for a permanent, comfortable, reliable and affordable heat source.
They completed an easement agreement with Cascade Natural gas and saw cut the asphalt for the 400 foot extension of services. They expect to dig the trench this week and then install the gas line and drop to the hanger in the next 10 days. This will eliminate the need for the more expensive propane heat source.
Once this is completed, we can move the demonstration craft over and continue the work on the Anti Piracy Module (APM) and Oil Clean Up Module (OCM) along with the associated upgrades required.
We continue to look and negotiate an oversea sales and marketing agreement for the GB12. We feel it is one of the best delivery platforms available today for the money.
I, again, must apologize for the delays in getting the annual shareholder meeting organized. I have been embroiled in personal litigation and one would think the opposing council had developed rabies. Like all good animals that develop rabies, their usefulness and threat expires after a flurry of activity and thrashing about.
I am excited in moving towards spending more time on the projects for Radix Marine. I am also excited about the possibilities in diversification of the company. This has been a long time goal on mine to deliver shareholder value. This was one of the primary goals and objectives of the advisory board last year. I intend to see that all the goals and objectives are now met.
I also want to thank all of you that have taken the time to call or visit to see what we are up to. Fred will be spending much of the next 2 months visiting his daughter in California through Thanksgiving and his relatives in the Seattle area through Christmas.
I want to offer my personal condolences to Fred for the recent loss of his brother. His brother died suddenly a few weeks ago. It is never easy loosing someone that is close to you. I worked with his brother 10 years ago and he was a great person, brother, husband and father. Ralph will be missed immensely by all. I have encouraged Fred to take some time off and smell the roses of life.
We will post some pictures next week, I have to figure out how to do it and get them online.
Brad Goodspeed Director of new products
The last week has been interesting in the area of the Patrol Craft business.
On Monday ACH boats in Bellingham, Washington ceased production. Everyone in the industry needs to get behind them and wish them well on their efforts to restructure and move forward. They are a victim of the tsunami that is hitting many businesses today.
I am not trying to digress off of Radix Marine, but rather make a point. I have taken allot of flack for the business model I have been working on for Radix Marine. We have focused on foreign sales and diversification of the company into other products and services to increase shareholder value.
ACH Boats is a great company with great product line that many domestic organizations find suitable for their missions. They have simply been caught in the same scenario many businesses have, and will be, in the coming months.
Research and development is a very expensive undertaking in today’s world, with no guarantees in the end.
To that end, this is why I have elected to share a R and D space with another company and not have a manufacturing facility for Radix Marine. It makes financial sense to simply market, bid and procure sales overseas. Then go into that country and “license” an existing boat yard to build the end product. All countries are sensitive to keeping jobs “in country”. This business model does exactly that. With the current cost of producing a product stateside, taxes, overhead and then shipping the finished product half way around the world, this model makes much more sense and competitive edge.
Cities, Counties and States have become very aggressive to pass new taxes, fees and costs in an attempt to balance their budgets. Many have avoided the reality that they simply don’t have a revenue problem, they have a spending problem.
The taxing elasticity is no longer there. While the reported “official” inflation is 2%, the real inflation is significantly more than that. ACH faced the same dilemma that all business are facing. Costs have simply exploded beyond the ability to raise prices to cover. Many of these companies are caught in a catch 22 with domestic contracts. Fulfill competitive agreements made 3-4 years ago with razor thin margins and loose money or default on contracts because the “cost increase provision” is inadequate and many tied to the unrealistic CPI.
My point is this, Radix Marine is not burdened with this kind of agreements and its business model avoids these pitfalls exactly.
Radix Marine has some very committed and faithful shareholders. Many of them are very involved and take the time to call the company and question me on the direction we are taking the company. I appreciate the participation and also the many good suggestions people have made to date.
The world is full of negative thinking people and Chicken Littles. I apologize once again for the delay in the shareholder meeting. I will schedule it for after the first of the year. As late as things stretched into the year, I was hoping to have the process of bringing the filings current further along, thus allowing us to have a better interactive shareholder meeting. It simply made no sense to hold it in the holiday time of year.
I appreciate all the shareholder support. I look forward to a very productive 2011.