What Problem Does The Titan Brick Address?
At 94%, wood accounts for the vast majority of all buildings constructed today. The homes we build today are being destroyed by hurricanes, tornados, fires, floods and insects. About 70% of all homeowner insurance claims are for water damage, mold and mildew. Some experts say that 90% of all homes in the US have mold and mildew present, which can cause illness and sometimes death. Wood frame homes burn, mold, rot, swell and can be infested with destructive insects. They require constant maintenance and waste huge amounts of energy. Concrete block homes often have even more problems.
What Is The Titan Brick?
The Titan Brick is a new, disruptive green building technology.
It’s a patent pending invention that actually costs less than wood and concrete. Yet, it’s far better than wood and concrete in almost every way.
After $70,000 in independent laboratory testing; we have proven the superior properties of this new brick.
Our Brick System:
- Can resist sustained hurricane 5 force winds! (confirmed in wind tunnel testing)
- Can also resist F4 tornadoes! (confirmed in wind tunnel testing)
- Builders can potentially make 30% to 64% more profit and receive large tax credits on every build job. (Profits vary due to location and type of building).
- Could potentially provide 50% to 60% energy savings, (Engineers from the department of energy’s Oakridge Laboratory tested our bricks and said they believe the number is closer to 60% energy savings; emphasizing that it’s practically off the charts and exceptionally green!)
In Addition, Our Brick System Is Also Virtually:
- Mold proof
- Fire proof
- Termite proof
- Mildew proof
- Has sound proofing qualities
Lastly, We Have Proven That:
- Although our brick is made of 90% dirt, it’s actually two and a half times stronger than concrete (2500 Psi).
- The walls have a higher earthquake rating than wood and concrete (Lab tested).
- The brick can hold a screw 5% better than solid Pine wood (Lab tested).
- Our bricks have a much higher insulation value than wood or concrete (Lab tested).
- We can produce the bricks using a very green manufacturing process (our bricks do NOT need to be fired; saving a lot of energy and the environment).
After taking over 6 years to develop this new composite; we are ready to mass market the Titan Brick.
Today, the government, businesses and consumers are strongly demanding green. What green material will builders use for the walls? Their current options are terrible as wood, concrete and steel aren’t green. So, what will they use to meet the demand for green buildings / walls?
We believe Titan is the only practical green building material for interior and exterior walls (the shell of any building).
How profitable could a product be if it’s the only practical green option for building walls in the entire U.S. or international markets? These markets are very large with the U.S. construction market at 869 billion per year and the global market is 7.2 trillion.
Plus, unlike most green products, it actually costs less than its competition (wood, concrete, steel,etc.).
Since 2005, builders in the U.S. receive a $2,000 tax credit for building an energy efficient home or up to $1.80 per square foot for a commercial building. In addition, a new bill has been introduced that would provide an additional $3,000 tax credit for building a disaster resilient building.
Titan Bricks can also be used in other large building segments. They can be used for retaining, privacy and sea walls. Plus, we use the same composite to make cost effective, ultra green roof tiles (our Titan Roof Tiles product).
The Titan product should shine in all of those areas because of its exceptional qualities and lower cost. We feel the timing is perfect because the demand for green has never been stronger and is one of the fastest growing industries in the world. An architect from one of the largest builders in the country even said “Your brick is so green it’s blue!”
Again, we have a finished product with over $70,000 in independent lab testing that proves the bricks exceptional properties. You can also view the letter from an engineer (Ready to seal plans on Titan buildings) and a professor (PhD in engineering) who has tested our bricks. The letters are listed on our website.
Is Green Building Really Taking Off?
- Extreme Market Growth – Green building techniques represented only 2% of the construction market in 2005 and grew to a full 44% in 2012. (McGraw Hill Construction Publication)
- Revenue Doubled In Just Two Years – In 2010, the top 10 green builders had a total of 19.852 billion in revenue. In 2012, the same ten companies did over 44. (Their revenue more than doubled in just 2 years)
- The Current And Future Outlook Is Bright – The green homes market is expected to increase fivefold by 2016. In fact, there was only 3 billion in green building in 2005. Just 6 years later it exploded to 58 billion in 2011 (McGraw-Hill).That’s an increase of 1,900% in just 6 years. The green market is predicted to jump up to 303.7 billion by 2017! (Time).
- Fastest Growing Segment – “Green” is the fastest growing segment of the building industry with an average CAGR of 108% through 2015 (McGraw Hill Construction Publication)
- Local, State And Federal Governments Are Strongly Demanding Green – Governments are passing new codes and laws that are leaving many builders no choice but to build very green. Under the Obama Administration, guidelines for contracts issued by the federal government are being dramatically changed to mandate green building techniques to save energy. Currently, government buildings of all types account for 37% of all non-residential building construction. That equates to $136 billion per year.
- Many Builders Are Stressing Over Meeting Green Codes - Many contractors are very concerned that they may not be able to build to meet the new green codes and still turn a profit. This is forcing many builders to aggressively seek out new green building materials that can help them meet the new, stringent codes. With a projected 50% to 60% energy savings; we can’t find another material that will help builders meet the tough green codes better than our Titan product.
- Companies Are Also Strongly Demanding Green – A study showed that 81% of Business executives want to green their companies. Studies prove that people will spend more with brands that have a green reputation and be more loyal to those brands. One study found that green companies are viewed as “good companies” by consumers. Therefore, we feel the large commercial building market ($483 billion per year) will place a strong demand on the Titan brick.
- Tax Incentives – In addition to strong tax credits for building energy efficient buildings; the government has also been forcing the change to green building by offering incentives tied to Low Income Housing Tax Credits to promote certified Green projects.
- Many Factors Are Driving Green Buyers – With “higher quality” and “increases in energy costs” topping the list, indicating that today’s green home and commercial buyers are not just green consumers but buying for the key benefits.
- Study Shows Consumers Are 58% More Likely To Buy From Companies That Have A Green Image – The Natural Marketing Institute has found, in its consumer research that customers are 58% more likely to buy a company’s products or services if they know that company is mindful of its impact on the environment and society.
- The Green Subculture Is Now Mainstream (68 Million Adults) - The subculture called “Cultural Creatives” has been emerging for the past 40 years and is now in the mainstream, leading this sustainable revolution. This demographic, according to the NMI, is roughly estimated at 68 million adult Americans who make purchasing decisions based on their personal, social and environmental values.
Very High Upside Potential.
- A Category All To Itself- We haven’t found another green wall product that we feel comes remotely close to Titan’s benefits. It’s as if there isn’t even a second choice. Thus, we feel that Titan is so unique and disruptive that it’s actually in a category all by itself.
- Enormous Marketplace - Titan’s disruptive technology addresses an enormous (869 billion dollar) U.S. marketplace. Few products are this disruptive and can address such an enormous market. The annual revenue potential is in the tens of billions.
- Marketplace Comparison – The size of the credit bureau reporting industry in the U.S. is only 4 billion dollars per year (“CBS News”). Yet take a look at the value of the big three companies in that small industry:
- Experion (market cap is 11.54 billion)
- Trans Union (market cap is 4.2 billion)
- Equifax (market cap is 7.57 billion)
All three total 23.2 billion. Now think of the size of the construction marketplace for Titan; It’s 860 billion in the U.S. and 7.2 Trillion worldwide. Again, just a four billion marketplace made three companies worth 23.2 billion dollars.
- Lack Of Direct Competition – We cannot find any other product that has similar properties to our brick / invention. Thus, we feel that we will be entering a marketplace without any direct competition from a similar green product. This would be an unusual luxury as most building material companies have a lot of competitors (dry wall, flooring, concrete, lumber, faucets, etc). We simply cannot find another green wall product that comes close to Titan’s green properties, price or performance. Thus, when we consider the drastic difference between Titan and other wall materials; we feel the green wall segment doesn’t contain any real competitors. Therefore, we feel Titan has the opportunity to own a very large portion of the 860 billion dollar construction marketplace. Take a look at the building material chart on the website to see how we think Titan compares to other building materials.
With Governments And Businesses Placing Strong Demands On Green, What Else Will They Use?
Again, many Companies and federal, state and local governments are demanding green for their buildings (spending almost 500 billion per year). It’s not just the federal government pushing the codes; 143 cities across the U.S. have passed green building codes. What other wall product will meet the green requirements demanded by governments and businesses? Especially when traditional building materials (concrete, steel and wood) aren’t green and Titan is extremely green. Why wouldn’t Titan end up owning the wall material market?
Building Is Booming Again – Housing and commercial starts are way up and expected to remain strong through 2017.
Higher Energy Costs – Energy costs are increasing in many areas around the country. Many experts expect prices to continue to rise due to tighter regulations and restrictions on coal production and to pay for the cleanup of coal. Also, consumers and businesses continue to use higher amounts of power. Wouldn’t they prefer to have their power bills cut in half?
Many Feel We Are Living In The Era Of Super Storms And Natural Disasters. Events Like The Following Are Driving Consumers Desires For Safer, Healthier Homes And Workplaces:
a) Hurricanes like Katrina and Sandy have many people from Houston to New York very concerned about hurricanes. Many have died and tens of thousands of homes were destroyed. Titan addresses all of the primary concerns (high winds, flooding damage, mold).
b) Deadly tornadoes across the Midwest.
c) Fires in States such as California and Colorado.
d) Recent increase in earthquake activity around the world.
7.2 Trillion Dollar Global Marketplace – Global revenue for construction of all types exceeds $7.2 trillion. Major countries that account for the global construction growth include Australia, Canada, China, India, Indonesia, Russia and the US.
Intellectual Property – After thorough patent searches and an active pending status; we feel we are in a very strong position to receive two patents. One on our unique material / composite and one on our proprietary manufacturing process. Titan management recently executed an option agreement on the chemical (regarding a 100 year license on the primary “confidential” chemical).
Is The Titan Brick Really Cost Competitive?
What Are The Margins?
- What other wall construction material could beat the price of a building material that’s 90% dirt; doesn’t have to be fired and can be installed with mostly unskilled labor?
- Various wall cost guides show that the cost of a sq. ft. of wall around the country varies from around $7 to over $28 per sq. ft. Many industry professionals we polled felt the average cost for a sq. ft. of wall is between $6 and $15. Commercial buildings and buildings in states like Florida may even be higher. Our estimated material and labor cost for a sq. ft. of wall of the Titan brick system is only about $1.98 (after a much higher markup than most manufacturers enjoy). Thus, in many areas Titan could potentially add a markup of over 200% and still be priced well below the market.
- Other masonry systems average $10-25 or more per square foot. Our estimated material costs are way below typical square foot cost for a conventional wood wall (depending on our markup which it may be higher than 100%). Estimated costs of manufacturing are 13-16 cents per brick including estimated fixed and variable costs.
Mold, What’s The Big Deal?
“The Mold Spores; Stachybotrys Trichothecenes Are Considered Biological Warfare Weapons By The U.S. Army,” (New York Congressman Michael Grimm)
We feel the Titan brick is extremely mold resistant and several industry professionals have said they feel its mold proof. However, for legal reasons we will say mold resistant in this document. Wood homes are notorious for having serious mold problems. This is because mold tends to grow quickly when any material in the walls such as wood, fiberglass or dry wall is exposed to water.
We all know that many people are allergic to mold (some experts estimate 30% of us are allergic to mold) and that is causes many illnesses including death.
However, most people are unaware of how extensive the problem is. Here is some recent information relating to the serious mold problems in the U.S.:
- As Many As 40% Of American Schools And 50% Of Homes Have Mold - In an interview with a top mold expert, Dr. Jack Thrasher, he estimated that as many as 40% of American schools and 50 percent of homes have mold infestations, unbeknownst to the people occupying those buildings. It follows that adverse health effects of mold may be reaching pandemic levels.
- Other Expert Says The Majority Of Homes In The U.S. Have Mold - No one knows exactly how many homes have mold behind the walls, but the best current estimate is about 70 percent. It is highly unlikely that there is a home in the world without some stachybotrys spores in it. (Ronald E. Gots, MD, PhD, International Center for Toxicology and Medicine).
Around 18% Of U.S. Homes Have Water Leakage Every Year – In 2009, 9.9% of all U.S. homes had water damage from exterior leakage, while 8.1% had water damage from interior leakage based on data from the American Housing Survey of the U.S. Census.
A Few Additional Company Highlights
- Finished product with six years of R&D and extensive independent testing that proves the bricks exceptional properties.
- Engineers ready to seal the plans for Titan buildings.
- Letter of support (after testing the Titan brick) from one of the foremost experts in the world in masonry systems; a professor with a PhD in Mechanical Engineering that advises many countries with a focus on building design and construction for sustainable building systems.
- Expert advisory panel and key industry consultants already in place.
- Strong management team with the CEO and COO having 69 years of experience in the industry.
Management Team Snapshot:
- CEO: Don Blalock (Contractor for 35 years and inventor of the Titan brick)
- COO: Marion Alley (a High level executive serving the building materials industry for over 34 years)
- Chairman: Corey Park (Accomplished business executive with over 20 years in business and finance)
- Vice President of Training and Implementation: Lanny Park (Contractor for over 20 years)
The information above is not a solicitation of securities and is for informational purposes only. The projections, estimates, numbers and information above was not constructed by independent professionals and should not be relied upon for investment or any other purpose. The information above was constructed by management based on their assumptions and opinions. Please do not rely on the information to make a business or investment decision. Management cannot and does not claim that the information above is based on facts.