Business Diversification with Environmental Benefits Success Story
Functional Coatings – a local business in adhesives and coatings using solvent based materials was finding tough going in product sales. They saw a potential opportunity in the water based adhesives and environmentally friendly building materials marketplace. They had a potential building supplies customer looking for a water based adhesives solution for their building wrap product, but not enough available space for the required proof of concept to produce one million square feet of rolled and adhesive coated building wrap. They already owned the required chemistry lab and production equipment but lacked the expansion space and the confidence to immediately invest in real estate. They approached the Center about leasing an additional 2,500 square feet for three months – not what any other real estate owner would do.
We did….and they succeeded with proof phase one with 2,500 square feet and a three month term, expanded to 5,000 square feet and succeeded with phase two, expanded to 8,500 square feet, and then 21,000 square feet and sales volume continues to grow. Functional Coatings is now a supplier to at least five different building materials product lines, have extensively increased sales, and expanded the number of jobs in the company. Gerry Fortier, GM and Partner at Functional Coatings described the experience: “We had a product diversification opportunity in building wrap requiring additional space and taking advantage of our proven expertise. We needed incremental additional space to execute our ‘proof’ in stages to minimize financial exposure. Each time the Center met our needs in footprint, in cost, and in lease term. The approach was instrumental to our success and now business continues to grow in this product area – as we help customers save energy and money.”
If you are driving along and see new building construction going on and the exterior is covered in bright blue, light green, or some other color that is not flapping in the wind, it is likely adhered to the building and produced by Functional Coatings……by the way, the wrap will increase the ‘R’ value of the structure and save energy and building operation costs.