CMI has evolved a new technology using curly metal to create pile generating pads. In comparison to existing goods on the market, these kinds of pad offer several benefits: вЂўFaster pile traveling saves companies rental service fees, labor charge, and propagates overhead more than more feet driven in a given time period вЂўLonger existence of parts save companies additional expense in minimizing changeover period вЂўHeat amount of resistance further decreases changeover period, saving added expenses вЂўSafety вЂ“ CMI pads will not expose personnel to the severe heat and carcinogens that asbestos will
II. MARKETPLACE AND CONSUMER
Total pile feet driven is assumed to be between 290-390 million feet annually given the number of hammers existing and assuming hammers travel at an typical rate of 20 foot per hour, 31 hours per week, and twenty-five weeks a year. It is expected that one group of six CMI pads can last for 12, 000 foot, meaning there exists a potential marketplace for among 29-39 thousands of sets or perhaps 175-234 1000 individual safeguards annually, 18. 6-19. your five thousand safeguards per month. As only 6th, 500 to 13, 1000 of hammers are leased, the target market is 9, 750 to nineteen, 500 models annually if perhaps CMI objectives only companies who rental equipment and incur the monthly and weekly local rental costs given in the case. We certainly have assumed the fact that opportunity expense of operating a hammer, following accounting for capital costs, are similar intended for and recognized by both owners and renters given a competitive industry, so we certainly have added both segments together in an effort to size the market in this analysis. In setting an amount for the brand new CMI safeguards, it is important to understand the economical value developed (EVC) intended for the customer. All of us will do this kind of through a hypothetical 10, 000 foot load drive contract extrapolating through the results in the two testing CMI already performed. The table beneath calculates the EVC skilled by Colerick and Fazio as well as a proposal of EVC in the future presented management's assumptions that, on average, a set of CMI pads...