6.1. SR 03-11-1996 - Laserfiche WebLink

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MARKETECH, INC. was started in March of 1990 and has grown to over $1,000,000.00 in sales as of 1995 year end. Currently Marketech services over 60 accounts through out the US, Canada and some overseas accounts. Marketech still services the same markets and services that were identified in the 1990 start up business plan with some expansion into additional services to the ATE "Automatic Test Equipment" market. The annual sales has been increasing at an average of 25% per year with a 36% growth in the most recent year of 1995. 1996 brings continued growth of an expected 25% along with the addition of a new project to assemble Pakon Impak Index Systems. The new Index Systems were projected to be at 500/yr but recent market showings have caused Pakon to increase their forecast to 200/month by this June (96). This will have an additional impact of 25 to 30% additional growth to total sales. Total sales for 1996 are estimated to be 1.4 to 1.6M. Employment is expected to increase from 20 at 1995 year end to 27 by end of 1996. The annual growth of 25% normal is expected over the next 3 years and should be attainable due to the new project which has an estimated 5 year market life. To attain this growth Marketech is in need of both increased line of credit for additional working capital as well as manufacturing space. Marketech currently occupies 4350 sq. fi. of manufacturing and office for the core business and has a temporary lease on an additional 1500 sq. fi. in a nearby industrial building. As the current business was already causing a space problem the additional space added for the Pakon project will not keep pace for both needs. Other suitable space for lease in the Elk River area is not available so the decision was made to pursue a new facility to consolidate the two operations. The new facility is planned to be 9250 sq. fi. fully air-conditioned and finished for offices and electro-mechanical type assembly. The land chosen has 2.2 acres and allows an expansion to over 30,000 sq. fi. allowing continued expansion for many years.