Archive for September, 2015

Energy Servers – A Bloom Box in Every Garage…?

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We recently valued a Bloom Energy Server that was utilized by a company to help mitigate their utility costs. With a price tag of close to several million dollars, state and federal alternative energy incentives and tax credits can play a major influence on the final investment decision. Anticipated useful lives of close to 20 years have yet to be fulfilled, given the rather limited history (from about 2010) since public introduction. Major companies have jumped on board Bloom’s energy train from, Ebay to Walmart to Coca Cola, installing servers at their facilities. Costs savings can be challenging to quantify as grid rates will vary from region to region and utility companies can charge tiered or flat rates based on different times within the same day. It is also hard to quantify the ‘green-effect’ that promotes a company’s public image and commitment to alternative, environmentally friendly energy. However, from a practical standpoint, resale values of such energy servers will likely boil down to realizable cost savings, useful life, any remaining transferable incentives and credits, maintenance costs, relocation costs and lead times on new equipment.

Here’s to your health – fitness equipment industry !

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The gym, fitness and exercise equipment manufacturing industry is riding a wave of popular trends and fads.  Millennials participation in sports and active life styles have boosted demand for such equipment (think American Ninja Warrior, indoor rock climbing, cross-fit, parkour and the like).  Seniors, more than ever, are being admonished by their health care providers to stay active and exercise. Revenues for equipment suppliers in the industry are expected to grow at an annual compound rate of 3% from 2015-2018 according to IBIS World.  As of 2015, there were about 230 fitness related manufacturing companies generating sales of over $2 billion.   No-frills fitness chains, with $10/month rates, such as Planet Fitness and Crunch has put a strain on traditional full service operations. Nevertheless, customers demand the latest exercise gear and expect even the most basic gyms to accommodate the latest fitness trends and fads.