"Plug in and operate" mobile manufacturing technology to aid in locally manufactured PPE masks (N95, KN95, Surgical Masks). helping to prevent supply chain bottle necks, requiring low investment and high output (yields approximately 400,000 per week/20 million per year).
Seed stage investment procurement
Focus is on the US, Canada and European markets, where the bulk of PPE equipment is still imported.
Problem or Opportunity
Short supply of PPE masks if demand peak is high. Current mask procurement system in the US, Canada and Europe is geared towards importing masks from other countries. This has created bottlenecks in supply chains, price gouging and most importantly, severe delays in PPE that has caused lives.
Solution (product or service)
PPE Mobile Manufacturing "plug in and operate" is a manufacturing technology to aid in locally manufactured PPE masks (N95, KN95, Surgical Masks), helping to prevent supply chain bottle necks while also limiting capex for production facilities that might have a short term, limited use. Mobile manufacturing requires relatively low capital investment, yields high output of masks (approximately 450,000 per week/23 million per year) given the automated manufacturing technology available and supports use of local labor + resources. The PPE modular manufacturing facility can be easily shipped and assembled to places where there is high demand and disassembled and stored when there is no demand.
To our knowledge, there are no other companies currently looking into mobile manufacturing facilities to produce PPE protective masks. The main competitors would be existing manufacturing hubs. There are also strong indicators that there will be a push to localize manufacturing and resourcing post the pandemic given issues that have arisen currently due to COVID-19. It's a great time to innovate and provide resilient and more flexible solutions for mobile manufacturing.
Advantages or differentiators
The main advantage is the flexibility, speed of production and more efficient utilization of assets (low capex) of the mobile manufacturing concept. Being able to localize manufacturing and utilize local resources (materials and labor) saves in shipping costs for materials (shipment of large quantities of PPE masks can increase overall costs significantly) and allows for rapid deployment and production of manufacturing facilities to meet urgent demand (through reduced shipping time). Reduction in amount of capital investment through process focused manufacturing in principle reduces the total amount of capital costs (i.e. manufacturing equipment) through the ability of equipment to be moved and used in different locations as needed.
We anticipate that during peak demand times, the amount of masks sold could match the manufacturing output capabilities (i.e. 450,000 masks per month). Sales per mask = $1.75 USD to $1.80 USD per mask with a profit margin of 30% (taking into account labor, materials and other capital costs). Given costs before the epidemic (average around $2.00 per mask), this product can be market competitive.
We will due further value engineering during the prototyping design development stage. We have a good understanding of costs currently but need to further develop the concept to understand all the cost variables at play.
Short term, our target is to have a prototype up and running within a 5 month period, in time for a second wave resurgence.
We are using automated PPE manufacturing equipment (off the shelf) which offer high volume output and relatively low costs for machinery. The initial investment for prototyping and development of a ready to market asset will take approximately 5 to 6 months. The ROI is approximately 200% to 300% over 3 years.
Money will be spent on
Investment will be spent on development of a prototype, with the target of going to market within 5 years.
Offer for investor
Depending on the investment amount, we can offer up either Convertible Debt or Equity within the company depending upon the investment amount and desires of the investor. We would ideally like to find investors that are interested in the product and vision and not in a quick profit.
As with anything new, there are risks associated with unknown variables and factors which are difficult to predict. Maintenance of equipment is also a potential issue given that most of the equipment suppliers are in China. While many state that they provide customer support, training and maintenance, this is still a concern given logistics of where their companies are located and how quickly they can provide support.
Incubation/Acceleration programs accomplishment
We are currently in the process of talking with VC's who invest in seed stage Contech (construction tech) products and service platforms. We are also in dialog with Brooklyn Navy Yards for hosting ipHaus ventures (including prefab housing in addition to mobile manufacturing facilities).