Composite Building Structures, Ltd.
Stronger, Safer, Longer Lasting, cost effective support framing for homes and buildings
In May 2004 Mr. James Antonic formed Composite Business Structures, Ltd., (CBS), a Delaware corporation, for two principal purposes: (1) to hold and develop the several patent applications Mr. Antonic had made relating to the use of composites in framing, panelizing, and construction and (2) to provide a vehicle to initiate the first manufacturing Business Technology Campus in Florida. CBSí personnel, with the synergies they have developed, has chosen to join the firm from ACT, Inc., its conceptual antecedent, in order to work with Mr. Antonic to fulfill the business plan because of the teamís strong belief in the business plan, the product and its need.
Origin of the CBS Homes Technology
The concept of fiberglass composites was developed by the US Department of Defense and retained for military use for 30 years. The technology was turned over to the Department of Energy for industry to commercialize. Alcoa Aluminum adopted aspects of the technology and introduced it in the USSR. With the dissolution of the USSR in 1991, Alcoa returned the technology to the LeMay Research Center in St. Louis Missouri. The technology was then taken up by an entrepreneur, Mr. Roger Ahearn. The panelization technology was employed to build several homes in Missouri, and was the subject of the ĎSimmonsí patent. The holder of the patent merged its assets with Futuristic World Wide Homes (FWWH) that was owned by Jay E. Jones of Fort Myers Florida. FWWH donated 22 homes for test marketing, ranging from basic Habitat for Humanity homes to upscale homes in gated communities. Some homes were built in cooperation with Centex Homes, one of the top 5 U.S. builders.
Development of CBS Homesí Panelization Technology and Personnel
Composite Building Structures, Ltd. and CBS Homes Florida, LLC (CBS) were formed in May 2004 by James P. Antonic and the senior management team of ACT when that firm discontinued its development in February 2004. The entire management team of ACT joined Mr. Antonic at CBS.
Mr. Antonic was the author of ACTís business plan, the individual who conceived the Business Technology Campus (BTC) concept, the person who designed ACTís organizational structure, and the person that recruited ACTís management from the time he first acted as a consultant to Futuristic World Wide Homes (FWWH) in February 2000 through May 2004, when Messrs. Ahearn and Jones, the founders of FWWH and ACT, departed. Mr. Antonic had set up and supplied all the raw materials for what became the largest mobile home factory in Japan using assembly of pre-built panels as the construction method. The Lieutenant Governor of Indiana presented Mr. Antonic an award for stimulating that stateís exports though the project.
Antonic discovered the panelization technology while he was performing a technology search for a Japanese client of International Market Development Group (IMD), his consulting firm. IMD was then retained by FWWH to draft technical explanations regarding the pultrusion technology (fiber reinforced plastic composite), draft a license for China, distributor agreements, develop US market sales statistics, create cost comparisons of commercial wall construction methods, create company literature, write the business plan and create penetration strategies.
Refinement of Products and Production
In October 2000, IMD was again retained by FWWH to render a valuation of the technology. Subsequently Mr. Antonic conducted independently research and developed patentable technology that would complement the FWWH patent. In 2001, IMD continued work designing the shape of pultrusion parts; calculating production requirements, raw material costs, production speeds, part prices, and researching methods to cut costs. IMD designed and validated a process that was immediately competitive against concrete block and would become competitive against wood within 3-years. Mr. Antonic assisted Mr. Jones in the incorporation of Advanced Composite Technology, Inc. (ACT) in July 2001 to act as successor to FWWH and served as its operating officer and a minority shareholder.
Mr. Jones controlled the corporate affairs of ACT including funding of the company. It was the intention, at that time, to merge FWWH into ACT and carry on the business under the ACT name. Mr. Antonic spent the last half of 2001 outlining administration needs, visiting suppliers, visiting expositions, project planning, establishing timelines and milestones, setting up accounting, creating presentation materials, investigating plant sites, and calculating profitability.
Application of Core Concepts
In 2002 Mr. Antonic interviewed and recruited a professional core of senior managers to bring the manufacturing startup into full production within 12 months in addition to locating sources of supply that could fulfill the envisioned large-scale operation. He also created a plan for an affordable-sustainable housing community which was successfully presented at the State Capitol and in Washington DC.
Mr. Antonic put together a coalition and reported methods to mitigate potential hurricane wind damage in Florida so as to entice insurance companies that left the State, to return to underwrite risks in Florida and remove the liabilities in the State supported wind damage insurance pool. At that time, a potential manufacturing site was located in Desoto County and an option on 100 acres of land was executed.
During the last half of 2002, IMD was asked to update the business plan suitable for presentation to institutional investors. The new plan was written, printed, and distributed by IMD for ACT, which plan required approximately $38 million to begin operations.
Concepts into Actions
The senior managersí commenced work in July 2003, developing the infrastructure and putting in place systems associated with each of their respective fields of expertise in order to get the company up and running. Hardware and software needs were established, IT equipment and operating platform selected; organizational design completed, policies and procedures developed, health benefit programs and carriers selected; technology campus engineering plans, architectural renderings and plant design finalized; financial and accounting methods established; state, federal and local government assistance programs identified.
Joint projects were proposed. With Douglas Cardinal, renowned Canadian Architect, a plan was developed to build self-sustaining villages for the First Nation in the remote Northern regions of Canada. With Wilson Miller, a city plan with integrated workforce housing was developed for Murdock Village near Punta Gorda, Florida. The Operations team was brought together in and all functions were set up by the Senior Operations Team.
Messrs. Ahearn and Jones left the ACT firm in May 2004 and that firm ceased to operate. Mr. Antonic drafted a new business plan under CBS Homesí name but including key members of the ACT management team who all enthusiastically supported the panelization concept. The current CBS Homes LLC business identifies the product, timing, potential, need, and supporters that will drive this business to succeed in the building and construction industry, which has grown consistently every year.
As you will see from reading the business plan, this is a product whose time has come with the need, benefits, pricing, profitability, and customer base to drive it to success.
THIS DOCUMENT IS NOT AN OFFER TO SELL NOR AN OFFER TO SOLICIT THE PURCHASE OF ANY UNITS IN ANY ONE OR ALL OF THE LIMITED LIABILITY COMPANIES IN THE CBS ENTERPRISE GROUP