Early Winter 2009 Update
Hello and Welcome,
Thunder Valley’s future is beginning to look brighter and while I still have a lot of catching up to do with orders, I am pleased with this new and improved outlook. Many of you are aware that I have another small business which manufactures special thimbles for hand needlework ( I know, or as my wife puts it….”You have a very wierd occupation” )….anyway…and again, as many of you are aware, this business took a very serious dive in sales which started in June of 2008 and lasted until June of 2009. Sales for this business dropped to 10% of normal and put us, and the businesses, into a financial tailspin right as a result of the US economy. Since June of this year sales have begun to increase and if they stay on track we might be up to 30% or more. It’s going to be a long road to regain the sales volume we once enjoyed, thankfully we have a great distributor in New York who is working hard on that front which frees me to do other work. The increase in sales is helping stabilize both companies and I’m hoping by mid-to-late 2010 we will be able to begin investing in Thunder Valley once agian to acquire new equipment and technology. While we, and many of us around the world, didn’t foresee the pending economic crisis coming, we did invest in a new, floor model lathe and a big milling machine. These investments have been a blessing even though we initially thought we made a big mistake. As orders began to come in once again, this equipment allowed us to manufacture the thimbles entirely in-house. Allowing us to increase the profit margin and retain these earnings to stabilize the companies. The near future will see these machines converted to full CNC and that will allow us to put into production several new products for Thunder Valley. Hopefully that brings some big smiles and anticipation for what will come.
Recently, I went on a weekend business trip which centered around taking the companies into the future. The tough financial times made us painfully aware that we need to diversify the businesses into several varied markets. Over the Thanksgiving holiday I’ll be preparing a business plan which will be submitted shortly thereafter with hopes of approval in early 2010. Part of the plan will be to expand the area we have to work, increasing it from approx 700 sq. feet to over 1500. Being a home-based business has it’s benefits and limitations, one of the limitations is space, a benefit is we can keep prices low and be very competitive while retaining a fair return. Space is greatly needed as we are packed to the gills with equipment and the lack of space to work effectively does slow us down. More space will allow us to expand our product offerings and bring some of our manufacturing operations up to industry standards allowing us to do more in less time.
What has been a steadfast through these troubling times is your patiences, support and understanding. I am deeply troubled by all the frustration the economy and I have caused all of you, but I am more deeply humbled by your humanity. Problems are being solved and product is coming together.
The Ferrari 641/2 kits will be shipping shortly followed by the McLaren MP4/6 kits and then the Willaims FW14B’s. The dampers are nearly finished for the MP4/6’s and I have only recently been delayed by a thimble order that needed to be manufactured. We will go through orders and make certain we ship the dampers to those who have them coming and the remainder will be added to current orders.
Following this I will finish the Brake Kits in the order of the MP4/6, the FW14B and then the 641/2.
The new products planned are the Ferrari F2002 Super Kit and the Ford GT40 Super Kit…these may be pushed out a little more due to the business plan that needs to be submitted by mid-December.
As always, please e-mail if you have any questions and I’ll respond as promptly as possible.
Time to head into the shop and make some parts.
Stay Well & Kind Regards,
Paul