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TWST: What is Omega Environmental Technologies?
Ms. Davis: Omega Environmental Technologies is a distributor of
aftermarket air conditioning parts and systems. It was started 17 years
ago on April 1, and we have grown revenues to $41 million. We are a
diverse culture of 60 employees, representing 14 different nationalities
under our roof. We serve 87 countries, including the United States of
America. TWST: What do the business operations consist of? What does the customer
space look like?
Ms. Davis: We have several departments within the company. We originally
founded this company to be an export company, focusing on exports of US-
made products. For that we use the Ex-Im Bank, and we try to export 75%
US products. The international market is my business, and that's why
this company was founded to be a true export company. Through the years,
we had to diversify because the landscape of our industry evolved and
changed dramatically. In order to grow and keep the company profitable,
we had to start looking into our own backyard, the US market. In the
beginning, we used a three-step distribution. That means that Omega is a
wholesaler, and will sell to the warehouse distributor, which in turn
will sell through its own sales channel. This three-step distribution
had been squeezed by the influx of Asian-made products. So, seven years
ago, we had to rethink our strategy again, and for that reason, we
started our second area. To grow vertically, we opened our own retail
store, which is the model that we will use for the next three years to
increase the company profitably. We will open retail stores throughout
Texas first. We plan on offering our products directly to the installer
or the do-it-yourselfer, but always focusing on air conditioning parts.
As a result of our continued focus, we are able to compete in our
industry, and still be able to sell wholesale in container quantities
for large orders within the US and all over the world. Our retail stores
will allow us the opportunity to increase our profit levels, which was
the biggest challenge we faced in the last five years.
Tickers included in this excerpt: OMGQ
For more information call (212) 952 7433. The
Wall Street Transcript does not endorse any of the comments made by interviewees, and does
not make stock recommendations.
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