| About us |
In April 2004 the principals of CMEC decided to enter the scissor lift business by selling MEC Aerial Work Platforms lifts. The concept was to have each lift manufactured by a subcontractor and the new company would act merely as a sales corporation. A subcontractor was found and the manufacture and assembly of MEC scissor lifts began in June 2004. By September it had become obvious that the subcontractor would not be able to perform and their contract was cancelled. In October, CMEC was formed and production began. Most of the liabilities of the subcontractor were assumed by CMEC. This put CMEC in an immediate cash flow deficit. A line of credit was obtained in late November, which temporarily relieved some of the cash flow pressure. CMEC struggled through start-up operations and began steady production in late January 2005. Inventory needs have continued to grow, as sales continue to grow, which has put additional strain on cash. One vendor, Farwest Steel, in December unloaded their backlog inventory on us and told us not to worry about payment until the inventory was put into production. This amounted to approximately $500,000 and now shows up on our credit reports as past due. Farwest is well aware we are keeping their inventory safe. As bad as things may sound, we have made it through the tough start-up phase and are now on our way. Sales in 2004 amounted to $3.5 million and should reach over $10 million this year. Sales are projected for over $20 million in 2006 with the introduction of 7 new models of lifts and introducing sales into Europe
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