67 WALL STREET, New York - April 11, 2014 - The Wall Street Transcript has just published its Building Materials, Residential Construction and Housing Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Construction Equipment Replacement Trends - Growth in Equipment Leasing Adoption Rates - Infrastructure Build in Emerging Markets - Energy Infrastructure Companies - Infrastructure Spending - Production Rates in Capital Goods - Opportunities in Domestic Shale Infrastructure - Increased Rental Demand
Companies include: Trex Company (TREX) and many more.
In the following excerpt from the Building Materials, Residential Construction and Housing Report, the VP of Marketing at Trex Company, Inc. (TREX) discusses company strategy and the outlook for this vital sector:
TWST: What are the advantages and disadvantages of using composite and wood-alternative products?
Mr. Zambanini: What is unique about this marketplace and Trex is that there are really two generations of materials. With the first generation, which Trex was founded on, the benefit was you don't have to paint it, stain it, sand it; you don't have to worry about splinters. The second generation came out about five years ago under our new management team. That product was Trex Transcend, and we call it a high-performance composite. The benefits of the high-performance composite, the second generation material, is that it's scratch-, stain-, fade- and mold-resistant, and it includes a 25-year fade and stain warranty.
Over time, consumer preferences have changed. The Baby Boomer generation used to spend their weekends puttering around the house, working on home projects. The current generation has less free time and does not want to spend what time they do have working on home projects. They would rather spend time with their family enjoying their free time on their deck, going to the beach or going to Disney World than doing maintenance around the house. There are a lot of other things that they'd rather be doing. Consumers now want that lower-maintenance product because their preferences have changed. As I said, that second generation product requires extremely low maintenance because it is, again, scratch-, stain-, fade- and mold-resistant.
TWST: You talked a little bit about the technology. Can you talk a little bit more about that and where it came from? Do you own the I.P. for this?
Mr. Zambanini: Trex has its own philosophy. We keep everything here a trade secret. I worked for a company in the past where we used to patent everything. Trex is very unique in the way we keep our technology a trade secret, like Coca-Cola, and there are a lot of reasons for that. A lot of our equipment is proprietary, meaning it's made specifically for Trex. It is invented here, and we have...
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
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