The quiet ones are always the ones to watch when times get tough. These companies go about their business, quietly achieving business target after business target, regardless of what may be happening in the larger economy. This is not to suggest that the larger economy does not affect these companies, but it does suggest that, if they have been following solid business principles for a company of their size, they may be less exposed and ready for solid expansion when opportunity presents itself. Finding companies like this is a solid way to be positioned for expansionary times.
FutureFuel Inc., a biodiesel and specialty chemicals manufacturer, works to manufacture, market and distribute specialty chemicals and biodiesel fuels primarily in the United States. The company concentrates on small batch specialty chemicals for a broad based environmentally sensitive market.
When one considers the specialty chemicals marketplace, large and sprawling manufacturing facilities usually come to mind. FutureFuel Inc. is anything but this perception. The company works across a wide spectrum of end-use markets to provide organic specialty chemicals directed at specific end uses. This approach enables it to provide specific targeted organic products for specific needs. Often, customers that are forced to purchase specialty chemicals from larger corporations do not receive this same attention and price support, ultimately giving the company an added advantage to gain share in targeted markets as they please.
At present, the company is finding solid successes in: agrochemicals, detergent additives, cosmetics, food additives, adhesives and specialty polymers. Although one might suggest that biofuels are simply another specialty chemical, the company does not treat it as such and indicates future growth as conditions warrant.
An accredited BQ 9000 producer of biodiesel, the company currently has the capacity to produce 2.4 million gallons of biodiesel per year. In the first part of 2009 (or as market conditions permit), it expects that biodiesel capacity will expand in a planned and significant way, with some indicating a cellulose feedstock in manufacturing. In this respect, the company’s continuous batch capacity will easily feed its rail, truck and barge systems for easy and timely delivery from its Batesville Ark plant.
From all appearances, FutureFuel Inc. has been planning its expansion of biodiesel and specialty operations in a careful and calculated fashion. As its smallness begins to reach a mass where expansion is likely to become an issue, those that have their capital in place at the company may well be in store for a pleasant surprise. Some say that Midwestern sympathies are best left down on the farm, but in FutureFuels’ case, these same prudent methodologies may be just the ticket for solid performance once the US economy begins to find its way out of the current economic morass.
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