LOADCRAFT'S PROJECT REFRESH 2010

The cliché of “a cycle” could not be better defined than what we have seen in the last five years, especially when you consider the price of oil and gas. If you are reading this, you know exactly what I am talking about. Oil has tripled in price, touching $150/barrel, only to return back to a little more than half of what it started at, bottoming at near $35/barrel in December of 09. Natural gas saw over a three fold increase going from $3 in 04 to $13 in 06, back to $2 something in 09, and again climbing back to near $5.

If one were a farmer and that volatility was experienced in rainfall, you would have to be prepared to grow cactus one year, rice the next, and then, well, maybe corn or wheat…
In any case, we here at Loadcraft are counting our blessings to be alive and thriving as we reach the mid point of 2010. We believe exciting times are ahead and hope to be some part of a great future with each of you. Here’s to all of you who have partnered with us to “hunker down” together while the storm passed.

One of the many exciting things we are doing as a company is “refreshing” our product. We have heard from customer after customer about how their pricing has had to be lowered some 25-30% over the last several years. Keeping money turned to make payroll and hold on to customers has been the key focus for most folks in the industry it seems. All of this has transpired at the same time as technology demands, environmental regulations, weight restrictions, cost of employment (thru taxes, insurance, health care, safety regulations…), are all on the rise.

That being the case, we have begun Project Refresh 2010 here at Loadcraft. When you hit the refresh button on your computer, it updates the screen to the most current status available. That is exactly what we want to do with our product. Our team of craftsmen is working to review all aspects of our product to make them more user friendly, environmentally and DOT compliant, technologically advanced, and safer, all without compromising quality or value. Additionally, we are developing a list of options to add to the “base rig.” This will give our customers ultimate flexibility in designing their rig to meet their exact needs.

Over the last 5 years, 125 rigs, and 900 trailers, our focus on quality and durable custom rigs have not always won the ‘lowest bid’ structure up front, but, we believe the lifetime and service of our rigs will always win the ‘lowest cost’ and value in the end. Taking in consideration that the value of the true costs of ownership is equal to the price you pay today, plus the costs to maintain and service the rig (including downtime over the hole), less the resale value at the end of your use of the rig. Plug Loadcraft into that formula and you have: a little higher purchase price to amortize over the life of the rig, way less down time (thru complete commitment to service our customers), and an asset with the best resale value in the market place. We sincerely believe your lowest net costs of ownership, and highest value realized, will come thru being a part of the Loadcraft family.
Whether you need a super mobile rig to climb the side of a hill in the Marcellous, or a desert package in 130 degree heat in the Middle East, we can do it. If you need a conventional mechanical rig in the jungle of South America or the plains of West Texas (that anything can be fixed with big enough sledge hammer and pipe wrench), or an AC rig with a joystick for the new driller who has played Xbox all his life, we are your solution.

I want to extend an invitation to Brady, Texas to each of you for some great barbeque and a visit with the best people in the world who genuinely care about building the best products for the best customers in the world. We don’t want you to give us your business, but we humbly ask for the opportunity to earn it.

My hope and prayer for each of you is that you may experience exceedingly abundant prosperity for this year and beyond.

Thanking you for the privilege,
Reece McIver
Chief Operating Officer