Newberry Tanks & Equipment LLC

“Memphis is known as America’s distribution center, so there’s a tremendous network of transportation that all have hubs there,” Long adds. “Air, rail, barge, and trucking all work into there. So, Newberry has started to use outside carriers and carriers that go more than region-wide.” “We primarily focus on about four or five target vertical markets,” explains Fischer. “PEI and the equipment installer industry makes up about 42 percent of the business; the oil jobbers or fuel distributors make up about 34 percent; the lube oil market makes up about 15 percent of the business; and what’s left over is primarily made up of your end users such as the agricultural market. West Memphis primarily focuses on cylindrical style tanks - PEI and fuel distribution; the Memphis location primarily focuses on rectangular tanks, which are for the lube oil market. Those tanks will go into facilities like Jiffy Lube, Valvoline, Wal- Mart - anyone that’s doing oil changes or a grease application.” In addition, the company has begun providing turnkey packages to certain of its customers that comes standard with a liquid level gauge, leak detection gauge, emergency vents, atmospheric vent, fill cap, pump, hose, and nozzle. Fischer explains, “When you look at the market segmentation breakdown, your PEI guys and your equipment installers, when they buy a tank, they just want the tank and maybe some emergency vents on it. And since they’re an equipment house, they have everything else that they need to get that tank in service. We found a niche in the fuel distributors and oil jobbers markets that don’t necessarily have the technician force that the PEI guys do, so we’ll provide a turnkey package that is going to have valves, fittings, accessories, pumps, etc. to put in and take fuel out of that tank for the customer’s use. So, when that tank’s in the ground, it’s, essentially, plug it up to the electrical and you’re ready to utilize it.” “There’s another dynamic that’s playing into Newberry’s favor, and that’s the location and growth of the steel industry in northeast Arkansas in the last few years,” Long notes. “More recently,