- Strong growth in US lumber demand has led to both record price increases – and record levels of timber, tree debris along with it
- Sustainable Green Team has sought to introduce environmentally sustainable solution to storm, tree debris removal sector
- Via purchase of Mulch Manufacturing in February 2020, SGTM is now able to process tree biomass it collects into premium mulch products
- SGTM has perfected its vertically integrated business model – retailing environmentally friendly agricultural product while simultaneously getting compensated for collecting necessary raw materials
Lumber demand in the United States has never been higher; according to the National Association of Home Builders (“NAHB”), lumber prices rose by 30 percent between the onset of Hurricane Harvey in August 2017 and January 2018 on the back of strong reconstruction-driven demand (https://ibn.fm/ncKQM). However, recent price trends have put even that rally to shame. Since mid-April 2020, lumber prices have risen by over 130% (https://ibn.fm/5Oh35), with the Covid-19 pandemic driving a virtual exodus of residents from large urban metropolis’ and spurring a wave of new housing starts elsewhere in the country. However, the phenomenon has also led to record levels of timber wastage – leading to a sharp increase in the demand for the Sustainable Green Team (OTC: SGTM), a vertically integrated storm and debris removal company’s services.
Sustainable Green Team has historically sought to provide a synergistic and environmentally beneficial solution to tree and storm waste disposal, in a bid to alleviate the environmental burdens which have traditionally afflicted landfills and disposal sites around the country. Accordingly, throughout its 40-year corporate tenure, SGTM has worked to cultivate a reputation as an environmentally responsible enterprise, focused on being “stewards of the environment” across all aspects of their business.
A perennial challenge for SGTM and its peer companies within the sector has been to find a sustainable solution for the treatment and handling of tree debris, which has habitually been sent to local landfills and disposal sites. The company sought to address this issue through the purchase of Ohio-based Mulch Manufacturing, a leader in the field of manufacturing mulch used for agricultural and landscaping purposes in February 2020 (https://ibn.fm/A70mT).
Following its merger with Mulch Manufacturing, SGTM has been able to move beyond the traditional waste disposal model, rather opting to process the collected tree biomass into a variety of organic, attractive, and next-generation mulch products which are packaged and sold on to retailers, landscapers, installers and garden centers. Sold under the Softscape(R) brand name, Mulch Manufacturing’s mulch and landscaping products allow water and air to penetrate soil and roots, a vital function to promote plant health and growth (https://ibn.fm/F2qid).
SGTM has been able to translate its acquisition into ongoing commercial success, recently revealing that its subsidiary, Mulch Manufacturing Inc., had been awarded contracts to supply The Kroger Co. and Alimentation Couch-Tard’s Circle K subsidiary with premium grade organic mulch products over the course of 2021 (https://ibn.fm/SeD5q).
In addition to its efforts in recycling tree and storm waste into commercialized mulch products, the Sustainable Green Team has recently gained the International Play Equipment Manufacturers Association (“IPEMA”) certification to commence recycling waste into playground surfacing material. With demand for playground surfacing material rapidly rising as a result of growing demand from the likes of schools, commercial athletic facilities and recreational spaces, SGTM’s new product line is expected to help the company tap into a market which is estimated to rise to a value of over $5.8 billion by the end of 2026, a 150% increase from 2017’s $3.7 billion (https://ibn.fm/OlJEM).
As environmental concerns continue to build across the world, the need to find sustainable solutions within the tree and debris management sector has gained increased prominence. Through its vertically integrated structure, SGTM has now managed to achieve the rarest goal of them all – building a sustainable and commercially viable business in an increasingly essential sector of the economy.
To learn more about Sustainable Green Team, please visit www.NationalArborCare.com and view the investor presentation at https://ibn.fm/dL5kn
NOTE TO INVESTORS: The latest news and updates relating to SGTM are available in the company’s newsroom at http://ibn.fm/SGTM
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