RE:Another $8 million CAD Contract! Important points about Luxor's US contracts..
Luxor Industrial Corp.'s subsidiary USA Mill Frame LLC has been awarded two additional turnkey framing contracts from Seattle-based Venture General Contracting LLC.
The approximate $5.7-million (U.S.) worth of contracts with installation commencing in the second half of 2016 follows two initial contracts of approximately $2.4-million (U.S.) awarded earlier this year by Venture.
U.S. turnkey framing contracts for six projects now total approximately $17-million (U.S.).
Luxor has commenced installation and prefabrication of products for the four contracts exceeding $11-million (U.S.) secured earlier this year, with all jobs being on budget.
In addition to supplying skilled labour, Luxor will manufacture prefabricated walls and precut and packaged engineered floor systems in its Chilliwack, B.C., factory for the U.S. framing contracts.
The ability of Luxor to prefabricate framing products off-site provides a distinct advantage for a builder as highlighted in an SBC Magazine article titled "10 Construction Trends Include Offsite Componentization."
According to the experts the first two out of the top 10 trends to watch in 2016 are:
- "Skilled labor shortage will continue to plague construction companies. ... The labor crisis is not a new issue, and most experts predict it will continue well into 2016 and beyond, as the talent deficit will require multiple years to fill up again ...
- "Prefab/offsite construction methods will become more popular. ... Offsite -- also known as modular or prefabricated -- construction has been gaining ground as an alternative building method that offers the benefits of reduced construction time, less waste and possible cost savings ..."
Based on this information, and excluding any further contracts ( very unlikely IMO given the Colt acquisition), Luxor is going to have sequentially record quarterly financials in 2016.
On budget and with much cheaper Canadian labor doing the US installs, profit margins including forex gains are going to be very strong.
Load up at these prices...investor discovery is just around the corner