Superior designs, manufactures and markets a broad range of air filtration products, air filters holding frames and air filter housings including (i) high-end High Efficiency Particulate Air (HEPA) filters, with at least 99.97% efficiency, and Absolute Isolation Barriers for the creation of synthesized atmospheres to control manufacturing environments and for the absolute control and containment of contaminants and toxic gases in certain manufacturing processes: (ii) mid-range filters for individual and commercial use, which fall under specifications which are categorized by Minimum Efficiency Reporting Value (MERV) ratings established by the American Society of Heating Refrigeration and Air Conditioning Engineers (“ASHRAE”); and (iii) standard-grade, low cost filters with efficiency ratings at 35% for standard residential and commercial furnace and air conditioning applications.
As a manufacturer of commercial, industrial, and residential air filters, housing and frames, we make a wide variety of products for removing and controlling airborne particulates and gaseous contaminants. We also design and manufacture some of our own production equipment to automate our processes in order to decrease labor costs associated with our standard products.
Because the need for clean air is universal, we design air filter products for use in all types of air filtration systems, regardless of the original manufacturer. The scope of the application is unlimited and ranges from ultra-clean air for semiconductor facilities and pharmaceutical manufacturing, preventing the spread of infection in hospitals, to removing odors and harmful gases in occupied spaces.
Our air filtration products are utilized by many industries, including those associated with commercial and residential heating and ventilation and air conditioning systems (“HVAC” systems), semiconductor manufacturing, ultra-pure materials, food processing, biotechnology, pharmaceuticals, oil and gas, synthetics, nuclear power and nuclear materials processing.
We have also concentrated on general commercial-grade products, including pre-filters, housings, and replacement filters for standard commercial and industrial HVAC systems. Since we commenced operations, we have experienced positive acceptance from the commercial and industrial air filter markets. We believe our design and packaging advantages create significant savings to the distributors. We anticipate that demand for our products will increase as we pursue new markets.
The U.S. trucking industry has been estimated by the American Trucking Association (“ATA”) to have generated 544.4 billion in revenue in 2009, of which approximately $246 billion was attributed to for-hire truckload carriers like us. According to the ATA, approximately 68% of all freight transported in the United States in 2009 was transported by truck, which the ATA expects to increase to about 71% by 2021. We believe a significant majority of all truckload freight in the United States travels in the short-to-medium length of haul where we focus our operations.
A combination of reduced demand for freight and excess supply of tractors led to a difficult trucking environment from 2007 through most of 2009. However, since 2009, industry freight data has begun to show strong positive trends. The ATA seasonally adjusted for-hire truck tonnage index increased 7.5 percent year-over-year in July 2010, its eighth consecutive monthly year-over-year increase. In addition to improving freight demand, our industry is experiencing a drop in the supply of available trucks as a result of several years of below average truck manufactures. We expect to benefit from the improving supply-demand environment as our relatively young fleet, and extensive terminal network puts us in a position to gain new customers, increase our overall freight volumes, and realize improved pricing.
Many of our customers are large corporations with extensive operations, geographically distributed locations, and diverse shipping needs. We offer the opportunity for “one-stop-shopping” for their truckload transportation needs through a broad spectrum of services and equipment, including the following (listed by percentage of fiscal 2009 revenues in parentheses):