KRAMER DEVELOPMENT GROUP BUSINESS MODEL December 1, 2011
ENORMOUS
MARKET POTENTIAL
The
market
demand
exists
today
for
the
KDG
net-zero
energy
modular
home.
The
present
new-home
construction
market
has
shrunken
by
75%,
from
over
two
million
(2,000,000+)
new
homes
in
2006
to
five-hundred
thousand
(500,000)
new
homes
in
2011.
Demand, however, exists in a not-yet-satisfied market-niche in new
home construction for the KDG net-zero energy modular home. Why?
Our NZE home (and the KDG production facility) expands the home building
market tenfold.
The
market
for
site-built
homes
has
a
limited
local-geographic
area
and
is
subject
to
local
market-economy
conditions.
However,
the
KDG
net-zero
energy modular
house
market spans
a
delivery
radius
of
five
hundred
(500)
miles
from
Cleveland,
Ohio
including
one
hundred
seventy
million
(170,000,000)
people,
or
55%
of
the
US
population.
IS
THERE
ROOM
FOR
ONE FACTORY PRODUCING
500
ENERGY
SELF-SUFICIENT
HOMES?
Total
new
homes
built
in
the
US
in
2011:
500,000
Total
new
homes
built
within
KDG's 500-mile
delivery
radius
from
Cleveland in
2011:
275,000
One
factory
producing
500
net-zero
energy
homes
annually
represents
a 0.003%
share of
the
market
within our delivery
radius.
TRUE INNOVATION
Our
net-zero
energy
modular
house
and
manufacturing
facility
defies
a
Google
search.
These
new
technologies
need
initial
support
to
help
them
move
down
the
learning/volume
cost
reduction
curve.
It
will
not
be
brought
about
by
government,
the
building
industry
or
not-for-profit
organizations.
It
must
begin
with
an
individual
or
entity
that
believes
they
can
change
the
future.
FIRST
ONE
MILLION
(1,000,000)
HOMES
Using
the
ideals
of
Henry-Fordism,
we
perfect
and
standardize
the
Net-zero
energy
building
process,
making
it reproducible
in
any
environment.
Our
unrelenting
search
for
greater
efficiency
facilitates
mass
production
of
higher
quality
housing
at
a
continually
lower
price,
coupled
with
high
wages
for
workers
and
job
creation.
We
expect
the
price
of
our
NZE
modular
home
to
fall
every
year
(costing
less
than
present
new-home-construction)
and
be
affordable
to
an
ever-increasing
number
of
Americans.
Our
franchisable
business
model
will
allow
thousands
of
NZE
homes
to
be
produced
annually
by
franchisees
at
a
variety
of
locations.
With
uniform-precision
quality
as
the
franchiser,
we
will
provide
and
enforce
strict
Net-zero
energy
building
guidelines.
We
will
serve
as
a
funnel
for
the
receipt,
testing
and
evaluation
of
all
new
products as
well as the continually evolving and improving process. We
relentlessly search for and develop products and processes of the
highest quality and lowest cost for use by our franchisees.
We
will
be
the
champions
of
the
green
manufacturing
sector
and
herald
an
era
of
a
new
international
economy.
Our
franchise
model
will
enable
worldwide
access
to
net-zero
energy
homes,
distributing
the
wealth
across
the
globe
creating
jobs
and
hundreds
of
manufacturing
facilities
in
major
cities
on
six
continents.
This
revolt
against
the
status
quo
will
empower
us
to
demand
the
same
re-inventive
spirit
across
all
industry
sectors.
CLICK THE LINK to the left to view the Home Energy Rating Score (HERS) Index.
SETTING
THE
NEW
NORMAL
-
Home
Energy
Rating
Score
(HERS)
of
(0)
Zero.
The
present
U.S.
building
code
“normal”
is
the
2006
International
Energy
Building
Code
(IEBC)
and
equals
100
on
the
Home
Energy
Rating
Score
(HERS)
index
below.
US
law
requires
that
a
home
cannot
be
built
worse
than
a
HERS
rating
score
of
100.
This
is
the
bare
minimum
standard
to
which
a
builder
must
conform
without
being
in
violation
of
law.
Energy
Star
is
only
an
improvement
by
a
15
percent
reduction
from
2006
IEBC.
A
LEED
or
NAHB
home
(independent
energy
designations)
is
a
slight
improvement
over
Energy
Star
but
only
by
15-20%
from
the
IEBC
standard
of
100.
The
highest
present-day
world
energy
standard
is
Passive
House
(Passiv
Haus)
achieving
20
on
the
HERS
index.
While
Passive
House
has
become
the
new
EEU
energy
law
beginning
2016,
it
is
in
its
infancy
in
Europe
and
virtually
unknown
to
American
Home-Builders.
A
KDG
Net-zero
energy
home
achieves
a
HERS
score
of
zero
(0)
and
uses
no
net
purchased
energy
(a
net-zero
Energy
home).
Whether
comparing
the
savings
of
the
present
building
code
(0%),
Energy
Star
(15%),
or
LEED-NAHB
(15-20%),
the
additional
80
to
100
percent
energy
reduction
must
be
attained
through
fossil-free
fuel
energy
generation
and
radically
improved
building
products
integrated
with
the
efficiencies
of
the
modular
home
building
process
and
net-zero
energy
technology
There
is
a
huge
void
in
energy
awareness
between
present
standards
for
homebuilding
and
standards
necessary
to
achieve
net-zero.
To
bridge
this
chasm
we
set
the
global
energy
standard
to
net-zero.
Our
definition
of
a
KDG
NZE
modular
house,
a
home
capable
of
producing
an
annual
output
of
renewable
energy
equal
to
the
total
amount
of
its
annual
consumed/purchased
from
energy
utilities,
is
affordable
to
build
and
healthy
to
live
in.
FREEDOM FROM RISING ENERGY COSTS
Millions
of
Americans
will
be
liberated
from
the
crisis
of
rising
and
uncontrollable
energy
costs.
Dignity
will
return
to
the
lives
of
our
senior
adults
and
others
living
on
fixed
incomes
as
they
find
stabilization
in
their
household
costs
of
living.
MANUFACTURING
JOBS
RETURN
We
have
engineered
a
simple,
reproducible
and
franchisable
process
model,
enabling
the
sale
of
several
hundred
franchises
across
the
nation
and
six
continents
each
producing
500-1000
homes
per
facility
per
year.
It
will
generate
new
high
growth-potential
clean-energy
manufacturing
jobs
which
will
create
opportunities
for
Ohio
as
well
as
the
nation
and
across
the
globe.
Through
efficiencies,
innovation
and
the
relentless
pursuit
of
“seeing
things
differently”
Henry
Ford
achieved
a
series
of
auto
price
reductions
for
consumers
while
simultaneously
increasing
the
wages
of
his
employees.
He
introduced
the
assembly
line
process
to
automobile
production
similar
to
the
assembly
line
process
in
an
existing
modular
home
manufacturing
facility.
Each
home
production
facility
will
put
80-130
people
back
to
work,
with
minimal
retraining,
thrusting
the
quality
of
the
product
they
produce
to
2030
quality and energy
standards.
Our
franchising
process
will
do
for
American
homebuilding
what
Henry
Ford
did
for
the
American
car.
We
consistently
create
value
for
the
consumer
while
hiring
and
retaining
the
most
qualified
work
force
at
the
most
competitive
wages.
We
believe
that
decreasing
prices
and
increasing
wages
is
a
long-forgotten
principle
of
American
innovation
and
an
idea
that’s
time
has
come.
The
KDG’s
NZE
modular
manufacturing
facility
as
an
economic
job-attraction
magnet.
It
will
draw
other
related
component-supplier
companies
providing
additional
clean-energy
jobs
and
opportunities.
Increasing
demand
for
these
homes
will
create
newly
emerging
high-growth
potential
jobs
and
opportunities
which
offer
significant
potential
for
wealth
and
job
creation
for
our
local
economy
and
in
the
new
energy
economy
emerging
in
our
nation.
SERVICE AND COMMITMENT
We
believe
there
is
no
greater
way
to
make
a
meaningful
and
lasting
contribution
to
our
country
and
our
world
than
to
undertake
the
challenges
of
producing
energy
self-sufficient
housing.
We
will
continuously
search
out
and
integrate
forward-thinking
concepts,
quantity
purchasing
and
continually
advancing
European,
Japanese
and
other
global
technology
product
leaders
to
provide
a
common
sense,
practical,
durable,
sustainable,
energy
self-sufficient
home.
CLIMATE
CHANGE
KDG’s
modular
net-zero
energy
home
is
capable
of
producing
an
annual
output
of
renewable
energy
equal
to
the
total
amount
of
its
annual
consumed/purchased
from
energy
utilities.
In
doing
so
our
net-zero
energy
modular
home
reduces
greenhouse
gas
emissions
to
mitigate
climate
change. It
is
challenging
to
comprehend
the
complex
impact
of
climate
change,
atmospheric
levels
of
heat-trapping
carbon
dioxide,
adding
heat
and
retaining
more
moisture
inciting
more
violent
extremes
in
weather.
Development
of
NZE
modular
homes
that
will
adapt
to
the
intensity
and
greater
frequency
of
tornadoes
and
hurricanes
in
all
plausible
climate
scenarios
including
winds
exceeding
200
miles
per
hour.
Although
the
majority
of
American
and
world
scientists
believe
that
we
are
entering
into
an
era
of
never-before
experienced
change
of
climate
patterns,
some
Americans
do
not
hold
this
point
of
view. Whatever point of view you hold,
we
believe
that
the rising and uncontrollable
costs
of
housing
and
energy
provide
sufficient
interest
in
support
of
the
KDG
NZE
modular
home.
KDG
believes
that
all
Americans
are
intensely
interested
in
their
cost
of
living
which
include
rising
energy
costs
and
prefer
homes
that
are
sustainable,
affordable
to
build
and
healthy
to
live
in.
THE
2030
FORWARD
LOOKING
VISION
The
home-building
industry
will
not
bring
change
to
the
consumer.
It
is
the
consumer
who
will
demand
change
from
the
home-building
industry.
The
KDG
NZE
home
will
bring
choice
to
the
marketplace
and
crash
old-energy
paradigms.
Our
desire
is
to
advance
our
nation’s
energy
agenda
by
twenty
years.
Strategic
growth,
collaborations,
partnerships
and
preferred
relationships
with
our
direct
suppliers,
businesses
and
government
enhance
our
unique
position
and
provide
us
the
opportunity
to
become
a
market
leader
in
fossil-fuels
free
housing.
Early
market
entry
provides
the
opportunity
to
define
“green”
by
our
high
standards.
Our
vision,
passion,
and
ability
to
lead
on
“the
cutting
edge
of
the
cutting
edge”
of
technology
make
our
ever-quality-improving
business
model
and
our
job
creation
philosophy
stand
apart
from
everyone
else.
Our
desire
to
look
to
and
welcome
the
future
and
embrace
all
of
the
change
that
it
brings,
combined
with
expanding
consumer
demand
and
unlimited
geographic
market
size,
create
a
unique
market
position
of
unlimited
potential.
Kramer Development Group - 877.534.4733 - Cleveland, OH
