Doing the planning and making the right contacts is a critical aspect of moving into a government oriented/industrial sector. Knowing where and who can often make the difference in landing a companyâ€™s portion of government or industrial contracts. If an investor can find a company that seems to have these right moves in place, they stand to profit handsomely.
IX Energy Holdings Inc., a full life cycle provider of renewable energy products, works to manufacture and implement renewable energy solutions for both the US federal government and private industry. Perhaps the companyâ€™s largest strength is its model to make renewable energy sources simpler and less prone to damage while increasing efficiency.
The companyâ€™s recent agreement to work jointly with Aurora Energy might be a case in point. In this particular agreement, the company is investigating â€œground sourceâ€ opportunities to increase efficiencies related to solar power. Put more simply, the two companies are investigating how geothermal power and solar power might work in a â€œclosed loop system.â€ In of itself, this may seem as just another advance in the renewable category. It is, however, something the US government has begun to pay closer attention to. Considering overall number of government owned facilities, this could be a rather large revenue generator going forward.
The company does appear to be finding more stability as it works with suppliers and â€œin progressâ€ contracts. Government work has afforded a certain access to job creation monies through the economic stimulus program. Margins are in the range of 20% for both commercial projects and general sales of product. As the company workâ€™s to further establish itself, it does seem that these marginâ€™s may increase as its 12 MW automated manufacturing facility begins to turn out solar products and suppliers become more comfortable with the companyâ€™s level of sales â€“ enabling better supply contractâ€™s. IX Energy Holdings Inc. is quickly moving forward past its development stage roots. It has established lucrative government project contacts and appears to have a low cost manufacturing capacity moving toward operation. The seeds have been planted with a nice spring in sight.