Finally, as I mentioned on the fourth quarter conference call, we’ve already seen some users of lower quality, lower conductivity Chinese ceramic proppant change their buying habits. That is, they switch from these lower quality proppants to a high quality, high conductivity proppant such as Carbo’s.
Now on the supply chain. On the supply chain challenges, we continue to work on the cost side. As previously discussed, the increased amount of activity in the infrastructure limited liquids rich basins introduce supply chain challenges to the industry. The challenges resulted in a higher supply chain cost this quarter for CARBO, and I’ll comment a little bit more on that later. CARBO is investing in strategic projects to strengthen our distribution in order to meet the present and future demands of our clients. We are pleased with the progress made thus far, and anticipate these investments should be completed before the end of the year.
Moving on to our other businesses. In late January, the start-up of our second resin-coating line in New Iberia was initiated. This line however produced minimal quantities during the quarter due to the limited availability of third-party supplied northern white sand.
Our consulting business StrataGen continues to see a growing demand for field consultants, Data and Neural Analysis or DANA studies in overall fracturing design and evaluation requests. Our environmental risk reduction business Falcon Technologies continue to see growth in both client base and geographical operations with a new operations center in Colorado.Falcon also broadened its Engineered to Protect product suite by delivering its first location liner during the quarter. The location liner service has an independent role and efficient protector of the ground soil during the completion and fracturing operations, and has the ability to be transport and reused on multiple locations.Read the rest of this transcript for free on seekingalpha.com
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