Shed Industry Struggling

Posted on : February 21, 2013

There are more and more concrete examples that the shed industry and the broader steel industry are struggling.

  • On the 01/03/2012 RimShaw Enterprises Pty Ltd, Trading as BuyaShed was placed into Liquidation.
  • Capital Steel Buildings was placed in Voluntary Administration, with the first meeting of creditors held on 6th of February 2013.
  • The fate of Capital Steel Buildings will be decided before the 9th of March
  • Who will be next over the next 6 months?

Senior Analyst from IBISWorld, Craig Shulman has said it is likely that that CSB has been hit with lowering demand levels and rising costs in the steel industry.

“Over the past five years structural steel fabrication in Australia has declined at an annual rate of just under 1%… This has been influenced by the weak domestic demand related to the construction industry, volatility in steel prices which have raised costs and the introduction of the carbon tax” he says.

Shulman says the declining growth rate of the steel fabrication industry in Australia is likely to continue, signifying the potential administration of more steel companies.

This is a concern indeed and this raises the risk to the consumer of more Shed Warehouse type scenarios.  In addition this is tragic for the  the distributors who are also struggling to make a living,  without worrying about  a potential liquidation.  CSB currently has 17 distributors and we hope they are doing ok.

It is not over for CSB yet, as it should be noted that just because a company is in Voluntary Administration does not mean that the company is bankrupt (in liquidation).

Voluntary Liquidation

 

Given that the company had the first meeting of creditors was on the 6th of Feb, this  indicates that an Administrator will have been appointed at the latest of the 29th of Jan and the Meeting to to decide the company’s future will be before the 9th of March.  The three outcomes are that the Creditors return the company back to the control of the directors, the creditors accept a deed of company arrangement or the worse fate being liquidation.

We will follow the outcome of this very closely.

Share

3 Responses to “Shed Industry Struggling”

  1. The Roofer said...

    Are there comments allowed on this Shedeye?

  2. The Roofer said...

    Is Capital Steel Buildings Shedsafe accredited???

  3. Chris said...

    Capital are still listed as ShedSafe accredited, they only check the engineering, nothing else.

    When I say they check the engineering, the shed company only has to provide three individual engineered building specifications, with engineering calculations, nothing more. Those three building designs are checked and if they pass the company passes. There is no overall check of the entire range’s engineering, just those three buildings.

Leave a Reply

*