Steelx has acquired The Shed Company Group

Posted on : August 25, 2014

Here is the official release.

PUBLIC STATEMENT / PRESS RELEASE

The privately owned Australian business of THE Shed Company Group has recently been acquired by another privately owned Australian business Steelx Group. In acquiring the business and brands of THE Shed Company the Steelx Group seeks to strengthen its product offerings to the Steel Fabricated building industry and to strengthen its design, programming and marketing reach.

The Group which now comprises 6 brands is ably supported by industry experienced management and staff of both groups and will achieve some useful synergies in respect of the placement of various market outlets for is major brands which are now:-

Wide Span Sheds
Sheds n Homes
THE Shed Company
Steel Buildings Australia
ShedsDirect
DIY Kit Homes

Released on the authority of the Directors of Steelx Pty Ltd and THE Shed Company Pty Ltd

Share

2 Responses to “Steelx has acquired The Shed Company Group”

  1. Chris said...

    This type of acquisition poses a problem to the consumer, in the long run. Imagine one of each of these agencies/franchises in the one area, all operated independently. It’s good for Steelx as regardless of which agency they buy from Steelx gets the sale. Unfortunately for the independent agencies/franchises they are all effectively competing with each other. The only way they get the sale is discounting, or lowering margins. Eventually they either go broke or reduce their level of service. Steelx of course don’t discount their fees, so happy days for them and well, gee, if the agency or franchise goes down, well, that just means they get to sell the area again. They don’t miss any sales in the area as they still have the other brands picking up the slack.

    Now it could be argued that the benefit for the consumer is the overall reduced prices due to the competition but every time one of these agents go down they always take people with them in customers, staff and subcontractors. The best results for all the community is businesses operating successfully over the long term, not lots of new start ups due to other failures.

  2. Leroy said...

    Times are changing rapidly in the shed industry we have seen the emergence of the so called franchise systems fail time and time again based on rebates procured from suppliers whom are only concerned about their bottom line and hedging software with over engineered designs to boost steel sales.
    We are now faced with a dog eat dog mentality from internet sales and it is time the ACCC had a fair dinkum look at what is going on.
    We see blended overseas materials promoted as MADE FOR AUSTRALIA which has a similar feel like the old Made in Australia by our local steel manufacturer being discounted heavily into the market.

    With the continuing allowance of glove box agents to operate on a 5-10% margin and promoting low concrete and building rates combined with an abundance of labour available the shed industry is pretty well stuffed if you want to build a quality project.

    The industry is in for one hell of a roller caster ride if steelx have their way. Their current purchase of The Shed Company and pushing to ensure an agent only type business now reinforces if you were think of retiring and can afford to now is the time as they are in for the long haul and are happy to take sales any way they can.
    For the ones that believe or are committed to staying in the industry it might well be time to form a state by state shed association as the only time manufacturers listen is when they may lose market share.

    Feedback is welcome as there is no quick fix to lift the old car salesman mentality in the shed game at the moment.

Leave a Reply

*