Shed and Garage business for sale

Posted on : January 6, 2015

How much is your shed and garage business worth on the open market?  You will see three very different shed businesses here offering different value for the potential buyer.  Will an established brand with licensed territory attract a resale premium or will a claimed internet business win out?

Sunshine Sheds & Garages – Ranbuild

  • 2014 Turnover $1,125,627
  • Sunshine Sheds & Garages hold an exclusive Dealers Licence Agreement with Ranbuild as a Reseller.
    Dedicated Licensed Territory: North to Eumundi, South to Burpengary, West to Kingaroy.  
  • Price: $520,000 + sav
It is hard to know the value until the net profit is understood (how much is paid to lease the land etc). Given the net margin might be approximately 20% this means that the Net would be approximately  $220,000.  So the asking price is approximately 2-3 times profit.

Home Internet Shed and Garage Business

  • 2014 Financial year 684K
  • Home-based. You will need an office with computers and internet
  • Gross Profit 101K
  • Price : $POA

This one is very different being a purely at home business and it should have much smaller overheads, that are driven into lower online prices.  Assuming an approximate margin of 20% again, this would value this at ~ $250, 000.

Sheds & Garages – Hunter Area For Sale

  • Freehold included in price (800 sq approx.) -Display Office and 3bdrm home
  • Nets Owner Operator $150,000 PA
  • Price: $320,000

This also follows the exact same valuation formula of approximately 2 x Profits.  This does have a significant freehold attached to it though.

As you can see all very different businesses, without understanding more about the internet business it is very difficult to assess its value.

Would you accept 2 x annual Profits for your shed business?

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IN2 SHEDS – Geelong – Another Shed Ripoff

Posted on : December 28, 2014
in 2 sheds rip off

In 2 Sheds

Check out the article here and here

Another one is added to the list and has been liquidated.

  • Debt of approximately $600,000
  • 62 people have lost deposits of $300,000

This is outrageous, something has to be done to stop this as the count of people that have lost deposits on sheds is getting very high.  I wonder how many more people need to lose their money before one of the so-called regulators does something to protect consumers.

in2sheds liquidation notice

Liquidation

It has been a while, and I am committed to adding new articles and research over the 2015 year.  I am adding some new features to the site and will start active development again.

I will be adding a paid advertising directory and will be offering some of the tools that have been developed by Shedeye to shed companies to help them with their sales process.  Stay tuned.

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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

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How much money can be made in Sheds and Garages?

Posted on : February 8, 2014

This one is always quite hard to find out, until a Shed company goes on the market.

Shed_company_for_sale

 

That is a lot of sheds and a lot of steel.  If you extrapolate the figures here it also tells you the approximate margin they are making.

Note that P.E.B.I.T.A. = Proprietors Earnings Before Interest, Tax & Amortisation

Take this estimate

  • If you say 100k for rent and other expenses
  • $2 million gross sales
  • Owners earnings of $284,000, assuming this is the PEBITA figure.
  •  ~19% margin (depending on how much Gross sales are over $2 million).

 

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Buying a Shed, lowest risk to the consumer

Posted on : February 4, 2014

It is a sad fact that too many people over the years have lost money when buying sheds.

The most recent being the Sidach debacle, but this is in a long list including

 

What are the risk to the consumer

 

1.  A distributor goes bankrupt or illegally takes the money from the consumer.

This is the retail outlet, the one that has the sites that you walk around and look at the shed.  They usually don’t have the relationships with the suppliers and rollformers, but are important as they do the sale, site inspection, and organise the building of the shed.  The are also important as the do the after sales support and help with damaged or faulty sheds.

Often the distributor is holding the clients money and pays the manufacturer on a schedule.

  • This creates a risk as while it provides operating cashflow to the distributor it does provide a risk that the consumer can loose their money part way in the process of their shed being manufactured.
  • There is a timing risk in the deposits being collected and the shed not being ordered and in the milestone payments not being passed onto the manufacturer.
  • To be clear there are 100’s of extremely talented, ethical and trustworthy distributors in the shed industry
  • That said due to their being in the vicinity of a 1000 distributors in Australia the risk of an unscrupulous or poor business operator is increased.

Model One : The current model in the industry is shown in the below diagram.

Payment_To_Distributor

An easy way to remove the above problems is for the client to pay the money direct to the wholesaler.

Model Two : A new way to eliminate this risk is shown below.

Payment_To_Wholesaler

This is an extremely rare model in the industry and the research that we had done shows that only Sheds n Homes has this arrangement in place through their Manufacturer / Wholesaler Steelx PTY LTD.

This labelled the “Guarantee Of Supply” by Steelx and is represented by the below label.

Guarantee-of-Supply-Logo

This definitely protects the consumer from mismanagement at the distributor level, as the distributor never sees any money outside of their commission.   That leads to the next risk, what happens if the Wholesaler / Manufacturer goes down…

2.  The manufacturer goes bankrupt or illegally takes money from the distributor.  While less likely it is a far more significant event.

These groups are smaller in number, have the relationships with the suppliers, own the brands and have the software and systems that provide the kit to the distributors.  You might ask what happens if the Wholesaler goes bankrupt, well they end up with the money at some stage in the process, so this risk is inherent in the Model 1 above.   The Guarantee does not remove this risk, but as stated both Model 1 and Model 2 above are both subject to this risk.

3.  The rollformer goes bankrupt.

Rollformers turn the cold rollformed steel into shed components.  This would be a devastating event and could send shockwaves through the whole Shed Industry.  Lets hope this never happens!!!

All in all a large percentage of the Shed Industry is ethical, honest, professional and hardworking.  Like any industry there are bag eggs and Model 2 above seems to remove the surface area of risk for the consumer.  I am sure many in the industry will disagree and a we welcome their feedback.

 

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Sidach South Ripped Off Customers

Posted on : June 5, 2013

Approximately 12  customers have had money stolen

Approximately 12  customers have had money taken and have not received a shed – Shedeye has been personally contacted by a few and this has seriously affected some people.  Some people have taken out loans to pay for the sheds, paid in full, and will now be left with the sting of repayments.

 

A call out to the Shed Industry to assist the victims

Any shed company or rollformer that aids these victims, with the intention of minimising or neutralising the loss of the consumers, will have free advertising on this site for a year, and the satisfaction that they have helped people out in need.  I will provide a list of the shed sizes and the loss made on each shed next week and who ever can do the best deal will get the advertising.

 

A call out to the any victims that need help getting a Shed

Any person that has paid money to  Sidach North or Sidach South and has not received a shed, can you please contact us using this link.  I hope that the industry will help, as there are so many great players in this industry and this type of behaviour is simply wrong.

 

Some more background

How does this happen when it is backed by a big name in the industry?  There are a few models that are operated in the Shed Industry, and the Sidach model was to brand their distributors with their name even though they are legally separate entities.  There is Sidach National and then in Tasmania there were three distributors that were contracted to provide Sidachs sheds.  Sidach makes money in a number of ways, from a booking fee when the order it place, and markup on the shed and components and rebates from the rollformers.

As seen below these companies are all branded under the Sidach brand.

 

Sidach_South

 

It is clear from the below newspaper excerpts that Sidach is very keen to make it clear that these stores are independent, what they forgot to mention is that they were all branded under the Sidach brand.  Why Sidach  has not simply compensated these victims is completely bewildering to Shedeye.

sidach_national_Onesidach_national_Two

 

The are a number of stories behind this tragedy, this can not become another Shed Warehouse or McFadden Kit Homes.

Much more to come soon…

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Capital Steel Buildings Statement

Posted on : March 7, 2013

This statement was received from CSB Australia

 

Capital Steel Buildings, felt the need to voluntarily liquidate one of the companies associated with the shed business. It had nothing to do with debt to any suppliers. No money is owed to anyone in the industry.

Capital Steel Buildings is still running and a growing business. There is no risk to any of our distributors, software users or suppliers. CSB has a leading engineering software used by many people in the industry, which is not affected by this structural change.

I would also like to point out that CSB distributors and software users, have their own accounts with the suppliers, or are suppliers themselves, so there was never any risk to anyone in the industry, or their customers.

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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.

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Shed Seller Statistics – 2011

Posted on : January 25, 2013

So what does this all mean?

The shed game is a competitive business to be in, there are lots of big players that have purchased steel sales and compete with the independents.  There is clearly a saturation of shed sellers in some areas and not enough in others.  This analysis attempts to show where Shed Sellers are clustered and to explore some variables that effect shed sales in these areas.

There are some variables that have an affect on shed sales and shed prices for that matter

  • Lot sizes
  • Population Growth
  • New housing construction
  • Average income
  • The number of Shed Sellers

So take a look and drill into your area for more details (all of the above).
 

Population growth within 200km of a Shed Seller

View Population growth within 200km of a Shed Seller in a full screen map

 

Average Lot Size within 50km of Australian Shed Sellers

View Average Lot Size within 50km of Shed Seller in a full screen map

 

Average Lot Size within 200km of Australian Shed Sellers

View Average Lot Size within 200km of Shed Seller in a full screen map

 

Number of new developments within 200km of Australian Shed Sellers

View in a full screen map

 

Average Income within 200km of Shed Seller

View in a full screen map

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Shed – eye for detail.

Posted on : October 14, 2012

Sheds come in different types

The majority of sheds sold today in Australia are of the portal frame design and the components are what is called cold rollformed. But there are two other important types of shed construction that is becoming more popular, the structural steel frame and the stud frame sheds. This is a quick rundown on the three different types:

 

1. Cold rollformed portal frame shed.

This is the most common type of shed and is normally supplied pre-engineered and in a kit form. The main structure (called the portal frame) consists of rolled purlins, girts, batton, top hat and brackets. The cladding and flashings are common to all types.

 

Portal frame showing apex and knee brackets

Portal frame showing apex and knee brackets

As you can see the basic prinicple is that all the purlins (both rafters and colums) consist of cold rolled C section joined by fabricated brackets that bolt each assembly together. The roof and wall members are added once all the portal frames have been stood. This is a very efficient system that can be transported easily and assembled on site with minimal tools. 

 

2. Structural fabricated steel shed.

 Nearly the same engineering prinicple as number 1 – except all the colums and rafters are from hot rolled section such as H section, I beam, or C channels with welded cleats and joiners on all ends. All other components are normally the same. The advantage of this type of design is for larger spans especially used in large warehouse constructions and normally over 18 meter width.
Structural steel is a bolt together design with heavy structural steel

The structural steel is heavy to transport but does allow faster erection and extremely high strength joining system. All the other components are very similar.

 

3. Steel stud framed sheds.

 Now this is completely different to the above two. It is identical to the steel stud framing used in housing and results in a very strong overall construction. The walls and trusses are all prefabicated in sections and simply stood on site and then clad. The advantage of this system is the ease of which you finish the sheeting internally and is the reason it is gaining popularity. 

Steel stud frame shed

As you can see there are no colums protruding into the interior and all window and door penetrations are done at fabrication stage. While slightly more to transport – the erection time is greatly reduced and the finish (interior) allows much cheaper cladding solutions. It can be treated in the same way as a normal house frame. 

 

Not all sheds are the same, and to ensure you obtain one that suits your purpose contact Shedeye.

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Sheds & Guns!

Posted on : July 26, 2012

Shed has more history than the Museum!

The newly restored shed at DownsSteam Railway and Museum is for the use of volunteers to work on the LOCO 106 “Pride of Toowoomba” which hopefully will be finished in 2015 for the locos 100th birthday!

William Boden and Tom Redwood are two of many volunteers who have helped get the new restoration shed at DownsSteam Railway and Museum up and ready for the opening on Saturday. Photo Dave Noonan

The full article concerning the shed and train museum is in the Toowoomba Chronicle on 19th July 2012. From the article the shed had many uses prior to its current use – and the original shed was purchased for use as an aircraft hanger at Oakey in Queensland (not far from Toowoomba)! The shed is not that special – except it was made in America in 1942 and shipped to Australia for use in the war period. The history of the shed is amazing – it was fabricated by Bethlehem Steel in Pennsylvania in 1942 nearly 70 years ago and with a huge effort of a design drawn up by USQ School of Engineering students, the shed was able to be reconstructed after many years lying at the old Bridge St quarry!

Now for the history the steel of this shed shares:  Bethlehem Steel in Pennsylvania was America’s second largest company that started in 1857 and finally filed for bankruptcy in 2001 and all assets sold. During the 1940’s it employed some 300,000 workers with 180,000 alone in the steel ship building sector. Coincidence is that Bethlehem Steel produced this railway gun and also the shed in Toowoomba that houses a railway museum. This particular gun is now in a museum in Brazil:

“Bethlehem 177” railway gun on display at Museum Militar Conde de Linhares

Along with this spectacular piece – Bethlehem Steel in Pennsylvania was producing one naval vessel per day – which totalled 1,121 ships which was more than any other builder in the war period.

6″, 10″, 12″, and 14″ naval guns being assembled at a Bethlehem Steel facility

So this company that made the Toowoomba shed also produce huge numbers of naval and army guns at the same time, How did it manage to fit in such a small (by comparison) order for an aircraft hanger at Oakey in Queensland. Well it will be an interesting tour of the Downs Steam Railway and Museum not only looking at the 100 year old “Pride of Toowoomba” locomotive, but seeing the 70 year old steel fabricated at the same time as thousands of guns, ships and icons in America. One like this one – that Bethlehem Steel supplied most of the steel for the cable cars and tracks – always it comes back to TRAINS!

Steel for the “San Francisco Municipal Railway” system came from Bethlehem Steel!

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Giant Cattle Shed.

Posted on : June 15, 2012

New cattle sale yards at Scone to be covered!

These cattle yards are at Scone and Upper Hunter, the saleyards are already considered among the 10 best facilities in New South Wales and are currently receiving tender to construct roofing over the facilities. Here are the details for the tender:

Upper Hunter Shire Council Tender – Design and Construction of Roof Over Part Of The Scone & Upper Hunter Regional Saleyards (NSW)
Tenders are invited from appropriately qualified and experienced contractors for the following tender
Tender No 05i2011 – Design and Construction of roof over part of the Scone & Upper Hunter Regional Saleyards including water harvesting and lighting
Initial roof area of approximately 2376sqm with possible secondary stage of 3.158 being a total area of 5.535sqm
Tender documents for Tender No 05/2011 will be available in electronic format only Interested contractors can register their details at Council’s et endenng portal http i!wwwtenderlink co/upperhunter to download the tender documentation
Site inspection arrangements and any enquiries relating to the proposed contract should be directed to Council’s l1anager Technical Support Services
Coleen Pinkerton on 026540 1115 or
Email c pinkerton@upperhunter, nsw gov au
The closing date & time for tender submissions is 4pm Friday 29 June 2012 Tenders will not be accepted after this time
Daryl Dutton
General Manager
Closing Date 29-06-2012
Source The Sydney Morning Herald Tuesday May 22. 2012

The roof area for this giant shed is in two parts and covers nearly 5,500 plus square meters. Still small in comparison to some of the giant cattle yards around Australia. A very large one – the Carcoar Saleyards have some impressive statistics mentioned below: These facts come from their website CTLX Facilities.

  • The sheep pavilion roof is 224m long and 82m wide, and the cattle pavilion 144m long and 109m wide.
  • The roofs are clad with site manufactured Aramax sheet which was developed in Carcoar, and is manufactured by Brice Engineers. 
  • The cattle pavilion roof sheets are believed to be the longest single length sheets manufactured and erected anywhere in the world. 
  • The 15,600 square metre cattle pavilion roof was manufactured and erected in ten days.

The sheeting also looks like aluminium as Zinc Alum and Colorbond are not suitable for this type of animal enclosure. See the Intensive Animal Farming Technical Bulletin CTB-22. It was manufactured by Brice Engineering and is marketed under the name of Aramax – they are now owned by Fielders Steel and their website is Fielders Aramax. Here’s a snap of the sales yard at Carcoar:

Carcoar Sales Yards - Aramax Roofing

Shed building on a giant scale – it’s good to see the commercial and industrial side of metal sheds still travelling in the right direction.

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Men in Sydney do anything for a Shed!

Posted on : May 14, 2012

Sheds are a must for Sydney Men!

This article is on the new growing trend for men in Sydney to buy strata titled sheds in complexs complete with power, phones and even windows in some. The article is by Bronwen Gora From: The Sunday Telegraph  April 29, 2012 12:00AM called

“Sydney Men Go Crazy for Big Storage Sheds”

This is Mick Tsolakis and Garry Constanti, inside their huge shed at Alexandria this week, say they are delighted to have the extra room. Picture: Sam Ruttyn Source: The Sunday Telegraph. Its a great alternative when you haven’t got room in the backyard – and also a good investment! But it’s not the same as walking into the backyard to your own steel shed!

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Stratco to close NZ shed base!

Posted on : March 24, 2012

Stratco is shutting their NZ manufacturing base in Auckland?

Auckland Manufacturing & Administration 
Block 4, 22 Harris Road
EAST TAMAKI
NZ
 Telephone(09) 274 6487
Fax:(09) 274 5140
 
Details of their other NZ sites are HERE.

After 20 years in Auckland – Stratco apparantly closed the doors to their factory last week!

Stratco Manufacturing Auckland

 

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Shed Cyclonic Regulations

Posted on : January 31, 2012

Shedeye Investigator – The Australian Story

Introduction

This discussion is broken into two points regarding LHL testing. The first is with a rollforming perspective, and the second from a shed manufacturing perspective.

The main aim is to generate discussion to educate and learn from the current regulations concerning LHL Standard Cyclic Test Method for Cyclonic Areas. It was officially phased in on the 30th April 2009 to meet the Building Code of Australia Specification B1.2.

Interpretation of Low-High-Low Cyclic (LHL) Testing

 Basically it is simulated wind conditions (cyclonic) method using low, the high, then low pressure sequence to test the wind loads on metal roof cladding in cyclonic conditions. This LHL test is considered better to represent typical cyclic regime on metal roof assemblies than the DABM test method that was in the Northern Territory and the Australian Standard AS4040.3:1999 test method previously used in Queensland and Western Australia. The test involves includes the roof assembly including the roof sheets, fasteners and the battens and their support fasteners.

From April 2009 all cladding and batten manufacturers need to demonstrate that their metal roofing assemblies specified for cyclonic areas of Australia have been tested using the LHL test method. More details are available in Technical Alert No 08/1 at www.eng.jcu.edu.au/cts .

Rollforming Manufacturer Perspective

So to understand the basic test of the roof assembly – each manufacturer must get their roof sheeting (all profiles specified for cyclonic regions) tested under LHL. There are numerous testing stations in Australia and the one chosen here for example only is the James Cook University Cyclone Testing Station. Also in this discussion the roof cladding type is corrugated – produced by all of the rollforming companies in Australia and also used in cyclonic regions in Australia. The LHL stipulates that for a company to sell corrugated roof sheets in cyclonic areas – it must undergo LHL cyclic testing. The BRAND corrugated roofing is sold by some of the big multinational rollformers throughout Australia. The Company here is Company ZZZ, and to comply it sends it corrugated roof sheeting to the cyclone testing centre to meet compliance to the LHL test. This sample is rollformed on one machine that converts the coil (flat sheet) to corrugated roof sheets. This is assembled with battens and fasteners then tested under LHL. Once the LHL tests have successfully completed Company ZZZ can then supply corrugated roof sheeting to all cyclone areas in Australia. Company ZZZ has numerous corrugated rollformers as well as the one that supplied the sheets for LHL testing and yet all the corrugated roof sheets are compliant to LHL.

By stipulating that the company brand of corrugated has to be LHL tested, they are accepting that all the corrugated rollformers held by that company are identical. For another company to provide corrugated roof sheets to cyclonic areas – they too have to complete LHL testing. This assumes that the profile and rollform machines are different from company to company. Those in the rollform industry know that this is not the case, and apart from some minor variations between machines it is the profile of corrugated (along with the feed coil properties) that determine the strength and its ability to undergo LHL test compliance. Yet Company XXX has to undergo LHL testing even though all its machines are identical to Company ZZZ machines. This is the only industry where identical products are testing not the manufacturing process.  The LHL testing should in fact be the responsibility of the rollform machine provider – and most of these (especially Australian and New Zealand machines) would all supply compliant corrugated roofing sheets. There should be compliance for these rollform machines to be registered to conform to LHL testing. Yet Company ZZZ who has gained LHL compliance for its rollform machines can buy a new corrugated rollformer from China that may not meet the standards previously obtained from its original sample material. It is the machine that makes the corrugated roof sheet and so testing of one machine from a multinational company will allow inferior product by the company utilising untested machines.

Shed Manufacturers Perspective

From a roll former’s point of view, if it can be demonstrated that structural roll formed products with the same girth and BMT thickness such as roof sheeting and top span that is identical in profile, and manufactured from the same coils of origin that have undergone the LHL testing criteria, what is the real purpose of having the product tested while there remains a question regarding the safety of the total structure? For example, the manufacturer of roll forming materials may argue that while the LHL testing applies only to the roof cladding and “immediate members” that support the roof cladding, failure to include the importance of the connections at the apex, knee, and tie downs, begs the question; how does the manufactured product miraculously become only when the supplier has had the immediate members tested in a wind tunnel that simulates cyclonic conditions?

It is in the real world where actual wind tunnels exist, moreover, regardless of whether the product has been endorsed by shedsafe, structures will continue to fail even before completion.  So concerned are the self appointed gatekeepers to the shed industry, they have aligned themselves with the BSA and other bodies in conducting seminars across the country, advising erectors how to construct sheds so as to avoid the structure  collapsing during construction.  Shed erectors are playing roulette at the hands of shedsafe’s smoking mirrors illusion, hence, the shed erector will be potentially at fault if it can be shown there was a failure on the erector’s part in failing to use his skills in making sure that the whole shed was acting as a diaphragm in order to hold it together in the event of a storm or freak wind that often collapses the frame during construction. In other words, wherever there is an accident on site during construction resulting in person(s) injured or killed, the shed erector, rather than those who endorsed the shedsafe product, will be liable.

Now for a comedic look at the situation.

 A recent inspection of a 3x3m garden shed is an example of the hypocrisy within the industry.

A Building inspector was recently surprised to notice that a garden shed structure was actually made from a .75 mm stud frame with 12mm tie downs at each stud, along with two extra 12mm tie down’s at each corner. He was further surprised to notice bracing on each wall and three 64mm top spans on the roof fastened with 12x 14×20 tek screws with 0.42BMT cladding properly secured to the top span, yet while he was surprised at the extent of the structure, given that most 3x3m garden sheds don’t have a frame at all, he nevertheless failed the inspection because the shed manufacturer had not stated on the plan that the cladding had a reference to the LHL testing.

When the customer advised the supplier, who in turn asked the building inspector to explain the problem, the building inspector advised the supplier to read the literature provided by the ASI’s shedsafe endorsement.  Interestingly, the booklet showed a reference to the LHL endorsement, but no reference to the safety of the entire structure.

Getting back to the manufacturer’s point of view, there is clear evidence that the only guarantee and endorsement of ShedSafe may offer is the customer will have no idea of the origin of the actual material used to manufacture the product or if the product has been tested.

Therefore if the structure is endorsed by an incompetent engineer who has compromised his or her ethical standards, nevertheless signs a FORM 15, there will be no recourse unless the company that has hired the engineer replaces the product. The replacement is usually conditional that the incident be kept confidential.

Besides this, as already pointed out, if one single LHL endorsement can be used as a blanket cover for an entire corporation regardless of the corporation’s many separate roll forming outlets with differing profiles, or whether the origin of the coil is Australian or Imported, how does the building inspector know the difference without authentic documentation? Does the material in question have a specific test certificate stating the origin of the material along with an endorsement from the testing facility given that what he is inspecting explicitly refers to the cladding and top span required on the approved plan, or does he really care about the weightier issues that he may be forced to confront?

Summary

The main reason of this viewpoint by two very different members of the shed industry supply chain is to generate discussion that will enable shed purchasers to be confident that all the factors & PROMISES made by the industry groups are capable of being produced in the supply & erection of their shed.

 To finalise, there is an instance of a well known shed supplier who sold (supply) only to a customer that collapsed during construction. This occurrence was exploited by others in the shed industry to their advantage by giving this as an example of a non-compliant shed industry member. Very far from the truth, the particular shed supplier warned the shed erector constantly regarding construction techniques – all advice was ignored. Subsequent investigations resulted in the shed manufacturer being involved – but of all the parties involved – the shed manufacturer supplied and erected the shed for no charge. This is the type of example of pride in this industry we need. The investigating bodies had no idea of what had occurred – only guesses.

Many thanks to the contributions of the rollformer and the shed manufacturer for this valuable insight into only two areas of the industry. Hopefully more to come from these two gurus of the industry!

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New shed at Wacol raises questions!

Posted on : January 25, 2012

Queensland steel industry feels the heat from cheap Chinese suppliers

This the heading from the Brisbane Times Article on January 23rd 2012. Basically a local Queensland company has won the contract to build the new Hitachi Headquarters at Wacol. The uproar is about the source of the steel, of which Southern Queensland Steel (next door to new building) failed to win the contract to supply the builder Spaceframe with the steel!

Here’s a picture of the new site for Hitachi and the Spaceframe building sign out the front.

 

Hitachi Machinery New Wacol Headquarters Site

 

 Here’s what Mr. Ian Cairns of the ASI stated in the article:

The Australian company that lost the contract, Southern Queensland Steel, confirmed the situation but directed questions to the Australian Steel Institute, of which it is a member.

The Australian Steel Institute blames Chinese government subsidies and the undervalued yuan for creating an unfair advantage for Chinese suppliers over local companies and increasing pressure on an industry that employs about 100,000 people nationwide. 

So what is the answer to this? Here are some of the questions raised by this deal between an Australian builder and the chinese steel supplier:

  1. Spaceframe is a Queensland company with many projects under its belt, both here in Australia and in Asia and the Pacific. It also has offices in China (see their website above) and is a very progressive company (family owned & run). Why is that Spaceframe can obtain prices from China for pre cut steel and yet the giants of the Australian Steel Suppliers are unable to do this?
  2. Southern Queensland Steel has both local and imported products – if builders want quotes on large quantities of precut steel – then they should be able to offer the same imported Chinese steel supply! BlueScope imports steel, One Steel imports steel, Orrcon imports steel along with just about all major steel manufacturers.
  3. Why is the ASI (a part of BlueScope) suddenly blaming the Chinese government for all this. Surely among some of the ASI’s vast membership – one would think the buying power from China would be greater than that of Spaceframe?

Ian cairns of the ASI went on regarding subsidies and the value of the Yuan versus the dollar!

‘‘We’ve got an undervalued currency from a major competitor, and of course we have a resources boom that is fuelling our currency as well, to the detriment of manufacturers,’’ he said.

‘‘So we’ve got a double whammy, where you could almost argue that the dollar is overpriced by 30 per cent and the yuan is underpriced by 30 per cent.’’

‘‘So before we even start [competing] we are 60 per cent off the mark.’’

But Ian, surely your members would be better off taking advantage of this to supply steel rather than pay more for Australian steel and not sell it? The members of the ASI could definately buy at a better rate from China than Spaceframe.

Also the engineering and design for many of these projects are now being sourced from overseas and having multiply specifications that allow steel to be supplied globally. When local builders can source direct from China and it’s hugh number of suppliers, why can’t the steel suppliers also do this. Much of the material used in manufacture of the local domestic shed industry is imported. Maybe the steel suppliers of Australia will have to open up offices in China to combat these cheaper prices.

 

 

 

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New Shed on the Block

Posted on : December 26, 2011

Tetra Shed – Modular Shed Building!

Australia has had its revolution in steel sheds – advantages and problems come with this style yet a new modular shed style is emerging in the UK, USA and Europe. The shed is called TETRA-SHED and has just won the 100% Design Award  in the UK and is currently under negotiations with an Australian Shed Manufacturer.

Tetra Shed is different and modular, capable of adding multiple sections as shown below:

The Large Scale Modular Tetra-Shed

 And another picture showing smaller modular grouping:

Tetra-Shed smaller groupings

But the big surprise is the quailty and appearence of the shed by itself:

Outside Tetra-Shed Single Module

 And the inside is spectacular:

Shed Stunning Interior!

 With the above photos, it is very obvious that this system is easily adapted to the Australian mining, educational and accomodation industries. All of the industries and manufacturing groups are represented here, with the cladding being substituted with sheet Corten Steel, Stainless or even old corrugated for the backyard number.

Current BCA & ASA compliance is under way and will be available in 2012!

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Innovation Award Submission 2

Posted on : October 28, 2011

Corrugated – a New Revolution

Shed Roofing Profile Innovation Submission 2

This entry to the Shedeye Innovation Award is slightly different to the others entries regarding new products in many ways. This product involves the cladding of sheds, residential & commercial roofing and also is an innovation in the rollforming industry. This is not the site to explain the importance of this new release of a profile sheet and its implications to the roofing, heritage, architectural and other areas of the steel roofing and cladding industry. Almost a reinvention of an iconic corrugated iron from as early as 1829 to the present, this product actually provides a new release of an old product but with superior spanning capabilities being produced on a uniquely designed current rollforming line based in South Australia. The technology utilised and patented by Revolution Roofing will return the “common” corrugated iron roof sheeting back to a rounder, fuller, shapely and deeper profile based on the original 19th century Walker “Gospel Oak” profile.

Once again the supplier and innovator of this product has had a difficult time in choosing which of the three new TRUE OAK designs to enter in the Shedeye Innovation Awards?  Their choice was between three of these revolutionary new profiles, True Oak Mid, True Oak Deep and True Oak ‘5’ and details available on their website REVOLUTION ROOFING.

True Oak Corrugated

But of the three – True Oak Deep was selected because of its ability to be used in sheds as a 0.35BMT product as roofing as it is the only roofing rollformer that has span tables (not cyclonic) for this gauge of roofing.  With the same cover as everyone else, and still  at a cover of 762mm – it offers a product for the shed industry without change to the sheeting layout in regard to the cladding and roofing. The only adjustment will that have to be made is flashings (only minimal), as the depth of the rib is 21mm which is the very reason for the increased strength.  The features of True Oak Deep are 40% deeper and 40% stronger than standard corrugated with the ability to go down to 3 degree pitch in roof. The profile is much stronger underfoot than standard corrugated and less susceptible to denting by foot traffic.

Here are the Span Tables for True Oak Deep:

True Oak Deep Span Tables

The best explanation as to the details of this profile is best explained in the diagram below with the comparison of True Oak Deep and Standard Corrugated.

Comparison

That’s the technical stuff in brief – but a photo paints a thousand ribs or less and deeper!

To top this new innovation off, Revolution Roofing is offering a True Oak 20 Year Watertight Installation Guarantee. This back to back material, corrosion warranty is only available when the product is installed by a Revolution Roofing Licensed Contractor. Not only will this benefit shed suppliers, but also shed erectors once they become an approved Revolution Roofing Licensed Contractor and supplier. New roof photo of church here in SA.

 

True Oak being installed

 

Of all the aspects of this exciting design re-invention is probably the foresight of the founder (Mr. J. Easling) to undertake LCA of this product which is a first in the rollforming industry. This is now the only roofing profile to be under review for the GREEN TAG certification (by Ecospecifier) and will be available to all architects and engineers.  

The details for information from Revolution Roofing on this submission is available at www.revolutionroofing.com.au  

 

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Sheds in QLD cost more.

Posted on : October 10, 2011

Sheds in Queenslands rural areas to cost $27,000 more?

Pineapple Packing Shed

Under the new draft put forward by the Queensland Government, an extra $27,254 is to be added to farmers if they wish to build a new shed for packaging, storage or transport on their own property as construction on Strategic Cropping Land (SCL) now will come under the Department of Environment and Resource Management (DERM).

If this draft is accepted through the QLD parliament – then the extra $27,000 plus will be added on top of all the other fees and charges neccessary to construct a shed on agricultural land. So the local council that usually has influence over these local building applications will have to cede to the rule of the State Government. The red tape increase for a shed supplier in Queensland will also become a nightmare as dealing with all the DERM requirements regarding environment and resource management will be out of the normal field of the shed industry facilities.

The new requirements apply to sheds over 750 square meters and to packaging facilities, accomodation for workers and tourists. The additional fee would prevent the increase of an agricultural business expanding operations that would normally employ more people and generate more income.

A DERM spokesman said  “DERM will act as a concurrence agency for any development requiring assessment under the Sustainable Planning Act.” We are talking about the shed industry and agriculture here – and the DERM spokesman (not person) states this! Being a concurrance agency for any development leaves the door open for the department to step in at any time during a development. This draft should be altered drastically or it will effect the large shed construction industry in Queensland.

The problem with a draft is that the QLD government take submissions (only the ones they chose) and then enact the legislation very quickly. The shed industry in general – if it had an Australian Association of members, then it could lobby the government and may be able to prevent this going through.

Mango Packing Shed

The Queensland Times is the only publication that is reporting this new draft and a lot of support is needed if the draft is to be stopped. The rural and agricultural industries in Queensland have been through enough without another regulation that if not obeyed could end up in court. The recent Tax Summit also highlighted the need to reduce the red tape – and this one will effect many industries. Shedeye is preparing a submission to lodge in relation to this draft proposal, invites all in the industries to send submissions to Shedeye to compile this submission in opposing the implementation of this draft.

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ShedSafe – An Industry Body or A Brand – Part 2?

Posted on : September 28, 2011

Shedsafe errors in the requirements of its members?

This Part 2 (of many to come) is basically regarding the accreditation requirements placed on its manufacturers of sheds that are Shedsafe Accredited. The first requirement that is outlined below is in regard to the thickness of the steel roofing utilised in shed construction. Prior to delving into this area – a brief explanation of the product flow is required of the steel used in the shed roof cladding .

The steel manufacturers process iron ore in a furnace to produce steel – very basic and this is then transformed into the many steel products available on the market. The roof sheet steel is in a coil approximately 940mm wide with a BMT (Base Metal Thickness) of 0.42mm which can have a Coloured paint coating or Zinc Aluminium Alloy. This coil is sold to the metal rollformers to run through a rollforming machine to get the required profile of roofing. These companies also rollform the purlins, battens, tophat, gutters, ridge cap, fascia, barge mould, gable roll and fold most of the required metal flashings. These are all rolled from an order from the shed manufacturer according to the shed being supplied. In some cases the shed reseller may be part of a large group and simply order direct from the parent rollformer.

So the rolled coloured corrugated roofing arrives on site (and all other parts) as a direct result from the customer shed order that has been designed, approved, manufactured, delivered and ready for erection. Your shed is also issued with a 15 year roofing, cladding and purlin warranty from the steel manufacturer also sometimes the parent company of the shed reseller.

Lets start with the quote to the customer from the shed reseller. You’ve given all the details of your requirements of a shed and accepted the quote. Here is a small sample of one such Shedsafe Accredited reseller that is also owned by a national Shedsafe Accredited Shed manufacturer.

 

Details of Roof Sheet Thickness

 

Notice the roof cladding is 0.40 TCT Trimdek Profile C/B. The Trimdek and Colorbond description is fine, the 0.40 TCT is the roof sheet properties – that is in this case a 0.40mm thick Total Coated Thickness or back to the earlier description is equivalent of 0.35mm BMT (Base Metal Thickness). So this is 0.07mm thinner than the normal roof sheeting that should be installed on a domestic sheds. Why do they supply this sheeting for roof materials on sheds? Because it’s cheaper and many people don’t know the difference! So Shedsafe accredited resellers and manufacturers have been through the extensive training and requirements of the ASI run Shedsafe group. In fact in one of their requirements of shed manufacturers to become accredited is the fact outlined above regarding product warranty for 15 years. Here is the item by Shedsafe that requires manufacturers and resellers to:

 

15 Year Roofing Warranty

 

So the Shed Industry Benchmark group of Shedsafe – is setting the target or requirement of a 15 year warranty and its strick accreditation process is followed by all of its members. So the sample above (a shed which was supplied in 0.35BMT roofing) will have a 15 year warranty? WRONG.

Now lets look at Shedsafe again, an industry body run by the ASI of which BlueScope is the major sponsor. BlueScope also manufacturers the steel coloured coil for these very same Shedsafe accredited manufacturers and resellers. So lets examine the warranty for 0.35BMT roofing use in sheds.

 

 

BlueScope Roofing & Cladding Warranty

 

The main part in this warranty is that the supplier of the steel will not give a warranty on the 0.35BMT roofing that can be found in part 1 of the terms and conditions of the BlueScope Shed & Garage Warranty.  The basic error is that the BlueScope run ASI and its ShedSafe group have not covered all the small detail and continues to stipulate that Shedsafe accreditation is the Industry Benchmark. If they cannot enforce a simple base metal thickness that the manufacturer stipulates – what else is also wrong?

If your shed is supplied with 0.35BMT (or 0.40TCT) roofing – then it is not covered by the BlueScope warranty and the shed reseller will have to provide an independent cover for this warranty. Will they provide a 15 Year warranty on a 0.35 BMT thick roof sheet?
Accreditation is a simple word that enforces the meaning of having all the checks and processes in place to eliminate error.
This is one error that Shedsafe has to correct.
Next week part 3 – more detail of the marketing group Shedsafe!
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