escribed as average with the port sector proving to be a difficult sell for most. Instead, some manufacturers of the so-called temporary quick storage units are looking to new opportunities in emerging markets around the world. “We have had some nice projects develop in less traditional international markets where our industry is in its relative infancy,” says Tracy MacLachlan, Senior Marketing Manager for the Saskatoon based Norseman Structures Inc. in Canada. Financial uncertainties seem to ripple through every market and MacLachlan sees a growing global trend towards emerging markets where Norseman is proving “strong” while the domestic market is expected to stabilise. “Introducing the benefits of quick storage to the emerging markets should be easier than when we introduced our product in our traditional marketplaces,” she adds. Wherever the quick storage professionals look in these days of lingering global economic woes, winning sales is still proving tough sledding. “It’s much more competitive out there on these jobs,” says Tom Nesfeder, Business Director, Industrial Sales & Rentals, for Universal Fabric Structures in Quakertown, Philadelphia. “Normally, you’d be up against two or three competitors, but now it’s not uncommon to see about 15 bidding for a job.” You’ll find quick storage structures at many world ports from a variety of suppliers. The fabric covered steel or aluminum framed structures are quick to erect and can be taken down just as quickly depending on need. And they are not the garden shed variety when it comes to size, as some temporary structures look like aircraft hangars – Universal has one building in service for the US Government that is 230 feet wide and 260 feet long and others at 150 feet wide and 405 feet long. Sizes of 60,000 to 70,000 square feet are average and uses range from bulk storage to warehousing, from storing historical artifacts (Rubb Buildings Ltd. in the Canary Islands) to sports arenas. For those established companies at the top end of the industry such as Universal Fabric Structures – owned by the Veldeman Group of Belgium – there’s a continual need to educate buyers of quick storage structures that you pay for what you get. Nesfeder says Universal’s high quality fabric structures have always met all building codes for engineering, snow load, insulation, safety, manufacture and other factors. “But, we are not the cheapest guy on the block . . . you get what you pay for.” For Universal, 2010 was a “very good year” thanks to remediation projects from the US Federal Government as part of the continuing stimulus programme. So far, 2011 has not been as good for the company as 2010, but Nesfeder believes the third and fourth quarters “are shaping a little better.” Whatever the North American performance by Universal, it has been good enough to help parent company, the Veldeman Group, stay in the black in Europe where sales are difficult and sluggish, according to Rolf Van Moer, Manager Business Unit Projects for Veldeman Structure Solutions in Bree, Belgium. “As for many companies worldwide, 2010 was a difficult year, but because of very good results for Universal in the United States and Canada, it was still a profitable year for the Veldeman Group.”
Economic uncertainty still a factor
Another of the world leaders, Rubb Buildings, which has plants or offices in the US, England, Poland, Sweden, Norway, and Singapore had a better year than expected in sales and profit in 2010, but 2011 was off to a slow start until mid year when it began to come to life and get the company back on budget. Rubb has traditionally done well in times of slow economic growth, but North American Rubb President, David Nickerson, says there are “a lot of customers who are holding back and waiting for the economic uncertainty to abate.” And he points a finger at the US capitol and laments: “From my perspective, the lack of any clear direction out of Washington continues to have a very negative effect. This is costing jobs and stifling investment.” However, Nickerson remains optimistic about the way ahead for the quick storage industry, but confirms that the market has been “very price competitive of late.” Some suppliers focus on meeting given price points, but the higher end manufacturers caution there should be more to the equation including, quality, meeting all building codes, experience, and safety considerations. “I think most customers are smart enough to know that you don’t get something for nothing and that there is a definite truth to the maxim that one gets what one pays for,” he says. “Those customers who choose to go with lower-priced, lower quality product often discover that a short-term decision based on initial cost is not necessarily the right long-term decision.” For this reason, Nickerson says Rubb always encourages customers to be their own best advocates and seek independent engineering advice about the relative strength and quality of what they are about to buy. Some in the industry are still smarting over the failure of three Cover-All Building Systems Inc. structures in North America culminating in a May 2009 collapse of the Dallas Cowboys National Football League team training facility in Irving, Texas, which brought injuries and lawsuits. That crisis proved to be the last straw and forced Cover-All and its Pennsylvania-based sales arm, Summit Systems, into bankruptcy and eventually out of the business. Norseman picked up some of the pieces of the Cover-All business assets and put them through an extensive re-engineering and re-design process before adding them into its portfolio. But, far from a lingering black eye, Norseman’s MacLachlan says the collapses actually had a good impact on the industry. “The reality is many buildings were and are still currently under-designed and the appropriate due diligence of permitting officials and engineers was lacking.” She believes the most significant impact of the industry black eye is that “new and fresh eyes are now looking over designs and specifications, which in turn will rightfully weed out sub-standard buildings and practices and ultimately make the industry much stronger.”
In a sense, adds MacLachlan, the industry “needed to be reined in a bit, and designers and permit officials needed to take a sober second thought about our structures, their uses and even their abuses.” And she echoes the thoughts of many in the quick storage industry when she says: “We need to refocus on selling our products for reasons other than price, which I believe was the biggest driver in causing the difficulties that resulted (in the collapses).” Norseman is now confidently producing and selling its expanded range of quick structures that are designed to meet or exceed building codes and she has noted a new diligence in review and analysis on building designs and applications throughout the industry and among its buyers. Rubb’s Nickerson fears that some of the low price newer companies in the market might not have yet learned the necessary lessons from the building failures as many customers “continue to validate poor engineering and fabrication practices as well as use of substandard materials by buying structures that clearly do not comply with the building code.” At Universal Fabric Structures, Nesfeder warns that while the industry is slowly recovering from the Cover-All collapses, it is not going to be a quick process if it continues to be hard to convince would-be buyers that fabric structures are safe when some would rather opt for cheap price over paying for a proper engineering package.
Innovation moving industry forward
Meanwhile, innovation is also coming to the fore and helping move the industry forward. Rubb is bringing its Thermohall™ line of insulated buildings to the North American market in 2011/2012. The buildings feature insulation that is integral with the outer cladding and “very quickly installed and 100% relocatable,” says Nickerson. “Due to its high density and to its construction, this insulation system virtually eliminates cold bridging making the structure
s highly energy efficient and minimizes opportunities for condensation.” A Korean electronics giant had Rubb provide three Thermohall™ buildings as part of its latest European expansion into Poland. In Norway the insulation capability of the Thermohall™ line is shown with a structure being used to cover a public swimming pool in Kristiansand. And Rubb is also introducing its FXI range of buildings it calls “world building” because six initial standard designs can be produced to a high standard of quality at any Rubb production facility around the world. Rubb buildings are environmentally friendly in that they are nearly 100% recyclable and have energy translucent roofs that provide substantial natural day lighting. Universal Fabric Structures has introduced a new structure line it calls Phoenix, which is geared to lower pricing but with the same high quality. Phoenix features increased inside eaves height and a variety of outside fabric options including PVC coated fabric and polyethylene, with building widths from 60 to 160 feet. For Norseman, McLachlan says some unique situations have been solved with innovative solutions. “They may not be far outside of our normal parameters, but they are certainly showing us ways to develop and move our industry forward.” Veldeman’s Van Moer says there has been an increasing demand for custom solutions in Europe and a constant need for more cost effective solutions by doing product improvements such as using laser cutting of parts instead of traditional cutting and sawing in production. Innovations have also helped meet the more severe structural stability and insulation regulations.