Exporting prefabricated buildings to the US - points to consider?

espaces

Free Member
  • Feb 25, 2022
    6
    0
    Hello All,

    In the last year, we have found ourselves diversifying from producing bespoke garden offices to more specific commercial applications in the UK. However, we are regularly attracting attention from US homeowners asking if we can ship to them. I appreciate that our timing couldn't be worse in terms of current shipping costs, but if we can make the numbers work, the idea of exporting to the US is appealing.
    As we plan for this possibility, I would really appreciate if anyone can share points to consider or positives/negatives of such a move.

    Many thanks.
     

    Frank the Insurance guy

    Business Member
  • Business Listing
    Oct 28, 2020
    1,328
    4
    658
    meadowbroking.co.uk
    Speak to your insurance company/broker about how selling to the US will affect your insurance policy/premiums. Due to the well known legal costs in the US, you will find a hike in liability insurance premiums (Some insurers will not provide any cover at all!).

    Also consider how you will deal with any issues and complaints. Who is going to be erecting the buildings in the US? Consider your T&C's particular where you are purely shipping and all site work in the US is done by the buyer or their own contractors!
     
    Upvote 0

    espaces

    Free Member
  • Feb 25, 2022
    6
    0
    Speak to your insurance company/broker about how selling to the US will affect your insurance policy/premiums. Due to the well known legal costs in the US, you will find a hike in liability insurance premiums (Some insurers will not provide any cover at all!).

    Also consider how you will deal with any issues and complaints. Who is going to be erecting the buildings in the US? Consider your T&C's particular where you are purely shipping and all site work in the US is done by the buyer or their own contractors!
    Thank you Frank - that is an excellent point.
     
    Upvote 0

    espaces

    Free Member
  • Feb 25, 2022
    6
    0
    I guess in terms of shipping - are going going down the 'flat pack' route or ready made items. You can ship LCL (part of a container) where you will pay freight based on weight/cube, however with extra handling there is always the possibility of damages so you could also consider a full container.
    Thank you Darren. We would consider ready made items rather than the flat pack route. We could crate these quite easily without too much additional cost to prevent less instance of damage.
     
    Upvote 0

    espaces

    Free Member
  • Feb 25, 2022
    6
    0
    I don't believe that ready made, which I am assuming means fully built buildings, would be cost effective. Flat pack will not only be more cost effective but would lend itself to loading into containers or flat racks for shipping.
    Hi Mike - yes they are fully built. However, the models receiving most interest are relatively small so a good number can go straight inside a shipping container. My initial concerns over flat pack would be either the damage that might happen to prefabricated elements and any issues surrounding construction in the USA. Dealing with damage or warranty after other parties have been involved concerns me.
     
    Upvote 0

    espaces

    Free Member
  • Feb 25, 2022
    6
    0
    What about going over there and finding a company who can make them for you under licence or start your own subsidiary company over there licenced by your own company, you avoid shipping costs, have the "MADE IN USA" they love, and any product liability moves from the UK to the USA com

    What about going over there and finding a company who can make them for you under licence or start your own subsidiary company over there licenced by your own company, you avoid shipping costs, have the "MADE IN USA" they love, and any product liability moves from the UK to the USA company
    Thanks Chris - that is an interesting idea! I guess legal considerations and the timing in finding a company that could do this for us would be a limiting factor? We do use CAD and CAM which makes that concept more achievable...
     
    Upvote 0
    We would consider ready made items rather than the flat pack route
    Good luck with the project, however, you are paying to ship a lot of fresh air!
     
    Upvote 0
    Considering that the US prefab market is extremely mature, you will need a unique advantage and would definitely need to have the buildings made under license by a US company. Remember that building codes vary from state to state and sometimes even from county to county.
     
    Upvote 0

    Latest Articles