The great strength UMACO has is the ability to provide high volumes of quality low-cost houses to the Australian and the international markets. The challenge the company faces is the coordination and communication of the different functions of the company in two vastly different countries. In addition the company must manage the logistics of shipping a large non-standard sized container from the factory in Nantong to the building site in Australia and other countries.
In the longer term UMACO has the potential to build and manage on a commercial basis potentially 25-30 manufacturing operations in China to supply the vast and large Chinese market of 3 million homes per year. This would mean that each factory constructed in China would produce approx 100,000 homes per year and require an operating area of approx 4-5 square kilometres for each factory
It is imperative the company organizes sound operations and logistical infrastructure before embarking on marketing to the open market. Over-committing itself to large quantities of orders before having a solid base from which to operate will result in burning relationships with potential customers and damaging the brand in the market.
To overcome these issues UMACO will embark on a two -phrase process to achieve its objective of building a significant international presence within five years. The two phrase of development have been identified as:
1. Short Term
2. Medium Term
The first phase is dedicated to building the system to manage the above challenges. This will focus on the building of the factory, establishment efficient communication systems, building prototype houses and shipping them to locations in China and Australia for testing.
The focus will then shift to exploiting the strength of UMACO homes by developing the marketing and distribution systems to grow demand for the product. Initially this will be through a number of Australian and Chinese developers who need to commit to approx 600 houses. The supply of these of companies/developers will provide UMACO with invaluable information on how to improve the operations systems within the business to manufacturer, ship and assemble the houses on-site.
The final phase of development will see UMACO offer a full-service to the customer in providing site development in addition to UMACO homes. UMACO will also move into overseas markets. UMACO is forecasting to sell approx 30,000 homes sold in the fifth year of operation to both the Chinese and International markets.
The following plans outline the projects and tasks involved in each of the two phases.
Short Term Plan
- To design & build operational manufacturing / Assembly facility.
- To fully test manufacturing and logistics.
- To establish business and marketing .
Budget to Implement Plan: US$2,500,000-US$3,000,000
Projected Revenue: US $3,200,000
The Short Term Plan is divided into three broad activities. Each of these in sequential and chronological order:
- Design and construct the factory and assembling lines
- Procurement and Construction Activities
- Initial Manufacturing and design additional UMACO models
Design and construct the factory and assembling lines
The Design & construct stage covers the preparation of the Factory Design, equipment and process designs. UMACO is responsible for completing the above designs in the time frame set out in the project plan.
Once the draft designs are complete they are formally given to the manufacturer and this signals the end of the Design Activities and the commencement of the Construction and Procurement Activities.
Procurement and Construction Activities
The Construction and Procurement Activities covers the construction of the factory and the procurement of all equipment and machinery necessary for the operations phase of the plan. This also includes the testing of all above mentioned equipment.
Upon final inspection of the factory by UMACO, and UMACO’s acceptance of the equipment, the Construction and Procurement Activities will be complete.
Initial Manufacturing Activities
This stage primarily covers the production of the prototypes by the manufacturer and the installation of necessary software and systems to improve the operations of the factory.
A Project Manager will be appointed for the term of the Short Term Plan. The Project Manager will be responsible for achieving objectives of this phase on time and on budget. The Manufacturer must do all things with in reason requested by the Project Manager or his nominee.
Sitting above the Project Manager will be Project Committee consisting of representative from UMACO and NHI. The role of the Project Committee is to review the progress of the project, review recommended changes to the project plan, and manage design and ordering procedures and other procedures required for the operational phase.
Short Term - Financial Plan
The challenge facing UMACO is the short term is very capital intensive in both capital expenditure and in personnel requirements, and there is minimal return for the investment.
To fund the short term establishment phase activities UMACO is embarking on three-pronged strategy:
1. Charging fees to the manufacturer for services to design, consultancy, train and project manage Manufacturer
2. Inviting an Equity Position from a THIRD AND/OR Chinese Party for a contribution of funds
UMACO during this phase will provide the manufacturer consultancy services to assist the establishment of the factory including, designing the factory and assembling lines, project manage the construction of the factory, sourcing machinery & equipment,
UMACO will provide other services to the manufacturer including outsourcing of sub-manufacturers, training factory personnel; assist the manufacturer in obtaining compliances to the overall materials to build UMACO homes
NHI is responsible to build and equip the factory to UMACO standards and designs; it is estimated over 100Mil RMB.
The agreement allows UMACO to drawdown USS$100,000 per month to cover services provided to the manufacturer during the establishment phase.
The total financial assistance received from NHI will amount to US$1.5Mil
Short Term – Marketing Plan
The main emphasis in the marketing department is the establishment of the marketing tools and systems to be used when the company goes in to full-scale operations. The first sales activities will take place directly after the establishment phase.
At the completion of the establishment phase the Marketing Department will have the website, marketing literature completed and printed.
Research buyer needs
UMACO during this period will increase its product range to provide choice to the prospective buyers
Marketing will liaise directly with prospective buyers to clearly understand buyer needs and translate them through Design and Operations
Marketing will liaise with developers in both China and Australia to gain commitments for sales for the initial 600 homes
The UMACO website will be utilized as a central point of the marketing efforts. The website will contain all publicly available information where prospective clients can be directed for further information. The domain name www.umaco.com.au has been secured and the site is planned to be built by July 2008.
Brochures, Catalogues and electronic marketing material
UMACO will produce brochures, catalogues and electronic virtual tour materials that will contain product based information on each of the new design home. The material will have finished photos, drawings and will provide the prospective buyer the ability to take a full tour through the dwelling and highlight the interior finishes. The brochures and catalogues will contain the website address for further information. The marketing material will be produced in 2011.
Short Term – Operations
Prototype Testing Results
UMACO will develop an engineering based marketing document on the results of the testing carried out on the prototype houses. The document will serve to demonstrate to professional customers the strength and durability of the houses.
It will document the tests performed and the results achieved and compare to the current Australian Standards. It will also confirm the use of Australian Standards approved components throughout the house.
The communication between UMACO and factory will be tested and implemented; all areas of assembling will be tested to ensure smooth operations
Each component will be tested for stress and structural capabilities
Each material prior to being installed will be tested for its compounds and risks
All materials and methods of assembling will conform to Australian Standards and Building Code of Australia and will be supervised by qualified personnel
Each component will be compared against design and physical construction
Each design will be accessed to determine comparability with its intended purpose
During the initial shipments engineers will record all aspects of the dwelling to ensure the container and method is suitable for future use
Installing on Site
Upon the dwelling arriving various testing will be carried out to ensure all works accordingly to plan.
The prototypes will be installed and retained for future research and analyzing.
UMACO intends to have the dwellings occupied by tenants to research.
Medium Term Plan
- Commence full production of 600 homes Establish International Distribution network
- Cost to Implement Plan: US$199,000,000
- Projected Revenue: US$378,000,000
Medium Term - Financial Plan
The implementation of the plan will be funded primarily through the sales of houses. For the first year this will be derived from the on-going projects from existing orders. The second year will see the sales from International Markets.
Medium Term - Marketing Plan
The Medium Term will commence with the full launch of the marketing efforts. The tools created in the Short Term Plan will be utilized to generate sales in the Medium Term. Much of the early efforts in the early part of this phase will be the setting up of the Distribution and Channel Strategy.
UMACO primarily meet existing order with the view to expand into the international market. Setting up a comprehensive network of distributors will be the main aim during this period
The distribution Network will be finalized prior to 50% in place by the first half of the Year One in this phase in order to generate sales from the commencement of Year Two. Building a strong tight Distributor Network and system will be paramount to ensuring the future sales growth of the UMACO homes.
During Year 2 of this phase the Marketing Department will commence the international expansion stage. This entails performing a country analysis on various target countries to determine the most attractive markets to enter.
The first year’s sales objectives will be attained exclusively through the current projects under development.
Sales from the second year will be split between on-going demand, and the establishment of the International Channel of the Distribution / Channel Strategy outlined below.
Distribution / Channel Strategy
It is planned to establish on an International basis a Licensing Program to facilitate a business to business sales platform. A Program will be set up with appointment of a “Master Licensee‟ for each state / province and supported by a number of “sub-licensees‟. To ensure effective coverage of developer/builders in each region an indicative structure is as follows:
UMACO will appoint a Country Distributor who will be responsible for the management of the market and liaise directly with UMACO.
A Program will be set up with appointment of a “Master Licensee‟ by the Country Distributor, for each state or province and supported by a number of “sub-licensees‟.
It is planned to establish stringent selection criteria for all licensee stakeholders.
It is planned to offer Licensing Rights to third parties that will provide the distribution base required to contact the target market.
The success of the distribution network will rely on the licensees delivering a uniform level of service, pricing strategy and product to the customer. In order to facilitate and control this process at all points on the distribution channel, UMACO will develop a clear and detailed set of procedures that will govern product distribution, pricing mechanisms and client liaison. The objective is to develop and implement an operating system that is easily replicable and enforceable into each licensee’s business throughout the distribution network.
UMACO intends to provide design, manufacturing and supply support to all distributors therefore creating a total network control over all operational issues
UMACO technical team will need to remain testing the variance output from different machines to ensure production accuracy
A website will be developed which will contain all relevant marketing based material. The website will reduce the amount of actual printed marketing material required, and make the process of distributing specialized detail to licensees more fluid and easier to manage.
The website will also facilitate an easy marketing support structure for entry into overseas markets. Each new country will have a dedicated page(s) on the website where relevant information will be available on how the product complies with the local building codes and regulations.
The identification of major residential housing projects by developers and large builders will be accessed through reports currently available in the market
Development and submission of tenders is planned as an integral process of the marketing/sales process and will require experience and tender submission capabilities from UMACO and all levels of the Licensees‟ in preparation process.
Data-base marketing will be essential in identifying the key stakeholders in residential developments. Outsourcing advertising, promotional and public relations assistance and origination will be used to reach the identified decision makers.
Face-to-face presentations of UMACO homes and the establishment of business relationships will be conducted through industry contacts and networking and industry forums, seminars and peak industry activity.
Business to business industry magazines will be used to develop a company profile and gain a meaningful level of product/branded awareness. The building and construction industry has a broad range of quality publications in addition to peak industry magazines from various organizations‟.
The advertising content is planned to comprise primarily of advertorial material, interviews, testimonials, professional commentary rather than traditional overt product advertising.
The search for new markets commences. A list of target countries will be developed. Each country will be analyzed for attractiveness in terms of market potential, competitors, ease of entry, and ease of distribution, infrastructure, government regulations and profit potential.
Where possible the same distribution structure will be adopted in the new market. Contracts will need to be reviewed to ensure validity in each market. It is anticipated a small amount of units will be sold into New Zealand in this phase.
Medium Term Plan – Operations Plan
The main objectives of the Operations Plan are to oversee the expansion of the Nantong factory to keep pace with the demand generated from the UMACO marketing plan.
Australian Design Team
At the commencement of the Medium Term Phase UMACO will continue to expand product ranges. During this phase the Design Team will increase the number of houses available in the UMACO range.
Number of Order Contracts
UMACO design team will need to increase their output from fifty houses per month to one-hundred and fifty houses per month.
UMACO will prepare the manufacturer to ensure second year production projections will be met, including setting up additional equipment and outsourcing sub-manufacturers.
Medium Term – Personnel Plan
The Personnel Plan outlines the human resources required to achieve the objectives of the Medium Term Plan.
Additional resources required outside of UMACO personnel employed, and consultants engaged in the short term.
Long Term Plan
Cost to Implement Plan: $4,000,000,000
Projected Revenue: $7,000,000,000
Long Term – Marketing Plan
In the Long Term plans of the Marketing Plan will see UMACO expand its domestic market and launch into overseas markets. The Marketing Department will split into two distinct units to allow for dedicated resources for both the Domestic and International Markets.
Year three will see the continued growth of the Australian market plus the expansion into international markets via the Distribution / Channel Strategy.
International sales will grow as UMACO enters new international markets.
The international markets will account for 70% of total sales and will continue grow through the opening up of new markets.
Total Oust Market
UMACO during the second year will be extending its value added products e.g. Finance packages and insurance etc.
The opportunity exists since Amoco’s visit to Caofeidian in August 2007 to construct a second and larger factory in Tanjen in Northern China in the Caofeidian Industrial Zone.
Based on UMACO’s working experience in Nantong and Australia the Chinese Authorities have offered UMACO the opportunity to acquire land for a factory construction to produce up to 100,000 houses per annum.
The factory size required to accommodate this level of output would require a land area of 2.5 kilometres by 2.5 kilometres i.e. 4.25 square kilometers or 6,500 MU. Chinese management of the Caofeidian Zone have already offered the land to AACIG on a verbal basis at 20,000 RMB per MU and a written basis of 70,000-100,000RMB per Mu (1Mu is about 666.7 square metres).
The Chinese authorities have indicated that
1. “our policy is that every company buy land at this price must invest at least 1,500,000 RMB into every Mu of the land and the registration capital should no less than 20% of the total investment”
2. “ our policy, we will return 50% of the taxations that charged by Caofeidian back to your company within three years”
3. “The government will support your company as much as we can, which include reduce the incidental expenses (registration and palliation fees etc.), and we can help you with the bank loan and also some more benefits from taxation supports”
4. “We can offer you the constructing department to support your project, and we also welcome you to invite the material and other suppliers come to Caofeidian”.
5. “The location of your land will be in the north of Chemical Industry Zone include a part of shoreline “
6. “As soon as your company hand in the proposal and project plans we will provide the land before the time limit of each stages of your project request”
Based on the above parameters the cost of investing in Caofeidian would include:
1. Purchase price of the land based on 6370 MU
a) At 20,000 RMB per MU Est. 127 million RMB
b) At 70,000 RMB per MU Est. 445 million RMB
c) At 100,000 RMB per MU Est. 630 million RMB
2. Factory and investment requirement
6370 MU at 1,500,000 per MU Est. 9,555 million RMB
The approach with Caofeidian would be to acquire the 4.25 square kilometre land area and to sell off to housing suppliers the peripheral land i.e. outer border of the land, to allow these suppliers to establish their businesses and supply the main UMACO manufacturing facility. These manufacturers would include:
1) Kitchen Manufacturers
2) Bathroom Manufacturers
3) Porcelian Manufacturers
4) Furniture Manufacturers
5) Tap and Fittings Manufacturers
6) Plastic Manufacturers
7) Guttering Manufacturers
8) Building Material Manufacturers
The costs and risks of establishing the Caofeidian Factory would be reduced considerably by such a strategy and provide building suppliers at the main
Based on producing 100,000 per annum after say 3-5 years a factory of this size could command sales revenue of 60 Billion Chinese RMB based on an international markets prepared to buy these houses at AUS$100,000 Australian Dollars each or US$88,000 American Dollars each. Such retail prices for houses are considered feasible in the US and Australia.
This proposal needs to be fully developed and coasted and added to the UMACO current Marketing and Business Plan at a time that is appropriate.
Stephen Wilson, 7th July 2008
UMACO Manufactured Housing, National and Queensland
Benefits and Outcomes
1) National Productivity and Economic Growth
a) The development and ownership of the patented technology of a fully manufactured home by an Australian entity positions “UMACO‟ to the forefront in world markets. The world market for manufactured houses i.e. factory produced is expected to be1.5 to 1.8 million units per annum in 2007 The most significant market share of the world export market for manufactured homes is based on the use of traditional house designs using a “wooden frame”. This has emanated from the resource base of countries with abundant forest areas, two such examples are Canada and New Zealand that enjoy a developed and substantial export market. In 2001 this represented export income for Canada of CA $620 million and New Zealand NZ$70 million in 2000.UMACO has access to the Patented Technology and will be negotiating User Rights under a License Agreement.
b) Razvan Gornoviceanu the principle inventor and developer of the patented technology is planned to be offered a position with UMACO and a shareholding in the corporate identity to be set up to manufacture and market the technology in Australia and internationally. Razvan Gornoviceanu has developed two patented technologies for manufactured housing in the last two years and is currently working on his third.
In 2001 the United States was the primary destination of prefabricated housing, accounting for 70% of Canada’s exports. Source: Statistics Canada 200
c) The Patented technology in the “UMACO‟ product allows for residential construction period to be reduced from months to hours. The on-site costs are minimal with “virtually no waste”. This has a number of product benefits for overseas developers and housing projects, significantly reducing costs, waste and a more controlled and predictable construction time.
d) The technology cannot be duplicated in any timely manner and is patented. A Patent applies from early December 2006. To fully protect and cover any potential future plagiarism of the technology a range of devices, new ideas, operational mechanisms and design elements were included in the Patent Application. The Folding Enclosure product cannot be duplicated without the full range of devices, inventions and design elements included in the Patent.
e) The patented technology has refocused “UMACO‟ to further R and D and utilization of new ventures that will result in increased employment opportunities. One of the new devices included in the “UMACO‟ design is a Roof and Gutter design which is fireproof,‟ resists collecting environmental debris and directs rainfall to storage vessels for use as Grey Water inside the house structure. This technology has been identified for commercialization as a “stand alone” opportunity for Australian manufacturers and roof and guttering installers.
Potable Water Project
The current design and technology provides inclusion of rainwater collection and storage for Grey Water within the structure of the house. Technology and an additional stakeholder is required to provide guidance and develop of a device which converts Grey Water into potable water to meet Australian and export market standards.
The device would be incorporated within the structure and more than likely involve ozone technology Ultra violet technology, chemical engineering technology or combinations of each.
Solar Collection Project
The opportunity exists to incorporate solar collection and electricity generation capabilities within the enclosure at the point of manufacture. This attribute would contribute significantly to ensuring that our technology remained at the forefront of competitors on a global basis. This will involve identifying another area or industry technology to partner in development.
Automatic Unfolding and Deconstruction
The opportunity has been identified to incorporate either, Hydraulic or Electrical technology to fold and deconstruct the enclosure without any manual labor contribution. Either Australian or international research, technology or manufacturers/suppliers will need identified, partnered contracted to support the development and incorporation of all three projects into the current patent.
As the target market is primarily export any research and technology inclusion would require meeting local compliance and mandatory standards prior to any commitment into each overseas market. In fact the initial planned product will need to satisfy Australian Compliance, Australian Standards and Building Code guidelines prior to launch and commercialization. UMACO is fortunate to have acknowledged this requirement in the early stage of the development of the patent and worked within guidelines and with resources that were familiar and experienced in these areas of expertise.
Societal, community and ecological benefits
The “UMACO‟ home will deliver the following ecological and sustainable housing benefits on an Australian and more particularly on an international basis in the following areas:
Ecological: The building and construction industry continues to place enormous demands on raw materials and other natural resources such as timber and clay as opposed to the “UMACO‟ home which is a steel framed construction man made veneers and laminated surfacing.
Waste: Societies‟ are still largely characterized by a “throw away‟ culture with construction and demolition waste comprising almost 50% of solid waste in landfill (SA Department for Environment and Heritage (2000), Waste Management in South Australia: Background Paper, Sept, p. 17) off-site manufacture allows for better management of the waste stream. Materials can be used more efficiently, exact amounts of materials can be ordered and materials can be more carefully stored. Additionally any waste that occurs in a factory can be more easily collected and reused/recycled. This reduces the cost of disposal of waste.
Health & Safety: Construction work on-site can be a dangerous activity and more demanding health and safety requirements make off-site manufacturing a viable alternative where safety requirements can be more easily met and policed. Occupational Health and Safety Issues are a significant issue in most markets with compliance requirements and regulation costs adding to the building costs indirectly and directly.
Transport: Offsite construction leads to a reduction in the numbers of deliveries to site, particularly of the large number of small deliveries that occur at many sites. Thus, in general it is likely that a well managed site using off-site fabrication can significantly reduce the amount of traffic generated. This means that the locality around the site is disrupted for a shorter period reducing noise, pollution emissions and local traffic disruption.
Water: The water storage component of the “UMACO‟ home design reduces the reliance on water resources/supply and enforces water storage compliance through factory fitted supply.
Durability and Adaptability: Steel frame construction is durable and elongates the life cycle of residential housing versus traditional brick and timber based designs. While most timber and brick homes are considered to last for a lifetime say 30-60 years ,modern steel frames homes are considered potentially viable for 100 years plus. Replacement of stock activities are generally considered in terms impact on waste outcomes, disturbance i.e. noise and dust and extensive construction times. Off site modular constructions in particular are regarded as adaptive with their ability to be used in multiples.
Energy Efficient: The incorporation of solar panelling in the medium term will provide reduced reliance on electricity supply. Factory produced homes lend themselves easy to inclusion of materials and devices such as membranes, insulation, anti noise absorption panels, insulated piping, ducting etc
Indoor Air Quality Ducted air systems that can be factory fitted to ensure indoor air circulation is available as well as having the facility to filter heat and dehumidify with various devices.
In a study conducted by the Steel Construction Institute in the UK aimed at quantifying the benefits of the reduction in dust, noise, vehicle movements and environmental impact of site generated waste as well as the benefits of modern methods of construction involving off site construction techniques the following conclusions were reached
a) Significant reduction in the period of construction approx 29%
b) A reduction in site labour costs approx 75%
c) A reduction in commercial vehicle movements approx 40%
d) A reduction in on -site waste, approx 70%
e) A reduction in required working and storage space on site
While this study is based in the UK and has specifically quantifiable results it is reasonable and logical to assume the conclusions in principle apply to offsite manufacture in broad terms. The UMACO home is a steel construction manufactured off site.
Additional case studies reveal a myriad of benefits that support sustainable development guidelines and directly enhance national resource security from using off site steel manufactured houses.
One such study was in Kotka Finland where an offsite steel frame building was designed and built to the principles of sustainable development. The estimated service life cycle of the building is at least 100 years and its energy use is only 30% of a congenital brick building Appendix 1 attached
A German study on modular steel framed off site produced home was focused on and carried out to deal with the creation and development of a generation house, which are adaptable as a family size grows Appendix 11 attached
A Swedish case study involving an Open House that provides high quality housing using an industrialized building process was used for major projects in Sweden involving 1200 apartments. The aim is to provide better housing at a lower cost by an industrialized building process. Appendix 111
The “UMACO‟ house while not intended initially to be a modular design concept, could realistically be utilized in a modular multi storey design with minimal alterations to the components i.e. strengthened framework.
Flow on Economic Benefits
Factory fitted inclusions and finishes allows improved quality control and delivers a product capable of having a higher performance level, better quality at a lower cost.
An example is the internal cladding or veneer in Australian homes that is primarily reliant on Gyros with on site manufactured homes. Gyprock is considered to have a soft surface, subject to cracking along joints, easily damaged with exposure to water, chalky and dusty to apply, requiring a high level of finishing and painting, easily damaged, coated/surfaced with paper, cannot be reused but essentially cheap to manufacture
Off site, mass-produced homes can utilize a multitude of more preferable polymer surfaces that can be selected on the basis of improved durability, strength, adaptability, damage tolerance, water tolerance and a greater variety of finishes/textures for the end user.
Benefits of Overseas Commercialization
The size of the overseas market for housing dwarfs Australia’s housing market. For every person living in Australia there are approx 3,500 people outside Australia. Significant royalty and commission fees are available globally for thousands of company’s established worldwide that manufacturing off site housing i.e. Clayton Homes in the Strata and BlueScope companies in India are but two examples. In the US alone there is in excess of 400 manufacturing companies producing of site manufactured homes.
It is planned to continue to employ additional personnel and increase the number of sub contractors according to UMACO‟S volume requirements.
The UMACO shareholding of companies which are involved in the ownership and marketing of the patent are 100% Australian. Dividends, royalties and commercial compensation will be directly received by the same parties
Maintenance, product development, quality control standards, product testing and research and development will be carried out in Australia. This may from time involve international collaboration with other firms and research organizations in order to keep our technology to the forefront of competitors. Example only BP Solar is a foreign owned company with advanced global technology in solar collection. UMACO could negotiate a development program for a solar collection device for applications specific to manufactured homes.
Experienced and well qualified personnel have been chosen to commercialize the patent on a global basis, either as employees or on a contract basis.
Benefits of overseas production of products, processes and services resulting from the commercialization of project outcomes.
The level of commitment to retaining and protecting Australian R and D, trademarks and patents and management control is particularly high.
This is evidenced by:
a) A Manufacturing Agreement that sets out in clear and agreed terms ownership of IP ownership of any developments and has a series conditions, which require the manufacturer to provide transparency of operations and activities. This includes a significant management input and guidance over the manufacturing process by the Australian Management Team.
b) The costs of transport have been identified and are comparable to an equivalent number of normal shipping containers on a pro rata basis. Australian Shipping Brokers with international offices in major destination ports have been identified
Specially designed trucks and containers have been designed to accommodate local road transport from destination ports to construction sites
c) A fully prepared Business Plan and Financial Plan will be prepared for identifying a comprehensive list of personnel and costs as well as sub contractors. A well known and acknowledged Accountancy, Tax, Investment Banking and Business advisory organization has been selected and has been working with UMACO in the preparation of accounting preparation, costing requirements and reporting systems. The organization also has a considerable background and experience in International Accounting and international business consultancy.
d) Legal barriers and local compliance requirements have also been identified for a number of countries and further research and assessment is planned for the first half of 2007.Entry into countries where compliance and legal protocol is minimal will be a focus of evaluation i.e. Iran which requires 750,000 new homes per annum and where there is “little red tape” according to Austrade.
e) The Degree of Globalization of the manufactured house market is identified and regarded as medium with considerable potential to any party who introduces technology to replace traditional wooden frame based construction techniques.
The market is dominated by Europe, Canada and the United States. Based on UMACO’s research there are consistent attitudes and perceptions to prefabricated homes in most westernized societies. Additionally all the potential overseas markets are consistent in their acknowledgement of problems in affordable housing, the adoption of more off site production in residential housing, the importance of sustainable housing and all suffer from the poor economies and practices of traditional on site construction techniques.
f) The international surveillance of markets (including trademark and patent usage) and up to date market research, available in Australia through organizations such as IBIS, will need a strong commitment in order to preserve UMACO’s competitive edge and ensure the Australian ownership and control is maintained. This process will involve the commitment of funds to ensure timely and relevant information and reports.
UMACO have meaningful cost advantages with manufactured houses over traditional on site suppliers and have the opportunity to provide intending home purchasers with more consumer friendly financial package.
UMACO plans to offer home purchasers a significant interest free loan for a proportion of the value of the purchase price of the property. The balance would be provided by securitized funders and banks on normal home mortgage terms.
The consequence of this finance package would be that the home repayments and costs would be significantly less than a traditional outright purchase under normal home purchase practices. It has been calculated that the financial commitment of the UMACO package would represent only a marginal increase on finance commitments from current rental payments from tenants in leased properties. The result would be expand the total market for home buyers by attracting people who are currently renting and believe they are not financially resourced to buy their own homes.
UMACO is currently working with a national well known and acknowledged property and real estate group who have a significant data base of “renters”. UMACO plan is to market directly to this target market as the major focus. It is considered that a significant number of these people could become “property purchasers” rather than “renters” given they can be presented with an attractive consumer financial package to “buy”.