Outsourcing log cabin production: 3 crucial things you need to know

Posted Apr 20, 2021, Category: Business

Getting into production and scaling it has always had a high barrier of entry. Investment into production line, creating a portfolio, building models, marketing – each step raises the cost, making it more and more difficult to start a business. Another challenge comes with scaling. Once you have a factory that is able to produce good quality glulam houses, expanding production line to cover the demand can be another challenge. Not every company is lucky enough to keep cash on hand for quick expansion. This is the crucial time where log home suppliers have to make a decision: where and how to outsource their production. That’s exactly the topic we’re going to cover in this article.

Production

Outsourcing log cabin production: 3 crucial things you need to know

Production steps for glulam log houses are relatively extensive. Storing the timber and later the planks requires space and space can be expensive. That’s already a point for private label manufacturers like Eurodita, who already covered these costs upfront. The production line goes on with cutting, glueing, drying and then calibrating the planks for glulam house frames. Every step here requires specialised equipment like saws, glueing machines, drying chambers. Every piece of equipment is expensive and often requires custom orders, so that the equipment can be fitted on the specific manufacturing floor. Not to mention the assembly space, where glulam log homes can be partly assembled and packed for delivery. Every step here requires a lot of investment to start the business. It also takes time, especially if your business needs to scale up quickly.

Delivery

Often times an argument against outsourcing production revolves around the delivery. If the manufacturing plant is based far away from the target market, deliveries can be late, get expensive, especially with large products like glulam timber houses. While that can get challenging, most producers have a logistics chain set up to tackle potential problems. Whether it’s through agreements with transport companies, acquiring their own truck fleet or other ways – private label glulam house producers will find ways to get glulam homes to your door, or straight to your clients. When choosing a producer, make sure to inquire about their logistics chain in great detail.

Profitability

Outsourcing log cabin production: 3 crucial things you need to know

The profitability of your glulam log homes business largely depends on two factors: price and quality. While the price can be largely dictated by your home market, the quality is absolutely dependent on your production capabilities. Or in this case, the capabilities of your chosen private label producer. The portfolio that the bespoke log cabin company can offer will determine the type of customer you will be able to get. The quality of products will play a huge part in customer trust as well, and only a well-established producer, experienced with glulam beams houses will be able to offer something that can elevate your business.

Conclusion

As such an experienced producer, Eurodita can offer everything that is necessary to make your glulam log cabins business more profitable. During our 26 years of business, all our clients have experienced 20% increase in profitability immediately after starting the partnership with us. We’re also happy to say that we have our own trucking fleet and our own logistics chain that ensures 95% timely delivery. We are laser-focused on quality and are constantly expanding our portfolio, looking for new glulam house plans and designs to offer our partners. We’re always open to form new, lasting partnerships and invite both new beginners and experienced veterans our production floor, our portfolio, expertise and supportive partnership.