TRIPLE J STEEL PRE-ENGINEERED STEEL WAREHOUSE

A Product Proposal Presented to the

Civil Engineering Department
Faculty of Engineering
University of Santo Tomas

Cada, Dhea Lyn H.

Dionisio, Raymond Jairus V.
Inong, John Michael J.
Puse, Camille Alizza C.
Santiago, Junell Karl A.

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 TABLE OF CONTENTS

TRIPLE J STEEL PRE-ENGINEERED STEEL WAREHOUSE ............................................ i

TABLE OF CONTENTS .............................................................................................................. ii

COMPANY PROFILE .......................................................................................................... 4

Vision……... ............................................................................................................................ 4
Mission…… ............................................................................................................................. 4
History of the Company ........................................................................................................... 4
Organizational Chart ................................................................................................................ 5

PROPOSED PRODUCT CONCEPT ................................................................................... 6

Background.. ............................................................................................................................ 6
The Idea……............................................................................................................................ 6
Benefits…… ............................................................................................................................ 7
Explanation of the Product ....................................................................................................... 8
Promotion, Placement, and Price in the Market ....................................................................... 8

Description of the Product................................................................................................... 10

Details with Pictures .............................................................................................................. 10
Parts and Dimensions ............................................................................................................. 12
Design……. ........................................................................................................................... 12

Target Market or Customers .............................................................................................. 13

Market Issues and Trends ................................................................................................... 14

Situation Analysis .................................................................................................................. 14
5.1.1 Current state of the Market in Relation to the Proposed Product ........................................ 14
5.1.2 Competition…… ................................................................................................................. 14
5.1.3 Does competition satisfy customers?................................................................................... 15
5.1.4 Customers’ demand for this product.................................................................................... 15
5.1.5 External factors to consider ................................................................................................. 15
SWOT Analysis ..................................................................................................................... 16

Financial and Budget ........................................................................................................... 17

Estimated Sales target ............................................................................................................ 17
Recommended pricing structure and selling prices................................................................ 17
Product development cost to be budgeted .............................................................................. 18
Estimated Cost of the Product Launch ................................................................................... 18

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Estimated cost of on-going product management .................................................................. 18
Date for Completion............................................................................................................... 19

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 COMPANY PROFILE

Vision

Triple J Steel envisions itself as the leading steel manufacturing company in the Philippines

which offers the best steel designed buildings. This will be achieved through the fulfillment of our

company’s mission.

Mission

 To be a competitive, trust-worthy, and efficient steel manufacturing company;

 To design and manufacture steel buildings to the customer’s needs and specifications;
 To offer versatility in the design and fabrication of steel buildings;
 To build stable steel buildings at the most efficient and economical manner;
 To enrich the camaraderie of our clients and employees;
 To offer excellent customer service and;
 To be a world-class steel manufacturing company recognized globally.

History of the Company

Triple J steel is a medium scale company that was founded in 2009. The company

manufactures and designs steel buildings perfect for warehouses, gyms and basketball courts.

Triple J Steel custom-built structural members based on our clients' preferences. Triple J company

is Philippine-based company, and also cater neighboring countries in southeast asia such as

Malaysia and Indonesia.

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 Organizational Chart

\ PRESIDENT/
CEO

VICE PRESIDENT/ CFO

COO

HUMAN STRUCTURAL MANUFACTURING MOTORPOOL ACCOUNTING SALES &

RESOURCE TEAM MARKETING

MANAGERS MANAGERS MANAGERS MANAGERS MANAGERS MANAGERS

SUPERVISORS SUPERVISORS SUPERVISORS SUPERVISORS SUPERVISORS SUPERVISORS

EMPLOYEES EMPLOYEES EMPLOYEES EMPLOYEES EMPLOYEES EMPLOYEES

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 PROPOSED PRODUCT CONCEPT

Background

Over the last few decades, pre-engineered steel and metal have become quite popular in

the construction industry due to its flexibility, durability and adaptability over. Although these

factors have made steel one of frequently used material for warehouse construction, not everyone

understands that a pre-engineered warehouse can range in virtually any size and options for exterior

features. One may need of a simple storage warehouse or a larger manufacturing facility, and with

that; we, the experts from one of the best steel warehouses manufacturer company, Triple J Steel,

can help to plan the best warehouse for the clients, so that they can be sure that their steel warehouse

is in the appropriate style and custom-sized for the need of clients’ business.

Apart from its functionality, the warehouse will be designed with structural integrity and

toughness in mind. Structural designs available in market are numerous, and we at Triple J steel

will also recommend the best suited designs for clients’ applications. Clients can rely upon the

support and expertise of our team that will profoundly guide them through the phase of planning

until the erecting of their warehouse. Our pre-engineered warehouses are the best solution for

building a highly secured warehouse for products and services. The warehouse facilities are made

attractive, expandable and functional. All our industrial warehouses are engineered individually

and designed carefully to meet requirements of all our clients.

The Idea

Although conventional construction of steel warehouse can often produce more complex

warehouse, this method has higher labor costs and produces a lot of construction waste.

Conventional builds can provide more flexible design options, but it also require thorough, ongoing

maintenance and, because it weigh more than pre-engineered warehouse, they can weaken

foundations over time.

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 Having pre-engineered steel warehouse, the design is rapid and efficient, and also being

flexible. Pre-engineered construction lends itself toward a simpler design. Each component is

fabricated to suit the design, and then the steel structures are delivered to site. Because the design

creates standard sections and connections, pre-engineered buildings are quickly erected onsite.

Since the framing components are prefabricated, foundations are accurately determined based on

weight unlike in the conventional construction. As a result, pre-engineered buildings have a quicker

project turnaround and can often be delivered within two months as compared to six to ten months

for conventional builds.

Benefits

Having our pre-engineered steel warehouse will be very beneficial mainly in terms of cost,

quality, construction, environment, and appearance. For the cost, our warehouse is competitively

priced and most of the time, cheaper. Also, it has a 100% salvage value at any time and has a low

maintenance cost. Although our warehouse offers less price, it has a very good quality. Since it is

pre-engineered, quality is controlled while the product is in production. Our steel warehouse is

protected from corrosion and insulated to suit various weather conditions. Also, it can withstand

seismic forces.

For its construction, it is very advantageous compared to the conventional one because of

its convenience. The duration of construction is very less in comparison to civil work. No welding

at site is required; therefore, it is very safe for industries where welding inside plant is restricted.

Self-supporting-ready-made components are used, so the need for shuttering and scaffolding is

greatly reduced. Our pre-engineered steel warehouse will not just be beneficial to our clients but

also to the environment since recycled continuously and can be relocated to other location. And

lastly, it has a very good appearance. Our steel warehouse is not just designed and assembled

manually but with machines and improved technologies, it will always be close to perfection and

match with the desired warehouse of our clients.

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 Explanation of the Product

Pre-engineered steel warehouse is customized to suit a wide range of application in

different industry sectors. It varies depends upon the requirement of the customers. These steel

warehouses are different from conventional warehouse in ways like flexibility in expansion, speed

in delivery and erection, and endurance in severe weather conditions. It is a one stop solution

provider for all problems in construction. It complies with all the structural code specifications

while designing and manufacturing which ensure all-out safety and are quite economical as well,

as it is incorporate with quality raw materials in manufacturing.

Promotion, Placement, and Price in the Market

The official website of Triple J steel will contain all the information that our clients need

to know about our product. All our proposed designs will also be featured in the website. Our

company will also be involved in the community by doing the charities which may promote and

recognize the products we make as well as the good work the charity does within the community.

Our company also have a social media account that helps connecting to our clients. Social

media account is used as an excellent channel to listen to customers’ comments and concerns and

respond as fast as we could. Our technical experts are also available 24/7 for resolving all their

concerns and share tips on how to create their ideal warehouse space. This creates a sense of

transparency for our company. Our company will also organize seminars and conventions about

pre-engineered steel structures which may help in attracting our clients to invest on our products.

We will also organize a design contest of warehouse which will be related to the community

development, with this the popularity of our product and our company will raise.

The price of our product will depend on the customers preference of warehouse and where

it will be located but we will ensure our customers that the cost of our product will be lesser

compared to the conventional way of constructing warehouse and also all the materials that will be

used are at high standards of quality. The prices of our products can be negotiable, and we always

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give suggestions of designs that will be affordable for our client’s budget. Our manufacturing plant

is located in Paranaque city. Our location is roughly equidistant between our suppliers as well as to

our VIP clients. This helps us and our clients in minimizing the shipping and distribution time as

well as the fees in transportation.

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 Description of the Product

Details with Pictures

Pre-engineered steel warehouse system basically consists of column and rafter, galvanized

purlin and girt, sheeting for roof and cladding, and accessories such as gable trim, eave gutter,

galvanized cable bracing, ridge ventilation, etc.

The following pictures are some parts of the architectural plan of a 40m by 90m werehouse

designed by Triple J Steel:

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 Parts and Dimensions

The parts and dimensions of the warehouse will vary depending on what type of warehouse

the client wants; although it is ensured that all will meet the standards. The company can fabricate

any size of wide flange in AISC shape database or a customized shapes and sizes. For a proposed

clear span warehouse with an area of 40m by 90m, we designed it with 16 frames at 7.5m bay

spacing. The column’s cross-section will be a wide flange having a 220mm by 122mm flange and

a web having a base tapered from 350mm up to 1000mm with a thickness of 12mm. The roof is

sloped at 1.65 is to 10 which will give a clear height of 9m. Roof purlins are going to be spaced at

100mm, 878mm, 19 at 1000mm and lastly 300mm.

Design

The strength of the Pre-engineered steel warehouse system lies in its ability to incorporate

a large variety of structural sub-systems that use standard components with standard design

approaches to satisfy a wide range of customer requirements. For the design of the Pre-engineered

steel warehouse, materials that are usually used are composed of built-up plates, hot rolled section,

cold form, Galvanized, Roof panel, Cable bracing, anchor bolts, high strength bolts and machine

bolts. Our company uses different structural engineering software such as Ram steel, Edilus steel,

Tekla Structural Designer, and STAAD.

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 Target Market or Customers

Warehousing has been around for quite a long time, and it has helped companies with

various storage needs. Our target market will be those who are just starting a retailing business and

those manufacturing companies that needs a storage for their raw materials and finished goods. We

all know that retail space is limited and as orders grow, there will be a need of space for product

overflows so that merchandize will keep flowing. If customers come in and the shelves are bare,

they will just probably be going to walk away. Serving as a “backup” closet is just the beginning

of what warehousing and fulfillment services can provide. Therefore, if a business has a retail

component, having a warehouse will be very beneficial for the company’s logistics.

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 Market Issues and Trends

Situation Analysis

5.1.1 Current state of the Market in Relation to the Proposed Product

According to Airspeed Philippines, Logistics and warehousing are two of the most

important industries in the Philippines. Warehousing experienced huge growth thanks to a high

increase in trade activities in and around the country. The Philippine archipelago is right on the

edge of the Pacific Ocean, making it the most convenient docking location for supply routes. The

Philippines essentially connects many exports and imports markets of different countries across the

world. The booming industrial sector of the country is expected to drive demand for more logistics

services. This means that these logistical factors have nowhere to go but up. The Philippine market

for warehousing has been in a great place in recent years. Thanks to the Philippine government’s

Build-Build-Build infrastructure program, numerous projects started construction in 2018 and has

demanded more services from many logistics and warehousing companies.

5.1.2 Competition

Regarding with the production of Pre-engineered steel, our only competitor here in the

Philippines are AMSteel and PEB Steel. AMSteel is a family owned steel fabrication company,

located at Taytay, Rizal, Philippines. PEB Steel is owned by the European based PEB Group which

started in South East Asia in 1994 and is already marketing pre-engineered structures in the

Philippines. Constructions companies are also a competitor with regards to the construction of steel

warehouse.MC Builders, Hi-speed Construction, Rapid steel are some of the top players in

constructing warehouses.

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 5.1.3 Does competition satisfy customers?

Although the conventionally constructed warehouse can satisfy the needs of the customers,

there is still a more efficient and timely way with a much lesser cost; which would then give a

higher satisfaction to the customer.

5.1.4 Customers’ demand for this product

According to Joey Bondoc, senior research manager at Colliers International Philippines,

there is a market demand for warehouses operated by third-party providers in Cebu, on the back of

the e-commerce buildup and expansion of industrial businesses. He noted that because of the lack

of third-party providers, companies are forced to build their own storage facilities. The research

firm also stated that, the increase in rates will be supported by rising demand from logistics and

warehousing firms due mainly to expansion of e-commerce platforms like Lazada and Zalora in

Cebu. Industries like the food and beverage and household products require warehouses to store

their daily supplies, which demand is supported by high purchasing power of consumers.

Warehouse space and the ability to move goods in and out of the country are very powerful needs

of the market, because if you’re not able to store and deliver the goods, that will be a problem.

Having a fast and efficient construction of warehouse is also in demand due to the fast-growing

economy of the Philippines and we all know that time is a valuable resource, therefore it is better

to do things as quickly as possible.

5.1.5 External factors to consider

 Economy
 Weather
 Government
 Technological Changes
 Socio and Cultural Forces
 Competitors

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 SWOT Analysis

Strengths

 We pre-fabricate for time efficiency.

 We have a close relationship towards our client.
 We are Versatile because we also build other structures such as bridge, office and
residential houses.

Weakness

 We have a high cost of capital.

 Our machine may deteriorate.
 We are limited to Prefabricated steel.

Opportunity

 Our product might have an opportunity to be promoted worldwide.

 The build-build-build project of our government may give an opportunity for our product
to be used in government projects.
 The advancement of technology may also give an opportunity to upgrade more our product.

Threat

 The price of raw materials may rise due to inflation.

We depend on our client.

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 Financial and Budget

Estimated Sales target

On the first 5 years, the estimated gross sales of the product will be 1.02 Billion Pesos.

ESTIMATED SALES IN THE FIRST 5 YEARS

350 million

300 million 300 million

250 million
240 million

200 million
180 million
GROSS SALES
150 million 150 million

100 million
90 million

50 million 60 million

0 million
2021 2022 2023 2024 2025 2026

Recommended pricing structure and selling prices

For a typical size warehouse price would be around 8,000 Pesos per square meter of lot

inclusive of the labor and shipping fee. Price may increase depending on the client’s preference

and a fully customized warehouse with an area larger than 3,500 square meters may range from

9,000 to 15,000 per square meters.

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 Product development cost to be budgeted

Expenses Cost, Peso

Transportation Vehicles 2,400,000
Steel manufacturing machines 10,000,000
Manufacturing Utilities 4,300,000
Labor 4,500,000
Total 21,200,000
Building Size Estimated material cost, pesos Cost/sq.m, peso per sq.m
10x12 575,000 4791.67
12x15 745,000 4138.89
15x18 1,120,000 4148.15
15x30 1,870,000 4155.56
25x45 5,080,000 4515.55
40x45 9,360,000 5200.00
40x90 21,960,000 6100.00
60x90 40,528,000 7505.10

The Product development cost to be budgeted would be equal to the total expenses plus the

estimated material cost depending on the warehouse.

Estimated Cost of the Product Launch

The estimated expenses for product launch would sum up to 1.3 million pesos.

Expenses Cost, Peso

Venue 200,000
Media Publicity 300,000
Catering service 800,000
Total 1,300,000

Estimated cost of on-going product management

The estimated expenses for on-going product management would be 4 million.

Expenses Cost, Peso

Research and Development 3,000,000
Sales Promotion 1,000,000
Total 4,000,000

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 Date for Completion

Upon approval of the product proposal, planning the design would start. Hiring skilled
workers, purchasing the materials and equipment needed would follow. After all the
preparations, our product, Pre-Engineered Steel Warehouse, will be launched a year after the
approval.

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