Booming Global Opportunity Still Looms for Businesses Poised to Capitalize

Email

The underlying logic for expansion is inescapable, since over 95% of the world’s consumers live outside of the United States*. In addition, trade has become much more wide open. This is evidenced by the U.S. having proposed or signed into law dozens of international trade agreements in the past decade. Other global growth catalysts include the positive effects of the monetary stimulus and deleveraging; the Internet and mobile technology, which have connected people and commerce on a vast and escalating scale; plus the reality that consumer demand is increasingly blind to borders or national allegiances.

Perhaps the question is not whether strategic, growing businesses should expand their reach into new markets around the world, but instead, when and how?

*  U.S. Chamber of Commerce statistic and U.S. Small Business Administration (PDF)

“By 2025, a new global consuming class will have emerged, and the majority of consumption will take place in developing economies. This will create rich new market opportunities.”McKinsey Global Institute Report, “Manufacturing the future: The next era of global growth and innovation,” Nov., 2012 by James Manyika, Jeff Sinclair, Richard Dobbs, Gernot Strube, Louis Rassey, Jan Mischke, Jaana Remes, Charles Roxburgh, Katy George, David O'Halloran and Sreenivas Ramaswamy

Economic growth, particularly in emerging markets, is already driving global construction to unprecedented levels. But it matters how businesses decide to go about international expansion. If not careful in choosing a reliable, internationally experienced building partner, failure is not just an option; it’s a likely outcome.

The pros and pitfalls of global construction

Global construction creates its own set of rewards and risks. These risks need to be properly mitigated in order to avoid the consequences of ineffectively managed development, poorly designed facilities, shortages of materials, volatile resource prices, regulatory or permit issues, schedule delays, budget overruns, and more.

The potential for risk is also magnified by fragmented interrelationships between all parties involved in the supply chain. This makes it difficult to control for a consistent outcome and can ultimately lead to substantial revenue losses. To further exacerbate the problems, companies attempt to manage the situation, themselves, from thousands of miles away.

All of these issues have caused businesses to think differently about how to approach global construction, and in doing their homework, many have discovered the significant advantages that Butler® and its global network of construction professionals offer.

Advantages of Butler Experience and Global Solutions

  • Over 65 years of international operations and an established global construction services network
  • Construction experience in more than 70 countries on seven continents
  • Integrated value chain consisting of 114 global manufacturing sites and 111 engineering offices
  • Optimized processes and standards that make facility footprints more efficient and functional
  • Expertise to navigate global business practices and a track record for safety and quality control

Why it’s important to work with a leader

Butler engineered building solutions are in place worldwide, installed through a construction services network that extends from North America into emerging markets such as China, Southeast Asia, India, Africa, the Middle East, and more. Without the benefit of such extensive experience, multinational companies working with other facility development suppliers find themselves involved in trying to identify and qualify foreign contractors; deal with language barriers and building codes they aren’t accustomed to; coordinate the complex logistics of shipping, customs and delivery; and the list goes on. Conversely, with the thousands of far-reaching global projects that Butler has successfully completed, de-risking a company’s construction investment comes with the territory.

As part of a global value chain, Butler is able to optimize and expedite facility development and delivery.

Experienced project managers can effectively handle cultural and language differences, and locally aligned construction resources know how to navigate confusing building codes that are often either not well established or not well enforced.

Growing companies that choose to do business with Butler on a consistent basis benefit further from the accumulated knowledge that Butler has gained on previous projects. These learnings most often translate into reduced overall construction costs and reduced facility delivery times that are only achievable through Butler’s efficient design-build process.

Butler buildings are designed to an owner’s facility specifications. Then building envelope systems are engineered, manufactured and delivered to the job site, ready to erect. This saves months compared to conventional processes, while reducing risks and construction costs that both continue to increase the longer the construction process lingers on.

Leading global businesses build with Butler

Teams of specialists at Butler understand the intersection of global expansion and local expertise, and they’re able to provide valuable engagement at every stage of a building project, everywhere around the world.

10-Second Survey

Have you built facilities overseas, or are you considering emerging market expansion?

Accumulated results of surveys will be compiled and shared in a future summary report.

Loading ... Loading ...

  • Canada & Mexico
    A major U.S. wholesale discount chain collaborated with Butler to design a 135,000 sq. ft. prototype warehouse-store that could be built in any worldwide location, quickly. Erection and close-in of the building shell was completed in eight weeks in two locations.
  • Jhagadia, India
    Butler worked with a leading kitchen & bath products manufacturer to optimize speed to market and reduce long-term operating costs for a new 124,000 sq. ft. plant in India, also designed to withstand monsoons.
  • Xi’an, China
    A leading residential and commercial building materials company engaged with Butler to design and construct two buildings over 10 months for strategic expansion of its manufacturing capabilities overseas. These were among 39 projects built with Butler® building systems across 12 U.S. states and two countries.

Experience makes a world of difference

There is little debate about the tremendous revenue opportunities that are possible through global expansion – even in spite of the potential or short-term downside risks.

What growing businesses need to keep in mind before delving into a global building project is to be prudent and intelligent about the partnerships they form. It stands to reason that the vetting process should place a heavy emphasis on global reach, strategic value and experience. When company executives and facility stakeholders take this into account, Butler typically rises to the top.

Can your company build with confidence in emerging world markets? Find out how by speaking with a Butler Corporate Accounts Manager. For more information or to schedule a meeting, complete this simple form.

Thanks for visiting Butler® Strong Connections. Please sign-up to receive periodic email notifications of newly posted articles, case studies and short videos that illustrate the benefits of design-build, value-engineered systems construction.