UBS MANUFACTURING COMPANY
ubsmanufacturing.biz
3450 Sacramento Street, #401, San Francisco, CA 94960
p 415.370.8424 f 267.413.2359
info@ubsmanufacturing.biz
THE
HOUSING
INDUSTRIAL
COMPLEX
A
Sustainable Industrial
Program
For
Urban Renewal
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© 10/20/2008. FIRST PUBLISHED 0622/2006. AG/WKS. UBS MANUFACTURING COMPANY. ALL RIGHTS RESERVED
INTRODUCTION
UBS Manufacturing is a designer and producer of light-gauge steel components for residential
and commercial buildings through green, sustainable production in a controlled environment with
a patented system that enables the development residential and commercial structures up to 95%
of completion. Established in 1986, the UBS Manufacturing system encompasses the
manufacture of housing units and components utilizing cold-rolled steel in a high-volume
manufacturing and production process that reduces construction costs, ensures greater precision,
and stronger buildings.
The earlier 20th century witnessed the establishment and proliferation of plant-based home
construction as the construction method for fulfilling the mass housing needs for the populace.
However, the segmentation of the in-plant homebuilding process contributed greatly to the
modern conventional construction paradigm, which created fissures that catalyzed the greatest
housing crisis since the Great Depression.
UBS Manufacturing has developed its Housing Industrial Complex program to address the
realities of residential construction going forward.
UBS MANUFACTURING
UBS Manufacturing is a designer and producer of light-gauge steel components for residential
and commercial buildings. Through its patented, vertically integrated program, the company is
capable of covering up to 95% of the residential building chain through green, sustainable
production in a controlled environment. UBS Manufacturing products meet and/or exceed the
highest LEED standards, while its process leads to greater precision, stronger buildings, and
dramatically lower construction costs (+20%), echoing the arrival of better buildings through a
better building process.
The UBS Manufacturing team leads the industry with over 80 years of combined experience in
plant-based construction and the first to build a plant for conventional, residential housing in the
State of California, with award-winning experience in both framed and concrete plant-built
projects in the U.S., Malaysia, and China. Team members possess over twenty design awards,
with work published nationally and internationally.
HISTORY OF THE UNITEC BUILDING SYSTEM
Unitec Development was established on May 17, 1986 and was the original holder of a license to
use a building system patented by architect, John Sergio Fisher. The patents were subsequently
purchased by Wallace K. Shepherd, Sr. of Unitec Industries to use along with other products in
the manufacture of housing for core cities. In 1986 Unitec began to embrace the medium of steel
as the core building material for its system. At the time, and up to today, steel was a medium
rarely utilized in the residential construction industry, save for high-rise condominium and
apartment complexes. Unitec began to organize its program around the use of light-gauge steel
through discussions with the American Iron and Steel Institute, organized labor, contractors, and
experts in the industry, including Don O. Carlson, publisher of Automated Builder Magazine, a
leading trade magazine for the construction industry, and company advisor.
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DESCRIPTION OF THE UNITEC BUILDING SYSTEM
The Unitec building system consists of the manufacture of housing units and components
utilizing cold-rolled steel in a high-volume manufacturing and production process, with existing
manufacturing techniques common to the industrial setting. Emphasis is placed on the integration
of volume processing and high-tech automation. Taking advantage of the latest technologies and
building machinery enables UBS Manufacturing to develop higher quality products than currently
available, promoting faster turn-key production, greater design flexibility, reduced construction
costs (20%+), greater material selection, and increased return.
UBS Manufacturing’s patents allow the integration of components into modules thereby creating
a system that eliminates redundancies, while meeting the demands of rigorous curb appeal
required of leading architects and engineers. Our patented system was analyzed by Bechtel
Corporation, which noted the system’s efficiencies and cost savings.
HISTORY OF PLANT-BUILT HOUSING (INDUSTRIALIZATION)
The early twentieth century witnessed the emergence of plant-built housing as the solution to
meet the growing need for affordably priced, well designed homes with high market appeal.
Taking advantage of the cost savings of volume production and cohesive delivery and fulfillment
systems, plant-based home builders, led by Sears, Roebuck & Co.(Sears) and Aladdin Homes of
Bay City, Michigan, sold hundreds of thousands of custom and pre-packaged units, from the
elaborate multistory homes, with elegant French doors and art glass windows, to simpler units,
such as quaint, three-room and no-bath cottages for summer vacationers. In addition, these firms
became leaders in the proliferation of new housing technologies and construction techniques,
from weather resistant exterior materials, load bearing "sandwich" panels, drywall and other
composition products for interior applications to individual plumbing and heating systems.
However, the segmentation of the in-plant homebuilding process into disparate disciplines
contributed greatly to the modern conventional construction paradigm, where building
efficiencies, cohesive delivery and fulfillment systems, and cost containment, inherent in the in-
plant homebuilding process, were sacrificed by general-purpose government and organized
building trades for job creation efforts for returning wartime (WWII) veterans.
Segmentation of the homebuilding process created fissures that risked the long-term, sustained
viability of the entire U.S. housing system. One result of segmentation was increased building
costs that led to the market's subsequent disconnection of median home prices from median
incomes. This disconnection fostered the creation and use of non-traditional home-financing
instruments to recalibrate median home prices with incomes and thus cover, but not address, the
fissure caused by segmentation.
Recently, these particular phenomena culminated in the greatest U.S. housing crisis since the
country's Great Depression. Yet, as markets continue to retract, the basic conundrum persists,
namely median-income wage earners, eager to purchase homes, deterred from achieving the
American Dream despite the oversupply of new units that remain prohibitively out of reach as a
core result of the excessive building costs caused by segmentation.
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The result of this challenge has been the burgeoning of a large and fertile home-buying segment;
a solid, eager-to-buy, and diverse sector largely insulated from many common fluctuating forces
as a result of the inability to participate in the housing market as purchasers. This dilemma
presents a unique opportunity for UBS Manufacturing’s Housing Industrial Complex able to
deliver appealing, high quality products at sector-friendly prices, secure triple-bottom-line
benefits: stable profits and long-term returns, increased long-term employment opportunities, and
green residential units and neighborhood commercial products through its patented building
process.
ADVANTAGES OF PLANT-BUILT HOUSING (INDUSTRIALIZATION)
Distinct advantages of industrialization over other conventional homebuilding methods were
discovered early in modern homebuilding. The ability to mass-produce components and materials
used in industrial builder's homes lessened manufacturing costs, which lowered the overall
purchase price for customers. Not only did precut and fitted materials shrink construction time up
to 40% but implementation of new innovations, such as the use of "balloon style" framing,
drywall, and asphalt shingles greatly eased construction and reduced risks.
Now the ability to automate these key processes through sustainable, green industrialization has
advanced the ability to deliver premium quality residential solutions to the point of affordability
for working-income populations, while enabling healthy returns for primary and ancillary
businesses -- all within a labor-friendly environment.
THE UBS MANUFACTURING HOUSING INDUSTRIAL COMPLEX
The Housing Industrial Complex (HIC) is a unique model centered on UBS Manufacturing’s
manufacture and assembly of core components for housing (up to 95% in-plant unit-build
capability), with supporting R&D, design, product, and materials services and ancillary
businesses, combining to bring to market premium quality residential products at income-
compatible prices. The HIC also serves as an economic engine able to positively impact on local
and regional economies with permanent employment opportunities and greater public revenues
for expanded economic development and growth.
Characteristics of the Housing Industrial Complex
TECHNOLOGY-DRIVEN: HICs are models established on principles of technological
innovation and intellectual cross-pollination as catalysts for stimulating premium quality,
output, and growth for the benefit of consumers and the local and regional economy.
EFFICIENT: HICs are efficient models designed as one-stop solutions for residential
development.
FLEXIBLE: HICs are flexible models adaptable to local and regional needs relative to
size and vibrancy.
CUSTOMIZABLE: HICs are organic models whose end-products and unit designs
reflect the characteristics of the region where the HIC is located.
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INSULATED: HICs are insulated from global competition as a result of permanent
housing’s core characteristics and requirements, while remaining able to take advantage
of global innovations for adaptation into local production.
LONGTERM: HIC stability is secured as local and regional housing renewal efforts
persist and core communities continue to transform.
URBAN HOUSING INDUSTRIAL COMPLEX AS A TRIPLE BOTTOM-LINE IMPACT
With the reduction of domestic manufacturing, urban centers are increasingly faced with eroding
tax bases, as old manufacturing operations close and companies and residents relocate, forcing
local governments to reengineer revenue schemes to compensate for losses. The result finds many
urban centers struggling to meet basic service requirements for residents. The skill sets of former
blue collar labor pools are incompatible with new emerging industries, while local and regional
governments lack resources to provide relevant retraining that will transform skill-sets and attract
new industries. In addition, with the push for and growth of overseas production capacities and
lower overseas labor costs, local and regional governments are faced with major challenges in
identifying industries that can remain localized. This crisis in core cities creates significant
opportunities for HIC growth, as it serves as a fundamental solution for reinvigorating urban
communities faced with these difficulties.
The Housing Industrial Complex directly facilitates the following benefits for urban centers
(partial list):
Increase in businesses and jobs;
Increased local tax-base;
The growth of green, urban single-family housing stocks, multifamily and mixed-use
neighborhood commercial projects through innovative private and public/private
partnerships;
Blossoming of supporting industries and growth of ancillary services, leading to greater
local revenues and redevelopment opportunities;
Training in new industries, increasing skill sets of local residents and thereby leading to
increased incomes; and
The repurposing of mothballed urban industrial sites to fit the needs of sustainable HICs,
decreasing renovation and set-up costs and reducing carbon outflows; and
Stable financial returns for HIC investors and lenders.
URBAN CENTER ADVANTAGES FOR HOUSING INDUSTRIAL COMPLEXES
UBS Manufacturing is working with urban centers in northern California and other strategic
locations to install its HIC program for replication. UBS Manufacturing sees legacy urban
centers as possessing the unique variables needed to replicate HICs, as identified below.
LABOR: Many legacy urban populations possess unique combinations of labor pools,
with strong organized labor movements. These unique and challenging environments
provide the opportunity to formulate balanced relationships with labor market players,
which can achieve the following:
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o Fixed labor costs, while ensuring participation of organized labor in the new
industry. UBS Manufacturing has negotiated the industry’s first comprehensive
collective bargaining agreement (CBA) for its front-line workforce, which serves
as the model for the componentized and plant-built housing industry.
o Engagement with organized labor at worker wage-levels most conducive to core
operations in order to mitigate fluctuations in production costs. As part of its
CBA, UBS Manufacturing established a five-year, wage progression schedule,
designed to fix labor costs and thereby improve production cost forecasting and
the establishment of cost baselines.
o Creation of non-union salary structures designed to ensure competitiveness in the
labor market, while properly calibrating worker incentives with company
achievement.
TECHNOLOGY: Many urban centers provide a most fertile landscape for
technological innovation, offering UBS Manufacturing HICs the latest resources for
high-tech integration into core operations and ancillary services. In addition, incubating
new technology ideas allows for additional benefits and business opportunities for
expansion and growth.
TRANSPORTATION: Urban regions serve as strategic locations and major
transportation hubs for shipping of product, with extensive interstate conduits, port
authority shipping capacity, and established rail capacity to cover regional and offshore
markets. It also provides the opportunity to exploit area waterways for local and regional
product distribution.
GOVERNMENT: The HIC can create the type of economic engine, through the growth
of ancillary industries, job creation, and increased local and regional revenues, that can be
replicated domestically and in many off-shore locations. In addition, the region provides
UBS Manufacturing unique opportunities for public/private partnerships in the building
and development of high quality working-income and affordable housing.
BENEFITS TO URBAN AND REGIONAL ECONOMY (partial list):
City/Region secures leadership in new green industry conducive to its overall goals and
objectives;
Permanent long-term employment opportunities for local residents. Core manufacturing
operations project up to 235 permanent employment opportunities, with an additional 75
indirect jobs, not including ancillary industries (based upon five-year projections for
facility in northern California. Job estimates are predicated upon HIC focus area).
Increased long-term revenues via 1) increased tax base; 2) increased economic
participation by new job base; 3) increased revenues from new business operations;
Housing for working families;
New entrepreneurship opportunities for local residents and businesses in a new industry;
Nonprogrammed land and mothballed sites to be repurposed for new, sustainable
business use; and
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Increased cargo revenue from new product imports.
FACILITY CHARACTERISTICS
UBS Manufacturing and extended HIC site requirements are customized to each urban area.
Typical characteristics encompass the following basic, initial standards:
Primary facility includes approximately 125,000 square feet, including office and
ancillary space, with clear height minimum of 24 feet;
6 acres exterior area for primary facility;
Expansion space for future, primary facility growth;
Additional industrial and flex space HIC incubation for supporting businesses and
ancillary services. The area should be immediately contiguous to the major production
facility. The reuse of mothballed industrial facilities would create a dual benefit of
sustainable reuse and the creation of new urban business parks in immediate proximity to
available workforces. Size of the local HIC will be customized to the area; and
The facility close to major transportation and intermodal hubs, with direct access to
waterfront and shipping, rail, and interstate conduits.
GOING FORWARD
The home-building sector emerged as a mass production industry through the birth of
industrialization. The benefits of volume production and the emergence of new innovations and
products for the industrial setting served as a basis for segmentation in the modern conventional
construction system. However, as witnessed by today’s unbalanced real estate paradigm, the
weaknesses of the current construction model have highlighted the persistent incongruity within
the industry, namely the lack of a unified and high quality delivery system, which is inherent in
the industrialized process.
UBS Manufacturing’s Housing Industrial Complex looks to address this problem by taking
advantage of its innovative business model, cutting-edge manufacturing technologies, patented
processes, and cohesive delivery system to build premium quality residential and commercial
products with high market appeal at income-compatible prices, while providing for the benefit of
investors stable, long-term returns, and local economies a new economic engine for job creation,
innovation, and growth.