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How Strong Supplier Partnerships Helped This Container Modification Business Thrive
In 2018, Bob Daly, president of R.A.D. Fabrication, faced a tough decision. Shipping container modification was still relatively new in the modular construction industry, and R.A.D. was an early player. Their commitment to strong ethical values and high standards of craftsmanship had helped them gain traction in the relocatable buildings market. But was it enough?
“I built painting booths, fire training facilities, and other structures. I’ve always loved building anything out of a container,” said Daly. “But back then, it was nowhere near as popular as it is now.” Daly realized that container builds might not be a viable long-term business at that time. “In 2018, I had to decide if I could pay all my employees just doing container work.”
R.A.D. Fabrication shifted away from container customization and fully embraced structural steel, with no real plan to return. However, when the world changed rapidly in 2020, R.A.D. saw an opportunity to combine its structural steel expertise with container modification, achieving great success.
Follow R.A.D. Fabrication’s journey from container modification to structural steel and back again, and discover how they found new ways to thrive with the help of a reliable national container supplier.
Back Then: Too Many Regulatory Hoops, Unreliable Supply Chain
R.A.D Fabrication Team
When the pandemic halted many industries, traditional construction methods, which are more logistically complex, slowed to a crawl. There was a call for fast, efficient building methods to fill the gap and meet the demand for emergency housing and additional healthcare buildings, such as testing centers and vaccination clinics. Modular building methods quickly became a necessary solution.
Seeing the demand, R.A.D. re-entered the container build market by initially “dipping their toe” back into container modifications with engineered, above-ground container pools. This approach allowed them to re-establish their presence in the market. Building on this success, the company then transitioned to exploring larger-scale projects with a social conscience, focusing on permanent modular construction that addresses critical needs in the community.
However, certain aspects of container modular building needed to catch up.
Shipping Container Modification Wasn’t Officially Accepted
Container Pool by R.A.D Fabrication
While shipping containers were already recognized for relocatable buildings, other applications weren’t explored in-depth until sourcing other materials became a struggle. Building regulations reflected this lack of understanding.
At that time, builders had to obtain permission through the alternative means and methods provision of the International Building Code (IBC) to use shipping containers in any permanent capacity.
It wasn’t until 2021 that the International Code Council (ICC) officially ratified a building code change allowing commercial construction to use International Standards Organization (ISO) compliant shipping containers. With updated regulations in place, R.A.D. Fabrication could expand the scope of their modular builds beyond anything they had previously attempted.
“I used to source our containers directly. I would call my buddy and say, ‘Hey, I need some containers. What deals do you have?’ But that’s not the case anymore,” said Daly.
Finding a reliable, transparent source of shipping containers was a huge challenge due to opaque pricing and the fragmented nature of the supply chain. This fragmentation can drive up prices by as much as 15% month over month, making it harder to stick to budgets. Spot-buying from local dealers was—and still is—time-consuming and inconsistent. Relying on local dealers and one-off suppliers quickly became impossible if R.A.D. wanted to keep up with production demand.
With this in mind, R.A.D. sought out new, more reliable ways to source their containers.
Fire Training Facility by R.A.D Fabrication
From their expansive 20-acre facility in Anderson, IN, R.A.D. Fabrication creates everything from customized offices, walkways, and restrooms to architecturally designed office buildings and homes—even fire training facilities and disaster relief structures.
R.A.D. learned why relocatable buildings and permanent modular construction companies always come back to container modification.
More Profitable Than Other Building Methods
Container Patio by R.A.D Fabrication
Container modification popularity and market value surged to $85.3 billion USD one year after the IBC changes went into effect. Modular building as a whole took off, with relocatable building revenue exceeding $4 billion and permanent modular construction pushing $23.5 billion in 2023.
The demand is there, along with time and cost savings. Modular builders can save up to 20% of costs compared to other building methods due to build efficiency, lower-cost materials, and reduced labor. For example, R.A.D. reduced their build time to three weeks using shipping containers, from blueprint to reality.
Room for Innovation from Versatility
Shipping containers are incredibly versatile and can be used for many different projects. R.A.D.'s thriving business reflects their willingness to explore new ways to expand their offerings and apply their previous expertise to new needs. For example, advocated for by the Modular Building Institute, government organizations like FEMA now seek out companies—like R.A.D. Fabrication—to provide disaster relief shelters.
Stronger, More Reliable Supply Chain
Shipping containers are readily available, unlike many other building materials. While local dealers can be inconsistent and spread out, national suppliers have stepped in to fill the gaps. These suppliers, focusing on transparency, cost, and compliance, provide a steady flow of containers or bulk-buy opportunities to modular builders who depend on this consistency.
“Pricing isn’t the determining factor. We’re sourcing containers based on relationships: Who can reliably provide us with the containers that meet the right specs and manufacture dates long-term,” said Daly.
Boxhub Empowers Thriving Container Modification Businesses
Using shipping containers instead of traditional modular building materials opens up new opportunities for innovation, cost savings, and efficiency, creating a viable, long-term business outlook. This is exactly why R.A.D. returned to this practice.
At Boxhub, we’re proud to support customers like R.A.D. Fabrication in building a thriving container-based modular construction business.
Boxhub empowers your business by offering:
• Transparent pricing
• Consistent supply
• Compliance support
Our technology-driven approach to real-time container sourcing ensures that your company has access to the right containers, at the right time, and at the right price—allowing your business to focus on what you do best: innovating and delivering high-quality, sustainable modular solutions.
Need to source shipping containers for your modular construction project? Contact our team today.
About Hannah Swinkin
Hannah is a B2B marketing leader with a passion for container upcycling projects and cargotecture. She sharpened her marketing expertise at disruptive tech companies transforming antiquated industries, including shipping, parking, and commercial real estate.
Council Bluffs, IA
Duluth, MN
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