Cedar greenhouse maker plans export push beyond U.S.
Scott Frost had been thinking for years about diversifying his company’s exports beyond the U.S. But when the American administration started to threaten and implement tariffs on Canadian goods, the urgency increased dramatically.
Frost’s company, Abbotsford, B.C.-based Cedar-Built Greenhouses, sells handcrafted greenhouse kits made from the world’s finest western red cedar.
Sales exploded after Covid, doubling within a short timeframe. Ninety percent of the kits went to U.S. customers, with just 10% to Canadians.
I realized how good our product was, and I started thinking, ‘We could sell this overseas.
Scott Frost
CEO, Cedar-Built Greenhouses
Tariffs prompted action
As sales took off, Frost started to contemplate expanding to other export markets. “I realized how good our product was, and I started thinking, ‘We could sell this overseas,’” he says. “If we’re doing so well in North America, I’m sure the rest of the world could benefit from seeing our greenhouses.”
He also wanted to diversify his customer base. “We had all of our eggs in one basket.”
U.S. tariff threats prompted Frost to start pursuing diversification in earnest. “Obviously, when Trump got in, that was huge. We started looking for alternatives and ways to export better.”
U.S. sales fell 30%
The company wasn’t itself subject to U.S. tariffs, but sales south of the border still dropped by 30%. “If U.S. customers think it might be tariffed, they won’t even bother,” Frost says. “They’ll just go somewhere else. It turns people away even from the get-go.”
“It’s the number-one question that we get from all of our clients: ‘Is your stuff tariffed?’”
Frost approached BDC for help to export to other countries. He had already worked with BDC consultants to develop his company’s digital strategy and update his website. This was a first needed step to expand into new export markets.
“I needed a website that looks up to snuff and has the functionality to change the currency based on which country is looking at it,” Frost says.
It’s important to do research beforehand and not approach exporting in an ad hoc way.
Scott Frost
CEO, Cedar-Built Greenhouses
Step-by-step plan
BDC assigned an expert consultant who worked with Frost to develop an export diversification plan. The consultant assessed the business, did market research and prepared an action plan with concrete steps.
The plan evaluated the highest-potential markets for Frost’s company and how to enter them. The consultant also helped Frost obtain a CanExport grant to implement elements of his action plan.
“Exporting to other countries is a lot more complicated outside of North America,” Frost says. “The consultant was able to give me a very simple, step-by-step process to get through the hurdle of learning all of this stuff all at once. He gave us a plan to find our footing in countries we’ve never been in before.”
Relationships are crucial
Frost has started to implement the plan and made good progress. This includes a trip to the U.K., which he sees as his biggest potential next market. BDC’s consultant advised Frost to proceed methodically—getting to know the landscape and making local connections to build brand awareness and trust.
“In most countries, people care about relationships, not dollars. It takes a long time to develop those. People need to see you’re a real thing,” Frost says.
He’s dreamed of being an exhibitor at the U.K.’s most prestigious garden trade show, the Chelsea Flower Show. He attended as a visitor to get a feeling for the show and meet local players.
“Olympics of outdoor landscaping”
“You don’t put your name into a trade show that you’ve never seen firsthand,” he says. “It’s important to do research beforehand and not approach exporting in an ad hoc way. BDC’s consultant helped us avoid the pitfalls of what other companies have done because they didn’t know this before heading over to another country.”
The trip confirmed that Chelsea could be a perfect fit, but perhaps not for an initial foray into the U.K.
“This is like the Olympics of outdoor landscaping, and it’s just insane,” Frost says. “It’s more like a world fair than a trade show. Probably every landscape architect or outdoor professional in the entire world knows about Chelsea. I was shooting quite high.”
The things we make in Canada have a really good reputation. They’re revered.
Scott Frost
CEO, Cedar-Built Greenhouses
Advice was critical
Frost is now working on plans to attend a smaller trade event in the U.K. Another option could be to attend Chelsea as part of a consortium of Canadian businesses in order to defray the high cost.
“Export is a very slow process. Starting up in a new country where nobody knows who you are is not easy at all because you have competition over there,” Frost says.
He says BDC’s advice was critical for the pivot to other export markets. “It was very, very, very helpful. The consultant was absolutely the most perfect fit for us. I can’t say enough good things about him—just phenomenal,” he says.
Exports strengthen Canada
“I was really, really, really happy to be part of that.”
Frost strongly recommends BDC’s export advice to other entrepreneurs. “It’s extremely important that Canada exports outside North America. The things we make in Canada have a really good reputation. They’re revered.
“The more we send outside North America to the rest of the world, I think the stronger we’ll be as a country.”