Architectural & Structural Metals Mfrs
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 12,700 metal manufacturers in the US produce structural, ornamental, and architectural metal products, primarily for use in the construction industry. Major product categories include sheet metal work; fabricated structural metal products; ornamental and architectural products; plate work; windows and doors; and prefabricated building and component products. Sheet metal work includes air conditioning ducts and stove pipe; electronic enclosures; roofing and roof drainage equipment; flooring and siding; and culverts, flumes, and irrigation pipe. Fabricated structural metal products include bar joists, concrete reinforcements, and structural metal for bridges.
Seasonal Sales
Sales are seasonal and driven by construction activity, which typically peaks during warmer weather.
Capital-Intensive Operations
Historically, architectural and structural metals manufacturing has been a capital-intensive industry and is becoming more so as the pace of technological change accelerates.
Industry size & Structure
The average architectural and structural metals manufacturer operates out of a single location, employs about 32 workers, and generates $9 million annually.
- The architectural and structural metals manufacturing industry consists of about 12,700 companies, employs 412,000 workers, and generates about $113.6 billion annually.
- The industry is highly fragmented; the top 50 firms account for nearly 28% of industry sales.
- Some large companies are vertically integrated and own and operate raw steel manufacturing facilities, such as mini-mills.
- Large companies include Valmont Industries, Cornerstone Building Brands, OmniMax International (formerly Euramax International), Quanex Building Products, and Gibraltar Industries.
- Commercial construction accounts for the majority of industry sales.
- Structural steel is the most commonly used framing material in the US, and accounts for over half of framing used in non-residential and multi-story (more than four stories) residential construction, according to the American Institute of Steel Construction (AISC).
Industry Forecast
Architectural & Structural Metals Mfrs Industry Growth
Recent Developments
Dec 18, 2024 - Rising Payrolls Squeeze Margins
- Producer prices for architectural and structural metals manufacturers rose 1.5% in November compared to a year ago after rising 1.4% in the previous November-versus-November annual comparison, according to the latest US Bureau of Labor Statistics data. Following a steep runup that began in 2021 and peaked in August 2022, producer prices haven’t budged much in over two years. By comparison, employment grew 1.8% year over year in October, while average wages at architectural and structural metals manufacturers rose 4.7% over the same period to a new high of $26.06 per hour, BLS data show. Industry margins are being squeezed with after-tax profits for fabricated metal products companies down 26.7% in the second quarter compared to a year ago and down 33% versus the previous quarter, according to the latest data from the Census Bureau.
- Of the nearly 30 types of US commercial construction tracked by ConstructConnect, a provider of software and business insights to construction professionals, nearly 75% are expected to experience strong growth in 2025, with hotels, retail stores, and military projects driving spending. According to the company's Chief Economist Michael Guckes, growth will be driven by a predicted 56% increase in military project spending, an almost 28% rise in hotel projects, and a projected 25% increase for shopping and retail. “Part of that is just a turnaround story,” says Guckes, noting that the military and lodging sectors faced challenges in 2024. Conversely, some areas that experienced growth in 2024 will likely see declines in projects next year, including prisons and airports. The construction sector is a major customer of architectural and structural metals manufacturers.
- Shop floor injuries needn’t be serious to be costly, according to a new report from The Travelers Companies. In its 2024 Injury Impact Report the insurer found the most common workplace accidents accounted for the majority of claim costs. The most frequent causes of injury identified in the report included overexertion (29% of claims analyzed); slips, trips, and falls (23%); being struck by an object (12%). Those injuries were also the top drivers of severe claims, defined as $250,000 or more. Slips, trips, and falls, which include falls from height, topped that list. Injuries related to overexertion can result in extended absences with injuries like dislocations having the highest number of average lost-time days at 142 days, followed by fractures (92 days), and inflammation (85 days). Improving shop floor ergonomics, eliminating trip/fall hazards, and material handling mishaps are three areas metal fabricators can focus on to reduce injuries and time lost.
- With hail storms on the rise, builders, homeowners, and insurers are looking for ways to protect metal roofs from damage, Metal Construction News (MCN) reports. Stone-coated steel roofing – a type of roofing tile made from Galvalume steel (the most widely used metal in architectural metal roofing) and coated with stone granules applied with acrylic polymer adhesives – is proving an effective shield against hail damage, according to MCN. A steep slope metal roofing solution, stone-coated steel roofing is growing in popularity in the US because of its aesthetics, durability, and weather-resistance capabilities. The roofing tiles are lightweight, while still benefiting from the structural strength of the steel comprising it, making it ideal for use in both new construction and roof retrofits, writes MCN. Of all types of weather-related damage, hail and wind are the leading causes of insurance claims, accounting for nearly 40% of homeowner-originated claims.
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