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
Jan 18, 2025 - Tariffs on Steel Imports
- Growing pressure for tariffs on steel imports threatens supply chain prices for US metal fabricators, The Fabricator reports. If realized, the Trump administration’s threat to slap 25% taxes on imports from Mexico, Canada, and elsewhere will result in higher steel and aluminum prices. According to the Commerce Department, Mexico was the top exporter of steel to the US, importing 3.6 million metric tons (mmt) in October, followed by Canada with 2.8 mmt, totaling over 90% of US steel imports. Tariffs are more likely to be imposed on Mexico than Canada, per The Fabricator. The United Steelworkers, which is a supporter of steel tariffs to protect US jobs, opposes Canadian tariffs, as does the National Association of Manufacturers. Steel imports from both countries have been exempt from the 2017 Trump Section 232 national security tariffs because of the US-Mexico-Canada Agreement (USMCA), signed in 2019.
- Prices for steel and aluminum moved in opposite directions last year with future prices for steel rebar and hot-rolled coil (HRC) steel falling by 15.6% and 24.3%, respectively, in January compared to a year ago, while the price of aluminum climbed 17.2% over the same period, according to Trading Economics. However, prices of both metals are down from unprecedented highs a few years ago. High interest rates in 2024 dampened demand for steel from industries – including architectural and structural metals manufacturers – that rely on it. Construction spending also slowed and manufacturing activity was relatively flat, further suppressing demand for steel. By comparison, a worldwide alumina shortage amid strong demand caused aluminum prices to rise.
- 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.
- 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.
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