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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 12,500 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

Architectural and structural metals manufacturing is capital-intensive, and most companies have significant investments in plants, equipment, and machinery.

Industry size & Structure

The average architectural and structural metals manufacturer operates out of a single location, employs about 30-31 workers, and generates $8 million annually.

    • The architectural and structural metals manufacturing industry consists of about 12,500 companies that employ about 385,400 workers and generate about $100 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 Gilbraltar 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

                              Coronavirus Update

                              Nov 1, 2021 - Materials Shortages Worsen
                              • Steel, roofing, and insulation materials are some of the most difficult products to get in late 2021, said Ken Simonson, chief economist at the Associated General Contractors of America. Bar joists, which are used to frame roofs, can have lead times of anywhere from 10 months to 14 months. Costs have also soared, with the index for steel mill products rising 123% year over year in August, according to the Bureau of Labor Statistics' Producer Price Index. Copper and brass mill shapes jumped 45.3% year over year, while plastic construction products saw increases of just under 30% year over year. Various shortages and other supply chain bottlenecks are expected to last into next year, if not into 2023, said Simonson.
                              • Lead times for structural steel have increased from 12 to 16 weeks to 30 weeks or more, according to Eric Gowin, founder and managing member of Contegra Construction Company. Some developers are choosing to pre-purchase steel and then assign it to general contractors to make sure they can meet their development schedules. Some firms are working backwards from the delivery date when purchasing and scheduling work to make sure that they can remain on schedule.
                              • Small-business owners who received taxpayer-subsidized Paycheck Protection Program (PPP) loans of $150,000 or less during the coronavirus pandemic can seek forgiveness directly with the government through an online portal that was opened on August 4, allowing them to sidestep the private financial institutions that ran most aspects of the program for 14 months.
                              • Some businesses that took PPP loans in 2020 but don't apply for forgiveness soon will need to start making payments on the loan plus interest. The PPP loans will automatically convert to a standard loan at 1% interest if a small business does not apply to the SBA for forgiveness within 10 months of the end of the covered period under which they had to spend the money. For some businesses that received a loan when the PPP launched in April 2020, there was an eight-week covered period, which would put the forgiveness application deadline in the middle of July. For most loans operating under the more popular 24-week covered period, that meant a deadline in September.
                              • The SBA stopped accepting PPP loan guarantee applications on May 31. About 96% of PPP loans made in 2021 went to small businesses with fewer than 20 employees, according to the SBA. The SBA said that it has approved roughly 3.3 million PPP loan forgiveness applications as of late May. That means that roughly 69.5% of the more than 5.2 million PPP loans made in 2020 have been forgiven in whole or in part, according to SBA data. About $69.2 billion in loans over $1 million are “in process,” compared to about $12.3 billion for loans under that amount, suggesting that some larger PPP borrowers are not faring as well in the forgiveness process.
                              • Small business owners seeking funding from the SBA can apply to the Economic Injury Disaster Loan program, the Targeted EIDL Advance grant program, the Supplemental EIDL Advance grant program, and the Debt Relief program.
                              • Total construction spending decreased 0.5% in value month over month on an adjusted basis but increased 7.9% in value year over year on an unadjusted basis in September, according to the US Census Bureau. Residential construction spending decreased 0.4% month over month but increased 19.2% year over year in September. Nonresidential construction spending decreased 0.6% month over month and 1.2% year over year in September.
                              • Spending on nonresidential building projects is declining and will do so through 2021, according to a mid-year update to the American Institute of Architects’ (AIA) Consensus Construction Forecast. The AIA estimates an 8% spending drop in 2020 and just under 5% in 2021 due to pandemic-induced economic disruptions. This is the first time in nearly a decade that nonresidential construction spending has trended downwards, according to the AIA.
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