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 12,500 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
                              Source: Vertical IQ and Inforum

                              Recent Developments

                              Nov 14, 2022 - Construction Employment Gains
                              • The not seasonally adjusted US construction unemployment rate fell 1.1% in September 2022 from a year ago, from 4.5% to 3.4%, according to a state-by-state analysis of Labor Department data released by Associated Builders and Contractors (ABC) in October. Forty-two states had lower unemployment rates over the same period, Arkansas and Wisconsin were unchanged, and six states were higher. Almost half of US states had estimated construction unemployment rates at or below 3%, ABC reported. Residential construction employment has fully recovered, while nonresidential construction employment remains below its pre-pandemic peak. September SA residential payroll construction employment was 162,000 above its pre-pandemic peak while nonresidential payroll construction employment was 67,000 below its pre-pandemic peak. Construction market spending and employment are demand indicators for architectural and structural metals.
                              • The US International Trade Commission (USITC) in October 2022 decided to maintain the existing countervailing duty order on imports of hot-rolled steel from South Korea and the antidumping duty orders on imports of hot-rolled steel from Australia, Japan, Netherlands, Russia, South Korea, Turkey, and the United Kingdom. Those decisions were based on a five-year sunset review of the tariffs and found that US steel manufacturers would be hurt if the tariffs were removed. While good news for US steel makers, keeping the tariffs is bad news for metal customers, including architectural and structural metals manufacturers. In a bit of good news for metal consumers, the USITC agreed to remove the existing antidumping duty and countervailing duty orders on imports of hot-rolled steel from Brazil, according to The Fabricator.
                              • The Occupational Safety and Health Administration (OSHA) is considering lowering permissible levels of lead in the blood of employees in various industry sectors that could potentially affect more than 1,000 firms. Businesses in the fabricated metal product manufacturing sector would be impacted if OSHA takes action, The Fabricator reports. According to OSHA, some companies in the sector likely have employees with blood lead levels (BLLs) greater than 5 micrograms per deciliter. The agency, which issued advance notice of the proposed rulemaking in June 2022, has agreed to extend the comment deadline two months to October 28 due to controversy. Many states already have lowered lead exposure thresholds, putting pressure on OSHA to re-examine its 45-year-old standard.
                              • The severe US housing shortage is creating opportunity for modular prefabricated housing framed with cold-formed steel, according to BuildSteel. By one estimate, the nation is more than 3 million homes short of the demand from would-be homebuyers, a deficit exacerbated by rising demand for housing among millennials and younger buyers. Factory-built modular prefabricated homes cost less and are quicker to build than traditional homes and are delivered to building sites for final assembly 80% to 90% complete. While many prefabricated homes are built with wood framing, some builders are turning to cold-formed steel (CFS) for its durability, sustainability and non-combustibility. Also, CFS steel provides structural integrity, particularly in multi-story construction.
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