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
                              Source: Vertical IQ and Inforum

                              Coronavirus Update

                              May 14, 2022 - Rising Energy Costs Push Metal Prices Higher
                              • The spike in energy prices triggered by Russia’s invasion of Ukraine is raising costs for steelmakers and adding to production costs for architectural and structural metals manufacturers. Steelmakers are feeling the squeeze from rising fuel costs on two fronts as the energy-intensive sector primarily uses either blast furnace technology, which relies on metallurgical coal, or electric arc furnaces powered by electricity that’s generated in the US primarily by natural gas. US natural gas prices surged in May to their highest level in 14 years with no relief in sight. “The impact of the conflict between Ukraine and Russia is likely to be long-lasting for North American natural gas markets,” said David Givens, head of natural gas and power services for North America at Argus Media.
                              • Japan’s JOEL Ltd. in May 2022 began selling its EBM metal 3D printer in the US. According to the company, the EBM (electron beam melting) metal-powder-bed printer is well-suited for serial production of high-quality, reproducible metal parts used in the aerospace, automotive, and energy sectors. The device allows 24/7 production because of its remote-monitoring capabilities and processes high-temperature alloys. The benefits to architectural and structural metals manufacturers of 3D metal printing, aka as metal additive manufacturing, include reducing manufacturing costs through waste reduction; getting products to market faster by shorting product development cycles; and spurring innovation through the production of unique and complex structures.
                              • The price of steel mill products continued to fall in March 2022, down 15.3% from a record high reached in December 2021. Following a year in which steel prices hit historic highs and experienced unprecedented circumstances, signs were pointing to a return to normal pricing in early 2022. However, in March carbon steel prices experienced their largest month-over-month increase in history, the result of a combination of improved demand conditions and rising raw material cost, according to metals distributor and processor Ryerson.
                              • Total construction starts rose 9% in the first three months of 2022 compared to the year earlier period. Nonresidential building starts climbed 26%, residential starts rose 3%, and nonbuilding starts fell 1%, according to Dodge Data & Analytics . The manufacturing sector is a bright spot as firms consider building new facilities and reshoring production to better control supply chains.
                              • Congress passed a $1.2 trillion infrastructure spending bill in late 2021 that may create opportunities for architectural and structural metals manufacturers to supply goods for bridge construction, highway structures and public transit structures. The bill includes “Buy American” provisions that will help to keep spending among US companies. As a result of the bill, Federal Highway Administration spending is bumped up from $48.4 billion in 2021 to $66.9 billion in 2022, $68.2 billion in 2023, $69.5 billion in 2024, $70.8 billion in 2025, and $72.1 billion in 2026.
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