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 13,370 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 $8.5 million annually.
- The architectural and structural metals manufacturing industry consists of about 13,370 companies that employ 400,000 workers and generate 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 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
Recent Developments
Apr 18, 2024 - Payrolls Rise Amid Stagnant Prices
- Employment by architectural and structural metals manufacturers grew by a healthy 4.7% in January compared to a year ago after rising 3% in the previous annual comparison, according to the US Bureau of Labor Statistics. Meanwhile, average industry wages climbed 2.8% in January year over year to $25.30 per hour, pennies short of their peak in December. Producer prices for architectural and structural metals manufacturers were relatively flat in March (up less than 1%) compared to a year ago, according to the BLS.
- Metal fabricators may catch a break under a new Federal Highway Administration (FHWA) proposal for domestic content requirements, The Fabricator reported in April. The proposed rule would end the longstanding Buy America waiver for manufactured products in federal-aid highway projects. The proposal, announced in March, would reverse the FHA’s current policy that a manufactured product's iron and steel components – say for bridges – be 100% “melted and poured” in the US when used in FHWA-funded projects. Instead, it would require that manufactured products be 55% made in America. While bad news for domestic steel producers, the change would benefit fabricators of highway products – and possibly others to come – containing iron and steel. If the proposal becomes final, fabricators will be able to source iron and steel from overseas sources, which have typically been less expensive than domestic sources in recent months, according to The Fabricator.
- The latest jobs report from the US Bureau of Labor Statistics indicates continued positive trends in the US construction sector – an important customer industry for architectural and structural metals manufacturers – with employment in the industry remaining consistent and robust. Construction added 23,000 jobs in February, in line with the average monthly gain of 18,000 over the previous 12 months. Nonresidential building construction saw a 4.3% increase in employment from January 2024 to February 2024, while heavy and civil engineering construction added 13,000 jobs for the month, a significant 12.5% increase in employment from January 2024 to February 2024. Nonresidential specialty trade contractors also saw a 7.4% increase in employment.
- An in-depth look at the financial performance of 28 US-based metal fabricators, manufacturers, and processors shows a resilient industry benefitting from reshoring and infrastructure spending while dealing with rising costs, the Metal Fabricator reports. In the annual “2023 Financial Ratios and Operational Benchmarking Survey" from the Fabricators and Manufacturers Association (FMA) released in December, those surveyed reported average growth of 17.3% in fiscal 2022 compared to outsized average growth of 34.9% in 2021. The FMA report also shows that direct material costs reached an average of 43% of sales in 2022, the highest average in the survey’s history. Offsetting the rise in materials costs was a decline in labor expenses, with indirect labor falling to just 6.5% of sales, down from 8.3% in 2021, and direct labor dropping to 13.9% of sales from 14.4% the prior year.
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