Architectural & Structural Metals Manufacturing Industry Profile

The US architectural and structural metals manufacturing industry consists of about 13,000 companies with combined annual revenue of about $70 billion. Major companies include units of integrated metal producers, such as Alcoa, Nucor, and US Steel, as well as large metal fabricators, such as NCI Building Systems, ClarkDietrich Building Systems, and Valmont Industries. Both major segments of the industry -- plate work and fabricated structural steel, and ornamental and architectural metal -- are fragmented: in each segment, the 50 largest companies account for about 30 percent of sales.

COMPETITIVE LANDSCAPE

Demand depends primarily on the level of construction activity, particularly nonresidential. The profitability of individual companies depends on manufacturing efficiency and effective supply management. Large companies have economies of scale in purchasing materials and equipment. Smaller producers compete by focusing on specialized product offerings and responsive customer service to local markets.

Producers of architectural and structural metals compete with producers of other building materials, primarily wood, for construction-related business.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major product types are plate work and fabricated steel (joists and concrete reinforcing bars and prefabricated metal building components) and ornamental and architectural metal (metal windows and doors, sheet metal work, ornamental). The two main product types each account for about 50 percent of shipments. Basic raw materials are primarily steel (carbon, alloy, and stainless) or aluminum. Raw materials are bought in semi-finished form (slabs, billets, and blooms) or finished form (plates, coils, sheets, wire, bars, ...