Architectural & Structural Metals Manufacturing Industry Overview

Excerpt from Architectural & Structural Metals Manufacturing Report

Companies in this industry manufacture metal framed windows and doors, sheet metal work, ornamental or architectural metal products, prefabricated metal buildings, and structural metal and metal plate work products. 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, Gibraltar Industries, and Valmont Industries.

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. 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.

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, rails, and beams). Companies buy either directly from primary metal producers or from metals distributors, known as metals service centers.