Structural Metals Manufacture
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Industry Overview
The US structural metals manufacturing industry consists of about 13,000 companies with combined annual revenue of $90 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 and Dietrich Industries. The industry is highly fragmented: the 50 largest companies account for about 25 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. Annual revenue per employee averages about $215,000, meaning the industry is capital-intensive.
Structural metals compete with other building materials, primarily wood, for many uses in construction projects.
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 and sheet metal work). Plate work and fabricated steel and ornamental and architectural metal 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.
The manufacturing process varies depending on the product type, but generally involves fabrication, preparation, and finishing. Fabrication includes processes like punching, cutting, bending, welding, coil processing, roll forming, laser cutting, and stamping. Machining, a fabrication method, uses a variety of machine tools to cut or form material to precise specifications. Preparation includes cleaning and surfacing materials with chemicals. Finishing includes plating, polishing, coloring, and coating.
Products include both standard components built to stock and custom systems engineered to order. Engineered building systems are designed to meet a specific project's requirements and are shipped to the construction site complete and ready for assembly with no additional field welding necessary.
Companies use CAD systems to develop new products and custom orders. A variety of machines are used to automate steps in the production process, including presses, punches, saws, grinders, and welders. These operations may be automated using computer numeric control (CNC) systems. During fabrication, raw materials and steel pieces are moved by cranes, jibs, carts, and automated conveyor systems.
