Structural Metals Manufacture

Industry Overview

The US structural metals manufacturing industry consists of 13,000 companies with combined annual revenue of $60 billion. Major companies include units of integrated metal producers, such as Alcoa, Nucor Steel, 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 have only about 25 percent of industry sales.

Competitive Landscape

Demand depends primarily on the level of construction activity, particularly non-residential. Large companies have advantages in efficiency of operations and economies of scale. Smaller producers compete by focusing on specialized product offerings and responsive customer service to local markets. Revenue per employee averages about $160,000.

Structural metals compete with other building materials, primarily wood, for many uses in construction projects.

Products, Operations & Technology

Major product types are structural steel (joists and concrete reinforcing bars); sheet metal (ductwork, metal enclosures); metal windows and doors; and prefabricated metal buildings. Structural steel components comprise 35 percent of US shipments, followed by sheet metal work (25 percent), and metal windows and doors (20 percent). Other products include ornamental building components, such as metal staircases and fire escapes.

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, such as Nucor Steel or Alcoa, or from metals distributors, known as metals service centers. About 70 percent of all structural steel for the US market comes through 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.

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