SUMMARY OF MAJOR FINDINGS
The $15 billion (manufacturers dollars) U.S. sheet metal building product industry experienced relatively strong growth in 2004 and 2005. The increase is primarily due to the pass-through of soaring steel and aluminum material costs. Shipment gains also reflect continued strength in residential construction and remodeling markets, and the beginning of a recovery in nonresidential construction activity. Stronger growth has allowed sheet metal building product manufacturers to improve plant profit margins. Manufacturers worked to improve labor productivity to offset rising material costs in this highly competitive industry.

SHEET METAL BUILDING PRODUCT INDUSTRY TRENDS
Catalina Research uncovered these trends in our in-depth 161-page report on the U.S. sheet metal building product industry. U.S. shipments are evaluated for air conditioning ducts, awnings, cornices, culverts, flooring, HVAC products, metal studs, restaurant/hotel kitchen equipment, roof drainage equipment, roofing, siding, soffits and fascia, and stove pipe and elbows. Shipments are further segmented by aluminum, steel, and other metal products. In addition, imports of metal roofing, siding, flooring, and roof drainage equipment are analyzed as well.

END-USE MARKETS
Sales data is segmented for residential and nonresidential markets. Residential market data is also available for new construction, manufactured housing producers, and remodeling and replacement markets. Residential purchases are segmented by building type. As part of this analysis, Catalina investigated the contractor business including contractors specializing in metal roofing, metal siding, specialty sheet metal, and HVAC. Contractor data is provided by type of building and construction activity. Export shipments are evaluated as well.

FACTORS AFFECTING DEMAND
End-use market trends are correlated with U.S. housing demand, nonresidential construction spending, mortgage interest rates, and other economic and housing indicators driving demand. This provides insights into the direction of domestic demand in 2005 and beyond. Catalina also analyzed metal’s share of siding and roofing shipments, as well as homeowner spending trends on siding, roofing, and HVAC work.

PROFIT MARGINS AND THE COMPETITVE ENVIRONMENT
In addition, Catalina Research investigated the cost structure and profitability of U.S. sheet metal building product plants. Data trends are compiled for material, labor, and capital inputs. As part of this analysis, Catalina profiled 26 U.S. manufacturers and compiled sales data for the top producers in order to calculate market shares for the 16 leading producers. Company profiles cover product lines, manufacturing and distribution, capital investments, acquisitions, and new products. Executives are urged to compare their company’s own performance to the industry averages.

CANADIAN SHEET METAL INDUSTRY
The Canadian industry is also investigated. Shipments are provided for six product sectors. Exports and imports are analyzed as well.

Additional Information

SCOPE AND METHODOLOGY

The Catalina Report on Sheet Metal Building Products is a guide to the growth- and profit-oriented opportunities in the manufacture and sale of air conditioning ducts, roofing, siding, roof drainage equipment, ventilators, studs, HVAC products, flooring, and other sheet metal building products. This comprehensive database covers U.S. shipments, imports and exports, end-use markets, factors affecting domestic demand, the cost structure of sheet metal building product plants, the competitive environment, and the Canadian market situation. In addition, major U.S. manufacturers are profiled to review competitor strengths and strategies.

Total industry shipments and a sector and product line growth analysis are included in Section 1. Shipment data is compiled from U.S. Department of Commerce surveys, and estimated and forecasted by Catalina Research. Shipments are for all domestic manufacturers, whether plants are owned by U.S.- or foreign-based companies and whether or not plants specialize (50% or more of total facility revenues) in one of this industry’s product sectors. The Bureau of Labor Statistics’ Producer Price Index is used to measure the gains in volume shipments. Section 2 further segments product line shipments by material, whether steel, aluminum, or other metals. This section also analyzes imports of metal roofing, siding, flooring, and roof drainage equipment. Import data is derived from U.S. Customs records.

U.S. sheet metal purchases by end-use market are provided in Section 3 from U.S. Department of Commerce data. Purchases are shown for residential and nonresidential markets and new construction and remodeling and replacement markets. Purchases for original equipment are included as well. Other data trends review aluminum siding shipments by market and siding purchases by the manufactured housing industry. This section also analyzed metal roofing, siding, and specialty contractor businesses including revenues by building and type of construction. In addition, export sales opportunities are evaluated.

Catalina investigated the factors driving demand, analyzing construction and other end-use market data (Section 4). Residential housing statistics include data on new housing completions, existing home resales, and mobile home placements. Housing starts and residential building permits further track new residential construction markets. Total homeowner remodeling and repair spending is analyzed as well. This section also evaluates metal’s position in the U.S. siding and roofing industries and the factors affecting demand for these products. Catalina supplies data on the cost structure and profitability of U.S. plants specializing (50% or more of total plant revenues) in the manufacture and sale of sheet metal building products (Section 5). U.S. Department of Commerce survey data covering these plants is supplemented with individual company sales data in order to evaluate the competitive environment and calculate company market shares (Section 6).

Company sales statistics are compiled as part of an exhaustive effort to provide competitor intelligence (Section 8). Public company documents, databases, and trade journals were searched for growth- and profit-oriented strategies.

The Canadian market situation is evaluated from Statistics Canada data (Section 7). Data trends include plant shipments, exports, and imports.

Action-oriented executives are urged to use this comprehensive statistical database and competitor information to penetrate end-use markets, target key product markets, expand foreign market sales, and initiate profitable operating strategies. Executives are urged to compute their own company’s market share and compare their company’s operating ratios to the industry averages as part of this process.

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