Industry Report: Structural Metal Product Manufacturing

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Industry: Structural Metal Product Manufacturing

Naics: 332312

Private Company Multiples

Industry Overview

The Structural Metal Product Manufacturing industry has faced significant challenges in recent years. Despite strong economic growth increasing capacity, the industry has experienced revenue declines due to high interest rates. Industry revenue has decreased slightly at a 0.2% CAGR over the past five years to 2023. However, the industry is forecasted to reach $63.5 billion in 2024, up 1.1% year-over-year.

Recovering demand from downstream markets, including construction, aerospace, and infrastructure industries, has helped offset heightened interest rates. However, manufacturers have grappled with volatile input costs, an appreciating US dollar.

Metal prices and import competition significantly influence industry performance. Steel and aluminum are crucial inputs in the manufacturing process. While manufacturers can often offset rising input prices by increasing product prices and inventory values, extreme volatility in input costs and rising wages have contributed to profit contractions. Many manufacturers have struggled to secure stable purchasing contracts while competing against low-cost imports from Chinese producers.

Looking ahead, the industry is projected to grow at a 2.3% CAGR, reaching $71.3 billion by 2029. This growth is expected to be driven by resurgent demand from the construction and manufacturing sectors. Additionally, manufacturers are likely to benefit from stagnating import penetration due to tariffs on imported structural metal products.

Export markets are expected to become more accessible as the US dollar weakens, making domestic structural metal products more competitive globally. This shift could open up new opportunities for growth and market expansion. For industry participants, success will likely depend on managing input cost volatility, improving operational efficiency, and capitalizing on growing domestic and export market opportunities.

Companies that can effectively navigate the changing trade landscape and adapt to fluctuating economic conditions may find significant growth potential in the coming years.

Key Financial Metrics

Income Statement Benchmark

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