Prefab Steel Structures

searcher profile

December 19, 2024

by a searcher from Portland State University in Fort Lauderdale, FL, USA

Hey guys,

We're looking at pre-engineered steel structures building business. Does anyone have any exeprience or worked with these in the past? This is new to us, so trying to learn more about the industry, competitive landscape and key deal/business issues.

Thank you!

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commentor profile
Reply by an intermediary
from Wesleyan University in Granville, OH, USA
I have worked in this space. My first thought is that suppliers are highly consolidated. In engineered structural steel there are many brands, but they're owned by a small number of companies. The second largest input is insulation, also highly consolidated. The key impact is that small erectors have little control over their material supply when it is constrained. You'll only get paid for buildings you actually build, not orders you get. There's high uncertainty around the steel supply under the next administration and congress. You can get a preview of the political football from the proposed sale of U.S. Steel. Look into financial analyst reports to learn more about those inputs.

Finally, this is a dangerous industry to work in. Less so than historically, but still dangerous. I was on a job site with one of my salesmen and our customer (a builder) and they reminisced about 5 or 6 colleagues who had died from falls. It's astonishing that any one person knows that many people who died at work.
commentor profile
Reply by a searcher
from Portland State University in Fort Lauderdale, FL, USA
Thank you, Daryl. Much appreciated!
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