MCA Reports Top Drivers in the Construction Industry

The Metal Construction Association (MCA) has released a report identifying the top 11 drivers in the nonresidential construction industry. The report, based on data analysis, surveys, and interviews with industry leaders, was prepared by FMI, a management consulting and investment banking firm dedicated to engineering and construction, infrastructure, and the built environment. The top trends in the industry trends were identified as follows:

  • Talent Shortages and Management Succession Challenges
    At the height of the recession, 30 percent of the commercial construction industry lost their jobs causing a lack of skilled workers as business picks up. The need to recruit and retain employees is key to attract the next-generation of millennials to the construction business.
  • Use of New Technologies
    With more prefabrication and modularization, use of robotics and 3-D printing, construction is becoming more standardized and computerized. BIM models are playing a role in all aspects of the construction process.
  • Productivity Improvements Needed for Profitability
    While use of BIM, prefabrication, modularization and green construction are necessary in construction manufacturing, at the contractor level, technology and planning are paramount to being profitable.
  • Changes in Construction Delivery Systems
    A slow shift is being seen from the traditional design-bid-build or hard-bid approach to more collaborative or alternative delivery methods that were gaining popularity before the recession.
  • Owner Transition
    As baby boomer leaders are getting to retirement age, the industry is facing a change in ownership among 50 percent of construction firms.
  • International Debt Problems
    Although the U.S. has experienced a resurgent economy, European countries like Greece, Italy, Spain and Portugal are struggling. After years of growth, China is also experiencing a slowdown in its economy, threatening the savings and investments made in the last few years.
  • Forming Partnerships with Customers
    A more customer-centric orientation is returning. Manufacturers and suppliers must match their marketing and delivery methods to the needs of the contractor and become partners in the process.
  • Healthier Companies
    In order to survive the recession, companies had to get to positive cash flow (or at least neutral) in the new demand reality of the 2009-2011 period. This focus on efficiency created reduced cost structures.
  • Growth Through Acquisition
    The demand for attractive building product companies to purchase is high. Industry stakeholders are looking to realize overhead efficiencies and maximize nontraditional margin enhancements (risk management, technology, self-perform). Those companies realizing profitability in this way are positioned to prosper as the construction market improves.
  • Consolidation
    On the manufacturing distribution side, 2015 was a year of company consolidation. Market conditions led to unprecedented merger activity among large players. Today, a seller can receive what the company deems a fair price, while a buyer feels there is still enough business ahead to make a return on the investment.
  • Mergers and Acquisitions Activity Benefit Buyers & Sellers
    Pace and scale of activity are both up with both strategic and financial buyers. With demand high and the supply of attractive companies low, one would expect prices to increase, and they have.

These trends are expected to play a role in shaping the nonresidential construction industry in the coming years and are part of considerations as companies make their plans. The full report is available to MCA members at www.metalconstruction.org.

The Metal Construction Association (MCA) promotes and expands the use of metal in construction through marketing, research, technology and education. MCA members include metal roof and wall panel manufacturers. Trade associations serving the metal construction industry partnered with MCA in this study. The participants are The American Iron & Steel Institute (AISI), The Aluminum Association (AA), Metal Roofing Alliance, National Frame Builders Association (NFBA), and the National Coil Coaters Association (NCCA).

MCA Offers Metal Roofing Training

The market for residential metal roofing continues to grow rapidly as homeowners are learning of its many energy-saving, aesthetic and long-lasting benefits. Contractors wanting to capitalize on this expanding metal roofing market can find in-depth educational resources about metal roofing training for existing and incoming personnel on the MCA website.

On the website, visitors will find comprehensive training in the form of a Metal Roofing Installation Manual and an optional online exam. The manual is a free download, which includes 20 chapters and hundreds of pages and illustrations to help ensure industry best practices are used when installing metal roofs. The accompanying online exam was designed to confirm that installers and contractors have a full grasp of the best practices outlined in the manual.

The exam includes tests for each different chapter with 10 questions each. A “Save and Resume” feature is enabled for the participant’s convenience. Each question addresses the various topics of metal roof installation and related accessories and includes questions pertaining to both new construction reroofing and retrofit projects. A certificate of completion is sent electronically to successful participants. The exam is available for $100 from the association’s online store accessible at www.metalconstruction.org. Unsuccessful participants may retake the exam at no additional charge.

Both are valuable resources to educate new and experienced roofing installers and can help spur contractor growth in the expanding metal roofing market.

MCA is also involved with the Metal Roofing Alliance, a great resource for residential roofing information and promotion through its national consumer marketing program.

Drexel Metals Signs on as a Member of the Metal Roofing Alliance

Drexel Metals has joined marketing forces with other metal roofing manufacturers by signing on as a member of the Metal Roofing Alliance.

The MRA was formed with the goal of educating residential consumers about the styles and benefits of metal roofing. The membership is made up of metal roofing manufacturers and installers who are eligible to receive customer leads from MRA website.

“The Metal Roofing Alliance has done great work, getting the word out about metal roofing for residential applications,” says Brian Partyka, executive vice president of business development at Drexel Metals. “The MRA marketing plan has been very effective in helping metal become a more acceptable choice for homeowners when they need to replace their failing asphalt shingles. When people are educated on the benefits, it’s easy for them to see that metal is the better choice.”

Partyka, who was also voted to the MRA board of directors, says Drexel Metals’ DM-ARM (Drexel Metals Association of Regional Manufacturers) members will benefit from the MRA lead program.

“We’re excited Drexel Metals has joined the Metal Roofing Alliance,” says Bill Hippard, MRA’s executive director. “The MRA can certainly benefit from the input of the experts at Drexel Metals in guiding the MRA moving forward. Drexel Metals is now a part of our multi-million dollar campaign to increase the residential metal roofing market in 2015 and beyond. We currently have 15 manufacturer members and I hope to bring that to 20 by the end of the year.”