One Year After The Crisis. Metal Construction Prepares For Recovery

By Shawn Zuver, editorial/content director

It’s been more than a year since citizens of the U.S. and just about every other country in the world braced themselves for an impending financial crisis. Bailout packages were quickly enacted - for better or worse - followed by more of the same, and we all took a step back and waited for the fallout.

The results in some cases were catastrophic and other times much less dramatic. A lot of money was lost through investments, many companies didn’t survive, and a tragic number of people were left jobless and are still searching for employment—and they’ll be continuing to search for a while as talks of a “jobless recovery” abound.

There are some encouraging signs. Home prices finally appear to be gaining some traction after sharp drops in many markets. Retail sales were reportedly up for the third straight month in October 2009, after making allowances along the way for the expired Cash For Clunkers program to stimulate new car sales. And while the Dow Jones Industrial Average is still well off a peak of 14,000, it recently topped 10,000 for the first time in 2009, a good sign for those who view the stock market as an economic indicator.

Even though these aren’t to be mistaken for signs of strength, things do seem to be improving. The good news is that approximately 8 to 9 out of 10 people in the labor force are working and the vast majority of businesses have survived. And, as I heard repeatedly during the recent METALCON International trade show in Tampa (October 6-8, 2009), nearly everyone in the metal construction industry feels that the construction market has seen the bottom and is now on an upward track.

The real question in construction right now seems to be whether there will be steady, month by month gains in activity, or if we’ll continue to see the bumpy ride that’s been experienced by many companies this summer. A common report during METALCON was that a slight gain in one month during the late spring and summer of 2009 was usually followed by a drop the following month. The result is a market that’s difficult to project as we finish this year and head into 2010.

There Are Still Many Opportunities

The metal construction industry is as flexible and resilient as the broad range of products it offers. I expect that we’ll continue to see opportunities in the health care industry, as mentioned in my recent column discussing the ongoing move toward legislative changes to the U.S. system and the growing health care needs of the aging Baby Boomer population. Likewise, educational markets show great promise for metal framing, roof and wall products.

Anecdotally, in my home state of Ohio, there continue to be new elementary and secondary schools being built throughout the state—despite a dismal manufacturing economy. In fact, the construction of three new school buildings was recently approved by voters here in my hometown of Findlay, with the architect having designed each of them to be covered by standing seam metal roofing. There may be other metal products and steel framing used as well.

As buildings age and budgets tighten, there is bound to be additional focus on rehab/remodel work. Reroofing with metal over old, failed roof systems has been a popular choice for decades and always sees a surge in popularity during economic downturns. I expect to see more of this during 2010 and beyond.

Solar collection, coupled with metal roof and wall systems, continues to be a great opportunity for growth as well as other “green” construction products that emphasize sustainability. Again, demonstrating the versatility of metal products, these systems can be used in both new and retrofit applications.

Looking back to a column I posted in early October 2008, I’m reminded of the sense of tense apprehension that gripped the entire world—including the construction and design communities. While that apprehension continues to exist for many individuals and companies, it appears that the footing has stabilized since then. Here’s hoping that a year from now, when I look back on this column, it’ll all seem like a distant memory.

Shawn Zuver is editorial/content director for DesignandBuildwithMetal.com. He has been covering the metal construction industry, including residential and non-residential construction, since 1985. To contact Shawn, call (419) 581-2051 or email shawnz@designandbuildwithmetal.com. 

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