Nonresidential Prefabricated Building Systems

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US outlook forNonresidential PrefabricatedBuilding Systemswith forecasts to 2005 and 2010New study finds: US demand for nonresidential prefabricated building systems isprojected to advance four percent per year through 2005, includingprice increases, to 11.5 billion Metal building systems will continue to account for over one-half oftotal US nonresidential prefabricated building system shipmentsthrough 2005, displaying annual growth of 4.3 percent Regionally, demand for nonresidential prefabricated building systemsis projected to be strongest in the South and West. These regions willbenefit from relatively strong nonresidential building constructionactivity, as well as from above-average population and economic growth

Freedonia Industry Study #1443Nonresidential PrefabricatedBuilding SystemsStudy Publication Date: August 2001Price: 3,600Pages: 256Nonresidential Prefabricated Building Systems, a new studyfrom The Freedonia Group, provides you with an in-depthanalysis of major trends in the industry and the outlookfor product segments and major markets -- critical information to help you with strategic planning.This brochure gives you an indication of the scope, depthand value of Freedonia's new study, Nonresidential Prefabricated Building Systems. Ordering information is included onthe back page of the brochure.Brochure Table of ContentsStudy Highlights . 2Table of Contents and List of Tables and Charts . 4Sample Pages and Sample Tables from:Market Environment . 6Building Systems . 7Markets . 8Industry Structure . 9Company Profiles . 10List of Companies Profiled . 11Forecasting Methodology . 12About the Company . 13Advantages of Freedonia Reports . 13About Our Customers . 14Other Titles From Freedonia . 15Ordering Information . 16

Study HighlightsNonresidential Prefabricated Building Systems #14432 US demand for nonresidential prefabricated buildingsystems is projected to advance four percent per yearthrough 2005, including price increases, to 11.5billion. Metal building systems will continue to account forover one-half of total US nonresidential prefabricatedbuilding system shipments through 2005, displayingannual growth of 4.3 percent. Among nonresidential prefabricated buildings otherthan metal building systems, the strongest growthwill be displayed by modular buildings. Regionally, demand for nonresidential prefabricatedbuilding systems is projected to be strongest in theSouth and West. These regions will benefit fromrelatively strong nonresidential building constructionactivity, as well as from above-average population andeconomic growth. The metal building systems segment has the highestconcentration of large companies with nationalscopes, including Butler Manufacturing,MAGNATRAX, NCI Building Systems, RobertsonCeco and VP Buildings.Freedonia Industry Study

Study HighlightsNonresidential PrefabricatedBuilding Systems Shipments, 2000Metal ding Systems5.1%Panelized PrecastConcrete Systems15.6%Modular Buildings24.1%Nonresidential Prefabricated Building Systems Supply & Demand(million dollars)% Annual GrowthItem199520002005201000/9505/00Nonres Bldg Constr Expend (bil ) prefab bldg/000 nonres --Prefabricated Building System Demand 64309412 net . (1996 100)98.6Prefab Bldg System Demand (mil 1996 ) ricated Building System ShptsMetal Building SystemsModular BuildingsPanelized Precast Concrete SystemsMiscellaneous Prefab Bldg Systems Copyright by The Freedonia Group, Inc.Nonresidential Prefabricated Building Systems #1443Order form on last page3

List of Contents,Tables and ChartsI. EXECUTIVE SUMMARYSummary Table . 3II. MARKET ENVIRONMENTGeneral . 4Macroeconomic Outlook . 5Table - Macroeconomic Trends . 7Demographic Trends . 7Table - Population Trends . 9Nonresidential Building Construction Trends . 10Table - Nonresidential BuildingConstruction Expenditures . 11Office & Other Commercial Construction . 11Institutional Construction . 12Industrial Construction . 12Repair & Improvement Expenditures . 13Table - Nonresidential BuildingImprovement & Repair Expenditures . 14Agricultural Outlook . 14Table - Agricultural Construction Expenditures . 15Nonresidential Fixed Investment . 16Table - Nonresidential Fixed Investment . 17Pricing Patterns . 17Table - Nonresidential Prefabricated Building SystemPricing Patterns . 19Chart - Nonresidential Prefabricated Building SystemPricing Trends . 19Market Trends . 20Table - Nonresidential Prefabricated Building SystemMarket Volatility, 1990-2000 . 21Chart - Nonresidential Prefabricated Building SystemMarket, 1991-2000 . 22Systems Building Versus Conventional Construction . 22Building Code Regulations . 25US Foreign Trade . 26Table - Prefabricated Building System Foreign Trade . 27Exports . 27Imports . 28World Industry Outlook . 29Nonresidential Prefabricated Building Systems #14434III. INDUSTRY OVERVIEWGeneral . 31Outlook . 33Table - Prefabricated Building SystemSupply & Demand by Type . 35Chart - Nonresidential Prefabricated Building SystemShipments by Type, 2000 . 36IV. METAL BUILDING SYSTEMSGeneral . 37Metal Building System Supply & Demand . 39Table - Metal Building System Supply & Demand . 40Chart - Metal Building SystemShipments by Type, 2000 . 41Standard Systems . 41Table - Standard NonresidentialMetal Building Shipments . 44Agricultural Systems . 44Table - Agricultural Metal Building Shipments . 46Other Systems . 46Table - Other Nonresidential Metal Building Shipments . 48Components . 48Table - Metal Building System Component Shipments . 50Roofing Systems . 50Table - Metal Roofing System Shipments . 53Wall Panels . 53Table - Metal Wall Panel Shipments . 55Other Components . 56Table - Other Metal Building SystemComponent Shipments . 57V. OTHER PREFABRICATED BUILDING SYSTEMSGeneral . 58Table - Other Prefabricated Building SystemSupply & Demand . 59Chart - Other Prefabricated Building SystemShipments by Type, 2000 . 60Modular Buildings . 60Table - Modular Building Shipments . 61Types . 61Trends . 62Panelized Precast Concrete Systems . 64Table - Panelized Precast Concrete BuildingSystem Shipments . 65Miscellaneous Prefabricated Building Systems . 66Table - Miscellaneous Prefabricated BuildingFreedonia Industry Study

System Shipments . 66Prefabricated Precast Concrete Buildings . 67Autoclaved Aerated Concrete Building Systems . 68Pre-Engineered Fabric Structures . 71VI. MARKETSGeneral . 72Table - Prefabricated Building System Markets . 74Chart - Nonresidential Prefabricated Building SystemDemand by Market, 2000 . 74Industrial . 75Table - Industrial Market for PrefabricatedBuilding Systems . 77Office 77Table - Office Market for Prefabricated Building Systems . 79Other Commercial . 79Table - Other Commercial Marketsfor Prefabricated Building Systems . 82Institutional . 82Table - Institutional Market for PrefabricatedBuilding Systems . 85Agricultural . 85Table - Agricultural Marketfor Prefabricated Building Systems . 86Other 87Table - Other Markets for Prefabricated Building Systems . 88VII. REGIONAL DEMANDGeneral . 89Regional Demographic & Economic Trends . 90Population Patterns . 91Table - US Population by Region . 93Economic Outlook . 93Table - Regional Gross Domestic Product . 94Construction Outlook . 95Table - Regional Construction Expenditures . 96Nonresidential Prefabricated Building System Demand . 96Table - Nonresidential Prefabricated Building SystemDemand by Region . 98Chart - Nonresidential Prefabricated Building SystemDemand by Region, 2000 . 98Northeast . 99Table - Northeast Nonresidential PrefabricatedBuilding System Demand . 100New England . 101Middle Atlantic . 101Nonresidential Prefabricated Building Systems #1443Midwest .Table - Midwest Nonresidential PrefabricatedBuilding System Demand .East North Central .West North Central .South .Table - South Nonresidential PrefabricatedBuilding System Demand .South Atlantic .East South Central .West South Central .West .Table - West Nonresidential Prefabricated BuildingSystem Demand .Mountain .Pacific .102103104104105107107108109110112112113VIII. INDUSTRY STRUCTUREGeneral . 115Industry Composition . 116Metal Building Systems . 116Modular Buildings . 117Precast Concrete Building Systems . 118Other Nonresidential Prefabricated Building Systems . 119Market Share . 120Metal Building Systems . 120Chart - Metal Building System Market Share, 2000 . 121Table - Estimated Revenues for SelectedMetal Building System Suppliers, 2000 . 124Other Nonresidential Prefabricated Building Systems . 124Table - Estimated Revenues for Selected Suppliersof Nonmetal Prefabricated Building Systems, 2000 . 125Modular Buildings . 126Precast Concrete Building Systems . 127Competitive Strategies . 128Product Development . 129Computerization . 130Other Product Enhancements . 131Manufacturing . 133Marketing & Distribution . 134Mergers & Acquisitions . 137Table - Selected Acquisitions & Divestitures . 139Cooperative Agreements . 141Table - Selected Cooperative Agreements . 142Company Profiles . 142-256Order form on last page5

Market EnvironmentThe Market Environment Sectiondiscusses factors influencing nonresidential prefabricated building systemsdemand, including building construc-MARKET ENVIRONMENTtion and demographic trends.Systems Building Versus Conventional ConstructionThis information provides you with anunderstanding and an analysis of theIt is useful when examining prefabricated building systems to analyze the relativestrengths and weaknesses of systems building in comparison to conventionalclimate in which the nonresidentialconstruction. Systems building involves pre-engineered components that areprefabricated building systems indus-produced in a plant and eitherassembled atPAGEthe plant and delivered to the buildingSAMPLEtry ready for installation, or sent to the building site for assembly there. Conventional construction methods, including structural steel, reinforced concrete,masonry units and wood framing, use a multilayered design and constructionprocess in which the building components are fitted, joined and assembled on-site.The two principal advantages of systems building over conventional constructionare reduced construction time and costs. Because the majority of prefabricatedbuilding system production is conducted in a manufacturing plant, the building sitecan be prepared simultaneously. This concurrent construction method allows thefoundation to cure while the building is being made, eliminating the need to waitfor site preparation before beginning to construct the building. Some industryestimates suggest that the total construction time can be cut up to one-half by theuse of prefabricated building systems. Moreover, this time reduction enables fasteroccupancy of the building and faster return on investment.Although the different types of nonresidential prefabricated building systems rangesignificantly in initial price, all systems-built structures offer some price advantages over conventionally constructed buildings. Factory fabrication of components results in high quality, more precise-fitting components, reducing long-termmaintenance costs. In-plant production of components also results in less materialwaste than conventional construction methods, lowering raw material costs.Moreover, factory work is not subject to weather delays and uses a higherpercentage of automation and semiskilled workers, reducing labor costs. InNonresidential Prefabricated Building Systems #14436Freedonia Industry Study

Building SystemsThe Building Systems Sections provideMETAL BUILDING SYSTEMSdemand for historical years and forecastgrowth to 2005 and 2010.Components - Wall PanelsShipments of metal wall panels are forecast to advance 4.7 percent per year toThis information helps you: 425 million in 2005. This pace is slightly lower than that of total metal buildingsystemcomponentsbecause of the lower penetration of metal wall panels into theSAMPLEPAGE nonmetal building market. However, the development of advanced finishes andAnalyze your company'shigher-end metal wall panels (e.g., insulated panels and aluminum compositegrowth potential inpanels) will stimulate use of metal wall panels in a wider range of applications.the industry.Wall panels are generally made from galvanized, light-gauge steel or structural tubesteel, often with aluminum-zinc coatings. The panels are typically made in the Outline your strategicfactory, shipped to the building site and lifted into place on the structure using aplans for five and tencrane. In addition to providing support and strength for the roof and structuralsystems, wall panels are also used to increase energy efficiency and provide visualyears out. appeal.Metal wall panels can be broken down into three principal groups: single-skinEstablish sales goals.ribbed, insulated and aluminum composite. Single-skin ribbed panels are traditionalsteel wall panels and are available in exposed- or concealed-fastener varieties.Exposed-fastener ribbed panels, which include corrugated types, have visible screwsthat attach the panels to the framing and are generally used for such utilitarianapplications as manufacturing plants. Concealed-fastener ribbed panels useinterlocking panel joints to conceal fasteners from view, making the panels moresuitable for use in higher-end, more appearance-focused applications. Because useof single-skin ribbed panels is slipping due to the increasing popularity of other,higher-end types of wall panels, industry participants are attempting to improveaesthetic properties of single-skin ribbed panels by curving the panels orPanelized PrecasttheConcreteBuilding System Shipments(million dollars)Itemplacing the exposed panels horizontally, rather than vertically.Insulated metal panels includesandwich1990both field-assembled19952000and foam-filled20052010Nonres Bldg Constr Expend (bil ) precast bldg/000 nonres constrPanelized Precast Concrete Syst Shpts% panelized precast concreteOther Prefab Building System 635SAMPLE TABLE Copyright by The Freedonia Group, Inc.Nonresidential Prefabricated Building Systems #1443Order form on last page7

MarketsThe Market Sections analyze trends andconsiders the threats and opportunities innonresidential prefabricated buildingsystems by market and region.The information presented willhelp you:MARKETSAgriculturalDemand for prefabricated building systems in agricultural markets is projected to Focus your sales and marketingefforts on high growth areas.advance 4.2 percent annually to 315 million in 2005. Though this pace exceedsSAMPLE PAGEthat expected for overall nonresidential prefabricated building systems, itrepresents a significant deceleration from the 1995-2000 period, during which Propose new areas for development.agricultural construction activity was boosted by increasing exports of agriculturalproducts. Although the total number of farms in the US is expected to declineover the forecast period, the average size of farms is increasing as part of anoverall pattern favoring a large-scale, industrial approach to farming. Amongother things, this trend will lead to increased construction of agricultural facilities.Unlike nonresidential construction markets, in which various types of prefabricated building systems are used, agricultural market demand is limited almostexclusively to metal building systems. Metal building systems are used in a varietyof agricultural applications, including on-farm grain and crop storage facilities,barns, livestock shelters and garages. The use of metal building systems in thesevarious agricultural applications can be attributed partially to the design flexibilityof these buildings. More specifically, structures made using single span rigidWest Nonresidential Prefabricated Building SystemprimaryDemandframing are ideal for barns(million dollars)requiring large clear spans, while buildingsconstructed from multispan rigid framing lend themselves to use1990as livestock1995 shelters2000with custom-designed20052010 column spacing.ItemAlthough metalbuildingsystems 197.6dominate theagriculturalWest Construction Expend (bil )115.6131.1248.9321.8market, other prefabri prefab bldg/000 constr9.910.510.3 applications10.2 in limited10.4 quantities. Forcated building systemsareused in theseSAMPLE TABLEexample, Lester Building Systems produces prefabriWest Prefab Bldg Syst Demand11421380203025403350cated wood frame buildings that can be used for agricultural storage and livestockMountain36562987511151480shelter applications.Pacific777751115514251870% westPrefab Building System Demand19.8575721.5643021.6941222.21146022.714730 Copyrightby Inc.The Freedonia Group, Inc. Copyright by The FreedoniaGroup,Nonresidential Prefabricated Building Systems #14438Freedonia Industry Study

IndustryStructureSample page fromFreedonia Industry StudyGaina betterunderstandingof your#1117FractionalHorsepowerMotorscompetition and analyze yourcompany's position in the industry withinformation about: industry composition market share competitive strategiesINDUSTRY STRUCTUREProduct Development - Other Product EnhancementsThe conservative nature of the building construction industry is reflected in therelatively low levels of product development within the nonresidential prefabricated building system segment. However, manufacturers do engage in product product developmentdevelopment efforts aimed at improving the performance characteristics of theSAMPLE PAGEsystems, reducing the costs of the systems, and widening the range of end uses for manufacturingwhich the systems are used.The metal building system segment has the highest levels of product development marketing & distributionwithin the nonresidential prefabricated building system industry. Major development efforts within this segment are aimed at improving the performance features mergers & acquisitionsand cost efficiency of the systems. Advanced finishes used on wall and roof panelsprovide an important method of improving the performance of metal building cooperative agreementssystems. The majority of metal building system manufacturers offer panels coatedwith zinc-alloy or fluoropolymer treatments, such as GALVALUME aluminumzinc coatings from BIEC International or KYNAR fluoropolymer coatings fromAtofina (France), a subsidiary of Total Fina Elf (France). These coatings areprimarily used to decrease the building’s maintenance requirements throughincreased durability and resistance to fading. Upstream suppliers, such as steelcompanies and coating producers, are continually developing advanced coatingsthat allow metal building system producers to offer long-term warranties. Thesefirms also develop coatings that provide specific performance characteristics. Forexample, in 2001, Classic Products, BASF and Ferro developed HI-R HEATBARRIER finishes that contain infrared reflecting pigments. These finishes reducethe temperature of metal roofing panels for lower air conditioning costs.Metal building system manufacturers also focus developmental efforts onimproving the cost efficiency of the systems through the use of advancedcomponents and materials. For example, American Buildings is developing a cold-Nonresidential Prefabricated Building Systems #1443Order form on last page9

Company ProfilesThe Profiles Section analyzes 39companies active in the U.S. nonresidential prefabricated building systemsmarket. These profiles represent asampling or cross-section of the types ofCOMPANY PROFILEScompanies involved in the industry.Whitley Manufacturing Company IncorporatedDivisions, subsidiaries, joint201 West First StreetSouth Whitley, IN 46787ventures, etc., are discussed under219-723-5131appropriate parent companies.http://www.whitleyman.comSources for profiles included:Whitley Manufacturing Company is a privately-held producer of temporary andpermanent modular buildings for nonresidential applications. The Companyprovides complete design, manufacturing and set-up services, and sells its buildings Information provided bykey staff members in therespective companiesthrough over 25 independent distributors. Whitley has estimated annual sales ofSAMPLEPAGE 50 millionand employsapproximately 350. (Sales and employment verified bycompany, 8/01.)The Company’s standard modular buildings consist of a welded steel frame covered Annual reportsby a wooden frame, insulation and a thick layer of plywood for a solid floor.Alternative structural options include a secondary steel frame, as well as clear spanand panelized construction. The walls and roof of the building are built while the 10-K reportsfloor is being constructed and then attached using a crane. Whitley offers avariety of roofing profiles, such as single-wide bow truss roofs with side or mansard Security analysts reportsside elevation, two-unit gable roofs with side elevation, three- to five-unit step-uproofs with a gable roof line and side elevation, transverse ridge roofs and transverseridge roofs with a concealed roof line. Exterior building options include mansards, Corporate product literaturemetal or concrete steps, ramps and decks, as well as aluminum, vinyl, stucco, brickor steel exterior finishes. Among the interior options for buildings are floor tiles,wall vinyl, carpet and plumbing, electrical, heating, air conditioning and ventilation systems. The Company also offers a wide range of windows and doors.Whitley can install its buildings as temporary, semi-permanent or permanentstructures, depending on the application. Temporary installation is primarily used Copyright by The Freedonia Group, Inc.Nonresidential Prefabricated Building Systems #144310Freedonia Industry Study

CompaniesProfiledA-Z Precast Concrete Products IncorporatedACCO Aerated Concrete Systems IncorporatedAlfa SA de CVGalvamet IncorporatedAlliance Steel IncorporatedBabb International IncorporatedMatrix Precast Autoclaved Aerated Concrete LPBehlen Manufacturing CompanyInland Southern CorporationBlazer Industries IncorporatedButler Manufacturing CompanyBUCON IncorporatedLester Building SystemsLiberty Building SystemsCarr Concrete CorporationChief Industries IncorporatedClayton Homes IncorporatedCoachmen Industries IncorporatedKanBuild IncorporatedMiller Building Systems IncorporatedMod-U-Kraf Homes IncorporatedCRH plcCentral Pre-Mix Prestress CompanyCloud ConcreteEastern Prestressed ConcreteOldcastle Precast IncorporatedSpancrete Northeast IncorporatedStrescon IndustriesThorn-OrwickCSR LimitedAmerican Precast Concrete IncorporatedFlexicore Systems IncorporatedHebel AGKullman Industries IncorporatedLTV CorporationAEP-SPANGraham FRP Composites LimitedUnited Panel IncorporatedVP Buildings IncorporatedModtech Holdings IncorporatedInnovative Modular Structures IncorporatedSPI Manufacturing IncorporatedUnited ModularModular Technology IncorporatedNonresidential Prefabricated Building Systems #1443Morgan Buildings and Spas IncorporatedMueller I

Metal building systems will continue to account for over one-half of total US nonresidential prefabricated building system shipments through 2005, displaying annual growth of 4.3 percent. Among nonresidential prefabricated buildings other than metal building systems, the strongest growth

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