MA: What market trends do you expect to see within the metal architecture and construction industries in 2011? What is driving these trends?
Norbert Schneider: A trend I’ve been seeing for a while is less standardization of products and more flexibility. That means more colors, smaller batches, but it also might mean new sizes. In general, my perception is that the architectural community is ripe and ready for something new. That of course works well for natural materials, zinc, copper, stainless steel and titanium – I think you’ll see a lot more of that.
The desire for something natural is not that for something unpainted, it is more than that — if you look outside our [segment of the construction industry], you will see that one of the fastest growing exterior products is terra cotta. The artificial look of paint is going to, pardon the pun, faint. People are looking for the natural, or “un-artificial” look of the product, which is why you see more dull materials, not so much shiny anymore.
The driver of that, on one hand, is of course the sustainable product issue, but I think that is a term that has been way overused. I think the trend in the architectural community is to use exterior products with more depth.
Dave Brenneman: We are seeing and expect to see continued emphasis on metal, specifically perforated metal, metal gratings, and other metal mesh such as expanded metal and wire mesh both interior and exterior because of both their aesthetic appeal but also the practical aspects of heat absorption and dissipation, light diffusion, ventilation, acoustic properties and lasting durability. The later really supporting the desire to be eco friendly and “green.”
Jim Bush: While the overall construction industry is expected to see small growth moving forward, the continued market share gains of metal in both roof and wall applications will continue. The continued marketing initiatives of the industry as well as the design community and building owners realizing the cost effectiveness of metal, the ability for metal to aid in sustainable design and architectural appeal continue to drive this growth.
Wayne Dickinson: There’s a lot going on right now and our industry is transforming as a result. Greater demand by users for long-term building performance and the introduction of newer, more restrictive code regulations are leading to smarter, better performing building products and design. Software advancements are allowing teams to 
collaborate and design comprehensive systems that improve the end result and lower the costs of construction so that projects are completed quicker and with fewer mistakes. Economic conditions have slowed new construction and are driving those who do need to expand to consider building renovations or possibly smaller buildings in order to obtain the necessary financing. For the metal construction industry to succeed these changes need to be recognized and embraced and we need to stay informed and prepared.
Robert Anderson: I expect to see a continuing trend toward high-performance, high-efficiency, long-lasting construction products and systems. An increasing awareness of the impact of buildings on the environment is one of the main drivers of this trend.
Additionally, certification programs including the U.S. Green Building Council’s LEED and Center for Environmental Innovation in Roofing’s RoofPoint roof rating system and building codes like the International Green Construction Code and the International Energy Conservation Code are moving contractors, architects, consultants and building owners to incorporate sustainable building products into their project specifications.
The increasing importance of system performance testing and code approvals for construction products also continues to be an ever-present trend in the metal construction industry.
Todd Miller: On the residential end of things, I anticipate new construction to remain soft due to low demand. However, I expect upper end remodeling to increase as folks who might normally be building new will instead upgrade what they have. They will be seeking unique and sustainable products. This will continue to provide great opportunities for metal roofing.
Jim Tuschall: I see an increase in natural metals being used such as zinc, stainless steel and copper. These materials offer long term life with little or no maintenance costs in addition to their desired visual appeal. Use of natural metals has also been driven by the green and LEED programs as architects and owners have become more carbon sensitive with material selections.
The increased use of metal foam panels will also continue in 2011. The high insulation value and faster installation process makes this more economical than the traditional field assembled liner panel and profile panels. The liner panels will have limited use however the single skin profile panel will continue to be widely used for aesthetic architecture.
Ray Frobosilo: We see next year not getting any worse, but only very gradually getting better. In our type of construction, we’re only now seeing the Stimulus package beginning to hit…a big part of that funding was infrastructure (highways, sewers, bridge repairs, etc.), and the actual construction part of it won’t be taking hold until 2011, and while that’s not enough o make for an economic recovery (for the industry) it certainly doesn’t hurt. We are seeing some segments of the country that have projects that were tied up in funding or financial review, that are just now starting to break loose — we’re talking $200-, $300-, $400-million projects — so we’re seeing cautious optimism.
The AIA and the AGC did a webinar about a month ago, and the AIA employment benchmark is just getting back to that level and that’s a big barometer for them. The AGC is seeing the same thing…gradual recovery; nothing is going to happen quickly. And the general consensus is, until banks start doing what banks are supposed to do
— that’s lending money at a fair rate — nothing’s going to happen of any substance.
MA: What innovations can we expect in 2011, with regard to architectural metal products, components and applications?
Schneider: I think texture is becoming more important than color. That means materials that have, for example, more pronounced seams and you’ll see more and more of that. Again, because smooth, flat, shiny is losing a little bit of its popularity in favor of things that have depth, texture and are more dull rather than shiny.
The innovations will come with manufacturers trying to answer that trend.
Brenneman: We are working on a new small-hole perforated aluminum product with a hole significantly smaller than what is currently available in the market, that provides a sound absorption coefficient as high as 1.09 without adding any additional acoustical backing.
Bush: I believe you will continue to see creativity in architectural design. The combining of various panel styles and systems on individual projects will be driving this creativity. Research and development of energy efficient roof and wall assemblies will continue through industry initiatives and you will begin to see this new research enter the marketplace. Cool metal roofing achieved through paint technology will be enhanced with other energy saving features such as ASV (above sheathing ventilation), insulated roof and wall assemblies, and utilizing metal components in conjunction with solar technologies such as photovoltaic’s, transpired solar collectors and other solar/thermal technologies that capture the solar energy available.
Dickinson: We’ve already seen the resurgence of old ideas such as insulated metal panels and solar technology but the manufacturing and capabilities of these products are greatly improved over their predecessors. As we move forward, manufacturers will continue to develop better performing products—some may be new and some may be modifications of products we are already familiar with, like adding a high performing coating to an existing panel.
Miller: I think we will continue to see the development of more multi-hued or printcoat colors being used on metal building products for enhanced beauty and distinction.
Tuschall: Paint systems are improving offering coatings that look like wood and natural products, warranties are also being extended. Use of solar products will continue to be used of roof and walls for obvious reasons.
Frobosilo: That’s really what’s setting apart manufacturing companies as well as architectural firms…design innovation, product innovation, etc. The new energy code is forcing innovation, in terms of ‘How are you going to meet the new model energy code with today’s construction technologies?’
In a strangely ironic way, economies like this put people back in the mode of innovating. In the metal framing industry, it had become pretty staid over the last 40 years – a stud was a stud no matter who you bought it from. Now with ASTM looking more forward in terms of performance based products, it’s allowing people to come out and say “This product does what the standard says, but with a different configuration, thickness, metallurgical or design innovations, etc.. So [innovation] has certainly changed the face of our industry.
Design innovation is really what is keeping the companies that are interested in it, a little bit ahead of the game. Nobody’s doing great [in the construction industry] , but it’s the ones that are sitting there without the ability or the focus on innovating, that are probably suffering the most.
There are plenty of companies out there that are spending more on R&D then they ever have before.
MA: The past couple of years have seen the economy greatly affect the metal architecture industry. What adjustments/strategies have those within the industry made to weather the storm?
Schneider: The biggest adjustment that I’ve seen across the board is staff reduction. I think many architects have changed their focus; many have changed their target region — they’re doing more work abroad — and not only in the design part, but the project management part. Firms are certainly going outside of their comfort zone, both geographically and in the projects they work on. Those that have survived [the economic downturn] almost certainly worked outside of their comfort zone.
Bush: All those involved in the construction industry have been affected by the economy. Businesses have streamlined and everybody is doing more with less personnel.
Dickinson: For example, roofing contractors that may not have been familiar with metal panels at one time are now installing our roof systems; some are researching and applying value-added materials like photovoltaic systems; and some are looking at new applications like retrofit roofing systems for existing buildings. In other cases, contractors devoted to niche markets such as residential may be exploring new opportunities, like those found in the commercial sector, as they look for business. Of course this is leading to a more competitive marketplace.
Miller: We have seen contractors have to move to a higher-end clientele. In the residential spectrum, we have seen a dramatic decline in the availability of home improvement financing. Again, this has pushed contractors to focus on more affluent customers.
Tuschall: More advertising dollars spent on retrofitting older metal buildings. Vacant buildings need to compete for tenants/owners and metal is an affordable option to modernize the façade.
Frobosilo: On the manufacturing side, we’ve all just leaned our businesses out as much as we can. We’ve hunkered down and focused on increasing market share by reducing costs through product innovation.
Contractors are spending more money in getting a project “shovel ready.” We see contractors now, more than ever before, investing more in the process to get a project shovel-ready, which they believe gives them a strategic advantage when the funds do ultimately get released. He who can begin the quickest may have the advantage. They’re spending more money bidding and estimating than they normally would have.
Contractors are reaching out farther, geographically, to bid work
– and often times it’s paying off for them.
MA: Strategically, what additional adjustments do you expect to see in the industry in 2011, or do you expect the market to be similar to 2010? Please explain.
Schneider: I think we all realize that the economy, to some extent, is bouncing back. The question remains: Are people applying the lessons learned? Will those that have tried to be everything to everybody, and have now learned to focus during the past two years, will they keep their focus or will they go back to their bad old habits?
Another question is: Companies that have shrunk themselves in order to survive, when it’s time to grow again, will they have the power and resources to finance their growth?
What has surprised me in the past three years is if I look at our industry on just the manufacturing side, not many people have gone out of business — which is a surprise, but not necessarily a good one.
When I think of why this has happened, I think it’s because not many of us are publicly traded companies, most of us are family owned or at least privately held and owners/family have opened their purse and put money back into the company to keep them alive or even suck them dry to weather the storm. But now that business is picking back up, you have to finance your growth, and I think those that have stretched their cash too far will now have trouble financing their growth.
You have to buy materials and finance those materials until you get paid by your customer. Metal prices have not come down, they’ve remained surprisingly stable, and now you have to finance inventories, work in progress, and you have to finance your accounts receivable.
Brenneman: We expect to see even more retrofitting of existing buildings (facades, curtain walls, and sunshades), converting existing space to more current architectural and design preference, especially where it also adds energy saving features.
Bush: believe you will see only slight improvement in the new construction market in 2011. Renovation of existing structures will drive the rebound of the construction market.
Dickinson: The trend for more energy-efficient building solutions will continue to increase. Government and Institutional consumers have led this rally but other markets will follow. Economic conditions, however, have tempered. Although we believe the quick and aggressive economic decline has passed we have braced ourselves for a slower and more steady recovery.
Miller: I believe that we will see consumers become less skittish about making investments. They will realize that their homes and other buildings are the one investment that, over the long haul, can reliably be expected to increase in value. We will see more of them investing in those structures.
Frobosilo: I think that people have hunkered down to the limit that their business can sustain it. They’re lean and mean now versus what they were three of four years ago, and it’s paid off in lower costs for project management, lower costs for construction, and I don’t see a lot more changes occurring. Design innovations will be occurring, but not that the breakneck pace of the past three years where it was more a matter of survivability.
All the measurable statistics show that this thing had probably hit bottom and is beginning a gradual climb out of it. You just have to keep alert and keep doing what you’re doing.
MA: Expanding into new markets is a common goal for any industry, metal architecture and construction being no different. In your opinion, what new markets, applications or building categories appear to be good candidates for metal components in 2011 and beyond? Please explain.
Schneider: Metal in the last decade has ventured into areas it hasn’t been before — high-rise applications of composite material, filler panels between glass, etc. Thanks to the joint marketing efforts of organizations like TMI, etc., I think metal is being used in applications where it wasn’t before, and in particular, in architectural walls. However, metal also has to protect its standard applications and its new applications from new entrants [terra cotta, porcelain, etc.].
Dickinson: Metal has been expanding into markets for years. It’s hard to say that there isn’t any industry in which we don’t already play a role. Where we have our greatest opportunity is in demonstrating how our products can outperform other more conventional materials while meeting the current needs of the building owner or architect.
Anderson: Metal is already used in virtually every segment of construction, and I anticipate that metal’s share of the construction market will continue to grow in 2011. In new construction and retrofit applications within the commercial, institutional and residential segments, people are increasingly aware of the value proposition behind metal. Designers love the flexibility that metal provides, owners love the long, low-maintenance life, and contractors love the dependability. When you couple that with the fact that metal is a very “green” and sustainable choice, it is clear why the use of metal in all segments of construction has grown over the last decade.
Miller: I think that continued development of more attractive coatings will make our products of more interest to niche markets where the coatings may be designed for a specific purpose such as “camo” printcoats on metal roofing for hunting lodges and camps. I also believe that people who do build new buildings will be looking for their construction dollars to go as far as possible. This will often lead them back to metal building products.
Frobosilo: Back around 2000, we had worked to revise the International Building Code (IBC) and get cold-formed steel more accepted within the code for the features and the benefits that it brought: lightweight, taking cost out of the foundation, fire-resistance, speed of construction, cost of construction, etc. The building code started to acknowledge that and for the first five or six years after 9-11, you were seeing structures going up across the country, specifically in hospitality, multi-family, assisted living, education/dormitory, and mid-rise construction, being done out of cold-formed steel than you’d ever seen before because the code allowed for it.
Then there was the benefit of a relatively robust economy and real strong pent-up demand after 9-11, and the mid-rise producers
(companies like Worthington and Nucor) began to invest more in that mid-rise opportunity.
Now there are design solutions out there that can pretty much render a four- or five-story building out of cold-formed steel competitive with anything else you can build with…be it seismic, be it fire, be it costs, be it termite, be it mold, etc.
While the economy has tailed, there is still a pent-up demand. The birthrate hasn’t gone down, people are still going to need living spaces. We believe you’re going to see multi-family [residences] come back strong, more quickly than single-family
[residences].
MA: In 2011, do you believe the overall health of the metal architecture and construction industry will better than, the same as or worse than in 2010?
Schneider: On sheer volume, I think 2011 should be better than 2010. Does that mean more profits? Not necessarily. Does it mean the survival of all the players? No. For many of our peers in the industry, I’m waiting for the other shoe to drop.
Brenneman: We expect it to be better in 2011, tracking higher with the slowly improving overall marketplace.
Bush: I believe we will see slight growth in 2011. The start of the year we will continue to see a sporadic market and a bit more consistency of improvement in late 2011. Availability of funds will be the key driver of any growth.
Dickinson: I think that’s up to us. The construction industry is expected to see some moderate economic improvement towards the end of the year.
Regardless, how we as an industry respond to any market condition requires us to remain educated about the factors that influence product selection, stay involved with associations and committees that work on our behalf, and stay responsible for the financial success of our companies without sacrificing the integrity of our industry as a whole.
Miller: I guess I will use the phrase “guardedly optimistic” because I do not know that anything is a “sure thing” in today’s economy and global environment but I am guardedly optimistic we will see significant industry growth of 10 percent or even more in the new year.
Tuschall: I see a slight increase in private construction which could be a turning point to a healthier 2011. Metal will continue to be an architect’s first or second choice again for its flexibility in design and its green perception.
Frobosilo: I think going forward you’re going to see a lot of consolidation in our industry and in distribution, and I think you’ll see continued trends in more joint venture projects because of the bonding capabilities and the ability to go out and gain these projects. For the big projects and government projects, you’ve got to have aggregate bonding capacity that a lot of the smaller companies just can’t do.