Founded in 1984, NCI Building Systems, Inc. designs, manufactures, and markets a wide-ranging line of metal buildings and components for the non-residential construction industry. The Company is one of North America’s largest integrated manufacturers of metal products for this industry. NCI Building Systems has its corporate headquarters in Houston, Texas.
NCI Building Systems consists of a family of companies operating manufacturing facilities across the U.S., Canada, Mexico and China. NCI has additional sales and distribution offices across the U.S. and Canada. The Company has approximately 5,300 employees around the world.
NCI mainly concentrates on low-rise structures – one to five stories. The Company has three vertically integrated market segments: Metal Coil Coatings; Metal Components; and Engineered Building Systems. Its large end-markets are Commercial & Industrial; Institutional; and Agricultural. NCI focuses on the building envelope, roofing sidewall, secondary structural steel. In buildings that are five stories and less, NCI focuses chiefly on structural steel.
Commercial & Industrial includes offices, banks, warehouses, manufacturing facilities, airport hangers, and hotels. Institutional includes hospitals, schools, and religious facilities. Agricultural includes arenas, farms, and equestrian centers.
NCI Building Systems’ Metal Coil Coating emphasis is cleaning, treating, and painting flat rolled metal coil substrates. Regarding Metal Components, NCI manufactures and distributes insulated metal panels (IMP); metal roof and wall systems; metal partitions; and metal doors. The Company has roughly 1,000 dealer partners associated with its IMP product line.
Concerning Engineered Building Systems, the Company manufactures and distributes custom engineered building systems for the aforementioned low rise non-residential markets. Buildings are shipped ready for assembly.
NCI’s brands/companies include Metal Coaters; Metal Prep; ABC – American Building Components; DBCI; MBCI – Metal Roof and Wall Systems; NCI Metal Depots; Metl Span; and Centria. The Company’s brands/companies also include A&S Building Systems; All American Systems; Ceco Building Systems; Garco Building Systems; Heritage Building Systems; Mesco Building Solutions; Metallic Building Company; Mid-West Steel Building Company; Robertson Building Systems; Star Building Systems; and Steelbuilding.com.
For Fiscal Year (FY) 2015, Metal Coil Coating revenue was $101 Million. Metal Components revenue was $815 Million, and Engineered Building Systems revenue was $648 Million.
NCI Building Systems is #1 in market share for “Heavy Gauge Hot Rolled Steel Coating”. The Company is #2 in market share for ‘Light Gauge Coil Coating”. Regarding Metal Components, NCI is #1 in market share. Concerning Engineered Building Systems, it is #2 in market share.
NCI has a network of around 3,200 affiliated builders. It also has relationships with approximately 5,500 architects. The Company serves a broad array of industry segments. With this diversification, NCI Building Systems has no single customer accounting for greater than 2% of sales. This is a nice hedge against one customer controlling its revenue streams.
NCI said that it is seeing growth in insulated metal panels. It said that it believes this growth will maintain at a pace of multiples over the industry growth.
The Company’s Chief Executive Officer, Mr. Norman Chambers, said in a presentation at the D.A. Davidson Engineering & Construction Conference Broker Conference Call, “On the growth side we have insulated metal panels that are clearly growing and have an opportunity to grow because of a low penetration rate the energy efficiencies and the fact that we have such a short distribution network that we can accelerate that growth by pushing it through our existing distribution system. That’s going to be a good thing for a number of years to come.” (Seeking Alpha – NCI Building Systems’ (NCS) Presents at D.A. Davidson Engineering & Construction Conference Broker Conference Call (Transcript))