Metal Construction News, January 2021

Educational and Health Care Projects The steadiness in property tax income will prop up K 12 school facility capital spending with more emphasis being placed on renovation work for the time being At the level of higher education the portion of the business model dependent on tuition fees will suffer a setback as more students embrace online instruction and foreign students pay more attention to alternative options in other countries Health care construction looking forward will benefit from several factors Therere the demographics of an aging population that will increasinglyZ need more procedures With the Democrats installed in the White House threats to the Emerging from Uncertainties of 2020 the Future for Residential Metal Roofing Looks Bright By Renee Ramey Executive Director Metal Roofing Alliance Patient Protection and Affordable Care Act will recede providing more assured revenue streams for hospitals Design flaws in seniors and nursing homes and prisons for that matter will demand correction to allow for isolation of residents requiring specialized care in the event of a next viral infection outbreak Also speculation concerning pent up demand arising in residential construction has nothing on the backlog of medical case work that has been piling up All manner of elective surgeries have been postponed while emergency room resources have been harnessed to stem the spread of the coronavirus Knowing that inoculations in 2021 will beat back the coronavirus assault those moments when pent up demand in key corners of the economy will be unleashed are becoming tantalizing closer Its No Longer the Old Retail There are two major components to the consumer spending in the economy that accounts for 70 of U S GDP Spending on services such as meals out and vacations away from home is where the deepest cuts have been felt Expenditures on most retail goods though have exhibited astonishing resiliency Theyve been one of the few pockets of the economy to demonstrate the much talked about and beloved V shaped recovery Its no longer the old retail however The shift in purchases from bricksand mortar locations to digital platforms that was already taking place before the pandemic has vastly accelerated Monthly non store retail sales since March have consistently been ahead by one third to one quarter year over year Its no wonder shopping mall owners and their tenants have been in such trouble Source of actuals U S Census Bureau Forcasts ConstructConnect Chart ConstructConnect CanaData Its an understatement to say 2020 was a year like no other one that not only tested the resiliency of families and communities throughout the globe but the resiliency of the industry and market So how did the rollercoaster like conditions of 2020 affect the metal roofing industry and more importantly how has it changed the landscape of what lies ahead This past year revealed truths and trends that may continue to impact the industry in both positive and negative ways for the foreseeable future including Home Havens The sanctity of home has become paramount with families spending more time at home than ever This has led to increases in home improvement budgets and projects and interest in investing in quality upgrades designed to last Its a trend that bodes well for metal roofing with homeowners tending to favor better performance and reliability And its not just the pandemic driving this desire unprecedented hurricane and wildfire seasons of the past year are motivating homeowners to opt for more durable protective materials designed to increase the resiliency of their homes like quality metal roofing that carry exceptional warranties Urban Flight Working remotely from home is now a reality for millions causing some homeowners to transition away from major urban centers tied to central offices and international airports in favor of small towns and rural areas That includes choosing to live near wilderness interface regions which often require pessimistic at the end of 2020 However reflecting on the state of the metal building industry Im reminded of the Spartan cheerleaders sketches from Saturday Night Live in the mid 90s No matter how bad things were going around them at the chess tournament outcast cheerleaders Will Ferrell and Cheri Oteri were always able to come up with the perfect cheer In the case of 2020 the perfect cheer is the coronavirus vaccine As I stated during my two appearances on METALCON Live this year there is no economic or political fix for our sluggish economy The sluggish economy is the result of a medical issue and a medical issue requires a medical solution This week that solution began rolling out to hospitals around the country in the form of the Pfizer vaccine The good news is we are poised for a speedy recovery As economist Anirban Basu pointed out recently in his keynote address at the MBMA annual meeting there are many reasons to be optimistic for 2021 Job growth money supply low inflation a strong stock market and increased permitting activity all point to a strong and relatively quick recovery for our industry Will things be different on the other side of this pandemic Absolutely As 2020 MBMA chairman Steve Browning wrote in his column for Metal Construction News in December metal building manufacturers have already seen a shift in the market MBMAs proprietary statistical data is showing an increased demand for larger buildings being used for warehouse and distribution centers to support the shift toward e commerce Modification and repurposing of existing metal buildings is also on the rise as owners are adapting to the virtual workforce At our annual meeting we welcomed a new chairman for 2021 Greg Pasley Ph d CEO BlueScope Buildings North America Pasley echoed this positive outlook citing the resiliency of the metal building industry He spoke about the committee update presentations at the meeting and how the important work of the MBMA has us on a good path not just to sustain but to grow our industry in 2021 and beyond There are still some tough months ahead but as Pasley said our industry is resilient I have no doubt that we will endure todays challenges and be stronger as a result Tony Bouquot is the general manager of the Metal Building Manufacturers Association MBMA He leads MBMA in its mission to provide research leadership and education that increases the prominence and use of metal building systems Bouquot is a 28 year veteran of the building products industry January 2021 METAL CONSTRUCTION NEWS 23 www metalconstruct ionnews com