Insteel Industries Profile
Insteel Industries, Inc. (Insteel) is the nation’s largest manufacturer of steel wire reinforcing products for concrete construction applications. The company manufactures and markets prestressed concrete strand (PC strand) and welded wire reinforcement (WWR), including ESM, concrete pipe reinforcement (CPR) and standard welded wire reinforcement (SWWR).
The company’s products are sold mainly to manufacturers of concrete products that are used primarily in nonresidential construction. For the year ended September 30, 2023, the company estimated that approximately 85% of its sales were related to nonresidential construction and 15% were related to residential construction. Insteel is the parent holding company for wholly-owned subsidiary, Insteel Wire Products Company (IWP), an operating subsidiary.
Strategy
The company’s business strategy focuses on achieving leadership positions in its markets; and pursuing growth opportunities within its core businesses that further its penetration of the markets it serves or expand its footprint. The company operates manufacturing facilities that are all located in the U.S. in close proximity to its customers and raw material suppliers. The company’s growth strategy focuses on organic opportunities, as well as strategic acquisitions in existing or related markets that leverage its infrastructure and core competencies in the manufacture and marketing of concrete reinforcing products.
Products
The company’s operations are entirely focuses on the manufacture and marketing of steel wire reinforcing products for concrete construction applications. The company’s concrete reinforcing products consist of two product lines: PC strand and WWR.
PC strand is a high strength, seven-wire strand that is used to impart compression forces into precast concrete elements and structures, which may be either pretensioned or posttensioned, providing reinforcement for bridges, parking decks, buildings and other concrete structures.
WWR is produced as either a standard or a specially engineered reinforcing product for use in nonresidential and residential construction. The company produces a full range of WWR products, including ESM, CPR and SWWR. ESM is an engineered made-to-order product that is used as the primary reinforcement for concrete elements or structures, frequently serving as a lower cost reinforcing solution than hot-rolled rebar. CPR is an engineered made-to-order product that is used as the primary reinforcement in concrete pipe, box culverts and precast manholes for drainage and sewage systems, water treatment facilities and other related applications. SWWR is a secondary reinforcing product that is produced in standard styles for crack control applications in residential and light nonresidential construction, including driveways, sidewalks and various slab-on-grade applications.
Marketing and Distribution
The company markets its products through sales representatives. The company’s outside sales representatives are trained on the technical applications for its products and sell multiple product lines in their respective territories. The company sells its products nationwide across the U.S. and to a much lesser extent, into Canada, Mexico and Central and South America. The company’s products are shipped primarily by truck, using common or contract carriers.
Customers
The company sells its products to a broad range of customers that includes manufacturers of concrete products, and to a lesser extent, distributors, rebar fabricators and contractors. In fiscal 2023, the company estimates that approximately 70% of its net sales were to manufacturers of concrete products and 30% were to distributors, rebar fabricators and contractors. In many cases, the company is unable to identify the specific end use for its products as most of its customers sell products that are used for both nonresidential and residential construction, and the same products can be used for different end uses.
Seasonality
Demand in the company’s markets is both seasonal and cyclical, driven by the level of construction activity. Construction activity and demand for the company’s products is cyclical based on overall economic conditions.
Competition
Some of the company’s competitors, such as Nucor Corporation, Liberty Steel USA (Liberty) and Oklahoma Steel and Wire, are vertically integrated companies that produce both wire rod and concrete reinforcing products and offer multiple product lines over broad geographic areas. The company’s primary competitors for WWR products are Engineered Wire Products, Inc. (a subsidiary of Liberty), Wire Mesh Corporation, Concrete Reinforcements, Inc., National Wire Products, Davis Wire Corporation and Oklahoma Steel & Wire Co., Inc. The company’s primary competitors for PC strand are Sumiden Wire Products Corporation and Wire Mesh Corporation.
History
Insteel Industries, Inc. was founded in 1953. The company was incorporated in 1958 in the state of North Carolina.
