Gibraltar Industries, Inc. is a leading manufacturer and distributor of building
products for industrial, transportation infrastructure, residential housing,
renewable energy and resource conservation markets. Our business strategy focuses
on significantly elevating and accelerating the growth and financial returns
of the Company. We strive to deliver best-in-class, sustainable value creation
for our shareholders for the long-term. We believe this can be achieved from
a transformational change in the Company’s portfolio and its financial
results. Our business strategy has four key elements, or "pillars,"
which are: operational excellence, product innovation, portfolio management,
and acquisitions as a strategic accelerator.
We currently sit at the start of the "middle innings" of this 80/20
initiative, which means that there is both more work and more opportunity ahead.
We are targeting greater structural changes affecting the balance sheet. We
are just starting the follow-on management tools of in-lining our manufacturing
processes linked with market-rate-of-demand replenishment tools. These follow-on
tools are focused on process manufacturing the highest-volume products for our
largest customers, and on a much higher level of capacity utilization. We expect
these methods will yield additional benefits including lower manufacturing costs,
lower inventories and fixed assets, and an even higher level of service to customers.
Additionally, we will being focusing on driving top line growth with new and
innovative products. Our initiatives will be tailored toward reallocating sales
and marketing talent to target specific end user groups in order to better understand
their needs and the various market opportunities that may be available. This
effort is expected to produce ideas and opportunities that generate profitable
growth.
Product innovation is our second strategic pillar. Innovation is centered
on the allocation of new and existing resources to opportunities that drive
sustainable returns. We are focused on those products and technologies that
have relevance to the end-user and can be differentiated from our competition.
Our focus on innovation is centered on four markets: postal and parcel products,
residential air management, infrastructure and renewable energy. These respective
markets are expected to grow based on demand for: centralized mail and parcel
delivery systems; zero carbon footprint homes; the need for repairs to elevated
bridges that are deficient or functionally obsolete; and energy sources not
dependent on fossil fuels.
The third pillar of our strategy is portfolio management, which is a natural
adjunct to the 80/20 initiative. Using the 80/20 process, we conduct strategic
reviews of our customers and end markets, and allocate leadership time, capital
and resources to the highest-potential platforms and businesses. Following the
sale of our European industrial manufacturing business to a third party in April
2016, we next decided in December 2016 to exit our small European residential
solar racking business and U.S. bar grating product line, which are proceeding
as planned. These portfolio changes have helped contribute to the Companys
realization of a higher rate of return on invested capital in 2016. We have
now acted on all near-term portfolio assessments and expect no additional changes
in 2017 while we continue to position our resources on more attractive projects
and markets.
The fourth pillar of our strategy is acquisitions. We are focused on making
strategic acquisitions in five key markets, four of which are served by existing
platforms within the Company. The existing platforms include the same areas
in which we are targeting the development of innovative products: postal and
parcel solutions, infrastructure, residential air management and renewable energy.
The remaining new platform is water management and conservation. These platforms
are all large markets in which the underlying trends for customer convenience
and safety, energy-savings and resource conservation are of increasing importance
and are expected to drive long-term demand. We believe these markets also offer
the opportunity for higher returns on our investments than those we have generated
in the past. The acquisitions of Rough Brothers Manufacturing, Inc., RBI Solar,
Inc., and affiliates, collectively known as "RBI" in June 2015 and
more recently, Nexus Corporation ("Nexus") in October 2016, were the
direct result of this fourth pillar strategy.
The Company serves customers primarily throughout North America and, to a lesser
extent, Asia. Our customers include major home improvement retailers, wholesalers,
industrial distributors, contractors, solar developers and institutional and
commercial growers of plants. As of December 31, 2016, we operated 44 facilities
in 17 states, Canada, China, and Japan giving us a base of operations to provide
customer support, delivery, service and quality to a number of regional and
national customers and providing us with manufacturing and distribution efficiencies
in North America, as well as a presence in the Asian markets.
The Company operates and reports its results in the following three reporting
segments, entitled:
Residential Products;
Industrial and Infrastructure Products; and
Renewable Energy and Conservation.
Our Residential Products segment services new residential housing construction
and residential repair and remodeling activity with products including roof
and foundation ventilation products, mail and package storage products, rain
dispersion products and roof ventilation accessories. This segments products
are sold through major retail home centers, building material wholesalers, buying
groups, roofing distributors, and residential contractors.
Our Industrial and Infrastructure Products segment focuses on a variety of
markets including industrial and commercial construction, highway and bridge
construction, automotive, airports and energy and power generation markets with
products including perimeter security, expanded and perforated metal, plank
grating, as well as, expansion joints and structural bearings for roadways and
bridges. This segment sells its products through steel fabricators and distributors,
commercial and transportation contractors, and original equipment manufacturers.
Our Renewable Energy and Conservation segment focuses on the design, engineering,
manufacturing and installation of solar racking systems and commercial, institutional,
and retail greenhouse structures. This segments services and products are provided
directly to developers, select distribution channels, and end users/owners.
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