Maximizing M&A Value: Why Pre-Engineered Metal Building Manufacturers That Also Install Are Hot Targets in 2025

The pre-engineered metal building (PEMB) market in the United States has experienced significant growth in recent years, driven by the demand for cost-effective, efficient, and sustainable construction solutions.

PEMBs are structures fabricated off-site and assembled on-site, offering advantages such as reduced construction time, lower costs, and design flexibility. Market Size and Growth Projections

In 2023, the U.S. pre-engineered metal building market was valued at approximately USD 12.04 billion. Projections indicate a compound annual growth rate (CAGR) of 8.4% from 2024 to 2030, anticipating the market to reach around USD 21.03 billion by 2030.

Another report suggests that the U.S. pre-engineered building market generated revenue of USD 4.59 billion in 2024 and is expected to reach USD 8.42 billion by 2030, reflecting a CAGR of 10.7% from 2025 to 2030.

Key Drivers of Market Growth

Several factors contribute to the robust growth of the PEMB market in the U.S.:

1. Economic Development: Rapid economic growth, particularly in the western and southern states, has increased construction activities, boosting the demand for pre-engineered metal buildings.
2. Off-site Construction Adoption: The growing preference for off-site construction methods enhances efficiency and reduces project timelines, making PEMBs an attractive option.
3. Sustainable Building Practices: Investments in sustainable construction practices have risen, with PEMBs offering eco-friendly solutions that align with green building standards.
4. Cost and Time Efficiency: PEMBs are known for their cost-effectiveness and faster construction timelines than traditional building methods, making them appealing for various applications.

Market Segmentation

The PEMB market caters to diverse sectors, including:

• Industrial Buildings: This segment holds the largest share, driven by the need for warehouses, manufacturing plants, and distribution centers.
• Commercial Buildings: The commercial sector utilizes PEMBs for retail spaces, offices, and recreational facilities, benefiting from design flexibility and aesthetic appeal.
• Agricultural Structures: Farmers and agribusinesses adopt PEMBs for storage facilities, barns, and equipment shelters due to their durability and cost savings.

Competitive Landscape

The U.S. PEMB market features several key players offering a range of products and services:

• Nucor Building Systems (Charlotte, NC) Nucor is one of the largest steel producers in the U.S., offering custom-designed metal building systems for industrial, commercial, and institutional applications.
• Butler Manufacturing (Kansas City, MO) Butler Manufacturing, a subsidiary of BlueScope Steel, is a leader in pre-engineered metal building systems and offers integrated building solutions, including design and installation.
• Varco Pruden Buildings (Memphis, TN) Varco Pruden is part of BlueScope Buildings North America and is known for its innovative pre-engineered building solutions for various markets, including manufacturing, retail, and warehousing.
• Mueller Inc. (Ballinger, TX) Mueller specializes in pre-engineered steel buildings and metal roofing systems, serving agricultural, residential, and commercial sectors.

Impact on M&A Valuations

Companies that not only manufacture but also install PEMBs are expected to be more sought after in the lower middle market M&A transactions. Buyers and investors in the construction and industrial sectors increasingly favor vertically integrated businesses that can offer end-to-end solutions. Such companies typically benefit from higher valuations due to their ability to capture more of the value chain, provide streamlined project management, and reduce reliance on third-party contractors. As a result, businesses that combine manufacturing and installation services may command premium multiples in mergers and acquisitions.

Future Outlook

While specific data on the expected CAGR through 2035 is limited, the current growth trends and market dynamics suggest a continued upward trajectory for the U.S. PEMB market. Factors such as technological advancements, increased focus on sustainability, and the ongoing need for efficient construction solutions are likely to drive sustained growth beyond 2030.

In conclusion, the pre-engineered metal building market in the United States is poised for significant expansion, supported by economic development, technological innovations, and a shift towards sustainable construction practices.