The metal building industry is experiencing a transformative phase, shaped by trends that emphasize sustainability, efficiency, and technological innovation. As we look ahead, it is essential to understand the future implications for metal building construction, particularly in regions like East Texas and southern states including Texas, Oklahoma, Arkansas, and Louisiana.
We’ll explore how metal buildings are poised to reshape the construction landscape and drive significant growth in the Southern United States, including the economic impact, market opportunities, challenges, and predicted trends for the metal building industry over the next three to five years.
Economic Impact of Metal Building Construction
Analyzing Trends Affecting the Metal Building Industry
The economic impact of the metal building construction industry is expected to be significant, driven by multiple factors influencing global and regional markets. This forecast is based on economic trends over the next three to five years.
Let’s take a look at what we’re seeing:
Market Growth and Construction Spending
The global construction market is projected to grow to $15.5 trillion by 2030, with metal buildings playing a crucial role due to their cost efficiency and sustainability. The U.S., China, and India will lead this growth, accounting for 57% of global construction output. The US construction market is set to grow faster than China over the next 15 years, states the Global Construction 2030 report from Global Construction Perspectives.
And the trends are already moving in our favor. In the U.S., construction starts are forecasted to rise by 9% in 2025, supported by lower interest rates, a relaxed regulatory environment, and increased infrastructure spending. Texas has topped the construction spending list so far this decade, and that doesn’t look to be slowing down.
U.S. Infrastructure Investments
Significant funding for infrastructure projects, including bridges, transportation hubs, and public facilities, will drive demand for metal buildings. These projects are expected to inject billions into the market annually, sustaining economic activity.
Metal buildings significantly contribute to the construction industry's sustainability efforts by offering durability, recyclability, and energy efficiency. Their long lifespan reduces the need for frequent repairs or replacements, while steel can be recycled at the end of its life, minimizing waste.
Additionally, modern metal buildings can incorporate energy-efficient features, lowering operational costs and greenhouse gas emissions. The use of prefabricated components also reduces on-site waste and shortens construction timelines, further decreasing environmental impact.
With their adaptability and compliance with evolving environmental regulations, metal buildings are well-suited to meet the increasing market demands for sustainable construction practices.
Emerging Markets and Urbanization in America
Rapid urbanization in emerging economies is creating a surge in demand for industrial metal buildings. The surge in urbanization and industrial expansion in emerging markets is driving reshoring efforts in the U.S., as companies seek to strengthen domestic supply chains.
This trend is particularly pronounced in the Southern U.S., where lower costs of land, labor, and favorable tax policies make it an attractive region for manufacturing and logistics hubs. The South is also benefiting from its proximity to key ports like those in Houston, Corpus Christi, New Orleans, and Baton Rouge that facilitate trade with emerging economies, further increasing the need for warehouses, distribution centers, and industrial metal buildings.
Technological Advancements in Metal Building Design
The adoption of advanced technologies such as Building Information Modeling (BIM), robotics, and prefabrication is improving efficiency and reducing costs in metal building construction. According to a Deloitte report on the 2025 construction industry outlook, these innovations are expected to enhance productivity and attract more investment into the sector.
Manufacturing Reshoring and Supply Chain Resilience
Companies reshoring manufacturing operations to address supply chain vulnerabilities will increase domestic steel demand in developed economies like the U.S., further boosting the metal building industry. Experts predict that by 2030, the United States could be awarding contracts worth a staggering $60 billion annually to plant manufacturers.
Global policies of deglobalization and tariffs are bringing more companies and operations to the United States. By bringing production closer to home, companies reduce reliance on international suppliers, mitigating risks from geopolitical tensions, trade disputes, or natural disasters to create a more resilient supply chain.
The metal building construction industry is poised for robust economic contributions over the next few years, as a significant contributor to the overall economy, particularly in states like Texas, Louisiana, Arkansas, and Oklahoma, where manufacturing and construction are thriving. As businesses and consumers prioritize budget friendly and sustainable metal building construction solutions, metal building construction emerges as an obvious option, leading to heightened demand and for metal building manufacturers.
Market Opportunities
Potential Market Growth Opportunities
The future of the metal building industry presents various growth opportunities driven by emerging trends.
The U.S. pre-engineered metal building market is growing at a CAGR of 8.4%, with manufacturing applications seeing the fastest growth (9.2%). Businesses in these states are increasingly adopting metal buildings for factories, production, and warehousing facilities due to their scalability and cost efficiency.
Regionally, Louisiana and Texas are hubs for energy projects, including LNG facilities and renewable energy installations like solar farms. Metal buildings are essential for housing equipment, control rooms, and storage in these industries. In Oklahoma, the completion of improvements to the interchange of Interstate 44 and U.S. 75 in the Tulsa area should bring new growth opportunities to the area. Rapid population growth in cities like Dallas-Fort Worth (Texas), Baton Rouge (Louisiana), Little Rock (Arkansas), and Tulsa (Oklahoma) is increasing demand for multi-use developments that combine commercial and industrial spaces. Metal buildings offer flexibility to support these mixed-use projects while minimizing costs.
The versatility of metal buildings allows for expansion into diverse applications. For instance, the rise of modular construction and the popularity of prefabricated buildings are paving the way for innovative designs in commercial spaces and educational facilities. As industries seek faster construction timelines and reduced costs, metal building solutions are becoming increasingly attractive. Regions like East Texas and Southwest Arkansas are witnessing a surge in demand for these applications, indicating a bright future for metal construction.
Job Creation and Skills Development
As the industry evolves, job creation becomes a crucial factor. The rise of advanced technologies in metal building manufacturing, such as Building Information Modeling (BIM) and automation, necessitates a workforce equipped with new skills. Training programs and partnerships between educational institutions like University of Texas, Tyler and metal construction firms in East Texas and Arkansas are vital for developing a skilled labor force. This focus on education and skills development not only benefits the metal building industries but also strengthens local economies by providing stable job opportunities.
Challenges to Overcome
Despite the promising outlook, the metal building industry faces several challenges in adopting new trends. Fluctuations in raw material prices can impact cost, profitability, and timelines, particularly for metal building manufacturing. WIth geopolitical tensions and the potential for trade tariffs, volatility in steel prices remains a challenge to project budgets. Additionally, the integration of advanced technologies requires substantial investment in equipment and a more highly skilled labor force.
To navigate these challenges, industry stakeholders must adopt proactive strategies. Collaborating with suppliers to secure stable pricing agreements can help mitigate the impact of raw material cost fluctuations. Investing in workforce training and development ensures that employees are prepared for technological advancements, creating a culture of innovation within metal construction firms.
Trends
Looking ahead, several key trends are expected to shape the metal building industry.
Sustainability will continue to be a driving force, with an increasing focus on energy-efficient designs and materials.
The integration of smart technologies in steel building design will enhance operational efficiencies and reduce environmental footprints.
An increase in demand for prefabricated buildings will create a shift towards more modular construction methods, providing flexibility and speed in building projects.
The future of the metal building industry depends on many factors. From preparing for possible economic impact to recognizing market opportunities, addressing challenges and anticipating trends is the key to success. As the metal building industries continue to evolve, regions like East Texas, and the Southern states of Texas, Oklahoma, Arkansas, and Louisiana will play pivotal roles in shaping the industry's future.
If you’re considering a metal building system anywhere across the south, now is the time to find out more. Get a free consultation on your next metal building project. Contact Tyler Building Systems and start the conversation, today.