Simpson Manufacturing (SSD) Jefferies Global Industrial Conference 2024 summary

Business overview and market positioning

• Provides structural solutions across five North American end-use markets: residential, commercial, OEM, national retail, and component manufacturing.

• Offers a broad product line including fasteners, connectors, anchors, truss plates, and digital solutions.

• Maintains strong relationships with building code officials, engineers, and builders, supporting above-market growth.

• Digital solutions enhance customer experience and are expected to be monetized further in the future.

• Achieved 250 basis points above U.S. housing starts over eight years, and 800 basis points above market in the last two years.

Growth drivers and market trends

• Growth is broad-based across all five segments, with notable strength in component manufacturing and OEM businesses.

• Component manufacturing benefited from competitor supply chain issues and improved software offerings.

• OEM growth driven by a dedicated team targeting manufactured housing and similar structures.

• Digital solutions are in early stages but are seen as a future growth lever.

• Residential business is more exposed to single-family homes, with higher content in regions with stringent building codes.

Market outlook and demand environment

• Housing market expected to be flat to down low single digits in 2024, with recovery anticipated in 2025 and beyond.

• Commercial business projected to grow slightly, while national retail is expected to be flat to down, with modest improvement next year.

• Component manufacturing tracks housing starts; overall market growth forecasted at low to mid-single digits next year.

• Customers are preparing for potential demand increases, and capacity investments have been made to support growth.

• Impact of rate cuts on demand remains uncertain, with mixed customer expectations.