Simpson Manufacturing (SSD) Wells Fargo 2024 Industrials Conference summary

Business overview and market position

• Manufactures structural connectors and solutions for wood and concrete construction, with about 75% U.S. market share in connectors and 50% of global revenue tied to U.S. housing starts.

• Operations span North America and Europe, with a focus on safer, stronger structures and deep relationships with engineers, builders, and lumberyards.

• Product assortment includes approximately 15,000 SKUs, covering connectors, truss plates, fasteners, and anchors.

• Maintains strong relationships with 26 of the top 30 U.S. home builders, often specified as the primary connector line.

• Holds a premium price position, about 15% above competitors, justified by service, innovation, and reliability.

Product innovation and R&D

• Invests heavily in R&D to ensure products meet published load requirements and adapt to evolving construction practices.

• Operates a unique, privately owned test facility with a shake table to simulate earthquakes and validate product performance.

• R&D efforts focus on both improving existing products and developing new solutions in response to builder feedback and industry trends.

• Value engineering partnerships with builders drive efficiency, cost savings, and product innovation.

• Digital transformation is a major focus, with investments in software for truss design, digital twins, and online product specification tools.

Market segmentation and growth trends

• About 50% of revenue is tied to U.S. housing starts, primarily single-family, with multifamily exposure in wood construction.

• Commercial and concrete markets represent a larger total addressable market, though current share is smaller compared to residential.

• End markets are served by specialized teams (residential, OEM, commercial, retail, component manufacturers) to tailor solutions and capture growth.

• Single-family housing starts are seeing low-single-digit growth, with optimism for mid- to high-single-digit growth in coming years.

• Repair and remodel (R&R) segment uses similar products as new construction, with demand driven by code compliance in upgrades.