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Prelude
Chapter 1: The Beginning
Chapter 2: Further Expansion
Chapter 3: New Leadership with a Profound Legacy
Chapter 4: The Next Era
Prelude
Our parent company, NCI Building Systems, Inc., has a rich history, one that has endured through fluctuating market conditions and has benefitted from substantial growth. Our legacy goes beyond our headquarters in Houston, TX and includes the operations of more than 20 companies around the nation, acquired over the course of almost 25 years. We have 30-, 50- and even 80-year-old institutions that make up the NCI family today; companies that have led the industry in innovation through product development and technological applications. And although each has its own fascinating past, NCI’s intent is to build their future. In addition, we are honored to have had some of the most significant and forward-thinking men and women in metal building manufacturing as employees and leaders of NCI. As our former Chairman and CEO, A.R. Ginn, always said, “Anyone can own land, buildings, and equipment. But without good people to run it, you’ve got nothing. Employees are any company’s greatest asset.”
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Chapter 1: The Beginning
National Components, Inc. was founded by Johnie Schulte in 1984. Although it began as a metal component company, offering roof and wall panels, it quickly became a steel building manufacturer and the name changed to NCI Building Systems. Before Schulte started NCI he owned Metallic® Building Company and Mid-West® Steel Building Company, two Houston-based metal building manufacturers. In 1988, under Schulte’s direction, NCI purchased the two businesses in an effort to quickly increase building sales and to capitalize on their existing customer base, which included loyal builder networks. He recognized that the two companies didn’t need to be transformed. They were already successful and he used his considerable experience to cultivate the existing operations. Like the leaders that have followed, he was devoted to his employees. He began his career on the shop floor and worked his way to a position of authority. He understood the challenges his employees faced, professionally and personally, and his compassion for their well-being was witnessed daily.
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Chapter 2: Further Expansion
In 1992, NCI purchased A&S Building Systems®, giving us a facility in Carryville, TN. A series of acquisitions followed which consisted of a range of metal building manufacturers, including Mesco® Building Systems, as well as a few small, specialty component companies like DBCI, a roll-up door manufacturer and IPS®, an insulated panel manufacturer. However, the greatest addition was in 1998 when NCI acquired MBCI®, the largest metal component manufacturer in the United States.
Overnight, NCI’s size virtually doubled in terms of revenue. And, with MBCI came several subsidiaries including ABC®, a light-gauge metal component company focused on serving the agricultural and residential industry through a customer base comprised of lumber yards and retail distributors. In addition, we gained several metal coil coating production facilities whose services include cleaning, treating and painting both light- and heavy-gauge metal coil used in construction applications, such as metal roof and wall panels and secondary structural members. This resulted in the emergence of three related but distinctly unique business segments, metal coil coating, metal components and custom metal building systems, and led to the origin of the highly advantageous integrated business model we enjoy today.
NCI did not solely rely on accretive acquisitions for growth though. Steel Systems was started in 1987 as a provider of self storage solutions while Express Buildings, which offered design and estimating capabilities for buildings that require less manufacturing time, followed in 1995. By summer 1998, the culmination of organic and accretive expansion provided NCI with 37 manufacturing facilities across the nation as well as a frame plant in Mexico. The newly formed powerhouse was able to move from NASDAQ to the New York Stock Exchange (NYSE) where it remains today trading under the symbol “NCS”.
Both NCI and MBCI were highly accomplished in their own rights. They each had experienced personnel who were essential to their success. Nevertheless, in order for NCI to garner the advantages available with the three vertical business segments, it was imperative that the operational units work together. Taking the finest from each organization, a new leadership team emerged led by Schulte, who remained CEO of NCI, and A.R. Ginn, founder of MBCI, who was appointed President.
It was equally important that employees and customers remain unharmed by the corporate union and instead benefit from it. The advantages were conveyed throughout the corporation and challenges were addressed and resolved as quickly and efficiently as possible. The thoroughness and determination of those men have allowed NCI to become the great company that it is today and although several have retired, many remain.
Additionally, it was necessary that the leadership not lose sight of future expansion. Organic and accretive growth continued to be central drivers of NCI’s strategy. In 1999, NCI pioneered the Long Bay® System, a strong and lightweight framing system that requires fewer interior columns resulting in larger bays which are ideal for manufacturing and warehouse facilities or structures needing open, expansive spaces. Its efficient use of materials, along with the structural integrity of the steel system itself, provides a more sustainable solution compared to conventional building materials.
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Chapter 3: New Leadership with a Profound Legacy
In 2000, Ginn was appointed NCI’s Chairman of the Board and by 2003 he was our Chief Executive Officer. He was a dynamic and charismatic leader; his decades of experience made him wise; his astute instincts augmented his keen business sense; and, his genuine benevolence endeared many of his employees. Under his leadership, we were able to continue our progress as one of the industry’s leading manufacturers. We were able to withstand the unsettling economic conditions that surfaced in the construction industry after the devastation of 9/11. During that time, we sustained our cash flow, paid down debt and built a new, more technologically advanced facility and emerged a stronger, more financially sound company.
In 2003, NCI saw an opportunity to expand its network of customers to include smaller contractors, end users and do-it-yourselfers. We opened NCI Metal Depots® in Houston, a retail chain that currently has six locations, three in New Mexico and three in Texas. Customers are able to place orders for metal roof and wall panels; light, structural members; and metal buildings---online, by phone or in the store. Furthermore, with the acquisition of Heritage® Building Systems and Steelbuilding.com™ in 2004, we were able to expand into the sizable small metal building market while gaining our first e-commerce business tool.
Ginn had started his career almost 50 years earlier as a line worker at Metallic. He was one of the founders of MBCI in 1976 and quickly became the driving force behind its success. Since that time, he had become one of the industry’s most recognizable and influential leaders. Although thoughts of retirement had surfaced, it would be difficult to leave NCI and the people he had inspired and served so well, for so many years. However, he recognized that the health of this fine company was dependent not only on the present leadership but those who would follow. He also understood that the market was changing; ways of conducting business were evolving; and a new, younger generation was coming forward. A succession plan was developed with the intention of identifying and nurturing future leaders within NCI. In 2004, Norman C. Chambers was appointed President and Chief Operating Officer.
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Chapter 4: The Next Era
Although Chambers was not a metal building veteran, he had extensive construction and business experience. He had been an NCI board member since 2003 when he led the team that developed NCI’s five-year strategy for the coming years. After joining NCI as President, Chambers worked closely with Ginn and our exceptional leadership team. His fresh perspective nurtured new ideas. He guided our efforts to implement the strategy and meet our objectives, which included doubling our EBITDA; and, although we had five years, they were met within three.
2006 was another significant time for our organization. We acquired certain assets of the sizable Robertson-Ceco Corporation (RCC), comprised of Robertson Building Systems, Ltd.®, located in Canada; Ceco Building Systems, a manufacturer and erector; and Star® Building Systems, an 80-year-veteran. The size of the acquisition, the unique attributes of each of the companies, as well as, the industry-leading technological assets added enormous value to NCI. In addition, the purchase garnered additional sales and manufacturing operations that allowed us to expand our national exposure as well as our hub-and-spoke system. The most recent addition, Garco® Building Systems, is located in Washington State which extends NCI’s reach even further into the Northwest United States, Alaska and Canada. 2006 also marked the year that Ginn would resign as our CEO, leading the way for Chambers and the next chapter to NCI’s history. Ginn had prepared Chambers for his new role and in return Chambers is cultivating tomorrow’s leaders. The following year, 2007, Ginn stepped down as Chairman.
Today, we are implementing a new 5-year business strategy. We are expanding existing product lines, like the energy-efficient insulated panels produced by IPS®. We are developing new products and services that will enable our customers, allowing them to increase their revenues and operational effectiveness. And, we will continue to look at accretive opportunities that fit within our existing business model.
We will use the things we’ve learned from the past to help guide our future. We will evolve to meet the current needs of our customers as well as the future demands of the market. We will continue to endure, to grow and to succeed.
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