McElroy Metal was founded by Thomas E. McElroy Sr. in 1963. He had served in the military, then settled down to run theaters in the Shreveport area with an uncle. He later bought a company called Pelican Supply, then sold that business and opened McElroy Metal in the same building.
His thought was that the only metal roof manufacturers were in Houston and New Orleans, which were a good distance away from Shreveport. And since local folks were paying shipping from New Orleans, he figured they could buy cheaper locally.
He started the company with two employees in Shreveport, Louisiana. They worked hard and stayed late every night to get the company going. In 1975, the company was passed on to Thomas’ son Tem’s capable hands to lead, and the company experienced great growth. In 2007 Tem passed the role of president on to his son Ian, while he became CEO.
Rolling On
Today McElroy Metal has grown into four national brands: McElroy Metal, McElroy Metal Service Centers (retail), Metal Mart for DIYers, and Monarch Metal Buildings. The company manufactures over 30 different roof and wall profiles, a full line of secondary substructural components and a cold-formed building product marketed under the name EasyFrame. Green Span Profiles is a joint venture with McElroy Metal; together they create insulated metal roof and wall panels (IMPs).
As is true in every business, the company’s vendor-partners play a significant part in their success. The company enjoys working with US Steel, Sherwin Williams, Pre-Coat, S-5!, SFS Fasteners, Roof Hugger, and Tilcor.
Markets and Trends
Involved in many different markets, the company’s primary customers are contractors and national distributors. They work in commercial, residential, post-frame, self-storage, and industrial sectors. They also do considerable work with architects and engineers.
Over the last 5-7 years, McElroy has also become a leader in the roof recover market. The roof recover involves installing a new metal roof over a worn-out metal roof (often after 50-60 years of service life) without removing the original roof. No tear-off means less material in the trash, no recycling fees, a safer platform for roofers to work on, and it’s less disruptive; the customer can carry on with work or life without fear of water pouring into their building.
Black and white are still very popular color choices for metal roofing and siding; it’s the “go-to” color combination according to Kathi Miller, Director of Marketing and Sales Training.
“Wood grains are becoming more popular for their depth and natural look,” Miller said. “Wood grain metals now provide that aesthetic without all the maintenance of traditional wood products.”
Miller sees concealed fastener profiles gaining popularity even in commercial buildings, largely because people prefer the aesthetic.
Employee Owned Culture
The COVID-19 era intensified the already pervasive problem of finding, hiring, training, and retaining qualified employees. Miller said it is getting better now for the company, though many competitors still face this problem. Miller attributes their ability to attract and retain the talent they need largely to the fact that the company is employee owned.
An Employee Stock Ownership Plan took effect in 2022 after three generations of operating as a family-owned business.
“The one constant trait during our 60-year history is the influence and support of employees,” said Ian McElroy. “Throughout the country, McElroy Metal is blessed to have loyal team members, including many that have dedicated decades of service to the company. As a show of appreciation, McElroy Metal team members are now employee owners of McElroy Metal.”
Miller said, “Being part of an employee-owned company makes a difference because people like having a piece of the pie. The family culture, the feeling of ownership…people are engaged, they share their ideas much more readily. They feel that their opinion matters, and they have a greater opportunity for retirement. And,” she continued, “because they like working here, they refer people who will be a good fit. We have a great reputation in the market for providing high quality products and services. People within the industry often contact us and ask if there are any openings here because they would rather work for us than their current employer.”
The company feels that their employees are the key to their success, so they offer tuition reimbursement assistance to help employees interested in pursuing education. Some have partnered with the company to achieve bachelor’s degrees; others have attained master’s degrees.
How Do You Handle Challenges?
McElroy Metal has developed a protocol for handling problems that come up. Instead of looking for the culprit or brushing it off as a fluke, they stop and think, “Wait, why did this happen?” Then they go back to the very root of the problem and work through it. This way of dealing with problems is often referred to as a continuous improvement methodology.
Initially this was a big mindset shift for McElroy, but it has done wonders for their efficiency and service. It’s also changed their entire culture as it encourages a mindset where everyone is constantly looking for ways to get better.
One of the company’s continuing challenges is pricing. “Some companies sell lower quality products, but prospective customers don’t always understand the difference in quality. For example, Kynar® and silicone modified polyester (SMP) coatings perform quite differently. Even though they look the same on day one, after just a few short years, they look vastly different because Kynar 500 products offer much greater resistance to fade and chalk,” Miller said.
Kynar’s durability is superior, but some customers may not be aware of the performance differences and make their purchase decisions solely on price. “While we spend considerable time educating buyers so they understand the differences between the two paint systems, we also choose to inventory both so we can take care of both quality and price focused customers,” said Miller.
Advice
“If you are new to the industry you need to engage, meaning show up on time, ask questions, and try to provide value,” Miller said. “Raise your hand and take on new challenges. You need drive to be successful.”
Be people-focused on both customers and employees, but not so focused that you don’t take advantage of new trends in technology that can make business easier. The company launched a new website in the last few years that makes attracting leads and sharing information with customers much easier.
“We print very little literature these days; instead, most prospective customers start on our website so that’s where we spend a large part of our focus,” Miller said.
Market Opportunities and Challenges
“The residential metal market continues to gain momentum, taking increased market share from shingle products every year,” Miller said, “and there are more savvy customers who want roofs that will last more than the expected 12-15 year life expectancy of shingles. Cool paint finishes have become the norm with most large manufacturers. Between the natural reflectance properties of metal and these newer cool paint finishes, owners can often save 15-20% on their electric bills.”
Into the Future
The company recently introduced two new products. Designed primarily for the recover market, Trap-Tee is a symmetrical standing seam product. They also introduced their Nostalgia panel which resembles traditional board and batten style siding but with much less maintenance since it’s made from metal instead of wood. Research and development is part of the McElroy way of doing business, so there will surely be more innovation over time.
“The company plans to continue growing our footprint in the industry in the coming years,” Miller said, “whether through green growth or acquisition with a continued focus on safety.” MR
