Bill Hippard, President, Metal Roofing AllianceVice President, Sales, Precoat Metals

Residential Metal Roofing:An Eco-FriendlyGrowth Market

Final Draft 9/9/10

Presentation Overview• Introduction• Precoat Metals • Who is MRA?• How Has MRA Contributed to Industry

Growth?• What are MRA’s Plans for the Future?

Independent Coil Coating2008 Estimated Market Size: $1 Billion, 3.5 million tons

66%13%

5%8%

1% 7%

Building Products Appliance Furniture & FixturesTransportation Containers and Packaging Other/Miscellaneous

• Headquartered in St. Louis, Missouri• Founded in 1961• Nine Lines in Eight Locations

– New line in Birmingham, AL • Employs --- 650 • Annual Revenues of $300 Million• Over 1.8 Million Tons of Coating

Capacity• Capable of Coating More Than 1.5

Billion Lineal Feet Annually• www.precoatmetals.com

Precoat Metals

Precoat Metals Locations

• Modern lines with state-of-the-art controls

• Real time data collection and reporting

• ISO 9001 and ISO 14001 company wide

• Tech Service Managers for all locations

PCMSaint Louis

PCM Granite City (2)

PCMBirmingham

PCMHouston

PCMJackson

PCMBaltimore

PCMPortage

Precoat MetalsMajor Specialties• Building Products• Entry & Rollup Doors• Automotive• HVAC• Container Products• Office Products• Laminates

Coil Coating Process

Metal coils – up to 66” wide and traveling as fast as 750 feet per minute – unwind, both the top can bottom sides are cleaned, chemically treated, primes, oven-cured, top-coated, oven-cured again and recoiled for shipment

Bare to CoatedSpeeds up to 750 feet per minute

Container Products

Registered Lid Printing

Commercial Applications

Manufactured Products

Lawn & Garden Picture Frames

Entry Door

Truck/Trailer

Office Furniture

Computer Chassis

Air & Oil Filters

Drum Lids

Lighting Fixtures

Swimming Pools

Appliance Applications

Building Products

Heavy Gauge Applications

Roll Formed Building Panel

Building Products

What is MRA?

What is MRA?• Coalition of:

– Metal roofing manufacturers– Raw materials suppliers (steel, copper,

aluminum, zinc)– Coil coaters/paint manufacturers– Supporting manufacturers– Allied non-profits– Residential metal roofing contractors

MRA Support• 18 Manufacturers

• 6 Metal Suppliers

• 3 Coil Coaters

• 6 Paint/resin companies

• 3 Magazine Publishers

• 400 member contractors

Why was MRA Formed?• Historically, metal roofing has found great

success in the commercial market.

• In 1990’s, new technologies and products allowed for expansion into residential market.

New Metal Roofing

Two Problems:

The Solution:

EducationAnd

Awareness

Why all the Excitement?• For every 1% of the residential roofing

market that switches to metal, the impact is huge:– 100,000 tons of metal– 200,000 gallons of paint– 1.5 million Squares of metal roofing products

An Alliance is Born• In 1998, a small group of forward-thinking

manufacturers and suppliers joined forces to grow the residential roofing industry in North America.

• The Metal Roofing Alliance was born.

Investment in the MarketTo date, MRA and its members have invested $23 million to grow the residential metal roofing market.

Stakeholders’ Return on Investment

Metal Growth Outstrips the Market• Total Residential Roofing Growth,

2003-2009 (in squares, all materialsEXCEPT metal) -21.5%

• Total Metal Residential Roofing Growth,2003-2009 (in squares) +14.6%

How Did We Do It?

MRA Program Strategies• Change consumer

perceptions

• Support residential roofing contractors

Ultimate Program Goal

Increase metal’s share of the residential

re-roofing market in North America.

MRA Marketing Strategy• Concentrate on

Reaching Consumers in the Re-Roof Market

– 7 Million Homes/Year Re-Roofed

– 150 Million Squares/Year(1.5 Billion Sq.ft)

Why Focus on Re-roof Market?• Roofing is a need, not

a want

• Re-roof market is more recession-proof than new construction.

MRA’s Two Key Target Audiences

Marketing Program: Consumers

3 Key Components Working Together

MRA

PublicRelations

Internet

Advertising

Consistent Messages• Metal Roofs are:

– Attractive and Versatile– Durable– Energy and Cost Efficient– Environmentally friendly

• Used consistent messages in all outreach

Investment Grade Roofing

MRA’s Internet Program

MRA’s Internet Program• MRA’s website,

www.metalroofing.comis a destination for both consumers and industry

• All of MRA’s marketing efforts lead target audience to this site.

MRA Website• Photo gallery, news

and updates

• Consumers enter zip code, find a local contractor

Internet Strategy• Search Engine Optimization• Online Advertising• Webinars• E-newsletters• Lead Generation for contractors

Advertising Campaign

Multi-Phase Advertising Program

TV ad withToll-free

number &videotape

Printmedia

EmphasisMarkets

Cable TV Segmentation Direct Mail

Print Ads

Insert TV spot HereCurrent spot with tax credit Tag

Cable TV Campaign

Delivery• Over 200 Million

Impressions Per Year

• Results in Over 800,000 Consumers to MetalRoofing.com each year

Emphasis Markets

• Concentrated Advertising Effort in 2007 and 2008– 2007: LaCrosse, WI and Ft. Smith, AK– 2008: Harrisburg, PA and Birmingham, AL

• $200,000 Consisting of TV, Print, Radio, Online• Additional Efforts Included Telemarketing,

Public Relations/Grassroots, DirectMarketing and Pre-Launch Meetings

Emphasis Markets Traffic

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Arkansas Wisconsin Pennsylvania Alabama

2,829

3,779

5,612

2,110

4,526

6,765

7,813

4,510

Before After

2007 EM Markets Data from 5/1- 10/12008 EM Markets Data from 4/1- 6/30

Direct Mail Campaign

In 5 Test Markets

Ongoing Public Relations Campaign

Metal Roofs: The Right Choice for Eco-Friendly Households

Durable, Attractive, ‘Green’: Metal Roofing a

Great Option

Metal Roofing is the Right Choice for Many

Reasons

Ten Questions you Should Ask Before

Putting on a new Roof

Industry Benefits with

MRA Membership

MRA Efforts Continue to Grow the Industry

Earned Media: Headlines

Industry Outreach• Ongoing partnerships with industry media.• MRA leaders are industry thought leaders.

Project Homes

Social Media Outreach

Marketing Campaign Results

Summary: MRA Results• 172,000 consumer leads delivered to

contractors• 4.6 million web hits since 2003• 2 billion advertising impressions• 4.25 billion earned media impressions• $1.25 Billion Contractor Installed Sales

Marketing Program: Contractors

National Contractor Campaign• Recruit new installers• Education• Lead Generation• Marketing Tools

MRA Contractor Benefits• Find a Contractor

program generates 15,000 leads annually

• Online University

• National consumer marketing campaign

• Consumer Segmentation Kit

MRA’s Find-A-Contractor• Consumers receive a

listing of contractors in their area. The listing includes full contact info, email and web addresses and a description of the company.

• Gold-level contractors are given top priority

Contractor Segmentation Kit

• Segmentation Kit includes a map of the neighborhoods where contractors are most likely to find metal roofing prospects (dark red).

• Ideal for developing Direct Marketing efforts.

• Accompanying tables show exactly how many “metal-friendly” households can be found in each neighborhood.

The MRA Program is Working• MRA Research of people who used the “Find a

Contractor” referral form found that:– 45% had installed a new roof within 2 years of visiting

metalroofing.com– Nearly all of those, 82% overall, had installed a metal

roof– 52% are still considering their roof purchase

• 89% of those consumers considering metal

Many Women Are Finding Success in the Metal Roofing

Industry

Daisy Lilley: Marketing Manager, Fabral

Background: – Bachelor of Science w/ a

focus in marketing and a general MBA

– Worked for a heating manufacturer for 9 year years prior to joining Fabral

– Has worked for MRA member manufacturer, Fabral for over 3 years

Daisy Lilley’s Advice:“The world of manufacturing offers many career opportunities.I use to think, I want to work at a company that promotes something I really like, such as chocolate, etc!

BUT...in the end, I have realized that it is not the product that will make me happy. It is the stability and culture of the company AND the work you are doing (such as marketingfor me) that is most important to being happy.”

Shannon Linker: Vice President, ASC Profiles

• Shannon has spent 23 years with ASC Profiles– holding positions in customer service,

purchasing, architectural sales, technical sales and senior management.

– For the past five years, Shannon has managed the residential and agricultural division of the company.

– Most recently her role expanded to include Vice President, AEP Span commercial products.

Shannon Linker’s Advice:"Don't worry about gender. What matters is the desire and need to learn as much as you can about the industry or your trade. Focus on the details and doing the best job you can no matter what your role at the time.

Opportunities come to those who are willing to learn, work hard and do a great job. Last, find good mentors or people who are willing to teach you the industry, and ask lots questions to accelerate your learning."

Kelly Garbin, Director of Marketing, Precoat Metals

• Kelly Garbin joined PrecoatMetals in 2003 to lead the product and technology development initiatives.

• Prior to joining Precoat, she served as executive director for the National Coil Coating Association.

Kelly Garbin’s Advice“Don't be afraid to ask for help or admit you don't know something. I've always found people willing to teach me what they know.

The more you understand your product and how it's made, the better you'll become in identifying new opportunities and solving customer problems. That approach provides a terrific platform for success.”

Jean Miskimon,Director of Public Relations, Metal Roofing Alliance

• 18 years with Eisner, Petrou& Associates, a marketing and public relations firm. Handled construction clients such as Dewalt and Hitachi power tools.

• Has served as MRA’s Director of Public Relations since organization began in 1998.

Jean Miskimon’s Advice• “Be willing to go outside your comfort zone. When I began

working with MRA 12 years ago, I didn’t know the first thing about metal roofing. Now, I’ve been on roofing test platforms in Tennessee and watched 2 x 4’s being shot into metal roofing panels at trade show demos. And, I can tell the difference between standing seam and metal shake in an instant.

Working with the MRA has provided me with many opportunities over the years, and I would have missed out if I hadn’t been willing to learn something new.”

Marybeth Morsberger, APRDirector of Public Relations, Metal Roofing Alliance

• 20 years marketing and public relations experience.

• Former director of Public Relations for Sylvan Learning Centers.

• Has worked with a wide variety of businesses and industries. Has worked with the MRA for the past nine years.

Marybeth Morsberger’s Advice“Keep a smile on your face and don’t hesitate to ask a lot of questions. The metal roofing industry is highly technical but there are A LOT of people in the industry willing to teach you what you seek to know. The people I have worked with the last nine years have been wonderful, insightful and terrific resources for me.

I have learned a great deal from our MRA members and have relied on them for the technical details reporters and editors are seeking.”

Planning for the Future

Next Five Years - Tons

00.20.40.60.8

11.21.41.61.8

2009 2010 2011 2012 2013

Million Tons Steel

Goal: 15% Market Share

Next Five Years - Gallons

00.5

11.5

22.5

33.5

4

2009 2010 2011 2012 2013

Million Gallons Paint

Goal: 15% Market Share

What’s Next?

• Grow Residential Metal Roofing to 20-25 % of the market.

Join the Metal Roofing Industry

• Visit MRA and its members at Metalcon

• Constant and growing need for new metal roofing contractors

Thank you!

Bill_Hippard@precoat.com