Business Plan
Vertically Integrated Steel SIP Manufacturing
Residential • Commercial • Agricultural • Cold Storage
Executive Summary
Investment Opportunity Overview
Company Overview
Appalachian Panel Systems (APS) is a vertically integrated steel-faced structural insulated panel (SIP) manufacturer serving residential, commercial, agricultural, and cold storage markets across the Mid-Atlantic and Appalachian regions. Using rolled steel facings instead of traditional OSB, the company produces high-performance insulated panels with superior durability, fire resistance, and moisture protection.
Steel-Faced SIP Advantages
The Opportunity
Steel-faced SIPs unlock markets beyond traditional residential construction. The growing cold storage and food processing sector, driven by e-commerce and food safety requirements, demands high-R-value, sanitary wall systems—a perfect fit for steel SIPs.
Business Model
APS operates a hybrid model serving four market segments: (1) Residential homebuilding and builder partnerships, (2) Commercial and light industrial buildings, (3) Agricultural structures, and (4) Cold storage and food processing facilities. Revenue diversification across segments reduces cyclicality while maximizing manufacturing capacity utilization.
Financial Highlights
Company Description
Mission, Vision & Structure
Mission Statement
To manufacture premium steel-faced insulated building systems that serve diverse markets—from family homes to cold storage facilities—while creating sustainable manufacturing employment in West Virginia.
Vision
Become the leading regional manufacturer of steel-faced SIPs, recognized for quality, innovation, and service across residential, commercial, agricultural, and cold storage markets.
Target Market Segments
Residential
Custom homes, builder partnerships, coastal/high-wind zones
Commercial
Warehouses, retail, light industrial, offices
Agricultural
Livestock buildings, equipment storage, processing
Cold Storage
Food processing, pharma, controlled environment
Core Competitive Advantages
Market Analysis
Industry, Geography & Competition
Industry Overview
The North American insulated metal panel (IMP) and steel-faced SIP market exceeds $2 billion annually. Steel-faced panels are growing faster than traditional OSB SIPs due to commercial building code requirements for fire resistance, the cold storage boom driven by e-commerce, and agricultural demand for climate-controlled livestock facilities.
Target Market Segments
| Segment | Market Size (300mi) | Growth Rate | Avg Project |
|---|---|---|---|
| Residential (Homes) | 39,300 starts/yr | 2-4% | $35-45K |
| Commercial/Industrial | 8,500 projects/yr | 4-6% | $55-85K |
| Agricultural Buildings | 4,200 projects/yr | 5-7% | $45-70K |
| Cold Storage/Food | 1,800 projects/yr | 10-12% | $85-125K |
Cold Storage Market Deep Dive
High-Growth Specialty Segment
Cold storage construction is the fastest-growing segment, driven by e-commerce grocery, pharmaceutical cold chain requirements, and food safety regulations. Steel-faced SIPs are the preferred wall system for these applications due to:
Competitive Landscape
| Competitor | Product Type | Distance | Primary Market |
|---|---|---|---|
| Metl-Span | Metal IMP | 400+ mi | Commercial |
| ATAS International | Metal IMP | 350 mi | Commercial/Ag |
| Murus Company | OSB SIP | 280 mi | Residential |
| Insulspan | OSB SIP | 450 mi | Residential |
No regional manufacturer offers steel-faced SIPs with both residential and commercial capabilities. APS fills this gap with a versatile product line serving all building types from a central Appalachian location.
Products & Services
Steel-Faced SIP Manufacturing & Construction
Steel-Faced SIP Panel Products
Steel Facing Options
- • 26-gauge galvanized steel (standard)
- • 24-gauge for heavy-duty applications
- • Galvalume coating option
- • Pre-painted/color-coated available
- • Stucco embossed or smooth finish
Wall Panels
- • Thicknesses: 4" to 10"
- • R-values: R-16 to R-40
- • Standard sizes up to 4' x 24'
- • Pre-cut openings, joints
- • Fire rated assemblies available
Roof/Ceiling Panels
- • Thicknesses: 6" to 12"
- • R-values: R-24 to R-50
- • Clear spans to 20'
- • Standing seam compatible
- • Cold storage rated systems
Core Insulation Options
Market-Specific Applications
Residential
- • Custom home construction (direct B2C)
- • Builder partnerships for production homes
- • High-wind/coastal zone applications
- • Energy-efficient new construction
Commercial
- • Warehouse and distribution centers
- • Retail and office buildings
- • Light industrial/manufacturing
- • Self-storage facilities
Agricultural
- • Livestock confinement buildings
- • Poultry and swine facilities
- • Equipment and hay storage
- • Processing and packing facilities
Cold Storage
- • Refrigerated warehouses
- • Food processing facilities
- • Pharmaceutical cold chain
- • Controlled environment agriculture
Engineering & Support Services
Operations Plan
Facility, Equipment & Production
Equipment Requirements
| Equipment | Qty | Est. Cost |
|---|---|---|
| SIP Manufacturing Equipment | ||
| SIP Press System (Hydraulic) | 1 | $180,000 |
| CNC Panel Router/Saw | 1 | $150,000 |
| Adhesive Application System | 1 | $45,000 |
| Overhead Crane (5-ton) | 2 | $80,000 |
| Panel Transport Trailers | 2 | $120,000 |
| Misc. SIP Tooling | - | $145,000 |
| SIP Equipment Subtotal | - | $720,000 |
| Steel Processing Equipment | ||
| Steel Coil Decoiler/Uncoiler | 1 | $55,000 |
| Roll Forming Line | 1 | $145,000 |
| Steel Shear/Cutting System | 1 | $45,000 |
| Coil Storage & Handling | - | $35,000 |
| TOTAL EQUIPMENT | - | $1,000,000 |
Production Capacity
Marketing & Sales Strategy
Customer Acquisition & Growth
Comprehensive marketing and sales strategy including digital presence, trade shows, industry partnerships, and direct sales across all four market segments.
Management Team
Leadership & Organizational Structure
Experienced management team with expertise in steel manufacturing, SIP production, residential construction, and commercial project management.
Financial Projections
5-Year Revenue, Costs & Profitability
Revenue Projections by Segment
| Revenue Stream | Year 1 | Year 3 | Year 5 |
|---|---|---|---|
| Residential Segment | |||
| B2B Panel Sales | $630K | $2.9M | $5.8M |
| Homebuilding (B2C) | $1.5M | $4.1M | $8.0M |
| Residential Subtotal | $2.1M | $7.0M | $13.8M |
| Commercial & Agricultural | |||
| Commercial/Ag Panels | $825K | $3.5M | $7.7M |
| Cold Storage/Specialty | $340K | $1.9M | $5.0M |
| Commercial Subtotal | $1.2M | $5.4M | $12.7M |
| Services | |||
| Engineering Services | $160K | $576K | $1.1M |
| Training & Support | $60K | $180K | $300K |
| TOTAL REVENUE | $3.5M | $13.2M | $27.9M |
Profitability Projections
| Metric | Year 1 | Year 3 | Year 5 |
|---|---|---|---|
| Gross Profit | $980K | $4.2M | $9.5M |
| Gross Margin | 28% | 32% | 34% |
| EBITDA | $85K | $1.8M | $4.5M |
| EBITDA Margin | 2% | 14% | 16% |
| Net Income | ($120K) | $980K | $2.8M |
Funding Requirements
Capital Needs & Sources
Use of Funds
Sources of Capital
Risk Analysis
Risks & Mitigation Strategies
Implementation Timeline
Phased Execution Plan
— End of Business Plan —
Appalachian Panel Systems • Steel-Faced SIP Manufacturing • Confidential • January 2025