- SMID is a precast concrete manufacturer that is positioned to capitalize on both macro-economic and governmental tailwinds that are afoot in their two main business lines, SlenderWall and J-J Hooks.
- SlenderWall is a precast modular wall panel for mid/high rise buildings that requires significantly less labor. J-J Hooks are freestanding moveable highway barriers that you see when highways are under construction.
- A major supply shortage of construction workers is forcing developers to find less-labor intensive ways of completing projects. We firmly believe this supply dynamic will lead them to SlenderWall.
- SMID recently shifted their J-J Hooks business from a lumpy sales-based business to a higher margin and recurring revenue rental-based business. SMID has expanded capacity from 30K ft. in 2015 to 300K ft. and is looking to double this by 2024/25.
- On top of this business shift, the recent MASH TL3 standard enacted by the NHS is forcing all national highway barriers to be updated over the next 5-7 years. We believe that this will lead to SMID seeing sustained high demand in their J-J Hooks rental business.
For further details see:
Smith-Midland: The Triple Play - Macro Tailwinds, Governmental Mandates, And A Fundamental Business Shift