Smith-Midland to Double the Size of North Carolina Plant
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Smith-Midland Corporation's decision to expand its Reidsville, North Carolina plant is a strategic move aimed at capturing a larger share of the Southeast region's market. The $2 million investment to double the facility's size to 30,000 square feet, including the addition of a 20-ton crane, indicates a response to the growing demand for precast concrete products. This expansion is not just a physical growth but a strategic one, aligning with the Infrastructure Investment and Jobs Act to tap into the upcoming infrastructure projects.
The company's reported consecutive quarters of double-digit, year-over-year revenue growth and a near-record backlog suggest a robust financial health and a strong market position. By increasing production capabilities, Smith-Midland is poised to enhance its sales funnel and capitalize on the growing infrastructure needs in North Carolina, which is experiencing rapid population growth. The local employment opportunities created by this expansion may also positively impact the company's reputation and stakeholder relations.
The investment in the Reidsville facility by Smith-Midland Corporation reflects a strong operational strategy that prioritizes meeting market demand. The financial implications of this expansion are multifaceted. On one hand, the capital expenditure of $2 million could affect short-term liquidity and cash flows. However, the anticipated increase in production capacity could lead to higher revenue streams in the long term, potentially improving profitability and shareholder value.
The infrastructure sector is typically characterized by long-term contracts and stable revenue streams, which could provide Smith-Midland with a predictable cash flow once the expansion is operational. Given the company's recent financial performance, the expansion could be seen as a reinvestment of profits to fuel further growth, which may be well-received by investors seeking growth-oriented opportunities in the stock market.
The precast concrete industry is integral to infrastructure development and Smith-Midland's expansion reflects a broader trend in the sector towards increasing capacity to meet growing demands. Precast concrete products like J-J Hooks Safety barriers and SoftSound wall panels are essential components in highway and bridge projects. The company's ability to deliver these products efficiently will be greatly enhanced by the new 20-ton crane and additional space.
Understanding the significance of the Infrastructure Investment and Jobs Act is crucial, as it represents a substantial injection of federal funds into infrastructure projects. Smith-Midland's strategic positioning to leverage this act indicates foresight and industry knowledge. The potential benefits include not only increased sales but also stronger partnerships with government and private contractors seeking reliable suppliers for large-scale projects.
MIDLAND, VA / ACCESSWIRE / January 11, 2024 / Smith-Midland Corporation (NASDAQ:SMID), a provider of innovative, high-quality proprietary and patented precast concrete products and systems, has commenced construction to double the size of its Reidsville, North Carolina plant.
Smith-Midland North Carolina is investing almost
"When we first expanded the North Carolina plant in 2018, we planned for additional future expansion, and are pleased to see it becoming a reality much sooner than expected," said Ashley Smith, Chief Executive Officer and President of Smith-Midland. The increased demand for our best-in-class products remains strong, as evidenced by our four consecutive quarters of double-digit, year-over-year revenue growth and near-record backlog, and we expect this expansion to further enhance our sales funnel."
This expansion will provide the necessary space to fulfill market demand and will also provide employment opportunities to the local area. North Carolina is one of the fastest-growing states regarding population and is utilizing the benefits of the Infrastructure Investment and Jobs Act passed by Congress to repair and expand highways and bridges for residents and travelers. Smith-Midland will have the capability to manufacture, deliver, and install multiple precast concrete products for use in these projects including, but not limited, to J-J Hooks® Safety barrier, SoftSound wall panels, retaining wall panels, and other custom highway precast concrete products.
Smith-Midland North Carolina originated in 1979 when the Smith-Midland Corporation expanded its operations to Reidsville, North Carolina. The Reidsville facility produces high-quality precast concrete products including J-J Hooks highway safety barrier, highway sound walls, Easi-Set precast concrete buildings, and many other custom precast products.
About Smith-Midland Corporation
Smith-Midland develops, manufactures, licenses, rents, and sells a broad array of precast concrete products and systems for use primarily in the construction, transportation, and utility industries.
Smith-Midland Corporation has three manufacturing facilities located in Midland, VA, Reidsville, NC, and Columbia, SC, and a J-J Hooks® Safety Barrier rental firm, Concrete Safety Systems. Easi-Set Worldwide, a wholly owned subsidiary of Smith-Midland Corporation, licenses the production and sale of Easi-Set products, including J-J Hooks and SlenderWall®, and provides diversification opportunities to the precast industry worldwide. For more information, please call (540) 439-3266 or visit www.smithmidland.com.
Forward-Looking Statements
This announcement contains forward-looking statements, which involve risks and uncertainties. The Company's actual results may differ significantly from those discussed in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, product demand, the impact of competitive products and pricing, capacity and supply constraints or difficulties, inflationary factors including potential recession, general business and economic conditions, our debt exposure, our high level of accounts receivables, the effect of the Company's accounting policies and other risks detailed in the Company's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission.
Media Inquiries:
scrandall@midlandadvertising.com
(540) 439-8056
Sales Inquiries:
info@smithmidland.com
(540) 439-3266
Investor Relations:
Steven Hooser or John Beisler
Three Part Advisors, LLC
(214) 872-2710
SOURCE: Smith-Midland Corporation
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