Headwaters is a leading manufacturer of building products for the residential construction, residential remodeling, commercial and institutional construction industries. The Company’s portfolio of building products includes: architectural stone; resin-based exterior siding accessories (such as specialty siding and shutters); roofing; trim board; decking; railing; concrete block and brick; windows; and various other building products. The Company has over 1,000 wholesale distributors in the U.S., mainly one-step and two-step distributors; and generates incremental sales through big box stores. Headwaters also markets certain products through its direct sales force. The broad distribution system and extraordinary brand loyalty has enabled Headwaters to capture leadership positions in its key niche product categories.
Headwaters is the largest manager and marketer of coal combustion products in the construction materials industry. The primary focus of its construction materials segment is to recycle high quality fly ash into a replacement for portland cement. Fly ash is used in virtually every concrete application, making it one of the most widely-used construction materials in the United States.
Headwaters’ focus on transforming underutilized resources into valuable products has helped the Company capitalize on the increasing demand for building materials that contribute to sustainability. Headwaters’ fly ash business is a perfect example of sustainability. Fly ash is a by-product of burning coal at electric generating power plants and is generally disposed of if not recycled. Headwaters markets fly ash as a cement substitute that enhances the quality of concrete structures, reduces the need for virgin raw materials, reduces CO2 emissions and energy consumption. Because the use of fly ash produces a stronger, more durable concrete, the majority of this product is used in building infrastructure projects such as: roads, bridges, and highways. It is one of America’s greatest recycling success stories.
Headwaters also operates an Energy Technology segment that deploys breakthrough technologies that improve natural resource utilization. Headwaters' HCAT® technology is a proprietary, patented catalyst that improves residue hydrocracking, creating a higher conversion to a lighter distillate such as diesel and gasoline.
Headwaters’ two core business segments, Building Products and Construction Materials, have leading market positions in the key market niches in which they compete.
HEADWATERS BUILDING PRODUCTS
DEFENSIBLE POSITIONS IN ATTRACTIVE MARKETS
Siding & Trim Products
- Siding & Trim Products includes: specialty siding; trimboard; shutters; gable vents; mounting blocks; and tools
- Low cost competitive manufacturing advantages
- Diversified customer base
- Major supplier to Lowe’s and Home Depot
- Estimated that Headwaters meets 75% of national demand for decorative shutters, gable vents, and mounting blocks
- Manufactures one of the most authentic architectural stone products in the world
- Multiple national brands
- National manufacturing platform
- Headwaters’ manufactured stone products control roughly 30% of this niche market
- Variety of concrete-based masonry unit products
- Regional branding
- Regional distribution
- Headwaters’ Texas block business services an estimated 65% of product demand in Texas block
Specialty Roofing Products
- Headwaters competes in three specialty roofing products: polymer composite; concrete tile; and stone-coated metal
- Polymer composite and stone-coated roofing products are manufactured and distributed nationally. Concrete tile is a regional business located in central Florida.
- Leveraging the stone-coated sales force to help increase sales to existing customers in faster-growing geographies
- Pulling products through existing customers by increased contractor conversion, training, and risk management
HEADWATERS CONSTRUCTION MATERIALS
CONVERTING FLY ASH INTO A VALUABLE PRODUCT
Why Fly Ash?
- It can be used as a partial replacement for portland cement
- Generally less expensive than portland cement when making concrete
- Displaces portland cement production which emits approximately one ton of CO2 for every ton of cement produced
- Produces a more durable concrete with greater long-term strength
- Positive environmental impact by reducing landfill utilization
Headwaters Construction Materials
Is a Leader in Selling Fly Ash to Most States Across the U.S.
Competitive Strengths Include:
- Exclusive long-term relationships with over 100 electric generating power plants across the country
- Complete utility service capabilities
- Nationwide infrastructure: 25 terminals, 50 plant site supply facilities, approximately 100 trucks and roughly 825 railcars