Our guest today is Ken Gieseke, Senior Vice President of McElroy Metal.
Ken Gieseke: Thank you. It's a pleasure to be here.
Please provide us with a brief overview of your history with McElroy.
Ken Gieseke: I joined McElroy in 1991. I was looking for a new opportunity while living on Michigan Avenue in Chicago with my wife. We packed up and came down to work for McElroy Metal 33 years ago.
You have a particular interest in solar and sustainability. Let's talk about what McElroy's done, then open up to discuss your history and career. Solar has been a critical component for McElroy. Talk about the projects you've implemented in your buildings.
Ken Gieseke: We have 10 manufacturing facilities with solar. Our first was in Peachtree City, Georgia, in 2012, and we finished a couple more this past year. Our philosophy is to install solar when it makes financial sense from an ROI standpoint, and it also enables us to be good stewards. We've added solar to newer facilities, but mainly use it when recovering a roof.
The Peachtree City facility is a good example. Built in the 1970s, by 2012 the roof needed replacement. Solar energy works best for businesses, schools, or entities that own their buildings in the long term. Every building eventually requires a new roof due to age or damage, resulting in a capital expense. Our approach adds solar to transform that expense into an investment with payback and eventual revenue generation. It's not substantial revenue, but it offsets costs and utilizes roof space effectively.
Why is roof recover a good time for solar installation?
Ken Gieseke: You shouldn't install solar on a roof that needs replacement in 10 years. Solar panels typically last 20-25 years or longer, although their efficiency may decrease over time. You don't want to remove panels, replace the roof, and then reinstall them. Metal roofing provides the ideal substrate for solar - a long-lasting roof paired with solar creates a natural fit compared to conventional roofing materials, requiring more frequent replacement.
Do you assess facilities individually or take an additive approach across all locations?
Ken Gieseke: I recommend that any building owner work with a solar integrator. We partner with Spear Commercial, based in New Braunfels, Texas. They monitor incentives for us. For our Bossier City headquarters, we evaluated solar several times before installing last year, when incentives improved.
Solar integrators handle the groundwork - assessing roof space, analyzing energy bills, researching local incentives, coordinating with utilities, and producing a pro forma that shows cost outlay versus ROI timeframe. We target approximately 5-year returns, though some projects have shorter or longer timelines. After that period, the installation generates revenue instead of remaining a capital expense. The integrator is crucial to success.
Do they install the solar panels, or is there a separate roofing contract?
Ken Gieseke: Spear handles the entire project.
Is this a roofing contractor with expertise in solar installations?
Ken Gieseke: Spear specializes in solar. We have separate roofing contractors install the roof, then Spear installs the solar panels. In our Peachtree City project, before partnering with Spear, we used a contractor that installed both the roof and solar panels, subcontracting the electrical work.
So you recommend hiring experts in solar energy and incorporating their expertise into your project, right?
Ken Gieseke: Correct.
Should roofing contractors adopt solar technology?
Ken Gieseke: Contractors have an opportunity to educate building owners during reroofing projects. They can suggest solar consideration and connect owners with solar contractors, creating a three-way partnership between the roofing contractor, the solar contractor, and the building owner. This evaluation costs nothing for the owner or contractor and determines if solar makes sense for the project.
McElroy promotes recover benefits, including uninterrupted operations. Does this apply to solar installations?
Ken Gieseke: Absolutely. The solar panels mount directly on the metal roof. Metal roofing has another advantage - any roof penetration creates a potential leak. We use S-5 clamps that attach to standing seams without penetrating the roof, allowing zero-penetration solar installation.
Does McElroy supply those S-5 clips with projects?
Ken Gieseke: Yes, we provide them.
Have you encountered any issues or concerns with installations?
Ken Gieseke: None. The process has been seamless.
Are you planning installations for new buildings or considering smaller service centers versus manufacturing facilities?
Ken Gieseke: We've evaluated service centers, but it hasn't made financial sense yet. That could change if incentives improve in those areas. Our newest facility in Lockhart, Texas, opened with solar already installed because incentives were favorable. We assess each location individually, avoiding projects with ROI timelines of 15 years or more. Solar viability depends entirely on local, state, federal, and utility incentives. Our solar contractor identifies and packages these incentives on our behalf.
Once installed, does the system run automatically or require maintenance?
Ken Gieseke: Systems occasionally fail, but we maintain inspection agreements with Spear for annual evaluations. We have recently implemented monitoring across all installations that alerts us to potential problems, enabling quick responses and repairs.
Are you using batteries or storage systems?
Ken Gieseke: No. Battery systems haven't made financial sense, and our solar generation feeds back to utilities rather than powering our plants directly.
Why not power your facilities?
Ken Gieseke: That's simply how the systems are designed. We cannot risk operating solely on solar power; we must maintain consistent production to serve our customers. We haven't explored battery backup systems.
Let's discuss your career. As a successful executive at McElroy, what lessons stand out from your experience in the metal roofing industry?
Ken Gieseke: When my wife and I moved from Chicago in 1991, we planned for a 2-3 year stint. Now, 33 years later, I'm retiring after an incredible journey with a fantastic company.
The ownership has been exceptional. Tem McElroy, a second-generation leader, hired me. Ian, a third-generation owner, took over around 2007. The family's character shows in their decision 2.5 years ago to become an ESOP (Employee Stock Ownership Plan). Now, employees nationwide own the company—a generous gesture that reflects how the McElroy family has operated since 1963.
The company has grown tremendously - from 6 manufacturing facilities when I started to 14 today, plus 29 service centers that didn't exist when I joined.
This industry attracts long-term commitment. Many people stay for decades, particularly at McElroy. Industry professionals often move between competitors, but those who join McElroy typically remain. I've been here 33 years and only recently entered the top 30 in seniority. Our VP of Operations retired after over 40 years, and our VP of Sales retired after 38 years.
How has the industry changed regarding customers and the market?
Ken Gieseke: The industry has grown substantially. Metal roofing has existed for centuries, but its market share has increased due to improvements in product quality, including better substrates and paint systems. Metal roofing outlasts conventional roofing significantly.
It's been rewarding to watch an ancient industry evolve through technological advancements. McElroy prioritizes industry leadership as a core value, with many of us serving on association boards. We collaborate even with competitors to strengthen the industry, believing that industry improvement benefits all manufacturers and contractors.
What trends have you observed in marketing and sales?
Ken Gieseke: When I started, the internet didn't exist. I remember discussions about whether registering mcelroymetal.com was worthwhile or just a passing trend. Marketing has undergone a complete transformation - from printing press plates to digital PDFs, websites, and social media. Staying current with technology presents an ongoing challenge.
With your experience, what's your outlook for McElroy and the industry?
Ken Gieseke: I'm optimistic about McElroy's future. With over 60 years of history and a transition to employee ownership, our team can help build retirement security through company success. This has always attracted long-term employees, and I expect that to continue as people watch their ownership stakes grow.
We will continue to expand our manufacturing facilities, pursue acquisitions, and develop service centers. The metal roofing industry has substantial growth potential, driven by ongoing technological advancements.
Thank you for being on the show.