Sheet Metal Shops Ramp Up to Meet Surging EV Demand

The electric vehicle (EV) boom is transforming the sheet metal industry, with mega projects sprouting up across the country. These massive EV battery plants require staggering amounts of ductwork – think 37 miles for a single facility – and pose unique challenges for sheet metal contractors.

Cassie Todtenhagen, product manager of insulation systems at Johns Manville, highlighted the distinct demands of EV plants during a recent webinar hosted by ACHR NEWS. Most notably, specifications for EV manufacturing require duct leakage below ½ of ½%.

“What’s unique about EV compared to a lot of the others, and just the manufacturing segment in general, is the technology that’s required to maintain the internal environment is so much more important than it ever has been,” Todtenhagen said.

The scale of EV plants is undoubtedly impressive, with sprawling facilities rivaling stadiums and skyscrapers. However, it’s the stringent technical requirements rather than sheer size that sets them apart. Maintaining precise internal environments is crucial for EV battery production, making advanced insulation and climate control systems essential.

This has led to a shift in insulation strategies, with a greater emphasis on external insulation over traditional interior duct lining. “What we’ve seen from an insulation perspective is a switch from internal to external insulation,” Todtenhagen explained. Wrapped duct has become a popular solution for these mega projects, prioritizing thermal performance over acoustical considerations.

However, as EV plants proliferate and encroach on residential areas, acoustic factors are reemerging as a concern. “As they get closer to residential spaces, the acoustics are being required either as a retrofit or as a part of the design from the beginning of the project,” Todtenhagen noted.

Mike Bailey, senior vice president of sales with Mestek Machinery offered a firsthand look at the scale and complexity of these projects. He shared images from inside a massive EV battery plant in Jackson, Tennessee, showcasing the mind-boggling volumes of ductwork involved. “37 miles of ductwork inside this plant just for batteries is phenomenal,” Bailey emphasized. “2.2 million pounds of ductwork to support this project.”

Ventcon, the largest sheet metal contractor in the Detroit area, has been at the forefront of several of these mega projects, working on multiple sites for Ford’s Blue Oval City initiative. To meet the staggering demands, Ventcon adopted a strategic approach, investing in new machinery and building dedicated sheet metal shops near each project site. This allowed for tighter coordination, streamlined logistics, and the ability to process and fabricate the enormous quantities of ductwork required.

Bailey highlighted the critical role of communication and planning in Ventcon’s success. “When you have projects like this coming down the pipeline, communication is key,” he stressed. “Ventcon got ahead of the communication piece early on, giving us the opportunity to get the equipment on schedule, get it into the shop, and start the construction of the equipment.”

The Inflation Reduction Act (IRA) has been a catalyst for the EV manufacturing boom, with companies committing over $165 billion to expand domestic production capacity. This surge in mega projects has created unprecedented demand for sheet metal contractors and manufacturers.

Patrick Newland, manager of business development with Hercules Industries, discussed how his company has adapted to the new landscape. Hercules has invested heavily in expanding capacity, opening a new 100,000 square foot duct fabrication facility, offering their own sealant nationally and vertically integrating steel processing. This integration allows them to keep costs low, maintain ample material inventories, and respond quickly to large orders.

“We’re seeing the size of the jobs and the need for it. We’re shipping material all the way into Indianapolis for some of these EV plants and all the way into Nevada, all the way from Denver to Phoenix,” Newland explained. “So it’s finding the capacity to do it. Who has the capacity to get the jobs done?”

The IRA’s impact extends beyond just the mega projects, with a ripple effect stimulating growth in the broader manufacturing sector. Newland noted that areas like Phoenix, with its cluster of chip plants and data centers, are experiencing a residential construction boom as thousands of jobs are created. This has led to increased demand for sheet metal products in the multifamily sector.

As the EV revolution continues to transform the automotive industry, sheet metal contractors will play a vital role in building out the manufacturing infrastructure. By embracing new technologies, strategies, and efficiencies, contractors can position themselves to capitalize on this historic wave of growth. The webinar, “How Sheet Metal Shops are Scaling Up to Meet EV Demand,” is available on demand atachrnews.com/webinars. It offers further insights from industry experts on navigating the challenges and opportunities in this exciting and rapidly evolving landscape.