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TREX CASE STUDY

by Ron Starner

Photo courtesy of Trex

All Decked Out: Trex Builds on Commitment to Arkansas

Trex Company Inc., the world’s largest manufacturer of high-performance composite decking and railing, cemented its long-term commitment to Arkansas on August 22, 2024 when it celebrated the topping out of its newest U.S. factory: a $400 million plant in Little Rock.

Three years in the making, this facility on 300 acres at the Port of Little Rock will employ 500 workers once it reaches capacity following buildout. Joining existing company plants in Nevada and Virginia, this new factory will be Trex’s most modern and most high-tech.

“We are thrilled to reach this important milestone in the development of our new facility,” said Bryan H. Fairbanks, president and CEO of Trex. “We continue to experience broad-based demand driven by strong consumer interest in outdoor living. This new campus will enable us to provide our customers with significantly better access to Trex products while strengthening our position for future growth.”

Fairbanks was joined at the event by Arkansas Gov. Sarah Huckabee Sanders, who gave Trex a warm welcome. “Great things happen when every level of government and the private sector are working on the same page,” she said. “That’s what this facility represents: not just one business investing in Little Rock, but an entire network working together to make it happen. As we cut taxes and invest in our workforce, companies like Trex are only going to grow.”

Since Trex first announced in 2021 that it would build a new plant in Little Rock, the state government of Arkansas has reduced taxes three times, eliminated burdensome regulations and tweaked its incentives programs to help growing companies expand in the state. On top of that, Arkansas has worked to improve its workforce training and development programs, earning the state the No. 1 ranking for workforce development in the South-Central Region from Site Selection magazine.

Gov. Sarah Huckabee Sanders joined Trex executives and other state leaders at the August 2024 topping-out ceremony for Trex in Little Rock.
Photo courtesy of Trex

Greenville, South Carolina-based Global Location Strategies assisted Trex in the site search. “We had a great experience working with the state and local team for the Trex project,” says Sarah S. White, principal and vice president of site selection with GLS. “The team was well organized and attentive throughout the whole project. If we ever ran into a hurdle, they were great at pivoting to find a solution. There was also great coordination directly with the governor, which further exemplified the teamwork at all levels.”

Building a Bigger Path Forward
Trex executives attending the topping-out ceremony noted that they were looking for a place that aligned with their values and paved the way for future growth. They said they found all that and more in Arkansas.

“This new campus has the potential to be Trex’s largest and most productive,” said Adam Zambanini, executive vice president and chief operating officer of Trex. “The facilities will be equipped with state-of-the-art equipment, employ proprietary technologies and energy-efficient systems designed to drive optimal output with a focus on sustainability.”

This new campus has the potential to be Trex’s largest and most productive.

Adam Zambanini, Executive Vice President and Chief Operating Officer, Trex

Trex’s composite outdoor products use no hardwoods and are 100% recyclable. The firm currently has 13% of the outdoor decking and railing market share, annual revenues of $1.25 billion, a profit margin of 21%, and a total market capitalization of $7.2 billion.

The Winchester, Virginia-based company employs 1,765 people and has registered a 5-year return of 50% for its shareholders. Upon completion, the new plant in Little Rock will include buildings dedicated to decking manufacturing, plastic recycling, warehouse operations and administrative offices.

Trex selected Lexington, Kentucky-based Gray Construction to design and build the new campus. “As we reach the topping-out milestone, we are not just marking the completion of the highest point of this structure, but also celebrating the hard work, dedication and collaboration of everyone involved in this project,” said Brian Jones, president and CEO of Gray Construction. “This achievement reflects the collective commitment to excellence and innovation from Gray, Trex and all our trade partners. We look forward to delivering a landmark that will stand as a testament to what we can accomplish together.”

Talent Pipeline Full of New Recruits
Trex has already begun hiring key facility management positions for the new plant, and recruiting of production workers will begin later this year. Trex is known throughout the industry for offering highly competitive wages and benefits to its personnel.

Clint O’Neal, executive director of the Arkansas Economic Development Commission, said, “Trex’s announcement of its $400 million manufacturing facility was a major win for Arkansas, and we’re excited to see this important milestone. In the coming years, Trex will be creating hundreds of good-paying jobs, and Arkansas has an experienced manufacturing workforce and strong talent pipeline that can meet the company’s needs.”

Trex was formed in 1996 and has grown steadily over the years. Its products are now carried in more than 6,700 retail outlets across six continents. Trex has been named to the Barron’s list of the 100 Most Sustainable U.S. Companies for 2024 and was named one of America’s Most Responsible Companies for 2024 by Newsweek.