Volume 6 Issue 6 July 2005
Window and Door Demand to Increase
U.S. window and door demand is projected to increase 3.7 percent annually through 2009 to $32.6 billion, a deceleration in increase from the 1999-2004 period due to a sharp drop in single-family housing completions. This will be offset, to some extent, by a strong rebound in nonresidential construction. The differing fortunes between these two markets will have a significant impact on window and door materials.
For example, demand for wood doors, used primarily in residential buildings, will grow 1.8 percent per year while metal doors, largely purchased for nonresidential construction, will advance 4.2 percent annually. These and other trends are presented in Windows and Doors, a new study from The Freedonia Group Inc., a Cleveland-based market research firm.
Plastic Windows and Doors. These will continue to make inroads as a replacement for both wood and metal products, with demand increasing nearly eight percent annually. Plastic materials have rivaled wood products in the residential market, due to the advantages of high energy efficiency, low maintenance requirements and relatively low costs.
Plastic does not have the durability necessary to compete heavily against metal in the nonresidential market, according to Windows & Doors. Nonetheless, plasticís share of total value demand has risen from nine percent in 1994 to 21 percent in 2004 and is expected to exceed 25 percent by 2009. This share is even higher when measured in units due to the lower cost of these products.
Residential Market. This market was responsible for three-quarters of window and door demand in 2004. This is not only due to the size of the residential construction industry, but also because this market tends to place a high value on aesthetics and energy efficiency, which leads to the use of higher-cost products.
Furthermore, several trends in housing characteristics continue to support growth in window and door demand per residential structure. This includes increases in the average home size and the growing popularity of patios and decks. The large stock of existing homes also provides a base for improvement and repair purchases of window and door products.
In fact, while the new residential market for windows and doors will be essentially flat through 2009, the improvement and repair market will grow nearly six percent annually. Demand for windows and doors in nonresidential building is expected to advance 7.9 percent per year through 2009, comprising nearly 30 percent of total window and door demand.
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