China is expected to surpass the United States as the largest
market for doors and windows by 2013, according to the Freedonia Group’s
new study, “World Windows & Doors.” The report predicts that product
demand in China will account for more than half of the worldwide forecast
between 2008 and 2013.
The study also noted that demand for doors and windows in China is expected
to rise nearly 12 percent annually to $40 billion in 2013. Although the
rate of growth will slow compared to the 2003-2008 period, the size of
the gains will continue to increase, according to the Freedonia Group.
The growth will likely be a result of increasing building construction,
especially in the nonresidential market.
Globally, the demand for doors and windows is expected to see growth of
about 4.3 percent per annum to $167 billion by 2013. This compares to
the growth of 7.9 percent the market experienced between 2003 and 2008.
According to the study, projected declines in prices for doors and windows,
as well as a weak outlook for building construction throughout Western
European, will likely contribute to the deceleration.
While much of the world is seeing a deceleration in demand, along with
China both India and Indonesia also are forecasted to experience above
average growth between 2008 and 2013.
Freedonia also expects plastic doors and windows to be among the fastest
growing products through 2013, though these products will will only make
up one-fifth of the global market, according to the study. Reasons for
the increase include the loc cost and reduce maintenance requirements
of plastic doors and windows, along with their insulating properties,
according to Freedonia.
Both new construction as well as improvement and repair markets also are
likely to decline, Freedonia reports. For new construction as well as
repair/improvements, the Asia/Pacific region is forecast to be the fastest
growing region. Demand for new construction in Eastern Europe is also
expected to grow.
Global Door and Window
Demand by Market
(in billions of dollars)
| Item |
1998 |
2003 |
2008 |
2013 |
2018 |
| Door and window demand |
75.8 |
92.9 |
135.6 |
167.0 |
223.5 |
| Residential buildings |
48.7 |
59.7 |
81.2 |
100.4 |
132.0 |
| New construction |
26.6 |
32.9 |
45.1 |
59.0 |
79.8 |
| Improvement and repair |
22.1 |
26.8 |
36.1 |
41.4 |
52.1 |
| Nonresidential buildings |
27.1 |
33.2 |
54.4 |
66.6 |
91.5 |
| New construction |
15.3 |
18.9 |
33.2 |
40.5 |
56.7 |
| Improvement and repair |
11.8 |
14.3 |
21.2 |
26.1 |
34.8 |
Source: The Freedonia Group Inc.
June Numbers Offer Some
Good News for Housing Market
The housing industry received some positive news in July:
Sales of newly built, single-family homes rose 11 percent in June to a
seasonally adjusted annual rate of 384,000 unit, according to U.S. Commerce
Department numbers. The gain marks a third consecutive month of improved
sales activity, according to the National Association of Home Builders
(NAHB).
”[This] report is good news that indicates the nation’s housing market
may be in the process of turning the corner,” says Joe Robson, NAHB chairman
and a home builder from Tulsa, Okla.
But he adds that Congress needs to take action to make sure this positive
news continues.
“The key to moving us out of recession is to get Americans back to work,”
Robson says. “Congress and the Administration should know that housing
can be a significant generator of good jobs. We need to make housing a
priority in the recovery process,otherwise we could continue to bounce
along a bottom for some time.”
More good news was that the gain in home sales was reflected in three
out of four regions (sales activity declined 5.3 percent in the South,
which is the country’s largest housing market) and helped shrink the inventory
of new homes for sale to its lowest level in years, according to NAHB
chief economist David Crowe.
“Even so, the pace of home sales in June 2009 was still more than 21 percent
off the pace of sales in the same month last year, so we still have quite
a way to go,” he says. “The concern now is that complicating factors—particularly
job losses, appraisal issues that are torpedoing more than a quarter of
new-home sales, and the impending expiration of the first-time buyer tax
credit—threaten to stifle the positive momentum.”
DWM
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