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Siding and Exterior Trim Category Covered in Second Edition Market Study from Principia

EXTON, PA, October 14, 2008/- Siding and exterior trim, currently a $9 billion category but down from nearly $12 billion in 2005 due to the housing industry downturn, continue to deliver value to residential homes, with many choices for the dealer and consumer. However, that's about the only thing that remains unchanged in siding and trim.

Principia Partners announces the 2nd edition of its detailed commercial-oriented assessment of the North American market for siding and exterior trim. Changes in products, players, market conditions, and distribution channels make this study a timely one, as companies look past current conditions and jockey for position in anticipation of the inevitable rebound. This comprehensive multi-client study on the subject is titled RESIDENTIAL SIDING & EXTERIOR TRIM 2008 and is due for completion in December 2008.

Mineral and cementitious materials, including stucco and manufactured stone, have taken hold as growth segments in siding, at the expense of vinyl and wood. In spite of soaring raw material and energy costs, savvy industry participants see the slowdown as an opportunity to get the attention of specifiers with fresh offerings. New product introductions are based on new profiles, darker colors and new composite materials.

John Pruett, Director of the Building Products practice at Principia, comments "We're very excited about conducting the second edition of this successful market study last time around. There are many issues to thoroughly analyze, from production capacity changes to construction finance for home improvement contractors. For example, housing market conditions have forced nearly a dozen vinyl, engineered wood and fiber cement siding plants to shut down in the past couple of years. In the meantime new entrants emerged in PVC trim coinciding with a cellular PVC trim slowdown, leading to fierce competition in this newer segment of the trim category."

Recent changes in company ownership also signal a market in flux. Examples include PlyGem's acquisition of Alcoa Home Exteriors, Saint-Gobain's purchase of Owens Corning's Norandex/Reynolds vinyl siding manufacturing and distribution business, Georgia Gulf acquiring Royal Group Technologies, Monomoy Capital Partners acquiring the Molded Products Group of Atlantis Plastics and new ownership at Kömmerling.

Mr. Pruett continues "Not only is everyone in the business wondering when the down cycle in the housing market will turn but are also asking specific questions about the future of the siding and trim category. What strategies will emerge as winning formulas when the turnaround comes? What should participants be planning right now? How will distribution be affected by new products and players? What about competition from foamed plastics, fiber-filled composites and dust-free technologies in stucco? How will demand look after the prolonged housing downturn?"

This report will serve as an important analysis for business planning purposes by existing and new industry participants. Using estimated 2007 results and projected 2008 forecast as a benchmark, the study will analyze the drivers and trends of the residential siding and exterior trim market by region, distribution channel, market segment and material type, and will provide forecasts for the next five years. The study will provide insights into current and future products and competitive positioning, and will help companies anticipate unmet customer needs.

Key issues to be addressed include:

  • Changing trends in product demand and inter-material substitution
  • Channels of distribution to key markets and regions of the U.S. and Canada
  • Estimated market share among producers within each major material type
  • Supplier strategies and approaches to market

Results of the report will provide subscribers with critical up-to-date market data and analyses essential for planning purposes:

  • Timely analysis of the siding and exterior trim category
  • Assessment of the major siding and trim products
  • Identified product development needs and channel opportunities
  • Market share review for siding and trim producers
  • Profiles of over 40 companies active in the business
  • Strategic insights into this dynamic industry

Principia Partners is a leading international business consulting firm, and has extensive experience in building products and plastics industries. In particular, the Firm has closely monitored the market for synthetic building products over the past 10 years through various research efforts. For more information, visit the Industry Reports section of the Publishing portion of the company's web site at www.PrincipiaConsulting.com. A prospectus of this study is also available by calling John Pruett at 800/378-8330, extension 247.

SOURCE: Principia Partners

Media contact:
Principia Partners
John Pruett
800/378-8330 ext. 247
JPruett@PrincipiaConsulting.com



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