Composite Decking & Railing 2004: Latest Industry Study Announced by Principia
EXTON, PA, June 30, 2004 /- Principia Partners announces an update to its benchmark 2001 analysis of the North American market
for composite decking and railing. This updated study will give you additional insight on this large established
building product category which accounted for about $600 million in 2003.
Dozens of companies in the plastics, building products, and forest products industries are battling for position in the
rapidly growing market for wood replacement in residential decking. Advantages like durability, color retention and reduced
maintenance have increased the replacement of natural wood by these composites.
Marketing efforts by leading composite decking suppliers have helped increase awareness of these products among builders and
homeowners, who see the value of longer service life and lower maintenance compared to wood. As a result, composite decking
has grown at an explosive rate of over 30% per year. Significant potential demand with considerable penetration is projected
in decks, porches, verandas, and balconies for both the new and remodel/replacement markets.
Having a product that addresses the needs of both builders and homeowners is vital to gaining share of the market. Equally
important is a strong channel position to access the market. In the building products industry, distribution channels are
one of the most critical aspects to operating a successful business.
Jim Morton, Senior Partner, says, "Each supplier must develop an effective channel to the ultimate consumer, and provide that
channel with the support it requires. Competition for distributors and dealers can be intense at every step. A poor channel
position can result in low sales volume and poor profitability. Suppliers that develop both a desirable product and an effective
distribution strategy will have a competitive advantage. A thorough understanding about these channel dynamics is critical in
establishing a strong market position."
Mr. Morton goes on to say that in addition to a thorough examination of the channel issues, Principia's latest study will also
provide a current and future perspective on the market for all decking and railing material types. Other key business issues
to be analyzed will include:
- What is the current line-up for composite decking and railing, and how has market share shifted among material types and
suppliers over the past three years?
- How market structure changes are likely to affect growth for both new and established producers?
- How will new technologies reduce cost and improve product performance for composite decking and railing?
Principia's study entitled COMPOSITE DECKING & RAILING 2004 will be conducted by the Firm's professional staff which has closely monitored
the market for wood-plastic composites over the past 10 years. Principia Partners is a leading international business consulting firm
serving the building products, plastics, packaging, metals, minerals, and specialty chemicals industries. For more information, visit
the company's web site at www.PrincipiaConsulting.com or for a prospectus of this study, call Jim Morton at 484/459-2239.
SOURCE: Principia Partners
Media contact:
Principia Partners
Jim Morton
800/378-8330 ext. 239 or 484/459-2239
JMorton@PrincipiaConsulting.com
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