EXTON, PENNSYLVANIA, U.S.A., February 06, 2002 Dozens of plastics, building-products, and forest-products companies are battling for position in the rapidly growing market for polymer composites in decks on American homes, according to a study by Principia Partners. Advantages like durability, permanent color, and reduced maintenance will accelerate replacement of natural wood by these composites in spite of their higher price.

Entitled Wood Composites in Decking Structures: Building of Outdoor Living Areas, the Principia Partners report forecasts that deck boards and railings produced from thermoplastics reinforced with wood fiber, wood flour, or other natural cellulosics will double their market share between 2000 and 2005, with annual consumption growing from 90 to 198 million board feet (see table). In contrast to this 120% increase, the overall market for board and railing materials-dominated by pressure-treated softwoods-will be static. Home remodeling and deck replacement will be the chief drivers of polymer-wood composite growth.

"Polymer-wood composites resist weathering, water, and warpage better than natural wood and provide mechanical properties and aesthetics superior to those of plastic lumber and vinyl profiles," said John M. Quarmley, a principal of Principia Partners. "The marketing efforts of composite decking suppliers have increased awareness of the products among builders and homeowners, who see the value of the longer service life and lower maintenance compared to wood. As a result, polymer-wood composites are now growing at an explosive rate."

Huge Potential Awaits Polymer-Wood Composites in Deck Boards and RailingsPrincipia Partners estimates that in 2000 the number of decks, porches, verandas, and balconies that were built, repaired, or replaced in the U.S. was 3.2 million units. This construction generated a market for decking materials that totaled 5.3 billion board feet. Of the total, substructure components (which are unlikely to be replaced by non-wood alternatives) accounted for 2.7 billion board feet. The remaining 2.6 billion board feet represented by deck boards, stair risers and treads, and railing systems had a market value of US$3.6 billion. Polymer-wood composites accounted for 4% of this market by volume and 8% by value.

While polyethylene is by far the predominant thermoplastic used for producing polymer-wood composites and will remain so in 2005, the Principia Partners study forecasts rapid growth for polyvinyl chloride (PVC).

Among plastics competitors of polymer-wood composites, vinyl profiles will grow moderately during the 2000-2005 forecast period as a result of new railing applications, but use of plastic lumber products (products made of 100% plastic, based largely on recycled post-consumer thermoplastics) will decline sharply, the study concludes.

Drawing in part on interviews with hundreds of construction-industry professionals, Wood Composites in Decking Structures examines:

• Materials and processes for producing wood composites
• Methods and economics of deck construction
• Life-cycle costs of various material systems
• Market for decks and deck materials
• Companies active in the polymer-wood composite industry
• Requirements for participating in the deck-composites business

Wood Composites in Decking Structures is Principia Partners' second detailed analysis of the polymer-wood composites industry. Information on subscribing to the study is available from John M. Quarmley. Tel: 1-610-683-7664. Fax: 1-484-214-0172. E-mail: jquarmley@principiaconsulting.com

Principia Partners is an industrial business consulting firm serving clients in fields such as building products, plastics, packaging, metals, and specialty chemicals. Founded in 1995, the firm has completed hundreds of single- and multi-client studies for materials companies and manufacturers of consumer and industrial products. The firm provides a full range of strategic analysis and market research services. Information on studies, directories, and newsletters available from Principia Partners appears at www.PrincipiaConsulting.com.

SOURCE: Martino Communications Inc.

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