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Five Key Takeaways About Residential Exterior Trim Demand

Principia’s DemandBuilder® Residential Exterior Trim data product provides industry participants with data and insights related to current and forecast demand, as well as the following five key takeaways:

Industry participants utilize Principia’s DemandBuilder® data product to gain access to the data and market intelligence needed to determine current and projected industry demand and insights on market dynamics. The latest update includes data from 2018 and includes forecast demand through 2021.

For more information about Principia’s DemandBuilder® for residential exterior trim, contact us today.

Interest in Siding and Trim Steadily Grows

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An uptick in renovations nationwide is likely to provide a positive shock to the siding and exterior trim market, as many homeowners are choosing not to move as home prices rise. The desire to renovate coupled with aging existing siding and trim will drive continued growth in the market.

Last year, Principia Consulting estimated that, nationwide, the average age of siding at replacement was 16.1 years—much lower than it has been in recent years. Among high-value homes—those valued at $450,000 and above—the average replacement age of siding was 13.4 years. Lower replacement ages could have a positive impact on the yearly demand for siding and trim products. In addition to age of the current siding, many high-value homeowners are choosing to replace their siding because of a desire to change aesthetics or to upgrade existing products.

“Some of these other discretionary items [such as aesthetics or upgrades], those are the ones that are appealing to manufacturers, because homeowners choose to replace 3 to 5 years sooner [for those reasons] than if they were replacing for just age,” said Casey Olson, an industry analyst at Principia Consulting.

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Competition Heats Up in Trim and Siding

As materials improve, the race is on for market dominance.

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When it comes to trim and siding, homeowners and production builders share a common desire: They want a material that’s durable and aesthetically pleasing and requires little maintenance. But when price enters the picture, the two groups split: Homeowners can accept higher prices for higher quality, while builders prefer to keep costs at a minimum.

This quality-versus-price tug-of-war is nothing new for the construction industry, but what is new is how emerging technologies can shift the balance one way or the other. With trim, the common trend from our Product Monitor last year was that PVC was gaining ground in a category still largely dominated by wood, as it provided the best durability and least maintenance, albeit with a higher price tag. Now, however, it looks as though PVC isn’t as hot as previously thought. “PVC is a high-end product, and builders want to maximize their bottom lines,” says Casey Olson, an industry analyst at Principia Consulting. “If durability and maintenance are comparable, builders, especially volume builders, will choose the cheaper product.”

Though PVC still wins outright on durability, especially in areas with moisture, Olson and others say warranties on treated wood are starting to become competitive. “Treated-wood products now offer an almost comparable warranty to PVC. And people like wood,” Olson says.

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Now Available – Pro and Retail Channels in LBM Distribution

Pro and Retail Channels in LBM Distribution 2019 is now available for pre-purchase with full delivery planned for Q1 2019. This latest addition to Principia’s subscription-based data products will be delivered in a series of interactive dashboards and key insights summarized in four sections: industry revenue, leading dealers/retailers & relationships, industry growth and customer insights.
Pro and Retail Channels in LBM Distribution 2019 provides a vital benchmark analysis for pro and retail distribution revenue by dealer/ retailer, major product, supplier and region, and provides a year-over-year forecast through 2021. To learn more about this deliverable download the brochure now.

Download Brochure Now: Pro and Retail Channels in LBM Distribution 2019

Market Dynamics in Exterior Trim

While wood trim continues to account for 53% of the $1.7 billion exterior trim market in the United States, wood-alternatives like cellular PVC, fiber cement and engineered wood continue to take share. The market remains evenly balanced between new construction and repair/ remodel.

Exterior trim is one of over 12 residential building product categories currently monitored through the Principia BuilderSeries® set of data products. A short list of 5 observations from our recent industry research is shown below:

  1. Prefinished wood trim products competing on performance, branded for market identity
  2. Fly ash composites making inroads against traditional incumbent trim products
  3. Specialty 1-step channel growing as distributors expand further into siding and trim
  4. Several cellular PVC trim producers now offering complementary cellular PVC siding products
  5. Expected rationalization based on acquisition of quality suppliers, exit by low margin producers

Exterior Trim Demand Overview – Principia DemandBuilder® Exterior Trim

The image above provides a high level snap shot of Principia’s data product DemandBuilder® Exterior Trim.  DemandBuilder® subscribers have the ability to:

  • Accurately measure current share and revenue potential
  • Identify opportunities to pursue in sales territories
  • Set benchmarks for business using comparative market data

To learn more about Principia’s data products or exterior trim market data please contact us today.

Desire for Low-Maintenance, Durable Trim Bolsters PVC’s Stake

Wood trim still dominates the market, but PVC is steadily gaining ground

By Sean Wallisch

ProSales Magazine

Wood is still king in the world of exterior trim—for now, at least. But a desire for low-maintenance and longer-lasting material means PVC is making strides in the market. Freedonia, a Cleveland-based research group, predicts demand nationwide for molding and trim will rise 5.5% annually by 2020 and boost the product segment’s value to $9.9 billion. “Wood will remain the top material for molding and trim, though competition from plastic and engineered wood is expected to intensify,” Freedonia notes.

The exterior trim and molding market is worth about $1.6 billion, estimates Loi McLoughlin, general manager of trim and molding at AZEK Building Products. Of that, about 20% is PVC-based products.

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IN DEPTH: Mouldings, Millwork, and Trimboards

Regional Markets

By Craig A Shutt, LBM Journal

The bulk of the market is located east of the Mississippi, with growing popularity the further east and north the markets are. “Cellular PVC trim originated in the Northeast as a low-maintenance alternative to wood trim, and the style of architecture in that region lent itself to this style,” explains Ply Gem’s Short. Labor costs also are higher, so customers were willing to pay more to avoid having to replace pieces. Royal’s Booz agrees. “PVC products are pretty well understood, if not used, by most builders. There’s less usage west of the Mississippi.”

North-American-Residential-Trim-Forecast-By-material

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