In new construction, 61% of the time, builders make the decision on what brand of windows are installed in homes. In repair and remodeling, 58% of the time, homeowners chose the windows brand with builders and contractors accounting for the remainder.
U.S. residential demand for building insulation products was valued at $4.4 billion net manufacturer revenue in 2018. Commercial demand for building insulation totaled $3.9 billion in 2018. Residential and commercial diverge in terms of top material and construction type.
The predominant material in the residential market is fiberglass. Fiberglass represented 63% of the residential building insulation market by value in 2018. Commercial insulation is dominated by foam with 81% by value.
United States residential roofing demand can be broken out by new construction, age-related, and weather-related demand. Depending on storm activity, weather-related demand accounts for a varying portion of reroofing each year—the more severe the weather, the higher the demand.
There are approximately 200 two-step distributors serving the LBM industry in North America, generating more than $38 billion revenue in 2018. These distributors can be categorized into three types, based on distribution footprint:
- National: Distribution centers across North America
To qualify as a “national” distributor, a company has distribution centers spread across North America. National distributors have an average of 32 locations.
- Regional: Distribution centers across one or more regions
To qualify as a “regional” distributor, a company has several distribution centers, spread across a large region, typically over three or more states. Regional distributors have an average of six locations.
- Local: Distribution centers in a single area
To qualify as a “local” distributor, a company has one or two locations and is typically located in a single CBSA or state. Local distributors have an average of one location.
U.S. residential windows demand was $14.2 billion net manufacturer revenue in 2018 compared to $13.5 billion in 2017—a year-over-year growth rate of 4.9%. Growth in windows increased by more than 962,000 units from 2017 to 2018. The map below shows what percentage of these window units went to the top ten states. Factors most impacting demand in these states include changes to legislation, population growth, and repair and remodeling activity.
Sixty percent of residential decking materials is distributed through lumberyards with over 5,200 lumberyards nationwide. Big box retailers—including The Home Depot, Lowe’s, and Menards—are the second largest outlet for decking materials, with approximately one-third of product being distributed in over 3,800 national locations.
Half of the decking in the northeastern United States is now made of synthetic materials such as plastic composites, according to a new study.
Wooden decking still has a 46 percent market share in the region, but a majority of outdoor living spaces are now constructed with composite and cellular PVC boards that stand up to weather and require little maintenance.
Of the 840,000 single-family dwellings constructed in 2018, vinyl siding was installed on 215,000, or 26 percent, compared to stucco on 25 percent, brick on 21 percent, fiber cement on 20 percent, wood on 5 percent and other materials like aluminum siding on 2 percent.
Vinyl siding is king of cladding again, although the crown has slipped from its peak of 40 percent of the distribution in 2002, according to the U.S. Census Bureau, which releases figures about new housing every July in its survey of construction.
Homeowners looking to update their curb appeal tend to replace with like materials so that bodes well for vinyl siding, Olson said. Nowadays they have a wider selection of vibrant colors, smooth modern profiles and products engineered to withstand sunlight and winds of 210 mph, resist moisture and impact damage, and provide energy efficiency if insulated.
Principia puts the size of the siding market in 2018 at 63 million squares. A square is equivalent to 100 square feet. The firm tracks 10 siding materials, which in descending order by volume are: vinyl, fiber cement, brick, engineered wood, wood, stucco, masonry, veneer, polymer composites and others like metal.
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.