In 2018, 37% of homeowners reported that they hired a decking contractor for their recent decking project. When a contractor was used, the deck was twice as likely to be a wood alternative material rather than wood compared to when a homeowner built the deck without a contractor. Homeowners who hire contractors are also likely to take their advice on brand, not just material.
Movable glass wall systems, or MGWS, remove the boundary between the indoor and outdoor living space, and are a popular trend in home design. MGWS are typically comprised of multiple glass panels that lift, slide, or fold along track systems, and are commonly referred to as multi-panel patio doors. MGWS demand is growing, reflected by the 2015–2018 compound annual growth rates (CAGR) for folding, hinged, and sliding MGWS doors shown below.
Read the full article
Lumberyards and one-step distributors continue to add showrooms to the retail layout within their locations to meet the needs of contractors and DIY homeowners who want to “touch and feel” the products. Nearly 75% of all dealers now have showrooms, typically displaying the product categories that fit their product line focus. According to LBM distribution companies surveyed by Principia, the top five product categories displayed are windows/ doors, millwork, decking, siding, and railing in 2019.
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.