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In Depth: Siding

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In Depth: Siding

The Future

While the outlook for siding products will always be linked to the overall outlook of the building industry as a whole, data points to a strong future for this building industry segment. According to The Freedonia Group’s April 2017 report, sales for the entire cladding category are predicted to increase 7.7% annually through the next four years, bringing the U.S. siding market up to an estimated $4.7 billion by 2021. And according to ProVia’s Mickle, the remodeling side of the business complements this story. “Various indices such as NAHB’s Remodeling Market Index and LIRA point to increasing optimism and overall spend in this category,” he explained. “In the past 12 months, per-homeowner spend has increased 60%. The trend is extremely inclusive, rising across all geographies and generations.”

Holmes Manufacturing’s Todd Kandel agrees with this optimistic forecast. “We expect the market for siding projects to be strong this year due to rising consumer confidence. New home sales are strong this year, which also helps drive the existing homeowner to improve curb appeal to sell and then build or buy new. This type of market condition gives us the best potential for strong sales and growth opportunities. The products we manufacture are key to accent the exterior of your home project.”

According to The Freedonia Group, vinyl siding accounts for the largest share of the U.S. market, but other siding types are rapidly gaining ground, with vinyl’s market share consistently slipping since 2004. Nevertheless, vinyl siding is expected to remain the leading material installed in the U.S. through 2019 based on its low cost, long lifespan, and minimal maintenance needs.

Additionally, the large stock of existing homes that utilize vinyl siding will support improvement and repair demand, as homeowners often prefer to use the same material when replacing older or worn siding.

ProVia’s Mickle sees strong growth in regards to vinyl siding. “We expect solid demand for siding projects this year based on customer feedback, sales forecasts, economic and housing trends,” he explains. “Discussions with ProVia’s distributors reflect an optimism that demand will continue to be solid for both new construction and remodeling. First quarter sales data supports our customer’s enthusiasm, with favorable weather providing an early push to the building season in the traditionally colder climates.”

Ply Gem’s Jerry Blais, agrees with Mickle’s optimism and sees strong growth areas outside of single-family residential. “Categories that we see increasing in popularity include multifamily, remodeling and light-commercial. As the market improves, we believe there will be an increased demand for new home construction as well.”

This is not, however, meant to cut single-family construction out of the growth equation. “As single family new construction grows across the country,” adds Royal Building Products’ Booz, “it is expanding in traditional siding markets like the Midwest, South and Northeast. Siding is considered a top value-added project for remodelers, so growth in remodeling is expected as well.”

Still, with vinyl’s slipping popularity, other siding types are on the rise. Coeur d’Alene Wood’s Bartimioli explains, “This past winter has been one of the worst in decades, which has had the effect of slowing down construction. We have seen signs and expect that this building season will rapidly increase over the warmer periods. We have had a lot of interest in our siding for new homes, and our sales has increased tenfold from last year.”

According to LP’s Daley, “The market for engineered wood siding continues to grow as consumers look for an alternative to vinyl siding and fiber cement. Return on investment and durability are high on [consumers’] list,” he says. This trend is especially true among homeowner associations and multifamily construction where owners are seeking longer-lasting finishes and increased product durability.

“The North American market for structural panels is expected to grow incrementally over the next few years, with favorable economic conditions and relatively high builder and consumer confidence levels,” states Roy- OMartin’s Purvis. “With regard to plywood, specifically, the residential market is expected to show the greatest growth, over nonresidential, remodeling, and industrial. Wall sheathing in single-family and multifamily is anticipated to increase by about the same percentage.”

One issue that may impact the cost of wood siding is the expiration of the Softwood Lumber Agreement in 2015. While the ending of the agreement vastly opened up U.S. softwoods markets to Canada, proposed duties on Canadian lumber of up to 24% may have a negative impact on the wood siding segment. Still, with such strong projected growth across the entire siding industry, it’s more likely that wood options will continue to be of appeal.

Still, when looking at the overall projections for the industry as a whole, there’s good reason to be optimistic. As Boral’s Zimmerman says, “Like other building materials, the siding market will follow the trajectory of home building trends, particularly single- family. Though the recovery has had its challenges, the new-home market continues to rebound; remodeling activity has been strong, as well.”

Internet Information

To learn more about these companies’ products, visit their websites.

Companies in bold participated in this article.

Allura:
www.allurausa.com

Alside:
www.alside.com

AZEK:
www.azek.com

BlueLinx:
www.bluelinxco.com

Boral North America:
www.boralamerica.com

Cedar Valley:
www.cedar-valley.com

CertainTeed:
www.certainteed.com

Claymark:
www.claymark.com

Coeur d’Alene:
www.cdawood.com

Environmental StoneWorks:
www.estoneworks.com

Georgia-Pacific:
www.gpvinylsiding.com

Grayne (The Tapco Group):
www.grayne.com

Holmes Manufacturing:
www.holmesmanufacturing.com

James Hardie:
www.jameshardie.com

LP Building Products:
www.lpcorp.com

Maxitile:
www.maxitile.com

MiraTEC by Jeld-Wen:
www.miratectrim.com

Nichiha:
www.nichiha.com

Ply Gem:
www.plygem.com

Premier Forest Products:
www.premierforestproducts.com

ProVia:
www.provia.com

Rollex:
www.rollex.com

Roseburg Forest Products:
www.roseburg.com

Royal Building Products:
www.royalbuildingproducts.com

RoyOMartin:
www.royomartin.com

Style Crest:
www.stylecrestinc.com

Tando Building Products:
www.tandobp.com

TruWood Siding & Trim:
www.collinsco.com

Woodtone:
www.woodtone.com