US Demand for Siding to Reach 103.5 Million Squares
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March 28, 2014 (www.investorideas.com newswire) Demand for siding in the US is forecast to increase 7.1 percent annually to 103.5 million squares in 2018, valued at $12.1 billion. As is the case with many building materials, an expected rebound in construction activity will be the primary driver for growth. For siding, the link to new housing is particularly strong, given that nearly every house in the US features exterior cladding. Home builders are increasingly installing more durable, low-maintenance siding materials such as fiber cement, brick, and concrete and stone, although all products are expected to benefit from the forecast recovery in new housing completions. Also adding to advances will be continued growth in the important replacement market, which accounted for 57 percent of sales in 2013. According to analyst Matt Zielenski, Vinyl will remain the leading replacement siding material but will continue to be challenged by newer products with enhanced performance and aesthetic characteristics. These and other trends are presented in Siding, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
Among material types, brick, concrete, and stone siding are expected to see the most rapid advances in demand going forward. Brick siding demand will be driven by increasing residential building construction in the South, where the material is most commonly specified because of its favorable aesthetics and long tradition of use in the region. Home builders across the US are expected to increasingly install brick siding because of its desirable appearance, long lifespan, and fire resistance. Concrete and stone siding see widespread use in both residential and nonresidential structures. Concrete blocks can be used to provide functional yet durable exterior cladding, while precast concrete panels and synthetic stone veneers are specified to recreate the look of more costly siding materials -- such as brick or natural stone -- at a lower cost.
Vinyl siding accounted for the largest share of siding demand in 2013; however, vinyl siding has seen its share of the US market fall from 39 percent in 2003 to 27 percent in 2013. Vinyl siding has faced strong competition from other materials -- such as fiber cement, stucco, and wood -- that are seen as more aesthetically pleasing. Going forward, vinyl siding will remain the leading material installed in the US because of its low cost, long lifespan, and minimal maintenance needs. However, vinyl siding will continue to lose market share to materials seen as better able to improve the exterior appearance of residences.
Siding (published 03/2014, 377 pages) is available for $5300 from The Freedonia Group, Inc. For further details or to arrange an interview with the analyst, please contact Corinne Gangloff by phone 440.684.9600 or e-mail firstname.lastname@example.org. Information may also be obtained through www.freedoniagroup.com.
A limited license to use or reprint information from this news release is granted to you provided attribution for the same including, if possible, the price of the report is given to The Freedonia Group, Inc. (Cleveland, OH). We would also appreciate the courtesy of receiving a copy of the article or publication in which we appear.
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