Housewraps

The Executive Summary Section (Section 1) provides an overview of the important findings in our statistical analysis and the key factors driving housewrap, building paper, and roofing felt demand. Data is supplemented with individual company developments covering new products, new technology, acquisitions and plant expansions, and sales trends in order to provide insights into how competitors are implementing strategies to take advantage of growth opportunities in this market (Section 4). Public-company documents, databases, and trade journals were searched for growth- and profit-oriented strategies.

Housewrap shipments were estimated by Catalina Research based on its position compared to building paper, which was uncovered from various industry sources (Section 2). Dollar and quantity building paper and roofing felt shipments are compiled from U.S. Department of Commerce surveys. Shipments are for all domestic manufacturers, whether plants are owned by U.S.- or foreign-based companies and whether or not plants specialize (50% or more of total facility revenues) in building paper or roofing felt. Average prices were calculated from this data and estimated based on the Bureau of Labor Statistics Producer Price Index and the U.S. Department of Commerce export shipments. Import data is sourced from U.S. customs.

Catalina also supplies data on the cost structure and profitability of U.S. plants (50% or more of total plant revenues) in the manufacture and sale of building papers and roofing felt. Operating margins of these plants were compared to those of nonwoven fabrics and products and laminated plastic sheet and shape plants to evaluate the comparison to housewrap plants. U.S. Department of Commerce survey data covering these plants are supplemented with individual company sales data in order to calculate company market shares. Data from Professional Builder's Brand Study analyzes the leading brands of housewrap in builder and contractor markets.

Catalina used the data in the end-use market and factors driving demand section (Section 3) to estimate and forecast sales of housewraps, building paper, and roofing felt. Catalina analyzed purchases of nonwoven, paper, and plastic sheet products by residential and nonresidential builders and remodeling contractors and revenues of siding, roofing, and masonry contractors. Contractor data was also analyzed on a regional and state basis. In addition, Catalina evaluated the changing use of siding materials in new U.S. homes. This data was augmented with data on U.S. construction spending, U.S. home demand, and residential building permits and starts, as well as residential property owner spending on roofing and siding repairs and replacement projects. This was followed by a comparison of housewraps and building paper performance by type of climate.

Action-oriented executives are urged to use this comprehensive statistical database and competitor information to develop new products, strengthen regional distribution, and initiate profitable operating strategies. Executives are urged to compute their own company's market share and compare their company's operating ratios to the industry averages as part of this process.