SUMMARY OF MAJOR FINDINGS
The $24 billion (manufacturers’ dollars) U.S. window and door industry is currently being adversely affected by sharp declines in new home construction and existing home resales. The impact has been felt the most in the builder market, while residential replacement sales have declined at a more moderate rate. Wood window and door manufacturers felt the brunt of the decline due to their heavy dependence on residential markets. On the other hand, metal window and door manufacturers are benefiting from the above average reliance on nonresidential markets, which have seen sharp gains over the past two years. In either case, the U.S. window and door industry continues to consolidate to offset declining demand and rising costs. This process is expected to continue as manufacturers seek ways to improve operating efficiency until the market begins to recover in 2009.
WINDOW AND DOOR INDUSTRY TRENDS
Catalina Research uncovered these trends in our in-depth 207-page report on the U.S. window and door industry. U.S. shipments, exports, imports, and price trends are evaluated for wood, metal, vinyl, fiberglass, and other products. Steel and aluminum door shipments are further segmented for industrial, residential, and commercial and institutional markets. In addition, metal door shipments are provided by door type, such as overhead, sliding, swing, entry, and garage doors. Shipments for shower doors and storm doors are also provided. Wood door shipments are broken out for panel, hollow- and solid-core flush, molded face, patio, garage, bi-fold, cabinet, and other doors. Wood window shipments are further segmented by type- casement, double-hung, horizontal sliding, and others. Metal window shipments are provided for aluminum, steel, and other metals. Aluminum and steel window shipments are shown for residential and nonresidential uses. Aluminum window data is broken out for single and double-hung, awning, and other types. Window and door shipments are provided in units and dollars. Import data is included in order to evaluate the growing importance of foreign-sourced products. Import data is provided for steel, aluminum, wood, and plastic doors. Import data is also provided for major countries of origin. Similar data is available for export shipments.
END- USE MARKETS AND DISTRIBUTION CHANNELS
Shipment data is segmented for residential and nonresidential markets. Residential and nonresidential data is segmented by material and window and door type. Window and door purchases are also provided for the residential replacement market, manufactured housing plants, and recreation vehicle producers. Market trends are specifically analyzed for entry doors, patio doors, and garage door markets. Competitors are urged to use this information to develop strategies to uncover growing product lines and applications. Retail distribution is discussed in order to review how the leading manufacturers are taking advantage of homeowner sales opportunities. A guide to retail sales by region and state is provided in a separate section on sales by window material and door type and for builder and replacement sales by geographic area. Remodeler demographics provide the reader with the information needed to exploit residential remodeling and replacement markets.
FACTORS AFFECTING DEMAND
End-use market trends are correlated with U.S. housing demand, nonresidential construction spending, mortgage interest rates, and other economic indicators to uncover the factors affecting demand, and provide insights into the direction of domestic demand in 2009 and beyond. Demographics of replacement window and door purchasers are also evaluated.
PROFIT MARGINS AND THE COMPETITIVE ENVIRONMENT
In addition, Catalina Research investigated the cost structure and profitability of U.S. window and door product plants. Data trends were compiled for material, labor, and capital inputs. As part of this analysis, Catalina compiled company door sales and profit margins, and calculated market shares for 15 leading manufacturers.
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