Companies in this industry manufacture wood window units and interior and exterior wood doors. Major companies include Andersen Corporation, JELD-WEN, and Pella (all based in the US), as well as LIXIL Group (Japan), Masonite (Canada), and Türelemente Borne (Germany).
Worldwide demand for windows and doors of all materials is expected to grow nearly 6% per year through 2019, reaching annual sales of more than $230 billion, according to the Freedonia Group. Sales of windows made of plastic are expected to grow faster than products made from other materials, including wood. By 2019, China is expected to account for nearly 40% of global demand for windows and doors. Rising incomes in China should create demand for higher-quality home products, which may create opportunities for makers of premium wood windows and doors.
The US wood window and door manufacturing industry includes about 1,000 companies with combined annual revenue of about $11 billion.
Demand for wood windows and doors is closely tied to residential construction activity, both new construction and remodeling. The profitability of individual companies depends on efficient manufacturing and effective marketing. Large companies have advantages in purchasing power, manufacturing volume, and methods of distribution. Small companies can compete by offering custom design and other value-added customer services to local or regional markets. The US industry is concentrated: the 50 largest companies account for nearly 80% of revenue....