Siding industry

US demand to grow 6.5% annually through 2014

Demand for siding is forecast to grow 6.5 percent per year through 2014 to 101.5 million squares, valued at $11.3 billion. Advances will be driven by an expected rebound in housing completions from the depressed levels in 2009 that reflected the sharp declines in housing completions between 2007 and 2009. Although housing completions will remain below the level reached at their cyclical peak in 2006, the recovery will fuel aboveaverage gains in the residential siding market through 2014.

Brick, fiber cement siding to see most rapid advances

Among material types, brick and fiber cement siding are forecast to see the most rapid demand advances through 2014. Demand for brick siding will be spurred by the rapid rise in housing completions in the South, the region of the US where brick is most commonly used. Homeowners continue to desire brick siding due to its aesthetic properties, durability and fire resistance. Fiber cement siding demand will be promoted by its durability and ability to be made into siding that resembles more expensive materials, such as wood or brick. Advances will also be derived from the material’s popularity in the South and West regions of the US, which are forecast to see above-average growth in population and housing activity through 2014. However, the material’s market penetration will decelerate, as use of fiber cement in the Midwest and Northeast remains comparatively low. Vinyl siding, which accounted for the largest share of the market in area terms in 2009, is projected to remain the market leader through 2014. Demand will be supported by the material’s low cost, ease of installation and durability. Efforts by manufacturers to broaden the range of available colors and textures will also promote gains. However, more rapid advances will be checked by rising competition from fiber cement and stucco siding, which can offer enhanced longterm durability and fewer maintenance requirements. Stucco, EIFS, concrete and other siding accounted for the second-largest share of siding demand in 2009. Through 2014, demand for these materials is forecast to advance, as rising population growth and construction activity in the South and West regions -- where stucco is most commonly used -- drive gains. Advances will also be derived from increased use of EIFS systems due to their ease of installation and insulation properties. Among other materials, wood siding is expected to lose market share through 2014 as consumers select materials that last longer and require less annual upkeep. Polypropylene siding is expected to see above-average gains. Consumers will opt for the material due to its resemblance to natural wood siding while being far less susceptible to rotting and degradation.

Residential improvement, repair market to rise slowly

The residential improvement and repair market was the largest market for siding in 2009, reflecting the low level of new housing activity in that year. Demand for siding in residential improvement and repair applications will rise modestly through 2014. Homeowners will be less likely to take out home equity loans, the most common method of financing such projects as siding replacement, if financing is more difficult to obtain.

Study coverage

Siding offers historical demand data (1999, 2004, 2009) plus forecasts for 2014 and 2019 by siding material, market and US region. The study also considers market environment factors, evaluates company market share and profiles 33 US industry competitors

Home Building And Improvement Industry in the United States

TABLE OF CONTENTS

INTRODUCTION x

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4

General 4
Macroeconomic Environment 5
Demographic Trends 8
Consumer Trends 11
Personal Income & Expenditures 12
Consumer Financing 14
Building Construction 17
Residential Buildings 20
Housing Completions 22
Housing Stock 27
Improvements & Repairs 31
Nonresidential Buildings 32
Institutional 35
Office & Commercial 36
Industrial 36
Transportation & Other 37
Improvements & Repairs 37
Regulatory & Environmental Trends 38
Environmental Issues 39
Green Building Standards 41
Recycling 42
Other Regulatory Issues 43
Pricing Trends 44
Materials & Technology Trends 48
Historical Market Trends 50
US-Canadian Softwood Timber Dispute 52
Foreign Trade 53
International Activity 56

III. MATERIAL 60

General 60
Area Outlook 63
Value Outlook 65
Installed Costs 68
Vinyl Siding 71
Characteristics 74
Markets 76
Products 79
Suppliers 80
Wood Siding 81
Markets 82
Products 85
Plywood 88
Hardboard 90
Other Engineered Wood 93
Lumber & Wood Shingles 96
Suppliers 100
Fiber Cement 102
Markets 103
Products 105
Suppliers 107
Stucco 108
Markets 109
Products 110
Suppliers 112
Metal Panels 112
Markets 114
Products 114
Suppliers 116
Brick Siding 117
Markets 119
Products 121
Suppliers 124
EIFS 124
Markets 126
Products 127
Suppliers 128
Concrete & Stone 129
Markets 130
Products 130
Suppliers 132
Other Siding 133
Steel Siding 134
Aluminum Siding 136
Polypropylene Siding 139
All Other Siding 140

IV. MARKETS 143

General 143
Residential 146
New Housing 151
Single-Family 154
Multifamily 158
Manufactured Housing 161
Improvements & Repairs 164
Vinyl 168
Other Materials 170
Nonresidential 172
New 177
Improvements & Repairs 181
Demand by Building Type 183
Commercial & Lodging 184
Industrial 186
Institutional 188
Office 190
Other 192

V. REGIONS 194

General 194
Regional Demographic & Economic Activity 195
Economic Outlook 196
Population Patterns 198
Construction Activity 199
Housing Trends 202
Regional Siding Demand 204
Northeast 208
Demand by Market & Subregion 208
Demand by Material 210
New England 213
Middle Atlantic 214
Midwest 215
Demand by Market & Subregion 216
Demand by Material 218
East North Central 221
West North Central 222
South 223
Demand by Market & Subregion 224
Demand by Material 226
South Atlantic 230
East South Central 232
West South Central 234
West 235
Demand by Market & Subregion 236
Demand by Material 238
Mountain 241
Pacific 243

VI. INDUSTRY STRUCTURE 245

General 245
Industry Composition 246
Market Share by Company 249
Market Share by Material 253
Vinyl Siding 253
Stucco & Related Siding 254
Wood Siding 255
Brick Siding 255
Fiber Cement Siding 256
Metal Panel Siding 256
Manufacturing 256
Competitive Strategies 258
Marketing 261
Distribution 264
Mergers & Acquisitions 265
Company Profiles 267
Acme Brick, see Berkshire Hathaway
Alcan Composites, see Schweiter Technologies
Alcoa Incorporated 268
Allied Building Products, see CRH
Alside see Associated Materials
American Building Components,
see NCI Building Systems
American Buildings, see Nucor
ASC Profiles, see BlueScope Steel
Associated Materials LLC 270
Berkshire Hathaway Incorporated 273
BlueScope Steel Limited 275
Boise Cascade Holdings LLC 278
Boral Limited 280
Butler Manufacturing, see BlueScope Steel
Ceco Building Systems, see NCI Building Systems
Cedar Valley Shingle Systems Incorporated 282
CertainTeed, see Saint-Gobain
Clarke Group 284
Coronado Stone Products Company 286
Crane Group 288
CRH plc 291
Dryvit Systems, see RPM International
Exteria Building Products LLC 294
Garco Building Systems , see NCI Building Systems
General Shale Brick, see Wienerberger Baustoffindustrie
Gentek Building Products, see Associated Materials
Georgia Gulf Corporation 296
Georgia-Pacific, see Koch Industries
Glen-Gery, see CRH
Gulf States Manufacturers, see Nucor
Hanson Brick, see HeidelbergCement
Hardie (James) Industries NV 298
HCI Steel Building Systems, see BlueScope Steel
Heartland Siding, see ProVia Door
HeidelbergCement AG 302
Insulated Panel Systems, see NCI Building Systems
Kaycan Limited 304
Koch Industries Incorporated 306
Louisiana-Pacific Corporation 307
Mastic Home Exteriors, see Ply Gem Holdings
Metal Building Components, see NCI Building Systems
Metl-Span, see BlueScope Steel
Mitten Incorporated 309
Napco, see Ply Gem Holdings
NCI Building Systems Incorporated 311
Nichiha Corporation 314
Norandex Building Materials Distribution,
see Saint-Gobain
Nucor Corporation 316
Owens Corning 318
Ply Gem Holdings Incorporated 320
ProVia Door Incorporated 324
Resolite, see Verzatec
Rio Tinto Group 326
Rollex Corporation 327
Royal Group, see Georgia Gulf
RPM International Incorporated 328
Saint-Gobain 330
Schweiter Technologies AG 334
Shakertown 1992, see Clarke Group
Star Building Systems, see NCI Building Systems
Steelscape, see BlueScope Steel
Sto AG 336
Tri-State Roofing & Siding Wholesale, see CRH
United Stone Veneer, see Ply Gem Holdings
Varco Pruden Buildings, see BlueScope Steel
Variform, see Ply Gem Holdings
Verzatec SA de CV 339
Weyerhaeuser Company 340
Wienerberger Baustoffindustrie AG 341
Additional Companies Mentioned in Study 344

LIST OF TABLES

SECTION I -- EXECUTIVE SUMMARY

Summary Table 3

SECTION II -- MARKET ENVIRONMENT

1 Macroeconomic Indicators 8
2 Population & Households 11
3 Personal Consumption Expenditures 13
4 Consumer Financing Environment, 1999-2009 17
5 Building Construction Expenditures 20
6 Residential Building Construction Expenditures 22
7 New Housing Indicators 27
8 Housing Stock by Type 30
9 Residential Improvement & Repair Expenditures 32
10 Nonresidential Building Construction Expenditures 35
11 Nonresidential Building Improvement & Repair Expenditures 38
12 Siding Pricing Trends 48
13 Siding Market, 1999-2009 51
14 Siding Products Foreign Trade 56

SECTION III -- MATERIAL

1 Siding Demand by Material in Area Terms 65
2 Siding Demand by Material in Value Terms 68
3 Vinyl Siding Demand 74
4 Wood Siding Demand by Market 85
5 Wood Siding Demand by Product 87
6 Plywood Siding Demand 90
7 Hardboard Siding Demand 92
8 Other Engineered Wood Siding Demand 96
9 Lumber & Wood Shingle Siding Demand 98
10 Fiber Cement Siding Demand 103
11 Stucco Siding Demand 108
12 Metal Panel Siding Demand 113
13 Brick Siding Demand 119
14 EIFS Siding Demand 125
15 Concrete & Stone Siding Demand 129
16 Other Siding Demand by Market & Material 134
17 Steel Siding Demand 136
18 Aluminum Siding Demand 138
19 Polypropylene Siding Demand 140
20 Other Siding Demand 142

SECTION IV -- MARKETS

1 Siding Demand by Market 145
2 Residential Siding Demand by Market & Material 150
3 New Housing Siding Demand 154
4 New Single-Family Housing Siding Demand 158
5 New Multifamily Housing Siding Demand 161
6 New Manufactured Housing Siding Demand 164
7 Residential Improvement & Repair Siding Demand 168
8 Nonresidential Siding Demand 176
9 New Nonresidential Siding Demand 180
10 Nonresidential Improvement & Repair Siding Demand 183
11 Nonresidential Siding Demand by Building Type 184
12 Commercial & Lodging Siding Demand 186
13 Industrial Siding Demand 188
14 Institutional Siding Demand 190
15 Office Siding Demand 192
16 Other Nonresidential Siding Demand 193

SECTION V -- REGIONS

1 Gross Domestic Product by Region 197
2 Population by Region 199
3 Construction Expenditures by Region 202
4 Regional Housing Indicators 204
5 Siding Demand By Region 207
6 Northeast Siding Demand by Subregion & Market 210
7 Northeast Siding Demand by Material 213
8 Midwest Siding Demand by Subregion & Market 217
9 Midwest Siding Demand by Material 220
10 South Siding Demand by Subregion & Market 226
11 South Siding Demand by Material 230
12 West Siding Demand by Subregion & Market 238
13 West Siding Demand by Material 241

SECTION VI -- INDUSTRY STRUCTURE

1 Siding Revenues for Selected Manufacturers, 2009 248
2 Selected Acquisitions & Divestitures 267

LIST OF CHARTS

SECTION II -- MARKET ENVIRONMENT
1 Year of Construction of Housing Stock, 2009 30
2 Siding Market, 1999-2009 52

SECTION III -- MATERIAL
1 Siding Demand by Material, 2009 62
2 Range of Installed Costs for Selected Siding Materials, 2009 71

SECTION IV -- MARKETS
1 Siding Demand by Market, 2009 146
2 Residential Siding Demand by Material, 2009 151
3 Nonresidential Siding Demand by Material, 2009 177

SECTION V -- REGIONS
1 Siding Demand by Region, 2009 208

SECTION VI -- INDUSTRY STRUCTURE
1 Siding Market Share by Company, 2009 250

Construction Material in United States

United States Agricultural Raw Materials, Imports, % Y-o-y

• $ 250
• Industry data
• February 2013

Yearly, From 1996 To 2017
By Business Monitor International
Source: BMI calculation

• Industries : Building Material
• Countries : United States

United States Agricultural Raw Materials, Exports, % Y-o-y

• $ 250
• Industry data
• February 2013

Yearly, From 1996 To 2017
By Business Monitor International
Source: BMI calculation

• Industries : Building Material
• Countries : United States

United States Agricultural Raw Materials, Imports, Us$mn

• $ 250
• Industry data
• February 2013

Yearly, From 1995 To 2017
By Business Monitor International
Source: UNCTAD

• Industries : Building Material
• Countries : United States

United States Agricultural Raw Materials, Exports, Us$mn

• $ 250
• Industry data
• February 2013

Yearly, From 1995 To 2017
By Business Monitor International
Source: UNCTAD

• Industries : Building Material
• Countries : United States

United States Capital Expenditure Country Aggregate Annual Spending, Usdmn

• $ 250
• Industry data
• February 2013

Yearly, From 2005 To 2011
By Business Monitor International
Source: BMI, operator results

• Industries : Building Material
• Countries : United States