vinyl products in construction: market trends and ... · flooring, decks, siding, windows,...

VINYL PRODUCTS IN CONSTRUCTION:

MARKET TRENDSAND OPPORTUNITIES

Vinyltec 2019

Home Innovation Research Labs

▪ Founded in 1964 as wholly-owned subsidiary of NAHB

▪ Independent, for-profit researchers assisting development and commercialization of new building technologies ▪ Engineering research & development

▪ Market & field research

▪ Laboratory testing

▪ #1 in green home building certification (NGBS)

▪ Building codes and standards developers

▪ Partners with ICC-ES to fast-track issuance of ESRs

Purpose and Outline of Presentation

1. Review of changes sweeping home construction and remodeling industries

2. Review of building materials trends in new homes and remodeling

1. Flooring

2. Windows & Patio Doors

3. Siding & Exterior Finishes

4. Exterior Trim & Fascia

5. Decking

6. Exterior Railing

7. Fences & Privacy Walls

Source: NAHB / US Census

Top Trends Shaping the Building

Materials Industry▪ Skilled labor shortage

▪ Cost of labor also increasing

▪ Cycle time lengthened (from 6 months to 7 months to complete a home)

▪ Industry environment favors easy-to-install and pre-finished materials

▪ Conditions are right for some off-site housing solutions

▪ Construction materials costs increasing▪ Building products up 2 times CPI (4% in 2018)

▪ Lower availability of residential development property▪ Higher density suburbs (smaller and narrower lots, less privacy etc.)

▪ Remodeling outlook very good—improve/expand instead of buy new

▪ More rigorous energy codes▪ Air tightness requirements of homes

▪ Higher R-value + continuous insulation on exterior walls

▪ Windows—next in line for sweeping upgrades

Trends Shaping the Building

Materials Industry▪ Demographics

▪ Younger home owners/buyers—transitioning from renting

▪ Smaller, more affordable single family homes

▪ More durable products▪ Favoring plastics in many categories on interior & exterior

▪ Technology improvements▪ Plastics with decorative + wear layers gaining much ground

▪ flooring, decks, siding, windows, countertops and more

▪ Design trends favoring simpler styles (more euro and urban) and contemporary design—primarily interiors but also exteriors ▪ Exteriors incorporate lines suggestive of traditional styles

▪ Wood, stone, concrete, and steel—with multiple textures on exterior

▪ Open floorplans still popular but defined living spaces

▪ Painted cabinets & wood floors in kitchen

▪ Blurring transition from indoor to outdoor living—window walls or lots of glass, upgraded outdoor living space

Basis for Presentation Data: Annual

Building Product Tracking Studies

▪ Home Innovation has been tracking annual materials purchases since 1995

▪ Builder Practices Survey of 1,550 U.S. Builders

▪ Consumer Practices Survey of 100,000+ U.S. households

▪ Decades of custom market research, sponsored by hundreds of building materials manufacturers

▪ Support of development and launch of hundreds of new building products

U.S. New Housing Mix Trend (based on annual housing units starts)

Source: Annual Builder Practices Reports and NAHB Housing Starts

0%

5%

10%

15%

20%

25%

30%

35%

40%

2013 2014 2015 2016 2017 2018

SFD Starter

SFD Move-up

SFD Luxury

Townhouses

Apartments

Residential Flooring Installations

2018 (millions of SF)

- 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500

Marble

Other

Vinyl sheet

Vinyl tile

Hardwood (engineered)

Laminate

LVT/LVP tile or plank

Hardwood (solid)

Ceramic tile

Carpeting

Remodel/Replacement New Homes

About 16 billion square

Feet of flooring was

installed in homes in the

U.S. in 2018

Flooring in New Single Family

Homes, 2018

Carpeting, 35%Solid Wood,

15%

Engineered Wood, 12%

Vinyl sheet, 3%

Vinyl tile, 2%

LVT/LVP tile or plank, 7%

Laminate, 2%Ceramic tile,

22%Marble, 1%

Other, 1%

Flooring Shares in New Single

Family Homes

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2013 2014 2015 2016 2017 2018

Carpeting

Tile & Natural Stone

Solid Wood

Engineered Wood

Vinyl/Resilient

Other

Flooring in Residential Remodeling

Carpeting, 24%

Solid Wood, 14%

Engineered Wood, 6%

Vinyl Sheet, 5%Vinyl Tile, 8%

LVT/LVP tile or plank, 13%

Laminate, 10%

Ceramic tile, 13%

Marble, 2%Other, 5%

Flooring in Residential Remodeling

0%

5%

10%

15%

20%

25%

30%

35%

2013 2014 2015 2016 2017 2018

Vinyl/Resilient

Carpeting

Tile & Natural Stone

Solid Wood

Laminate

Engineered Wood

Other

Windows Installed in New U.S.

Homes and Home Remodeling, 2018 (millions of window units)

About 58 million windows/year

installed in homes

Source: Annual Builder & Consumer Practices Reports

1.8

4.4

11.0

4.3

4.8

11.1

19.6

0 5 10 15 20 25 30 35

Aluminum

Composite & Other

Wood

Vinyl

New Homes Home Remodeling

Trends in New SFD Home

Window Frame Materials

Source: Annual Builder Practices ReportsSource: Annual Builder Practices Reports

0%

10%

20%

30%

40%

50%

60%

70%

Wood

Vinyl

Aluminum

Composite & Other

Window Frame Materials in New

U.S. Homes by Size of Builder, 2018

Source: Annual Builder Practices Reports

42%

20%16%

7%3% 2%

43%

74%

82%

8%3% 1%

Builds 1 - 10Homes/Year

Builds 11 - 50Homes/Year

Builds 51+Homes/Year

Wood

Aluminum

Vinyl

Composite & Other

Windows in U.S. Home Repair,

Replacement, and Remodeling

Source: Annual Consumer Practices Reports

0%

10%

20%

30%

40%

50%

60%

70%

Vinyl

Wood

Composite & Other

Aluminum

Patio Doors Purchased for

New Homes and Remodeling, 2018 (thousands of units)

About 4 million

residential patio

doors were purchased

in 2018


138

205

135

207

234

52

582

100

194

192

280

259

377

598

385

0 200 400 600 800 1,000 1,200

Other

Steel

Aluminum Clad Wood

Vinyl Clad Wood

Composite/Fiberglass

Aluminum

Unclad Wood

Vinyl

New Homes Home Remodeling

Siding in New Homes and

Remodeling, 2018 (millions of SF)

Residential siding represents more than 8 billion square feetannually


545

154

709

694

315

500

442

363

806

420

459

857

1,943

- 500 1,000 1,500 2,000 2,500 3,000

Other

Metal

Stucco

Natural Wood

Stone & Brick

Fiber Cement

Engineered Wood & Plywood

Vinyl & Other Plastic

New Homes Remodeling

Siding on New SFD Homes


0%

5%

10%

15%

20%

25%

30%

35%

2010 2011 2012 2013 2014 2015 2016 2017 2018

Fiber Cement

Stucco

Vinyl & Polymer

Brick & Block

Engineered Wood

Stone

Natural Wood

Metal and Other

Siding in

Home Remodeling


0%

10%

20%

30%

40%

50%

60%

70%

Vinyl & Polymer

Engineered Wood

Natural Wood

Metal and Other

Fiber Cement

Stucco

Stone

Brick & Block

Exterior Trim & Fascia Board

for New U.S. Homes, 2018 (millions of LF)


47

90

78

129

197

177

170

43

48

95

73

15

81

184

0 50 100 150 200 250 300 350 400

Other

PVC & Plastic Composite

Vinyl Wrap

Aluminum Wrap

Fiber Cement

Engineered Wood

Natural Wood


About 1.5 billion LF ofexterior trim and fasciaboard were installedon homes in 2018

Exterior Trim & Fascia Board

for New U.S. Homes


0%

5%

10%

15%

20%

25%

Aluminum Wrap

Engineered Wood

Natural Wood

Vinyl Wrap

Fiber Cement


Other

Exterior Trim & Fascia

for U.S. Home Remodeling

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Aluminum Wrap

Engineered Wood

Natural Wood

Vinyl Wrap

Fiber Cement


Other


Porch & Deck Surfacing in

New Homes and Remodeling, 2016 (millions of sf installed)

28

33

82

149

181

595

0 100 200 300 400 500 600 700

PVC & other plastic

Other untreated wood

Redwood

Cedar

Composite

Treated wood

New Homes

Remodeling

Residential Decking market is about 700 million sq.ft. installedper year (composite = 220 MM)


Raised Porch and Deck Material in

New SFD Homes


0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2013 2014 2015 2016 2017 2018

Treated Lumber

Composite & Plastic

Untreated Lumber

Porch and Deck Surfacing Material

in U.S. Residential Remodeling


0%

10%

20%

30%

40%

50%

60%

70%

2011 2012 2013 2014 2015 2016 2017 2018

Treated Lumber

Untreated Lumber

Composite & Plastic

Other

Porch and Deck Railing Systems

on New Homes and Remodeling, 2018 (millions of linear feet)

The U.S. home porch and deck

railing market is about 135 million

linear feet per year (~1 billion feet

of lineals)


3.6

3.7

2.3

4.3

2.0

7.0

3.1

6.1

8.3

15.3

14.7

21.1

41.4

0 10 20 30 40 50 60

Other

Aluminum

PVC & other plastic

Plastic Composite

Iron or steel

Untreated wood

Treated wood


Deck and Porch Railing

in New U.S. Homes


0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Treated wood

Untreated wood

Composite

PVC & other plastic

Aluminum

Iron or steel

Other

Deck and Porch Railing

in U.S. Home Remodeling


0%

10%

20%

30%

40%

50%

60%

Treated wood

Untreated wood

Composite

PVC & other plastic

Aluminum

Iron or steel

Other

Fences & Privacy Walls Installed in

New Homes and Remodeling, 2018 (millions of SF)

About 1.6 billion SF of fence Installed in 2018 on residential properties

Plastic/Composite = about 200 million SF


16

14

27

15

25

135

39

70

80

156

180

228

645

0 100 200 300 400 500 600 700 800 900

Aluminum

Iron or Steel

Masonry & Other

Wood Rails or Timbers

Plastic or Composite

Chain Link or Wire

Wood Vertical Boards


Fence & Privacy Wall Trends

in New U.S. Homes


0%

10%

20%

30%

40%

50%

60%

70%

2013 2014 2015 2016 2017 2018



Chain Link or Wire

Iron or Steel

Aluminum


Masonry & Other

Fence & Privacy Walls Installed

in U.S. Home Remodeling


0%

10%

20%

30%

40%

50%

60%

2013 2014 2015 2016 2017 2018



Chain Link or Wire

Iron or Steel

Aluminum


Masonry & Other

THANK YOU

Home Innovation Research Labs400 Prince George’s Blvd |Upper Marlboro, MD 20774

P: 301.430.6194 | F: 301.430.6180

HomeInnovation.com

[email protected]

vinyl products in construction: market trends and ... · flooring, decks, siding, windows,...

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