Synthetic decking and railing material
Composite Decking and Railing 2009 is a comprehensive survey and analysis of all wood-plastic composites and cellular vinyl used in the North American residential decking and railing industry. The report provides a thorough discussion of the latest product developments and technology enhancements as well as a detailed account of the changing industry dynamics, especially related to materials substitution, supplier sales by product lines and distribution channels. The current market demand for each product type is quantified and projections for demand growth are provided, along with key factors influencing this growth.
Residential Decking and Railing Market Overview
Total demand for decking and railing materials used in the North America residential deck market has experienced significant change over the past several years. These changes have been most significant with the severe decline in housing construction and a deep recession which has dramatically reduced consumers’ ability to finance a new deck or replace existing decks.
Job losses, tight credit, devalued homes, the inability to tap into home equity to finance home improvement projects, and record lows in the consumer confidence index all merge to push decking and railing demand back to levels that have not been seen since the early 2000s.
Consumer reactions to this environment have been similar in nearly every part of the US and Canada, and have affected deck projects and their decking and railing material choices. The overall shift in demand for these materials is more reflective of the economic conditions and consumers’ ability to invest in outdoor living rather than a change in consumers’ desire for outdoor living space.
Wood Slowing Synthetic Share Gain
Furthermore, an important shift has occurred over the past two to three years. Wood is regaining share from synthetics which include wood-plastic composites and cellular PVC after being the easy target for the hyper-growth phase of the synthetic decking segment. This is again a reflection of the impact of consumers’ budgets, subsequent downsizing of decks project size, and the substitution effect with wood decking.
Provides a set of metrics for changes in the North American decking and railing market since 2004. Some key observations include:
• U.S. housing starts have dramatically decreased since 2005
• Canada housing has remained fairly stable until a rapid downturn in 2009
• Synthetics grew until 2006 but have struggled to continue significant growth
• Cellular vinyl has grown aggressively even in this major economic downturn as strongly evidenced in the ratios comparing synthetics and cellular vinyl to the remodeling index (RMI) for each 2nd quarter since 2004