Composite & Plastic Lumber

Transcription

1 INDUSTRY MARKET RESEARCH FOR BUSINESS LEADERS, STRATEGISTS, DECISION-MAKERS CLICK TO VIEW Table of Contents 2 List of Tables & Charts 3 Study Overview 4 photo courtesy of Buckhorn, Inc. / Myers Industries, Inc. Sample Pages, Tables & Charts 5 More Samples from this Study 6 Order Form 7 About Freedonia, Custom Research, Related Studies, Corporate Use License 8 Study # pages The Freedonia Group 767 Beta Drive Cleveland, OH USA Toll Free US Tel: or Fax: info@freedoniagroup.com

2 Table of Contents Executive Summary Market EnvironmenT General...4 Macroeconomic Overview...5 Consumer Income & Spending...8 Personal Income & Expenditures...8 Consumer Financing Demographic Trends Population Households Construction Trends Construction Expenditures Construction Stock Building Construction Trends Residential Construction Housing Outlook Residential Floor Space Outlook Repair & Improvements Nonresidential Construction Construction Expenditures Repair & Improvements Nonbuilding Construction Trends Pricing Issues Environmental Issues Timber Harvesting Recycling Regulations & Standards Building Codes Materials Standards CCA Phaseout International Activity & Foreign Trade.. 48 North America Western Europe Other Regions materials General Wood-Plastic Composite Lumber Cellulosic Material Plastic Resins Polyethylene Polyvinyl Chloride Other Resins Additives & Modifiers Plastic Lumber Polyvinyl Chloride Polyethylene Other applications General Molding & Trim Outlook Wood-Plastic Composites Plastic Lumber Decking Outlook Wood-Plastic Composite Lumber Plastic Lumber Fencing Outlook Wood-Plastic Composite Lumber Vinyl Lumber HDPE Lumber Windows & Doors Outlook Composite Lumber Product Characteristics Suppliers Other Playground Equipment Marine (Non-Decking) Hot Tub & Spa Cladding Porches Site & Leisure Furniture Railroad Ties All Other Roofing Structural Lumber Other Miscellaneous Applications. 143 MARKETS General Residential Building New Repair & Improvement Housing Type Single-Family Multifamily Housing Manufactured Housing Nonresidential Building New Repair & Improvement Nonbuilding Construction New Repair & Improvement INDUSTRY STRUCTURE General Industry Composition Market Share Manufacturing Extrusion Equipment Developments Product Development Competitive Strategies Marketing Distribution Mergers & Acquisitions Cooperative Agreements Company Profiles Advanced Environmental Recycling Technologies Andersen Corporation Associated Materials Atrium Companies Boise Cascade Cascades Incorporated Compression Polymers CPI Plastics Crane Plastics ElkCorp Fiber Composites Genova Products GSW Incorporated Hancor Holdings Headwaters Incorporated Kadant Incorporated Liberty Diversified Industries Louisiana-Pacific Corporation N.E.W. Plastics Ply Gem Industries Quanex Corporation Royal Group Technologies Saint-Gobain SBR Incorporated TAMKO Roofing Products Trex Company Trimax Building Products Universal Forest Products VEKA AG Westlake Chemical Other Composite & Plastic Lumber Producers Page 2

3 List of Tables & Charts Executive Summary 1 Summary Table...3 Market EnvironmenT 1 Macroeconomic Indicators Personal Income & Expenditures Consumer Financing Environment, Resident Population & Households Construction Expenditures Construction Stock Residential Construction Expenditures Housing Completions & Housing Stock Cht Year of Construction of Housing Stock, Residential Floor Space Residential Repair & Improvement Expenditures Nonresidential Construction Expenditures Nonresidential Repair & Improvement Expenditures Nonbuilding Construction Expenditures materials 1 Demand by Product & Material Cht Demand by Material, Composite Lumber Demand by Material Cht Composite Lumber Demand by Material, Plastic Lumber Material Demand by Resin Cht Plastic Lumber Demand by Resin, applications 1 Demand by Application & Material Cht Demand by Application, Molding & Trim Demand Molding & Trim Demand for Molding & Trim Demand for Composite Lumber by Market Molding & Trim Demand for Plastic Lumber by Market Decking Demand Decking Demand for Composite & Plastic Lumber Decking Demand for Composite Lumber by Function & Market Decking Demand for Plastic Lumber by Function & Market Decking Demand for Plastic Lumber by Material Type Fencing Demand Fencing Demand for Composite & Plastic Lumber by Product & Market Window & Door Demand Window & Door Demand for Composite Lumber Other Demand for Composite & Plastic Lumber MARKETS 1 Demand by Market Cht Demand by Market, Residential Building Demand for Cht Residential Building Demand for by Application, New Residential Building Demand for Residential Repair & Improvement Demand for Composite & Plastic Lumber Demand by Housing Type Single-Family Housing Demand for Multifamily Housing Demand for Manufactured Housing Demand for Nonresidential Building Demand for Cht Nonresidential Building Demand for Composite & Plastic Lumber by Application, New Nonresidential Building Demand for Nonresidential Repair & Improvement Demand for Composite & Plastic Lumber Nonbuilding Construction Demand for Cht Nonbuilding Construction Demand for Composite & Plastic Lumber by Application, New Nonbuilding Construction Demand for Composite & Plastic Lumber Nonbuilding Repair & Improvement Demand for Composite & Plastic Lumber INDUSTRY STRUCTURE 1 US Sales for Selected Firms, Cht US Market Share, Selected Acquisitions/Divestitures Selected Cooperative Agreements. 205 Page 3

4 Double-digit annual gains will be driven by increasing market penetration, better consumer and contractor familiarity, a widening distribution network, and enhanced product appearance. US demand to grow 11% annually through 2009 Demand for wood-plastic composite and plastic lumber in the US is forecast to expand eleven percent per annum through 2009 to $3.5 billion. Advances will result from increasing market penetration of these alternative building materials, particularly in decking applications, which are expected to account for almost 40 percent of value demand in Plastic lumber will benefit from growing use in fencing installations, while wood-plastic composites will achieve rising penetration in newer applications, such as fencing, window and door components, and railroad ties. Demand for both composite and plastic lumber will be aided by consumer efforts to reduce maintenance associated with construction materials. Molding, trim end uses relatively mature, yet to continue outpacing wood Molding and trim was the largest end use for composite and plastic lumber in 2004, at 46 percent of the total. Through 2009, demand for composite and plastic lumber in molding and trim applications is forecast to rise more than six percent per year to $1.3 billion, almost all of which will be plastic lumber. Gains will be slower than for most composite and plastic lumber applications, a result of the relative maturity of the overall molding and trim market, but will be significantly faster than those for wood molding and trim materials. Decking 39% Molding & Trim 37% Other Applications 24% Window, door, other small segments to lead gains Among the major product categories, window and door applications, although rising from a small base, are anticipated to post the fastest gains through 2009, with demand expected to exceed $200 million. As with other applications, composite window and door components are making inroads against wood, metal and plastic materials because of their lower maintenance requirements and similarities to wood. Other applications, such as playground equipment, site and leisure furniture, hot tub cladding, porches and railroad ties, will see above-average gains through 2009 as well, albeit from small bases. US Plastic & Composite Lumber Demand, 2009 ($3.5 billion) Residential building to remain largest market Residential building will remain the largest market for composite and plastic lumber over the forecast period. Although prospects for new home construction are expected to weaken through 2009, these materials will achieve growth through increasing market penetration at the expense of traditional materials such as wood and metal. Gains in the much smaller nonresidential building market will be enhanced by an expected recovery in construction activity in the office and commercial segments. Composite and plastic lumber will also see strong growth in nonbuilding markets, bolstered by healthy increases in construction through Page 4

5 Sample Pages, Tables & Charts TABLE V-12 NONBUILDING CONSTRUCTION DEMAND FOR COMPOSITE & PLASTIC LUMBER (million dollars) Item COMPANY PROFILES Nonbldg C&P Lumber Demand ElkCorp By Product: Quorum Drive, Suite 600 Wood-Plastic Composite 16 markets Dallas, TX Plastic 84 The Market section By Use: provides demand for New 23 historical 43 years 84 (1994, Sales: $762 COMPANY million (FY 2005) PROFILES Repair & Improvement , 2004) as well Employment: The 1,195 Profiles (FY section 2005) analyzes 30 players By Application: Decking 61 as forecasts growth 400 to 620 active in the US market. The profiles are Fencing* and ; 94 data 117 is 160 Key Products: a sampling wood-plastic or cross-section composite decking, of the fencing, types docking and All Other 10 railing illustrated 25 using 72 nearly of companies involved in the industry. 60 tables and charts ElkCorp is a holding company with subsidiaries that manufacture such products as roofing, composites and industrial products, % nonbuilding Composite and & Plastic Lumber Demand provide engineering, consulting and licensing services. The Company operates through three segments: Premium Roofing Products, Composite Building Products and Other Technologies. The Company is involved in the US composite and plastic lumber industry through the Composite Building Products segment, which generated sales of $19 million and had 115 employees in FY The segment operates as Elk Composite Building Products Incorporated (Dallas, Texas), itself a subsidiary of ElkCorp s wholly owned Elk Premium Building Products Incorporated subsidiary (Dallas, Texas). Elk Composite Building Products makes wood-plastic composite building products that are sold under the CROSSTIMBERS tradename and are marketed as alternatives to wood in decking, fencing, docking, railing and other products. CHART VI-1 CROSSTIMBERS composites are made using a combination of oak and polypropylene, as opposed to recycled polyethylene utilized US in COMPOSITE & PLASTIC LUMBER MARKET SHARE, 2004 competitive products; the company believes the use of polypropylene ($2.1 billion) provides such performance advantages as strength, durability, light 229 Copyright by The Freedonia Group, Inc. Nonbuilding Construct Expend (bil $) $ c&p lumber/000$ construction Others 45.4% Other Market Leaders 54.6% industry structure Section gives 11.5% insight on 5.0% 3.3% 3.3% 3.1% 3.1% 2.9% 2.9% Tapco restructuring 10.7% Trex activities, 8.8% Royal Group competitive strategies and market share Louisiana- Pacific Fypon CertainTeed Crane Plastics AERT Andersen CPI Plastics Page 5

6 Sample Pages, Tables & Charts TABLE IV-1 COMPOSITE & PLASTIC LUMBER DEMAND BY APPLICATION & MATERIAL (million dollars) Item products Playground Equipment Demand for composite lumber in playground applications is projected to advance nearly 19 percent per year through 2009 to $75 million. Growth will benefit from rising nonbuilding construction of products areas such as parks and marinas, as well as nonresidential spaces such as commercial child Text care sections facilities analyze and schools. To some extent, concerns about the use of pressure-treated wood will continue to drive replacement of existing and playground support equipment the data with and newer pieces that are made from composite projections materials. Composite contained lumber in will also benefit from low maintenance each requirements table and environmentally friendly profiles, particularly in park applications. Nevertheless, an expected weakening in the residential construction segment will limit gains somewhat in the residential market through The higher initial cost of composite lumber-based playground equipment will also hamper growth. Furthermore, the key market for playgrounds -- those less than 15 years old -- is expected to continue to see slow population gains over the forecast period, hampering playground equipment demand. Competition from other types of recreation will check growth in composite playground equipment demand through Playground equipment encompasses exercise course equipment, seesaws, teeter-totters, jungle gyms and the like. For the purposes of this study, only applications that can typically be made from wood are included, as these are potential targets for composite lumber. Playground applications constitute a sizable market for composite lumber, especially those containing recycled plastics. These materials offer better durability and lower maintenance requirements than wood. Public procurement rules favoring recycled materials also give a boost to wood-plastic composite lumber in these playground applications. Plastic playground equipment is excluded from this discussion, as plastic generally does not compete with wood in the playground equipment market. 134 Copyright by The Freedonia Group, Inc. Construction Expenditures (bil $) $ c&p lumber/000$ construction Demand* By Application: The Materials and Applications 616 sections includes 1785 Molding & Trim 421 Decking Fencing tables 123 and 248 charts 385 that 620 Windows & Doors** present 3 24 historical demand 385 Other data 12 and and 10-year By Material: forecasts in dollars Wood-Plastic Composite Plastic Measured by value, plastic lumber accounted for about 70 percent of composite and plastic lumber use in Dominant shares of the molding, trim and fencing applications of these materials supported plastic lumber s share. Over the forecast period, gains for wood-plastic composites are projected to significantly outpace those for plastic lumber, primarily driven by... --Section IV, pg. 74 materials/ applications Page 6

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8 INDUSTRY MARKET RESEARCH FOR BUSINESS LEADERS, STRATEGISTS, DECISION-MAKERS Other Studies Fencing This study analyzes the US market for fencing. It presents historical demand data through 2005 and forecasts to 2010 and 2015 by fencing type (e.g., wood, metal, concrete); by market (residential, nonresidential building, agricultural, nonbuilding) and by US geographic region. Products used within buildings (e.g., security cages) are also included. The study is framed within the US fencing industry s market environment, and includes company market share evaluations and leading competitor profiles. # / $4300 Solid Surface & Other Cast Polymers US cast polymer demand will grow 4.1% annually through Gains will be driven by increasing use in nonresidential countertops, a relatively low penetration market where cast polymers benefit from a number of performance advantages. Solid surface products will remain dominant while engineered stone types grow the fastest. This study analyzes the 196 million square foot US cast polymer industry to 2010 and 2015 by product, end use and region. It also evaluates market share and profiles major players. # / $4300 Molding & Trim Demand for molding and trim in the US will reach $9.8 billion in 2009, driven mainly by gains in nonresidential construction. Exterior molding and trim products will grow the fastest, followed closely by metal stairwork. Plastic molding and trim products will offer the best opportunities by material. This study analyzes the US molding and trim industry to 2009 and 2014 by material, product and market. It also considers market environment indicators, evaluates company market share and profiles major firms. # / Wood & Competitive Decking US demand for decking will reach $5.8 billion in 2009, supported by stable repair and improvement activity. Alternative materials such as wood-plastic composites, plastic and aluminum will continue to outpace wood and gain market share. Wood will nevertheless remain dominant, led by lower-priced pressuretreated types. This study analyzes the five billion board foot US decking industry to 2009 and 2014 by product material, market and region. It also evaluates market share and profiles major players. # / About The Freedonia Group The Freedonia Group, Inc., is a leading international industry market research company that provides its clients with information and analysis needed to make informed strategic decisions for their businesses. Studies help clients identify business opportunities, develop strategies, make investment decisions and evaluate opportunities and threats. Freedonia research is designed to deliver unibiased views and reliable outlooks to assist clients in making the right decisions. Freedonia capitalizes on the resources of its proprietary in-house research team of experienced economists, professional analysts, industry researchers and editorial groups. Freedonia covers a diverse group of industries throughout the United States, the emerging China market, and other world markets. Industries analyzed by Freedonia include: Chemicals Plastics Life Sciences Packaging Building Materials Security & Electronics Industrial Components & Equipment Automotive & Transportation Equipment Household Goods Energy/Power Equipment Freedonia Custom Research Click here to learn more about Freedonia Freedonia Custom Research delivers the same high quality, thorough and unbiased assessment of an industry or market as an industry study. Since the research initiative is based upon a company s specific needs, companies harness Freedonia s research capabilities and resources to answer unique questions. When you leverage the results of a Freedonia Custom Research engagement, you are able to obtain important answers to specific questions and issues associated with: mergers and acquisitions, new product launches/development, geographic expansion, entry into new markets, strategic business planning, and investment and funding decisions. Freedonia Custom Research is ideal for companies seeking to make a strategic difference in the status quo and focus on future business growth. Working side by side with clients, Freedonia s team is able to define a research project that is custom-tailored to answer specific questions and provide the basis from which a company can make informed business decisions. Click here to learn more about Custom Research Hard Surface Flooring US demand for hard surface flooring will grow 5.5% annually through 2009, driven by gains in market share over carpets and rugs. Best prospects are for high-end products such as laminates, ceramic and natural stone tile, wood, cork and bamboo. Vinyl flooring will remain dominant, while laminate flooring will grow the fastest. This study analyzes the $6.3 billion US hard surface flooring industry to 2009 and 2014 by product and market. It also evaluates company market share and profiles leading competitors. # / $4100 Click here for complete title list Click here to visit freedoniagroup.com Page 8 The Freedonia Group, Inc. 767 Beta Drive Cleveland, OH USA Web site: Tel US: or Fax: info@freedoniagroup.com