July 2015 Data from Home Innovations Research Labs (HIRL).

Transcription

1 Structural Panel Wall Sheathing Market Shares For 2014 July 2015 Data from Home Innovations Research Labs (HIRL).

2 Overview of Definitions and Sample Sizes Driving 2014 Findings The findings presented in this report are based on the Annual Builders Practices Survey conducted by the Home Innovation Research Labs Data for single-family units are for single-detached homes There were 15,337 single-family detached units in the HIRL sample, representing 2.7% of the single-detached homes started in 2014 according to Census Bureau data The multifamily data include single-family attached units and units in multifamily buildings that are 4 floors or less The survey sample totaled 8,262 units, accounting for an estimated 1.9% of the combined single-family attached and multifamily starts in buildings of 4 floors or less in 2014 Single-family attached units accounted for 16.1% of the combined sample, roughly equal to the share of starts of these two types based on Census Bureau data

3 Residential Wall Sheathing 2014 Market Share 1 Fiberboard Foam.6% 4.2% U.S. Single Family Foil-Kraft.7% No Sheathing 2 8.0% Structural panels gained market share in the U.S. single-family wall sheathing market in 2014 according to the HIRL estimates. The measurement is share of wall area covered. Other 3.1% Gypsum.3% Structural Panels 86.2% 1 May not add to 100% due to rounding. 2 "No Sheathing" includes structural insulated panels, stucco walls without sheathing, siding direct to studs and concrete walls. 3 "Other" indicates that a survey respondent didn't recognize the terminology used in the survey. They simply indicated other.

4 Structural Panel Wall Sheathing Shares Single-family Only Wood structural panels market share hit a record of 86% in % 86% 80% 78% 74% 78% 81% 81% 80% 80% 70% 65% 66% 66% 67% 69% 67% 68% 60% 50% 40% 30% Data from Home Innovations Research Labs (HIRL), For all single-family analysis in this report, HIRL reports data from builders of single-family detached homes.

5 Structural Panel Wall Sheathing Shares Single-family Only 100% 90% 80% 70% 74% 68% 69% 68% 65% 66% 66% 67% 75% 74% 69% 70% 67% 68% 78% 86% 82% 74% 85% 78% 89% 89% 89% 90% 81% 81% 80% 80% 94% 86% 60% 50% 40% 30% Including Concrete Walls Wood Framed Walls Only If concrete walls are removed from the equation, structural panels had 94% of the wall sheathing market in 2014, a record high. Based on the HIRL data, the market share increase means all competitive products, such as EPS foam, no sheathing in California and ThermoPly in Texas fit into the 6% of wood walls not sheathed with wood structural panels.

6 Structural Panel Wall Sheathing Shares Multifamily Only Structural panel market share in multifamily wall sheathing has been relatively stable around an average of 81% since % 80% 70% 66% 73% 67% 79% 79% 82% 71% 80% 86% 91% 81% 82% 60% 58% 57% 50% 40% 30% Data from Home Innovations Research Labs (HIRL). HIRL combines single-family attached structures with multifamily for this analysis.

7 Wall Sheathing Market Shares 1 U.S. Single-family Plywood 9% 10% 10% 13% 12.7% 12.6% 13.3% 74 78% 81% 81% 80.4% 80.3% OSB 65% 68% 71% 68% 67.8% 67.7% 72.9% Fiberboard 2% 1% 1%.4%.2% 1.9%.6% Gypsum 1% 1% 0%.3%.6%.3%.3% 10% 9% 7% 10% 9.5% 7.8% Foil-faced kraft 2% 1% 2% 3% 2.2% 1.0%.7% Foam 5% 6% 5% 6% 6.5% 4.6% 4.2% No Sheathing 2 10% 9% 9% 8% 9.5% 11.0% 7.8% 15% 13% 12% 8% 10.0% 11.9% Other 3 5% 4% 2%.1%.6%.9%.1% Total 100% 100% 100% 100% 99% 100% 100% The gain in market share by wood structural panels largely came at the expense of no sheathing and fiberboard. Beginning in 2011, Styrofoam Structural Insulated Sheathing (SIS) was moved from Other to Foam. 86.2% 5.8% 7.9% 1 May not add to 100% due to rounding. 2 "No Sheathing" includes structural insulated panels, stucco walls without sheathing, siding direct to studs and concrete walls. 3 "Other" indicates that a survey respondent didn't recognize the terminology used in the survey. They simply indicated other. Other included OSB ZIP system through 2009 and Styrofoam SIS through 2010.

8 Wall Sheathing - Foam Single-family Market Share 35% Foam market share fell to 4.2%, a record low. 30% 25% 20% 15% 10% 5% 4.2% 0%

9 Census Divisions of the U.S. A reference for the next data series West North Central East North Central New England Mid-Atlantic Pacific Mountain West South Central East South Central South Atlantic Note: Alaska and Hawaii are in the Pacific Division. Source: U.S. Bureau of the Census

10 Wall Sheathing U.S. Single-family Structural Panel Share Regions Variance New England 96% 89% 94% 91% 96% 95% 92% -3 Mid Atlantic 82% 90% 97% 90% 91% 94% 89% -6 East North Central 76% 89% 88% 83% 86% 84% 90% +6 West North Central 77% 74% 85% 89% 89% 86% 87% +1 South Atlantic 81% 83% 82% 84% 80% 78% 84% +6 East South Central 73% 79% 90% 74% 84% 78% 91% +13 West South Central 45% 62% 65% 63% 62% 80% 85% +5 Mountain 89% 82% 76% 88% 83% 70% 87% +17 Pacific 89% 75% 78% 93% 92% 84% 86% +2 U.S. Total 74% 78% 81% 81% 80% 80% 86% +6 Structural panels gained market share in 7 of the 9 Census Divisions. The cumulative gain in market share in the West South Central division totals 23% over the last two years. Record highs in market share were registered in the East North Central, South Atlantic, East South Central and West South Central divisions in 2014.

11 Wall Sheathing U.S. Single-family Foam Sheathing Share Regions Variance New England.1% 1.0% 1.5% 1.1%.9%.5%.6% +.1 Mid Atlantic 4.5% 3.3% 2.2% 6.7% 5.4%.9% 6.2% +5.3 East North Central 18.8% 6.4% 9.0% 13.9% 10.9% 10.7% 5.3% -5.4 West North Central 5.6% 6.2% 2.7% 2.7% 2.6% 2.1% 6.3% +4.2 South Atlantic 1.5% 2.5% 2.6% 1.6% 3.3% 1.0% 1.6% +.6 East South Central 6.3% 13.4% 8.1% 16.1% 6.0% 16.0% 3.0% West South Central 8.5% 11.7% 8.4% 10.9% 12.2% 2.6% 6.4% +3.8 Mountain.6% 3.7% 7.5% 7.9% 9.6% 15.0% 8.0% -7.0 Pacific 2.9% 4.9% 7.7%.7% 2.2%.4% 1.8% +1.4 U.S. Total 5.4% 6.3% 5.4% 6.5% 6.5% 4.6% 4.2% -.4 Foam market share fell in 3 of the 9 Census Divisions, with the declines being big enough to drive down the overall market share to a record low.

12 Styrofoam Structural Insulated Sheathing Share of Single-family Wall Area Survey results exist for 2011 to 2014 for Styrofoam SIS. Dow introduced this insulated sheathing product five to seven years ago and it is now being manufactured by another company. The 2014 survey shows a very sharp drop in the East South Central states. The 2014 market shares are in line with those of the previous 3 years in the rest of the nation. Single-family* East South Central 6.0%.1% 12.4%.6% South Atlantic 1.2% 2.1%.1% 0% Mid Atlantic 1.1%.2%.1% 2.1% Mountain.6%.4%.8%.2% West South Central.4% 2.1%.1% 2.2% East North Central.4%.5% 1.2% 1.1% New England.4%.4%.1%.4% West North Central.2%.4%.3%.3% Pacific.03%.6%.002%.3% U.S. Average 1.0% 1.2% 1.0%.8% *None Reported in Multifamily

13 Foam Over Structural Sheathing 2-Layer Construction U.S. Single-family Share of Wall Area Regions New England 13.5% 3.3% 8.9% 6.8% 6.3% 11.8% 10.4% 17.9% Mid Atlantic 6.3% 17.6% 11.6% 20.4% 13.5% 6.7% 14.5% 13.9% East North Central 7.8% 9.6% 5.2% 7.8% 15.0% 14.7% 15.7% 5.1% West North Central 8.0% 4.2% 3.6% 5.4% 4.1% 15.9% 6.2% 12.8% South Atlantic 1.6% 7.6% 2.5% 3.6% 1.9% 9.4% 5.2% 6.4% East South Central 1.3% 7.2% 8.0% 8.5% 12.4% 8.1% 8.2% 10.5% West South Central 3.8% 4.3% 5.9% 5.9% 8.1% 12.9% 4.5% 6.6% Mountain 30.0% 13.9% 11.4% 5.0% 21.4% 12.2% 18.4% 20.3% Pacific 2.0% 2.5% 10.8% 12.1% 9.0% 9.2% 16.8% 23.9% U.S. Total 6.8% 7.4% 6.5% 7.4% 8.8% 11.2% 9.6% 11.2% This table shows the percentage of single-family wall area that has a layer of foam over a layer of structural panel sheathing. Market shares rose in 7 of the 9 divisions. Record highs were set in the New England and Pacific states. The market share in total returned to 11.2%, which ties a record high.

14 ZIP System Share of OSB Wall Sheathing Regions New England 5% 27% 37% 29% 29% 43% Mid Atlantic 9% 7% 12% 13% 10% 15% East North Central 1% 1% 1% 3% 2% 3% West North Central 0% 2% 6% 2% 3% 5% South Atlantic 3% 2% 10% 10% 17% 17% East South Central 1% 0% 9% 5% 4% 2% West South Central 10% 3% 13% 16% 8% 11% Mountain 0% 0% 1% 0% 0% 1% Pacific 0% 0% 0% 3% 0% 1% U.S. Total 3% 3% 8% 8% 9% 9% ZIP System usage is most prevalent in the New England states and reached a record high share of the OSB segment in Plywood accounts for 53% of the wood structural panels used for wall sheathing in the New England states, the highest of any division within the country. Plywood s wall sheathing share on a national basis is 15%.

15 Structural Panel Share Gains Percentage Point Changes 13 to 14 Gain +2% West North Central Gain +1% East North Central Gain +6% Mid-Atlantic New England Pacific Mountain Gain +17% West South Central Gain +5% Gain +13% East South Central Gain +6% South Atlantic Mountain gain: Increase in structural panels at the expense of foam and no sheathing East South Central gain: Increase in structural panels at the expense of foam.

16 Structural Panel Share Losses Percentage Point Changes 13 to 14 West North Central East North Central Loss -6% Loss -3% Mid-Atlantic New England Pacific Mountain West South Central East South Central South Atlantic New England loss: No sheathing category gained 2.6 points. Mid-Atlantic loss: Foam gained 5.3 points to account for most of the structural panel share loss.

17 U.S. Wall Sheathing Product Shares Share of Wall Area Structural Panels Single-family 78% 74% 78% 81% 81% 80% 80% 86% Multifamily 79% 82% 71% 80% 86% 91% 81% 82% Foam Single-family 6% 6% 6% 4% 7% 7% 5% 4% Multifamily 6% 3% 7% 5% 5% 2% 4% 12% Gypsum Single-family 1% 1% 1% 0% 0.3% 0.6% 0.3% 0.3% Multifamily 4% 4% 10% 2% 3% 1% 2% 2% Kraft-Foil Single-family 1% 2% 1% 2% 3% 2% 1.0% 0.7% Multifamily 0% 0% 4% 4% 0.3% 0.1% 0.1% 0.7% Fiberboard Single-family 1% 2% 1% 1% 0.4% 0.2% 2% 0.6% Multifamily 1% 1% 1% 0% 0.1% 2% 2% 0.4% No Sheathing 1 Single-family 9% 10% 9% 9% 8% 10% 11% 8% Multifamily 7% 7% 7% 6% 5% 4% 11% 3% Other 2 Single-family 4% 5% 4% 3% 0.1% 0.6% 0.9% 0.1% Multifamily 3% 3% 0% 3% 0.4% 0.1% 0.0% 0.5% 1 "No Sheathing" includes structural insulated panels, stucco walls without sheathing, siding direct to studs and concrete walls. 2 "Other" indicates that a survey respondent didn't recognize the terminology used in the survey. They simply indicated other.

18 U.S. Wall Sheathing Market Demand Single-family Million Sq Ft 3/8" Plywood OSB 3,603 1,907 1,405 1,636 1,286 1,562 1,876 2,128 Total 4,066 2,178 1,607 1,898 1,555 1,899 2,275 2,569 +9% Multifamily Million Sq Ft 3/8" Plywood OSB Total % Total Single-family and Multifamily Million Sq Ft 3/8 Total 4,333 2,509 1,708 2,011 1,741 2,031 2,535 2, % Housing Starts (000) Single-family 1, % Multifamily % Total 1, ,003 +8% Single-family housing starts rose 16%, average wall height was up 1%, and average size was up 6% yielding an increase in wall square footage of 24%, which slightly exceeded the increase in wall sheathing demand. Multifamily starts increased 25%, average wall height rose 1.5% and average size fell 3% yielding a 23% increase in wall square footage. The 30% increase in structural panel use suggests an increase in the structural panel usage rate per square foot.

19 Billion Sq Ft Structural Panel & Nonstructural Sheathing U.S. Single-family 51% 65% Structural Panel Sheathing 3/8 67% % % 33% Competitive Sheathing & Masonry 3/8 Equivalent In 2014, total single-family potential was near 3 BSF with 86% structural panels and 14% nonstructural and masonry construction. 86% 14%

20 Wall Framing: 2x4 and 2x6 Use Linear Feet of Exterior Wall - Single-family Percentage x4-16" O.C. 73.2% 67.7% 59.1% 67.1% 62.7% 57.1% 51.0% 60.0% 57.1% 2x4-24" O.C. 2.5% 2.5% 4.4% 3.4% 2.7% 4.0% 3.7% 0.8% 4.5% Subtotal 75.7% 70.2% 63.5% 70.5% 65.4% 61.1% 54.7% 60.8% 61.6% 2x6-16" O.C. 22.4% 26.3% 32.6% 25.8% 30.3% 32.1% 40.1% 32.5% 33.0% 2x6-24" O.C. 1.7% 3.1% 2.8% 3.0% 3.0% 5.6% 4.8% 6.2% 4.1% Subtotal 24.1% 29.4% 35.4% 28.8% 33.3% 37.7% 44.9% 38.7% 37.1% Other 0.2% 0.4% 1.1% 0.7% 1.3% 1.2% 0.4% 0.5% 1.3% Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 2x6 construction share fell slightly to near 37% in The 2x6 share has averaged 34.4% for the years running from 2006 to inch on center spacing continues to account for over 90% of the wall framing on a national basis in 2014.

21 2x6 Share of Exterior Wall Framing Linear Feet of Exterior Wall - Single-family Percentage Regions New England 65% 74% 51% 72% 77% 70% 81% 74% Mid Atlantic 34% 52% 55% 64% 60% 68% 75% 44% East North Central 34% 39% 26% 31% 42% 44% 43% 37% West North Central 46% 46% 45% 60% 53% 67% 75% 64% South Atlantic 13% 25% 19% 17% 18% 35% 23% 24% East South Central 9% 13% 10% 18% 11% 23% 11% 27% West South Central 13% 14% 7% 8% 20% 27% 16% 18% Mountain 51% 70% 53% 51% 72% 68% 52% 49% Pacific 29% 35% 29% 33% 38% 45% 39% 67% U.S. Total 29% 35% 29% 33% 38% 45% 39% 37% This table shows the percentage of single-family exterior walls framed using 2x6 lumber. The 2x6 share fell in 5 of the 9 Census Divisions in 2014, with the largest decline registered in the Mid-Atlantic states. The largest share gain was registered in the Pacific states, which is dominated by California.