Freedonia Market Research Analyzes Siding Industry

Demand for siding materials is projected to increase 1.6 percent per year to over 115 million squares in 2012.  Gains will derive largely from an expected recovery in residential construction, particularly in single-family housing.  This represents a considerable improvement over the results posted in the 2002-2007 period, as the collapse of the new single-family home market in 2007 wiped out nearly all the gains made from 2002 through 2006.  As a result, total siding demand in 2007 was barely above 2002 levels.  These and other trends, including market share and company profiles, are presented in US Siding, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm. 

Consumption of vinyl siding is projected to increase 1.6 percent annually to over 45 million squares in 2012.  Growth will be moderated by competition from fiber cement siding, which continues to expand its presence in the residential market.  Stucco and related siding materials demand is projected to increase 2.1 percent annually through 2012.  Gains will be concentrated in EIFS, stone-facing products and other siding materials that are used primarily in nonresidential markets.  Traditional stucco siding, on the other hand, will post slower gains.  Consumption of brick siding materials is projected to increase 1.7 percent per year with gains primarily in the dominant residential market, although the much smaller nonresidential market will post more rapid growth. 

Demand for fiber cement siding is forecast to rise 5.1 percent per year through 2012 to 15.1 million squares, representing the fastest growth for any major type of siding material.  However, this is a significant deceleration from the explosive growth achieved during the 1990s, as demand for fiber cement siding begins to mature in certain geographic regions, particularly the South and Southwest. 

Consumption of wood siding materials is projected to decline 1.9 percent annually to 12.7 million squares in 2012.  A number of factors have contributed to the declining market position for wood siding, including high material and installation costs, high maintenance requirements, competition from alternative materials and restrictions on timber harvests.  Metal panel siding demand is expected to increase 1.6 percent per year, driven by anticipated growth in nonresidential construction spending.  Metal panels are most often used in industrial building applications, but also find use in office and commercial building to a lesser extent.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.