US Molding and Trim Demand to Exceed $10 Billion in 2014

US demand for molding and trim is forecast to exceed $10 billion in 2014 on annual increases of 10.0 percent.  An expected rebound in new residential construction expenditures from their depressed 2009 level will fuel gains.  As the housing market contracted from 2006 through 2009, molding and trim demand suffered a steep decline.  The new residential market, which normally accounts for more than 40 percent of overall demand for molding and trim, saw its share drop to just over 20 percent in 2009.  Even though the recovery in housing completions will still fall short of the 2004 level, new residential demand for molding and trim will have regained its usual share by 2014.  These and other trends, including market share and product segmentation, are presented in Molding & Trim, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Best prospects will be seen for new residential building applications. Demand in the nonresidential building market, which managed modest growth over the 2004-2009 period, will accelerate as construction activity in the office and commercial segment, a key market for nonresidential molding and trim demand, recovers from weakness triggered by the US recession.

Interior molding accounts for the largest share of molding and trim demand.  Because interior molding is widely used in all major types of housing, demand for these products will receive a major boost from the anticipated rebound in new residential construction.  Value gains will be slightly faster, however, for exterior trim, aided in part by demand for higher-priced, more durable materials such as plastic.

Despite competition from plastics and wood-plastic composites, wood will remain the leading material for molding and trim, with gains supported by the recovery in residential building construction.  Solid price gains for wood will further boost market value.  By 2014, plastic is forecast to surpass metal as the second leading material for molding and trim.  Demand for plastic products will benefit from the rebounding new residential construction market, especially for exterior trim.  Plastic products perform better than wood against exposure to the elements, thus making plastic an ideal choice for exterior molding and trim products.  Further, improvements in the appearance of plastic have made high-end plastic molding almost indistinguishable to the untrained eye from wood molding.

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.