The Fenestration and Glazing Industry Alliance (FGIA) hosted its Virtual Summer Summit last week, including a current assessment of the state of the industry for both the United States and Canada. Among the biggest factors impacting Canada are recent changes in federal politics and trade relations with the U.S., Louis-Philippe Champagne, from the Canadian Construction Association, told attendees. Champagne cited change at the federal level and trade relations with the U.S. as two key factors.
“Right now, we are experiencing organized chaos,” he said. “The election of [Donald] Trump as the U.S. President transformed Canadian relations with the U.S. We have seen key policies changed and the impacts of that.”
Champagne said that uncertainty is palpable across Canada, including all demographics.
“I start with public sentiment because it’s tied to construction,” he said. “Our workforce and markets are affected by it. Canadians have been feeling uncertainty when it comes to investment in construction. Much of this is because of the political shuffle of the last six months.”
Former Canadian Prime Minster Justin Trudeau left in January, triggering a leadership race and an election in the spring. Mark Carney took office at that time.
“The election had an impact on construction,” said Champagne. “At the CCA, we have been fighting for years to bring awareness of the industry to Ottawa [the federal government]. They have an important role to play in making sure we have the workforce we need but also investing in infrastructure around the country.”
Champagne expects to see this recognized by a new administration but anticipates lasting impacts from current trade relations. At the same time, he predicts an improvement with trade negotiations now that Prime Minister Carney is in power.
“Carney comes with a stronger business agenda,” he said.
Rhett Bender of global consulting firm Ducker Carlisle, shared details about the most recent FGIA market study, including a breakdown of factors impacting available data in the U.S.
In an FGIA-members only session, Bender reminded participants that Ducker has been working with the association to conduct research since 1982. He said there have been many factors influencing the fenestration and glazing market since that time, providing an overview of the recent state of the industry, including a look at tariffs, high interest rates, immigration and Energy Star.
“There is a lot of economic uncertainty with fenestration products specifically,” Bender said. “Residentially, these tariffs will raise the costs for homebuilders. There is a higher likelihood of inflation in this category now, from products from overseas.”
He anticipates that larger, multi-family projects may be less affected in the short term.
Meanwhile, on the residential side energy savings has always been a big driver of window replacement, but one of the industry’s marketing tools now faces uncertainty. There were already challenges associated with Energy Star Version 7, he said, adding, “And now that funding is going away, the future is uncertain.”
Summit attendees gained legal insights in the sustainability realm as well, courtesy of experts from Keller and Heckman Law Firm. Jean-Cyril Walker and Alexa Pecht gave a presentation entitled, “’Green’ Claims – Understanding Benefits & Risk in the U.S.,” while their colleague, James Votaw, presented “PFAS – A Checklist for Assessing Potential Risks.” Both contained action items companies can take now to help mitigate risks.
“The issue of making ‘green’ claims has been evolving over the last five years and is increasing in terms of risk,” said Walker. “Customers and businesses are looking for better environmental performance of products and materials, but they need to understand the claims around that.”
Environmental marketing claims use words like sustainable, circular and eco-friendly, or recyclable, said Walker, adding, “You see these in emails and social media posts and other forms of communication. They are viewed as promoting a claim.”
But all claims must be truthful and not misleading, he said, as they’re interpreted from the perspective of a reasonable consumer.
“This means that audience sophistication is considered,” he said. “A claim is misleading if a substantial number of consumers, around 20%, is misled.”
To avoid this, keep track of substantiation of claims, said Pecht, as, “Substantiation is the proof behind the claims you are making that would be material to the claims,” she added. “It cannot be developed after the fact. Claims must be supported by reliable, scientific evidence like studies or research. Generalized knowledge or assumptions are insufficient. Suppliers may provide certifications or assurances, but it really depends on the context in which they are used.”
Pecht’s recommendations include having internal documentation about one’s products.