Industry Indices Dec/Feb 2019July 12th, 2021 by Nathan Hobbs
Freedonia Stands by Predictions for Market Growth
Despite current indicators for a slowdown in housing in 2019 and tariffs impacting the industry, analysts at The Freedonia Group tell DWM magazine that they’re standing by their long-term predictions for market growth among residential products. The U.S. market for residential doors and windows, the company’s analysts say, is forecasted to grow by 3.7 percent per year, to a total of $24.4 billion in 2022. Key drivers include not only continued (albeit somewhat slower) spending for new construction, but also increased renovation activity, along with shifts in product preferences among consumers and builders to more expensive products.
According to one of the company’s 2018 reports, “Residential Windows and Doors – Demand and Sales Forecasts, Market Share, Market Size, Market Leaders,” in the coming years, Freedonia’s analysts suggest that homeowners will key in on products that offer high performance, as well as those that provide the best aesthetics—both of which they say will drive selections to higher price points among doors and windows. Builders and homeowners, they say, will focus on energy efficiency, high durability (including impact-resistant products) and, “more unique, custom appearances that boost curb appeal,” including, “Windows and doors with modern styles and irregular shapes, larger glazing areas and artistic details …”
Among material types, vinyl is expected to see the greatest advances through 2022, along with fiberglass entry doors and windows. Meanwhile, “Design trends favoring windows and doors with larger glazing areas that let in more light will also prompt home-owners to choose more energy-efficient models to mitigate heat loss,” Freedonia’s analysts suggest.
Moody’s Cites Ramifications of Possible Ongoing Trade War
With a recent onslaught of tariffs between the U.S. and its trade partners looming over 2019 and negotiations off to a slow start between involved countries, analysts are forced to consider the long-term consequences of an ongoing trade war. By press time, the current U.S. administration posted a decision to postpone increases that were set to take affect January 1, 2019, for 90 days, in order to allow for additional talks with Chinese government officials, while also penning a new North American trade deal that could take months to gain approvals.
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