Demand for exterior siding is forecast to climb 3.8 percent per year through 2010 to 5.1 billion square meters, valued at $69 billion.
The forecast, which is part of a new report from the Freedonia Group, says China will record the largest gains of any national market and will surpass the U.S. to become the largest cladding market in the world. Sales growth is also expected to be strong in India and Russia, as well as in lower-volume markets in the developing world.
Demand for siding in developed countries will rise too, although the rate of increase will be less robust than in developing parts of the world. Product sales in Western Europe will accelerate through 2010, and siding demand in Japan is expected to exhibit renewed strength following an extended period of decline. Market gains will be fueled by generally favorable economic conditions and higher income levels, leading to growth in both repair/remodeling activity and new building construction.
In the U.S., overall siding sales levels will remain essentially flat. Although nonresidential building construction expenditures will increase through 2010, new housing starts are expected to decline, preventing cladding sales in the nation from expanding at a faster pace.
Globally, masonry and concrete cladding products are the most popular, accounting for over two-thirds of all demand in 2005, with brick and tile being the single most widely used product type. Demand for metal, and concrete and stone siding will register the strongest market gains through 2010. Fiber cement siding demand will also rise at an above-average rate, driven by performance attributes, comparatively low cost, and the ability to mimic the appearance of other cladding materials.
Residential building applications, which currently account for 65 percent of all siding sales, will continue to dominate world demand through 2010, although advances will be limited by a generally weak sales climate in the U.S. and by a deceleration in residential building construction activity in a number of other areas. Demand for cladding used in nonresidential applications will expand at a faster pace, stimulated by a step-up in construction expenditures in Western Europe, Latin America and the Africa/Mideast region.
Kitchens & BathsCabinets Sales Impacted by Housing Slowdown
The softness in the nation’s housing market continued last month, impacting overall sales of key kitchen and bath products — particularly cabinetry — although forecasts are for the downturn to ease by mid-year and residential remodeling to continue its steady growth. Among the statistics and forecasts released by government agencies, research firms and industry-related trade associations in recent weeks were the following:
Sales of kitchen cabinets and bathroom vanities declined sharply in February, continuing a four-month pattern of declines attributable primarily to ongoing softness in the market for new residential construction, the Kitchen Cabinet Manufacturers Association said last month. According to the Reston, Va.-based KCMA, manufacturers participating in the association’s monthly “Trend of Business” survey reported that overall cabinet sales fell 15.5 percent in February compared to the same month in 2006. Sales of stock cabinets decreased 21.1 percent for the month, while semi-custom cabinet sales fell 9.8 percent and custom cabinet sales declined 8.7 percent. Year-to-date sales through the first two months of 2007 were down 13 percent from the January-February time period of 2006, the KCMA said.
DreamMaker Poll Taps Consumer Trends and Sentiment
A recent survey of DreamMaker Bath & Kitchen remodeling franchises revealed the top trends and market conditions in the markets they serve across the U.S.
According to Doug Dwyer, president of DreamMaker Worldwide, the top design trends include: value-enhancing interior features like granite and other solid surfaces, professional quality kitchen appliances, luxury amenities, architectural detail and energy-saving appliances and materials.