Mar 23 2010
Over the past four years, the entire building products industry has experienced a major transformation not only in the demand for products, but also in how products are manufactured and delivered to the market. The siding industry is no different. Dramatic swings in raw materials prices, shifting product preferences, demographics changes, supplier consolidation, and dramatic movement in distribution channels all point to the urgent need for an updated review of supply and demand for residential siding in North America.
Since the last Principia report on residential siding in 2008, the market suffered over a 25% decline in demand due to a slowdown in overall new construction starts and siding replacement. To better understand the opportunities in this industry, Principia Partners is conducting its 3rd multi-client study on the subject titled Residential Siding 2010: A Market-Focused Update. The study is due for completion in September 2010.
Vinyl has had a long run of success leading to approximately 40% share of the siding market. Over the past few years, however, many alternatives have become available. Most notably, fiber cement siding has taken hold as a fast growing segment within the category, taking share away from wood and vinyl. Manufactured stone has become increasingly popular as its aesthetics rival natural stone and its price has become more competitive against stucco and brick. Molded polypropylene siding is a value-added niche product that combines the beauty of cedar shake with low maintenance.
Distribution in the siding industry has also changed. Early-buy programs and product inventory levels have been vastly reduced as supplier-distributor relationships continue to evolve. Sourcing is a big change from the boom days, when distributors and dealers carried multiple product lines from multiple suppliers.
This targeted market assessment by Principia Partners will provide excellent perspective on the current market, trends and outlook for the residential siding market in North America. The study will cover on all major types of siding materials. Details on replacement and repair as well as new construction will be provided.
Jim Morton, a Senior Partner at Principia explains, “We are very excited about conducting this 3rd edition of our coverage of the siding category. There are many business issues to thoroughly analyze. For example, are channel strategies shifting as producers seek to capture greater market share and get closer to the customer? Another is, how will one-step distribution change shape as more products come to market and big box retailers attempt to capture share of selected siding products via stock and special orders?”
This report will serve as an important analysis for business planning purposes by existing and new industry participants. Using 2009 as a benchmark, the study will analyze the drivers and trends of the residential siding by region, distribution channel, market segment and material type. The report will also provide business insights on:
- “Voice of Customer” on major trends in design, material usage and market conditions
- Up-to-date assessment of the residential siding market and products
- Identified product development needs and channel opportunities
- Market share review for leading residential siding producers
- Strategic insights into the growth segments of residential siding
A Forecast Modeling Tool will also be available to subscribers who purchase the base report. The tool will provide subscribers not only the data behind Principia's demand forecast, but the ability to change the input assumptions to create their own "what-if" scenarios.
Source: http://www.PrincipiaConsulting.com