Freedonia Industry Study #1413 Study Publication Date: April 2001 Price: $3,700 Siding Pages: 206 Siding, a new study from The Freedonia Group, provides you with an in-depth analysis of major trends in the industry and the outlook for product segments and major markets -- critical information to help you with strategic planning. This brochure gives you an indication of the scope, depth and value of Freedonia's new study, Siding. Ordering information is included on the back page of the brochure. Brochure Table of Contents Study Highlights ............................................................................... 2 Table of Contents and List of Tables and Charts ............................. 4 Sample Pages and Sample Tables from: Market Environment .................................................... 6 Products by Material ................................................... 7 Demand by Market and Region .................................. 8 Industry Structure ........................................................ 9 Company Profiles ...................................................... 10 List of Companies Profiled ........................................ 11 Forecasting Methodology ............................................................... 12 About the Company ....................................................................... 13 Advantages of Freedonia Reports ................................................... 13 About Our Customers .................................................................... 14 Other Titles From Freedonia ......................................................... 15 Ordering Information..................................................................... 16 Study Highlights • Demand for siding in the US is forecast to reach 109 million squares valued at $9.2 billion in 2005. • Fiber cement siding will be the star performer, experiencing unit gains of nearly five percent annually and continuing to wrest market share from wood and, to a lesser extent, vinyl. • Opportunities for siding will be brightest in the repair and improvement segments in both residential and nonresidential markets. • The industrial market will offer the best nonresiden- tial prospects, with an acceleration of siding demand generated by an improving construction outlook for manufacturing facilities, including an increase in maintenance and upgrade activity. • Opportunities for siding are forecast to be strongest in the South through 2005, buoyed by a more favorable outlook for housing and economic activity than the nation as a whole. • The US siding industry is fairly fragmented, with sales of the 13 largest manufacturers amounting to approximately 37 percent of the market in 2000. * Excluded are secondary products such as soffits and trim. In nonresidential markets, neither curtain wall nor loadbearing walls of concrete block, poured concrete or stone are included. Siding #1413 Freedonia Industry Study 2 Study Highlights Siding Product Demand by Material, 2000 Vinyl 38.0% Wood 16.8% Other 2.5% Metal Panels 6.1% Stucco & Related Fiber Cement 17.0% 7.9% Brick 11.7% Siding Product Demand by Material (million squares) % Annual Growth Item 1995 2000 2005 2010 95/00 00/05 Building Construction Expend (bil 96$) 450.6 578.5 608.6 671.2 5.1 1.0 squares/mil 96$ bldg constr 199 182 179 176 — — Siding Demand 89.6 105.1SUMMARY 109.0 118.0 TABLE 3.2 0.7 Vinyl 28.2 39.9 44.1 49.0 7.2 2.0 Wood 28.6 17.7 15.1 12.8 -9.2 -3.1 Stucco & Related 13.5 17.9 18.0 19.5 5.8 0.1 Brick 9.5 12.3 12.4 13.5 5.3 0.2 Fiber Cement 1.3 8.3 10.5 13.5 44.9 4.8 Metal Panels 5.0 6.4 7.0 7.5 5.1 1.8 Other 3.5 2.6 1.9 2.2 -5.8 -6.1 $/square 72.7 79.5 84.6 90.3 1.8 1.3 Siding Demand (million $) 6515 8355 9220 10650 5.1 2.0 © Copyright by The Freedonia Group, Inc. Siding #1413 Order form on last page 3 III. SIDING PRODUCTS BY MATERIAL List of Contents, General ...............................................................................37 Volume Outlook.............................................................38 Table - Siding Product Demand by Material ..............39 Tables and Charts Value Outlook ................................................................39 Table - Siding Market Value by Material ....................40 Chart - Siding Market Value by Material, 2000..........41 Installed Costs.................................................................41 Chart - Average Installed Cost I. EXECUTIVE SUMMARY for Selected Siding Materials ......................................43 Summary Table ................................................................ 3 Vinyl Siding .......................................................................43 Table - Vinyl Siding Demand.........................................46 II. MARKET ENVIRONMENT Markets...........................................................................46 General ................................................................................. 4 Products .........................................................................47 Macroeconomic Environment .............................................. 5 Stucco & Related Materials .................................................48 Table - Macroeconomic Indicators .................................... 7 Table - Stucco & Related Material Siding Consumer Income & Spending ............................................ 7 Demand by Market ......................................................49 Personal Income & Expenditures...................................... 8 Markets...........................................................................50 Table - Personal Income & Expenditures...................... 9 Products .........................................................................50 Consumer Financing ........................................................ 9 Table - Stucco & Related Material Siding Table - Consumer Financing Environment ................11 Demand by Product .................................................51 Demographic Trends .........................................................11 Stucco .........................................................................51 Population ......................................................................12 Table - Stucco Siding Demand ...............................53 Table - Population Trends ..........................................14 EIFS............................................................................53 Households .....................................................................14 Table - EIFS Siding Demand ..................................55 Building Construction Trends ...........................................15 Other ..........................................................................55 Table - Building Construction Expenditures ..................17 Table - Stone, Concrete & Other Nonmetallic Residential Construction .................................................17 Mineral Material Siding Demand ..........................57 Table - Residential Construction Expenditures ...........19 Wood Siding ......................................................................57 Housing Starts.............................................................19 Table - Wood Siding Demand by Market ......................59 Table - Housing Indicators ......................................21 Markets...........................................................................60 Housing Completions .................................................21 Products .........................................................................60 Housing Stock.............................................................22 Table - Wood Siding Demand by Product .................61 Chart - Year of Construction of Housing Stock, 2000 ...23 Plywood......................................................................61 Repair & Improvement ...............................................23 Table - Plywood Siding Demand ............................63 Table - Residential Repair & Improvement Hardboard ..................................................................64 Expenditures .........................................................24 Table - Hardboard Siding Demand.........................66 Nonresidential Construction ...........................................24 Other Engineered Wood.............................................66 Table - Nonresidential Construction Expenditures .....26 Table - Other Engineered Wood Siding Demand .....68 Pricing Patterns ..................................................................26 Lumber & Wood Shingles ..........................................68 Table - Siding Pricing Trends .........................................28 Table - Lumber Siding & Wood Shingles Demand ....71 Market Trends ...................................................................28 Brick ................................................................................71 Table - Siding Market Trends, 1990-2000 ....................30 Table - Brick Siding Demand .........................................72 Chart - Siding Market Trends, 1991-2000 ....................30 Markets...........................................................................72 Materials & Technology Trends.........................................31 Products .........................................................................74 Legislation & Regulatory Considerations ............................32 Fiber Cement .....................................................................75