Vinyl Slows Wood Millwork Sales.The millwork industry is projected to grow 3.6% annually through 2008 but faces increasing competition from vinyl vinyl /vi·nyl/ (vi´nil) the univalent group CH2dbondCH—.
vinyl chloride a vinyl group to which an atom of chlorine is attached; the monomer which polymerizes to polyvinyl chloride; it is toxic and other materials, according to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. excerpts from The U.S. Millwork Industry report.
THE U.S. MILLWQRK INDUSTRY has grown in the past few years, due in part to a strong construction market combined with increases in the number of home improvement and repair projects that have been undertaken, according to a report from the Commack Commack (kō`măk), uninc. town (1990 pop. 36,124), Suffolk co., SE N.Y., on central Long Island. It is chiefly residential. , NY-based Business Trends Analysts.
In 1998, the market for millwork grew by 3.8% to $11.8 billion. In 1999, the market is expected to increase by a modest 3.2%, as construction activity is expected to slow somewhat. Sales of millwork might be higher, but the industry is facing a serious threat from vinyl which is cutting into its sales, especially in the window segment, the study says. As a result, sales of millwork are expected to grow at an average annual rate of 3.6% per year from 1998 to 2008.
Vinyl Impacts Wood Window Sales
While wood windows had a 24.2% market share in 1998, its share of the millwork market is expected to drop to 21.2% by 2008, as this segment faces competition from vinyl windows. In 1992, wood windows were 47.3% of the market while vinyl windows represented 26.3%. In 1998, vinyl window sales equaled sales of wood prime windows with each capturing 42.7%. Currently, vinyl is more popular in the replacement segment, while wood still holds an advantage in the new construction market. This is projected to change.
Due to vinyl's impact, sales of wood windows are expected to grow at an average rate of 2.2% per year to 2008.
Consumers who are concerned about appearance prefer wood windows, while vinyl has become the preferred material for consumers who are primarily concerned with energy conservation. To meet market demand, some traditional millwork producers, such as Kolbe & Kolbe, Hurd and Weather Shield Manufacturing, have begun to produce vinyl windows.
Sashes, Frames and Mouldings Also Feel Vinyl's Impact
The wood window sash market has been a rocky one in the 1990s, and it, like wood windows, is being affected by vinyl. From 1991 to 1998, the wood window sash market fell at an average annual rate of 1.7%. It rebounded in 1998 as sales grew 1.8% to $133.9 million and it is expected to rise at an average compound rate of 1.7% through 2008.
Despite the fact that door frame sales continue to perform solidly overall, sales of door frames, as well as wood window frames, have also slowed as a result of vinyl's growth. In 1998, the market for wood window and door frames expanded by 4.2%, due in large part to the expansion of the door frame market, which grew by 4.5% in 1998. From 1992 to 1998, the market for door and window frames grew at an average annual growth rate of 2.6% a year, while door frames climbed an an average annual rate of 3.1%. Sales of wood window and door frames are expected to advance at a 3.5% compound growth rate between 1998 and 2008.
To compete with vinyl frames, window frame manufacturers are introducing frame designs that reduce solar gain Solar gain (also known as solar heat gain or passive solar gain) refers to the increase in temperature in a space, object or structure that results from solar radiation. , improve noise reduction and insulation insulation (ĭn'səlā`shən, ĭn'sy–), use of materials or devices to inhibit or prevent the conduction of heat or of electricity. and reduce or eliminate ultraviolet An invisible band of radiation at the upper end of the visible light spectrum. With wavelengths from 10 to 400 nm, ultraviolet starts at the end of visible light and ends at the beginning of X-rays. The primary source of ultraviolet light is the sun. penetration.
Wood molding sales increased by 4.4% to $1.8 billion in 1998, but in the coming years sales of wood moldings are not expected to be as high as sales of vinyl and plastic moldings. From 1998 to 2008, sales of wood moldings are expected to grow at an average annual rate of 3.4% annually. In the wood moldings market, sales of non-prefinished moldings surpassed sales of refinished moldings, capturing a 92.3% market share in 1998. By 2008, the share captured by non-prefinished moldings expected to grow to 92.7%. Nonprefinished moldings are dominated by pine, which accounts for 55.1% of non-prefinished moldings. Prefinished pre·fin·ished
Coated or treated before being sold or distributed: prefinished wood paneling. moldings are dominated by softwoods, which have a 68.8% share of the prefinished moldings market.
Sales of other millwork products increased by 3.9% to $2.7 billion in 1998. This segment includes stairwork, exterior wood blinds and shutters, risers, brackets brackets: see punctuation. , porch porch
Roofed structure, usually open at front and sides, projecting from the face of a building and used to protect an entrance. If colonnaded, it may be called a portico. columns, trellises, wood carvings wood carving, as an art form, includes any kind of sculpture in wood, from the decorative bas-relief on small objects to life-size figures in the round, furniture, and architectural decorations.
The woods used vary greatly in hardness and grain. and ornaments Ornaments are a frequent embellishment to music. Sometimes different symbols represent the same ornament, or vice versa. Different ornament names can refer to an ornament from a specific area or time period. . Increases in sales of wood blinds and shutters corresponded to increases in the remodeling/replacement market, as more consumers are adding blinds and shutters to their homes. In addition, increases in the new construction market have led to an increase in stairwork, as more multistory mul·ti·sto·ry also mul·ti·sto·ried
Having several stories: a multistory hotel.
Adj. 1. houses are being built.
Industry Must Fight Back with Aesthetics aesthetics (ĕsthĕt`ĭks), the branch of philosophy that is concerned with the nature of art and the criteria of artistic judgment. , Improved Products
As long as the construction and remodeling/replacement markets remain strong, the millwork industry should continue to exhibit healthy growth. Growth within this industry would be much stronger, however, if it did not face increasing competition from vinyl products. These products seem to be drawing millwork customers away by offering better durability du·ra·ble
1. Capable of withstanding wear and tear or decay: a durable fabric.
2. and energy-saving qualities. As vinyl grows, millwork manufacturers must either emphasize the aesthetic quality of their wood products or improve their products' durability and energy-saving characteristics. This is already being done with innovations such as low-E glass and water-resistant finishes. A sudden downturn Downturn
The transition point between a rising, expanding economy to a falling, contracting one.
A decline in security prices or economic activity following a period of rising or stable prices or activity. in the construction market, or in the economy as a whole, could be very harmful to the millwork industry, which is already battling competition from lower-cost vinyl products.
U.S. Market for Millwork by Select Type ($ Millions) 1990 1995 1999 TOTAL DOORS [*] $2,571.6 $3,142.7 $3,818.5 MOULDINGS $1,067.2 $1,621.0 $1,833.0 WINDOW UNITS $2,163.1 $2,611.6 $2,961.4 (*.)Includes interior, exterior, and specialty doors Source: U.S. Department of Commerce; Business Trend Analysts Growth of the Millwork Market ($ Billions) 1991 $8.5 1999 $12.1 (est.) 2008 $16.7 (proj.) Source: U.S. Department of Commerce; Business Trend Analysts