Dallas, TX -- (SBWIRE) -- 05/01/2012 -- US demand for siding is forecast to grow 8.4 percent per year through 2016 to 96.5 million squares, valued at $10.2 billion. Growth will be spurred by an increase in housing completions from their depressed 2011 base. Although housing completions will remain below the levels reached at their cyclical peak in 2006, the recovery will spark above-average gains in the residential siding market through 2016.
Residential market to post strong rebound
The forecast rebound in housing completions through 2016 will re-establish the new housing market as the largest end use for siding. Demand for siding in residential improvement and repair applications will rise at a moderate pace through 2016. Those homeowners that put off improvement projects -- such as the replacement of worn out or out-offashion siding -- will undertake them in the future, boosting demand.
Nonresidential demand for siding is also forecast to grow rapidly through 2016, albeit not at the level of the residential market. Gains will be driven by advancing nonresidential building construction expenditures. The office and commercial and lodging segments, which experienced the most rapid demand declines between 2006 and 2011, will exhibit the strongest growth going forward as more office buildings and retail sites are erected. Many of these structures will be built with such materials as fiber cement and stucco that serve as low-cost alternatives to brick, wood, and stone.
Stucco, brick, fiber cement fastest growing materials
Among material types, stucco, brick, and fiber cement siding are forecast to see the most rapid demand gains through 2016, increasing at double-digit paces. The rebounding residential markets in the South and West regions of the US -- where these materials are most often installed -- are projected to experience the strongest growth in population and housing activity through 2016. Brick and fiber cement see wide use in the South, while stucco is most commonly used in the West region. Thus, as more homes are built and remodeled to meet the needs of the regions’ increasing population, demand for those siding materials will also advance.
Fiber cement siding will continue to take market share from other materials, such as vinyl and wood. Demand for fiber cement siding will be spurred by its ability to be produced into siding that resembles more costly materials, such as brick or stone. Fiber cement siding demand will also be supported by continuing consumer acceptance of the material because of its performance properties, such as resistance to degradation caused by insect attack and moisture.
Vinyl siding accounted for the largest share of siding demand in 2011. Vinyl siding will continue to lead the market in 2016, as such innovations as insulated vinyl siding and products that better resemble natural materials -- such as wood and stone -- will promote demand. However, competition from fiber cement and stucco siding will check growth. Fiber cement and stucco siding offer end users better long-term durability and require less maintenance.
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