Volume 10, Issue 7 - September 2009

Industry Indices 

Global Report on Door and Window Market Forecasts Declining Demand

China is expected to surpass the United States as the largest market for doors and windows by 2013, according to the Freedonia Group’s new study, “World Windows & Doors.” The report predicts that product demand in China will account for more than half of the worldwide forecast between 2008 and 2013.

The study also noted that demand for doors and windows in China is expected to rise nearly 12 percent annually to $40 billion in 2013. Although the rate of growth will slow compared to the 2003-2008 period, the size of the gains will continue to increase, according to the Freedonia Group. The growth will likely be a result of increasing building construction, especially in the nonresidential market.

Globally, the demand for doors and windows is expected to see growth of about 4.3 percent per annum to $167 billion by 2013. This compares to the growth of 7.9 percent the market experienced between 2003 and 2008. According to the study, projected declines in prices for doors and windows, as well as a weak outlook for building construction throughout Western European, will likely contribute to the deceleration.

While much of the world is seeing a deceleration in demand, along with China both India and Indonesia also are forecasted to experience above average growth between 2008 and 2013.

Freedonia also expects plastic doors and windows to be among the fastest growing products through 2013, though these products will will only make up one-fifth of the global market, according to the study. Reasons for the increase include the loc cost and reduce maintenance requirements of plastic doors and windows, along with their insulating properties, according to Freedonia.

Both new construction as well as improvement and repair markets also are likely to decline, Freedonia reports. For new construction as well as repair/improvements, the Asia/Pacific region is forecast to be the fastest growing region. Demand for new construction in Eastern Europe is also expected to grow.

Global Door and Window Demand by Market

(in billions of dollars)

Item 1998 2003 2008 2013 2018
Door and window demand 75.8 92.9 135.6 167.0 223.5
Residential buildings 48.7 59.7 81.2 100.4 132.0
New construction 26.6 32.9 45.1 59.0 79.8
Improvement and repair 22.1 26.8 36.1 41.4 52.1
Nonresidential buildings 27.1 33.2 54.4 66.6 91.5
New construction 15.3 18.9 33.2 40.5 56.7
Improvement and repair 11.8 14.3 21.2 26.1 34.8

Source: The Freedonia Group Inc.



June Numbers Offer Some Good News for Housing Market

The housing industry received some positive news in July: Sales of newly built, single-family homes rose 11 percent in June to a seasonally adjusted annual rate of 384,000 unit, according to U.S. Commerce Department numbers. The gain marks a third consecutive month of improved sales activity, according to the National Association of Home Builders (NAHB).

”[This] report is good news that indicates the nation’s housing market may be in the process of turning the corner,” says Joe Robson, NAHB chairman and a home builder from Tulsa, Okla.

But he adds that Congress needs to take action to make sure this positive news continues.

“The key to moving us out of recession is to get Americans back to work,” Robson says. “Congress and the Administration should know that housing can be a significant generator of good jobs. We need to make housing a priority in the recovery process,otherwise we could continue to bounce along a bottom for some time.”

More good news was that the gain in home sales was reflected in three out of four regions (sales activity declined 5.3 percent in the South, which is the country’s largest housing market) and helped shrink the inventory of new homes for sale to its lowest level in years, according to NAHB chief economist David Crowe.

“Even so, the pace of home sales in June 2009 was still more than 21 percent off the pace of sales in the same month last year, so we still have quite a way to go,” he says. “The concern now is that complicating factors—particularly job losses, appraisal issues that are torpedoing more than a quarter of new-home sales, and the impending expiration of the first-time buyer tax credit—threaten to stifle the positive momentum.”



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