Siding to 2016

This study analyzes the US siding industry. It presents data by siding material (e.g., vinyl, wood, fiber cement, stucco, metal panels, brick, EIFS, concrete and stone), market (residential, nonresidential) and US region including historical demand data for the years 2001, 2006 and 2011, and forecasts for 2016 and 2021 . The study also considers market environment factors, details industry structure, evaluates company market share and profiles industry players.

Demand to approach 100 million squares in 2016

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.

Commpany Profiles

Commpany Profiles for competitors such as Associated Materials, CertainTeed, James Hardie, Louisiana-Pacific, Ply Gem and more.

INTRODUCTION     xii

I. EXECUTIVE SUMMARY       1

II. MARKET ENVIRONMENT       4
General       4
Macroeconomic Environment       5
Demographic Trends       8
Consumer Trends      12
   Personal Income & Expenditures      12
   Consumer Financing      15
Building Construction      19
   Residential Buildings      21
      Housing Completions      23
      Housing Stock      28
      Improvements & Repairs      32
   Nonresidential Buildings      34
      New      34
      Nonresidential Building Stock      37
      Improvements & Repairs      39
Regulatory & Environmental Trends      40
   Environmental Issues      41
   Green Building Standards      43
   Recycling      45
   Other Regulatory Issues      46
Pricing Trends      47
Materials & Technology Trends      49
Historical Market Trends      51
US-Canadian Softwood Timber Dispute      54
Foreign Trade      55
International Activity      58

III. MATERIALS      62
General      62
   Area Outlook      65
   Value Outlook      66
   Installed Costs      67
Vinyl Siding      70
   Markets      73
   Products      75
   Characteristics      77
   Suppliers      80
Fiber Cement      80
   Markets      81
   Products      84
   Suppliers      86
Stucco      86
   Markets      88
   Products      89
      Traditional Stucco      90
      One-Coat Stucco      91
   Suppliers      92
Brick Siding      92
   Markets      94
   Products      96
      Clay Brick      97
      Brick Veneers     100
   Suppliers     102
Wood Siding     103
   Markets     106
   Products     108
      Lumber & Wood Shingles     110
Lumber     113
Shingles & Shakes     114
      Plywood     114
      Hardboard     117
      Other Engineered Wood     119
   Suppliers     123
Metal Panels     124
   Markets     125
   Products     126
   Suppliers     128
Concrete & Stone     129
   Markets     130
   Products     131
      Concrete Block     132
      Precast Panel & Other     135
   Suppliers     137
EIFS     138
   Markets     140
   Products     141
   Suppliers     142
Other Siding     143
   Steel Siding     144
   Polypropylene Siding     147
   Aluminum Siding     148
   All Other Siding     151

IV. MARKETS     153
General     153
Residential     156
   New Residential     161
      Single Family     165
      Multifamily     169
      Manufactured Housing     172
   Improvements & Repairs     175
      Vinyl     179
      Other Materials     181
Nonresidential     183
   New     188
   Improvements & Repairs     192
   Demand by Building Type     196
      Commercial & Lodging     197
      Institutional     199
      Industrial     201
      Office     203
      Other     205

V. REGIONS     207
General     207
Regional Demographic & Economic Activity     208
   Economic Outlook     209
   Population Patterns     211
   Construction Activity     214
   Housing Trends     216
Regional Siding Demand     219
   Northeast     221
      Demand by Market & Subregion     222
      Demand by Material     223
      New England     227
      Middle Atlantic     228
   Midwest     229
      Demand by Market & Subregion     230
      Demand by Material     232
      East North Central     235
      West North Central     236
   South     237
      Demand by Market & Subregion     238
      Demand by Material     240
      South Atlantic     245
      East South Central     246
      West South Central     248
   West     249
      Demand by Market & Subregion     250
      Demand by Material     252
      Mountain     256
      Pacific     258

VI. INDUSTRY STRUCTURE     260
General     260
Industry Composition     261
Market Share by Company     264
      Market Share by Material     268
   Vinyl Siding     269
   Stucco & EIFS Siding     269
   Wood Siding     270
   Brick Siding     270
   Fiber Cement Siding     271
   Metal Panel Siding     271
Manufacturing     272
Competitive Strategies     273
Marketing     276
Distribution     280
Mergers & Acquisitions     282
Company Profiles     285
   Acme Brick, see Berkshire Hathaway
   Alcoa Incorporated     286
   Allied Building Products, see CRH
   Alside, see Associated Materials
   American Buildings, see Nucor
   ASC Profiles, see BlueScope Steel
   Associated Materials LLC     288
   Berkshire Hathaway Incorporated     291
   BlueScope Steel Limited     293
   Boise Cascade Holdings LLC     297
   Boral Limited     298
   Boral Stone Products, see Boral and Owens Corning
   Butler Manufacturing, see BlueScope Steel
   CBC Steel Buildings, see Nucor
   Ceco Building Systems, see NCI Building Systems
   Cedar Valley Shingle Systems Incorporated     301
   CertainTeed, see Saint-Gobain
   Clarke Group     303
   Coronado Stone Products Company     305
   Crane Group     306
   Crane Plastics Siding, see Georgia Gulf
   CRH plc     307
   Dryvit Systems, see RPM International
   Exteria Building Products LLC     311
   Exterior Portfolio by Crane, see Georgia Gulf
   Garco Building Systems, see NCI Building Systems
   General Shale Brick, see Wienerberger
   Gentek Building Products, see Associated Materials
   Georgia-Pacific, see Koch Industries
   Georgia Gulf Corporation     313
   Glen-Gery, see CRH
   Gulf States Manufacturers, see Nucor
   Hanson Brick, see HeidelbergCement
   Hardie (James) Industries SE     316
   Heartland Siding, see ProVia Door
   HeidelbergCement AG     319
   Heritage Stone, see ProVia Door
   Insulated Panel Systems, see NCI Building Systems
   Jenkins Brick & Tile, see Berkshire Hathaway
   Kaycan Limited     322
   Kirby Building Systems, see Nucor
   Koch Industries Incorporated     324
   KP Building Products, see Kaycan
   Louisiana-Pacific Corporation     326
   Mastic Home Exteriors, see Ply Gem Holdings
   MBCI, see NCI Building Systems
   Metl-Span, see BlueScope Steel
   Mitten Incorporated     328
   Napco, see Ply Gem Holdings
   NCI Building Systems Incorporated     330
   Nichiha Corporation     333
   Norandex Building Materials Distribution,
      see Saint-Gobain
   Nucor Corporation     335
   Oldcastle Architectural, see CRH
   Owens Corning     337
   Owens Corning Masonry Products,
      see Boral and Owens Corning
   Ply Gem Holdings Incorporated     339
   ProVia Door Incorporated     343
   Resolite, see Verzatec
   Rogers Block, see CRH
   Rollex Corporation     345
   Royal Group, see Georgia Gulf
   RPM International Incorporated     346
   Saint-Gobain     348
   Schweiter Technologies AG     352
   Shakertown 1992, see Clarke Group
   Steelscape, see BlueScope Steel
   Sto AG     354
   3A Composites USA, see Schweiter Technologies
   Varco Pruden Buildings, see BlueScope Steel
   Variform, see Ply Gem Holdings
   Verzatec SA de CV     356
   Weyerhaeuser Company     357
   Wienerberger Baustoffindustrie AG     358
Additional Companies Mentioned in Study     360


LIST OF TABLES

SECTION I -- EXECUTIVE SUMMARY
Summary Table       3

SECTION II -- MARKET ENVIRONMENT
1 Macroeconomic Indicators       8
2 Population & Households      12
3 Personal Consumption Expenditures      15
4 Consumer Financing Environment, 2001-2011      18
5 Building Construction Expenditures      21
6 Residential Building Construction Expenditures      23
7 New Housing Indicators      28
8 Housing Stock by Type      31
9 Residential Improvement & Repair Expenditures      34
10 Nonresidential Building Construction Expenditures      37
11 Nonresidential Building Stock      39
12 Nonresidential Building Improvement & Repair Expenditures      40
13 Siding Pricing Trends      49
14 Siding Market, 2001-2011      53
15 Siding Products Foreign Trade      58

SECTION III -- MATERIAL
1 Siding Demand by Material in Area Terms      66
2 Siding Demand by Material in Value Terms      67
3 Vinyl Siding Demand      73
4 Fiber Cement Siding Demand      81
5 Stucco Siding Demand      88
6 Brick Siding Demand by Market      93
7 Brick Siding Demand by Product      97
8 Clay Brick Siding Demand     100
9 Brick Veneer Siding Demand     102
10 Wood Siding Demand by Market     106
11 Wood Siding Demand by Product     110
12 Lumber & Wood Shingle Siding Demand     112
13 Plywood Siding Demand     117
14 Hardboard Siding Demand     119
15 Other Engineered Wood Siding Demand     122
16 Metal Panel Siding Demand     125
17 Concrete & Stone Siding Demand     130
18 Concrete & Stone Siding Demand by Product     132
19 Concrete Block Siding Demand     134
20 Precast Panel & Other Siding Demand     137
21 EIFS Siding Demand     139
22 Other Siding Demand by Market & Material     144
23 Steel Siding Demand     146
24 Polypropylene Siding Demand     148
25 Aluminum Siding Demand     150
26 All Other Siding Demand     152

SECTION IV -- MARKETS
1 Siding Demand by Market     155
2 Residential Siding Demand by Market & Material     160
3 New Residential Siding Demand     165
4 New Single-Family Housing Siding Demand     169
5 New Multifamily Housing Siding Demand     172
6 New Manufactured Housing Siding Demand     175
7 Residential Improvement & Repair Siding Demand     179
8 Nonresidential Siding Demand by Market & Material     187
9 New Nonresidential Siding Demand     192
10 Nonresidential Improvement & Repair Siding Demand     196
11 Nonresidential Siding Demand by Building Type     197
12 Commercial & Lodging Siding Demand     199
13 Institutional Siding Demand     201
14 Industrial Siding Demand     203
15 Office Siding Demand     205
16 Other Nonresidential Siding Demand     206

SECTION V -- REGIONS
1 Gross Domestic Product by Region     211
2 Population by Region     214
3 Construction Expenditures by Region     216
4 Regional Housing Indicators     219
5 Siding Demand by Region     220
6 Northeast Siding Demand by Subregion & Market     223
7 Northeast Siding Demand by Material     227
8 Midwest Siding Demand by Subregion & Market     231
9 Midwest Siding Demand by Material     235
10 South Siding Demand by Subregion & Market     240
11 South Siding Demand by Material     244
12 West Siding Demand by Subregion & Market     252
13 West Siding Demand by Material     256

SECTION VI -- INDUSTRY STRUCTURE
1 Siding Revenues for Selected Siding Manufacturers, 2011     263
2 Selected Acquisitions & Divestitures     284


LIST OF CHARTS

SECTION II -- MARKET ENVIRONMENT
1 Year of Construction of Housing Stock, 2011      32
2 Siding Market, 2001-2011      54

SECTION III -- MATERIAL
1 Siding Demand by Material, 2011 Area Versus Value      64
2 Range of Installed Costs for Selected Siding Materials, 2011      70

SECTION IV -- MARKETS
1 Siding Demand by Market, 2011     155
2 Residential Siding Demand by Material, 2011     161
3 Nonresidential Siding Demand by Material, 2011     188

SECTION V -- REGIONS
1 Siding Demand by Region, 2011     221

SECTION VI -- INDUSTRY STRUCTURE
1 Siding Market Share by Company, 2011     265