The North American residential siding market decreased 25 percent between 2008 and 2010, but now is poised for recovery, according to a report from Principia Partners.
The residential siding market will experience good growth as new construction picks up in the next two to three years, according to the Exton-based consulting company's report, “Residential Siding 2010.”
Vinyl siding will continue to hold the largest part of the market, but other materials continue to chip away its share, said Ken Jacobson, a partner at Principia.
“The top four materials in the siding industry — vinyl, fiber cement, stucco, and brick — will account for 80 percent of the total new value creation in the siding market through 2012. In fact, vinyl and brick — the two most significant material categories — will account for nearly 50 percent of the total demand increase,” he said in a news release.
Residential siding demand is projected to grow an average of 7 percent per year to reach 69 million squares, valued at $5.6 billion, in 2012. The ratio of demand in remodeling to new construction will come down from roughly 3:1 in 2009 to 2:1 in 2012.
Principia predicts that new vinyl products — such as siding with laminated insulating foam, cellular vinyl and ultraviolet-light-resistant dark colors — “do not appear to be game-changers” when it comes to competing with fiber cement, masonry veneer and engineered wood alternatives.
“With tight budgets, but armed with more knowledge, homeowners are making siding material choices based on perceived value and bang-for-buck decision making,” Jacobson said.
For example, although thicker siding may last longer and perform better, consumers looking to stretch their budgets are likely to buy lower-end products, he said.