It looks like the staycation economy is continuing for a second summer of the pandemic.
That's good news for companies making items for home improvement projects such as Trex Co. Inc., the maker of composite decking from recycled plastic and wood fiber. The Virginia-based company is bringing an expansion into operation 30 days ahead of schedule as it works to meet rising demand.
"We are running all of the assets we have and getting every single linear foot of decking and railing out to the marketplace," CEO Bryan Fairbanks said during a quarterly sales call with analysts.
Its sales were up 23 percent vs. the same quarter in 2020, and it anticipates a boost of 36 percent for the next quarter. Even better for the overall growth of composite decks, the rising price of lumber is making the plastic and wood fiber decks more cost competitive. Even a small gain over lumber decking makes a big difference.
"Our analysis indicates that a 1 percentage point market share gain from [wood] would translate to over $15 million of annual sales," Fairbanks said.