Decking makers step up production

The pandemic accelerated decking trends already in place as consumers focused more on the value and role of homes in a world where some 2.5 million people have died from the COVID-19 virus.

Some decking manufacturers were already adding capacity when lockdowns started in March 2020 and sent Americans into their houses and back yards for weeks and months at a time.

Since then, outdoor living spaces have become even more coveted for working and learning from home and social gatherings. Homeowners are showing no signs of letting up on decking investments.

In mid-February, Azek Co. raised its outlook, projecting overall sales to increase 14 percent to 18 percent — up from a range of 10 percent to 14 percent estimated last December.

The Chicago-based company saw sales climb $105 million in its fiscal year that ended Sept. 30, to $899.3 million.

Consumers are clamoring for more, according to Azek CEO Ralph Nicoletti

"We remain encouraged by our strong demand trends, including internal signals like web traffic, digital engagement and sample orders growth, as well as external demand signals, such as housing starts and repair and remodeling activity," Nicoletti said during a Feb. 11 earnings conference call about first quarter 2021 results.

Azek is in the midst of a three-phase plan to increase capacity by 70 percent. The third phase is scheduled to ramp up in the first two fiscal quarters of 2022.

If Azek needs to bolster production even more, Nicoletti said, "… the existing capacity plan does provide some more space in both our Wilmington [Ohio] and our to-be-named West facility to add more incrementally without a lot of extra infrastructure."

Azek also operates manufacturing facilities in Pennsylvania and Minnesota.

With estimated annual profile sales of $515 million, Azek ranks No. 8 among North American pipe, profile and tubing extruders, according to Plastics News' latest ranking.

For 2021, Azek released a new TimberTech Azek brand capped PVC decking line inspired by rustic, reclaimed wood. Called the Landmark Collection, the decking has a natural woodgrain surface texture with unique crosscuts.

Azek applies a proprietary color-cascading technology to the boards to blend several colors and produce highlights and lowlights similar to variations found in nature, according to a news release.

Decking extruders usually build inventory in the last three months of the year but demand never slowed.

For example, decking sales were up 30 percent in the fourth quarter of 2020 compared to the prior year for New London, N.C.-based Fiberon LLC.

"Decking momentum continues to benefit from our distribution wins and execution as we positioned the brand for long-term growth in a market fueled by trends in housing, outdoor living and long-term material conversion from wood to higher performing eco-friendly recycled materials," according to Nick Fink, CEO of Fiberon's parent company, Fortune Brands Home & Security Inc., based in Deerfield, Ill.

Fink spoke about how the company is handling the increased demand during a Feb. 2 quarterly conference call with investment bankers.

"Our distribution wins and capacity expansion plans remain on track," Fink said. "We had incremental capacity come online in the fourth quarter [that we] will expand further at multiple points in time throughout 2021."

Fiberon has production in Meridian, Idaho, in addition to North Carolina. The Idaho facility was renovated and new equipment installed in 2020 to significantly increase capacity of PVC decking, which Fiberon sells under the Paramount brand.

Fiberon also produces decking made from high density polyethylene with wood cores under the Symmetry, Horizon, ProTect Advantage, ArmorGuard and Good Life brands.

The decking uses up to 95 percent recycled content, diverting some 100 million pounds of plastics from landfills annually, the company says.

For 2021, Fiberon is out with a new color for its Good Life Escapes collection of decking, which now comes in multichromatic grayish beige, or what it terms "greige."

The company also is offering matching fascia and risers for all colors of Good Life composite decking as well as Camo brand fasteners and clips for use with its grooved-edge decking boards.

With estimated sales of $225 million, Fiberon ranks No.22 among North American pipe, profile and tubing extruders, according to Plastics News' latest ranking.

Sales of Zuri composite decking also increased, but not at the same rate as the other brands because it is a higher-price point product aimed at a smaller audience.

The decking has a PVC substrate capped with a photo-realistic, wood-grain print and a clear acrylic that resists stains, scratches, fading and moisture. The product line is backed by a 25-year warranty against color shifting.

"We skim the top of the decking market," Steve Booz, marketing vice president for Zuri owner Royal Building Products, said in a phone interview.

Still, he added, "our decking business saw a bump."

The increase came amid a big constraint for the entire decking industry: A shortage of pressure-treated lumber, which is used for decking frames.

"Lumber in general has been an issue. Prices skyrocketed," Booz said. "A couple pressure-treating plants went down early in the pandemic and never caught up. There were and still are significant shortages of pressure-treated lumber used as the framing for decks."

As the Houston-based company works through a back log of orders, it's adding the color hickory to its premium decking product line.

Royal has also added decorative Zuri fascia boards in 8-inch and 12-inch profiles and prefabricated corners, which allow for easier installation and design customization.

From an outdoor living perspective, the pandemic certainly has people doing more daily activities and entertaining outside, noted Kriss Swint, Royal marketing director.

"They want to get out of their house and have some breathing space. They want to increase their footprint with transitional pieces that take the inside to the outside. Outdoor kitchens and pergolas will trend and TVs and fire pits will be more prominent as people create not just patios and decks, but outdoor living spaces," Swint said in a phone interview.

Royal Building Products is a division of Westlake Chemical, which is based in Houston. With estimated sales of $1.26 billion, Westlake is the fourth largest pipe, profile and tubing extruder in North America, according to Plastics News' latest ranking.

Composite decking manufacturer Envision Building Products LLC, in Lamar, Mo., recently acquired Fairway Architectural Railing Solutions in Mount Joy, Pa., to add vinyl, aluminum, steel, composite and cellular PVC railing.

The acquirer retained Fairway's management team and the Fairway brand. The merged companies will cross sell products.

"This acquisition expands Envision's footprint in the outdoor living category and will not only increase market reach but will also provide operational efficiencies," Shara Gamble, vice president of Envision sales and marketing, said in a news release. "The individual strengths of each company are complementary and will have a positive impact on our combined service and product offerings."

In addition to Mount Joy, Fairway has facilities in York, Neb., and Hamilton Township, N.J.