US demand for wood-plastic composite and plastic lumber is projected to grow over 13% per year to $5.4 billion in 2015, creating a market for 2.6 billion pounds of plastic. Advances will be driven by a rebound in construction expenditures from a depressed 2010 base. Further growth will be boosted by increasing consumer demand for building products made from composite and plastic lumber, instead of more traditional materials, such as natural wood. Composite and plastic lumber offer a wide range of favorable performance properties, including durability, minimal maintenance requirements, resistance to degradation caused by the elements, and the ability to be cut and hewn like natural wood. The perception of these materials as being “green” products that keep materials out of waste streams and reduce deforestation will also support demand.
Decking, molding & trim to pace gains by application
Decking, which was the leading application for composite and plastic lumber in 2010, will experience the most rapid demand advances through 2015. Homeowners will install decks made from these materials instead of traditional natural wood lumber because composite and plastic lumber decks require less annual maintenance and have longer lifespans. While decks made from these materials may cost more initially, composite and plastic lumber decks can cost less in the long term, since they do not require annual staining or insect treatments.
USA Plastic Lumber and Wood-Plastic Composite Market Report
Published: January 2012
No. of Pages: 399
: US$5100
Among other applications, molding and trim and fencing are expected to post the most rapid demand gains through 2015. Molding and trim demand will be supported by the rebounding residential market increases in housing completions, boosting demand for building materials. Growth in fencing demand will be promoted by the residential improvement and repair market. Homeowners will install fencing made from vinyl and other materials because of their colorfastness and resistance to rotting. Demand for composite and plastic lumber in landscape and outdoor products, windows and doors, and other applications will be promoted by continued consumer recognition of the performance properties of these materials.
Composite lumber to outpace plastic lumber
Wood-plastic composite lumber will register more rapid gains than plastic lumber, advancing over 16 percent annually to $2.5 billion in 2015. Gains will be driven by ongoing consumer interest in the material as a substitute for natural wood products in such applications as decking and fencing. Moreover, because wood-plastic composite lumber incorporates recycled materials, it is seen as an environmentally friendly building material. Plastic lumber demand is forecast to increase nearly eleven percent per year to $2.8 billion in 2015. Gains will be spurred by heightened consumer interest in the material because of its low maintenance properties. The efforts of manufacturers to create plastic lumber varieties with more realistic woodgrain textures and surfaces will also support demand.
Company Profiles
Profiles competitors such as AZEK Building Products, Fiberon, Royal Group, Tapco, Trex and more.
Additional Information:
The totals for plastic lumber in this study do not include applications in which plastics (primarily vinyl) have already attained substantial market share as of 2010 or compete more with metal than wood. For instance, excluded from the scope of this report are plastic siding, extruded plastic windows and doors, plastic playground equipment, vinyl patio furniture, and vinyl flooring. Cellulose-resin board products, such as oriented strand board, plywood and strawboard, are not included in the scope of the wood-plastic composite lumber segment.
Historical data for 2000, 2005 and 2010 and forecasts for 2015 and 2020 are provided for demand in dollar value for the primary applications, markets and detailed geographic regions of the US. Demand for decking products is also given in lineal feet. Estimates of material usage are provided by weight for cellulosics and plastic resins. Some of the components in the tables may not add to the totals because of rounding. Throughout the study, demand is related to various indicators in the tables (e.g., gross domestic product and construction expenditures). The macroeconomic indicators used in this study were obtained from The Freedonia Group Consensus Forecasts dated August 2011. Because of the Bureau of Economic Analysis’ use of chain-weighted price indexes, inflation-adjusted Gross Domestic Product components (2005 dollars) do not necessarily add to the total.
Table of Contents
INTRODUCTION xiii
I. EXECUTIVE SUMMARY 1
II. MARKET ENVIRONMENT 4
General 4
Macroeconomic Overview 5
Consumer Trends 9
Personal Income & Expenditures 9
Consumer Financing 11
Demographic Outlook 15
Construction Outlook 19
Building Construction 23
Residential Buildings 25
Housing Completions 28
Housing Stock 33
Improvements & Repairs 37
Nonresidential Buildings 38
New 39
Nonresidential Building Stock 42
Improvements & Repairs 44
Nonbuilding Construction 45
Construction Expenditures 46
Nonbuilding Construction Stock 47
Pricing 48
Environmental Issues 50
Regulations & Standards 54
Building Codes 54
Materials Standards 55
Treated Lumber 56
Foreign Trade 57
World Market 58
North America 59
Western Europe 60
Asia/Pacific 61
Other Regions 62
III. MATERIALS 64
General 64
Material Demand 65
Wood-Plastic Composite Lumber 67
Material Characteristics 68
Cellulosic Materials 69
Plastic Resins 71
Polyethylene 72
PVC 74
Other Resins 75
Additives & Modifiers 77
Plastic Lumber 78
Material Characteristics 80
PVC 80
Material Characteristics 81
Characteristics by Application 82
Polyethylene 83
Material Characteristics 84
Characteristics by Application 85
Other 86
IV. APPLICATIONS 88
General 88
Decking 92
Decking Sales Outlook 93
Wood-Plastic Composite & Plastic Decking 97
Wood-Plastic Composite Decking 98
Demand by Function 101
Demand by Market 102
Demand by Material Type 104
Product Characteristics 105
Product Development 108
Suppliers 109
Plastic Decking 113
Demand by Function 114
Demand by Market 115
Demand by Material Type 116
Suppliers 123
Molding & Trim 127
Molding & Trim Sales Outlook 127
Wood-Plastic Composite & Plastic Molding & Trim 131
Wood-Plastic Composite Molding & Trim 133
Demand by Market 135
Product Characteristics 136
Plastic Molding & Trim 137
Demand by Market 138
Product Characteristics 139
Resins 140
Suppliers 143
Fencing 147
Fencing Sales Outlook 148
Wood-Plastic Composite & Plastic Fencing 150
Wood-Plastic Composite Fencing 154
PVC Fencing 155
HDPE & Other Plastic Fencing 158
Suppliers 158
Landscaping & Outdoor Products 161
Landscaping & Outdoor Products Sales Outlook 162
Wood-Plastic Composite & Plastic Landscaping & Outdoor
Products Demand 165
Demand by Product Type 166
Outdoor Structures 167
Playground Equipment 169
Edging & Walkways 170
Site & Leisure Furniture 171
Pots & Planters 172
Other Products 172
Demand by Material & Market 172
Demand by Material 173
Demand by Market 174
Suppliers 176
Windows & Doors 177
Window & Door Sales Outlook 178
Wood-Plastic Composite & Plastic Windows & Doors 181
Demand by Material 182
Demand by Market 183
Product Characteristics 184
Suppliers 185
Other 188
Demand by Market 189
Demand by Application 190
Suppliers 193
V. MARKETS 194
General 194
Residential Buildings 197
New 199
Demand by Material 200
Demand by Application 201
Improvement & Repair 202
Demand by Material 203
Demand by Application 204
Demand by Application 205
Demand by Housing Type 208
Single-Family 210
Multifamily 212
Manufactured Housing 214
Nonresidential Buildings 216
New 218
Demand by Material 220
Demand by Application 220
Improvement & Repair 221
Demand by Material 222
Demand by Application 223
Demand by Application 224
Nonbuilding Construction 226
New 228
Demand by Material 229
Demand by Application 230
Improvement & Repair 231
Demand by Material 232
Demand by Application 233
Demand by Application 234
Agricultural 235
Demand by Material 237
Demand by Market 238
VI. REGIONS 240
General 240
Regional Demographic & Economic Activity 241
Population Patterns 242
Economic Outlook 244
Construction Activity 247
Housing Trends 249
Regional Wood-Plastic Composite & Plastic Lumber Demand 251
Northeast 255
New England 257
Middle Atlantic 258
Midwest 259
East North Central 263
West North Central 264
South 264
South Atlantic 268
East South Central 269
West South Central 270
West 271
Mountain 275
Pacific 277
VII. INDUSTRY STRUCTURE 279
General 279
Industry Structure 280
Market Share 284
Manufacturing 289
Extrusion 289
Injection Molding 290
Equipment 291
Developments 292
Product Development 293
Competitive Strategies 296
Marketing 297
Distribution 300
Mergers & Acquisitions 301
Cooperative Agreements 303
Company Profiles 309
ACT Composite Timbers Incorporated 310
Advanced Environmental Recycling Technologies
Incorporated 311
Alside, see Associated Materials
American Vinyl Concepts Incorporated 313
Andersen Corporation 315
Associated Materials LLC 317
Atrium Companies Incorporated 320
AVCON, see American Vinyl Concepts
Axion International Holdings Incorporated 322
AZEK Building Products, see CPG International
Barrette 324
Bedford Technology LLC 326
Bright Idea Shops LLC 328
Building Materials Corporation of America 329
Cascades Incorporated 331
CertainTeed, see Saint-Gobain
Correct Building Products,
see Building Materials Corporation of America
CPG International Incorporated 333
Crane Group 337
Crane Plastics Siding, see Georgia Gulf
Endura Products Incorporated 340
Euramax Holdings Incorporated 342
Exterior Portfolio by Crane, see Georgia Gulf
Exterior Profiles Corporation 343
Fiber Composites, see Fiberon
Fiberon LLC 344
Fortune Brands Home & Security Incorporated 349
Fypon, see Fortune Brands Home & Security
GAF Materials,
see Building Materials Corporation of America
Genova Products Incorporated 351
Gentek Building Products, see Associated Materials
Georgia Gulf Corporation 353
Gracious Living Corporation 357
Green Bay Decking LLC 358
HB&G Building Products Incorporated 360
Headwaters Incorporated 362
Inteplast Group Limited 365
LB Plastics Incorporated 366
Liberty Diversified Industries Incorporated 368
Louisiana-Pacific Corporation 369
Master Mark Plastics 370
Mikron Industries, see Quanex Building Products
N.E.W. Plastics Corporation 372
Plastic Lumber, see Bright Idea Shops
Ply Gem Holdings Incorporated 374
Quanex Building Products Corporation 378
Renew Plastics, see N.E.W. Plastics
Royal Building Products, see Georgia Gulf
Saint-Gobain 380
Strandex Corporation 383
TAMKO Building Products Incorporated 384
Tapco Group, see Headwaters
Tech-Wood USA LLC 386
TimberTech, see Crane Group
Trex Company Incorporated 387
Universal Forest Products Incorporated 391
VEKA AG 394
Westech Building Products, see Westlake Chemical
Westlake Chemical Corporation 397
Additional Companies Mentioned in Study 399
LIST OF TABLES
SECTION I -- EXECUTIVE SUMMARY
Summary Table 3
SECTION II -- MARKET ENVIRONMENT
1 Macroeconomic Indicators 8
2 Personal Consumption Expenditures 11
3 Consumer Financing Environment, 2000-2010 14
4 Population & Households 19
5 Construction Expenditures 22
6 Building Construction Expenditures 25
7 Residential Building Construction Expenditures 28
8 New Housing Indicators 33
9 Housing Stock by Type 36
10 Residential Improvement & Repair Expenditures 38
11 Nonresidential Building Construction Expenditures 41
12 Nonresidential Building Stock 44
13 Nonresidential Building Improvement & Repair Expenditures 45
14 Nonbuilding Construction Expenditures 47
15 Nonbuilding Construction Stock 48
SECTION III -- MATERIALS
1 Wood-Plastic Composite & Plastic Lumber Demand by Product & Material 66
2 Wood-Plastic Composite Lumber Demand 67
3 Plastic Lumber Demand by Resin Type 79
SECTION IV -- APPLICATIONS
1 Wood-Plastic Composite & Plastic Lumber Demand by Application & Material 91
2 Decking Demand 96
3 Decking Demand for Wood-Plastic Composite & Plastic Lumber 98
4 Wood-Plastic Composite Decking Demand by Function & Market 101
5 Wood-Plastic Composite Decking Demand by Material Type 105
6 Plastic Decking Demand by Function & Market 114
7 Plastic Decking Demand by Material Type 117
8 Molding & Trim Demand 131
9 Molding & Trim Demand for Wood-Plastic Composite & Plastic Lumber By Material & Market 133
10 Molding & Trim Demand for Wood-Plastic Composite Lumber by Market 135
11 Molding & Trim Demand for Plastic Lumber by Market 138
12 Fencing Demand 150
13 Fencing Demand for Wood-Plastic Composite & Plastic Lumber by Material & Market 154
14 Landscaping & Outdoor Products Demand 165
15 Landscaping & Outdoor Products Demand for Wood-Plastic Composite & Plastic Lumber 167
16 Landscaping & Outdoor Products Demand for Composite & Plastic Lumber by Material & Market 173
17 Window & Door Demand 181
18 Window & Door Demand for Wood-Plastic Composite & Plastic Lumber by Material & Market 182
19 Other Applications Demand for Wood-Plastic Composite & Plastic Lumber 189
SECTION V -- MARKETS
1 Wood-Plastic Composite & Plastic Lumber Demand by Market 196
2 Residential Building Market for Wood-Plastic Composite & Plastic Lumber 199
3 New Residential Building Market for Wood-Plastic Composite & Plastic Lumber 200
4 Residential Improvement & Repair Market for Wood-Plastic Composite & Plastic Lumber 203
5 Residential Wood-Plastic Composite & Plastic Lumber Demand by Application 207
6 Residential Wood-Plastic Composite & Plastic Lumber Demand by Housing Type 209
7 Single-Family Housing Market for Wood-Plastic Composite & Plastic Lumber 212
8 Multifamily Housing Market for Wood-Plastic Composite & Plastic Lumber 214
9 Manufactured Housing Market for Wood-Plastic Composite & Plastic Lumber 216
10 Nonresidential Building Construction Market for Wood-Plastic Composite & Composite Lumber 218
11 New Nonresidential Building Market for Wood-Plastic Composite & Plastic Lumber 219
12 Nonresidential Building Construction Improvement & Repair Market for Wood-Plastic Composite & Plastic Lumber 222
13 Nonresidential Building Construction Wood-Plastic Composite & Plastic Lumber Demand by Application 225
14 Nonbuilding Construction Market for Wood-Plastic Composite & Plastic Lumber 227
15 New Nonbuilding Construction Market for Wood-Plastic Composite & Plastic Lumber 229
16 Nonbuilding Construction Improvement & Repair Market for Wood-Plastic Composite & Plastic Lumber 232
17 Nonbuilding Construction Wood-Plastic Composite & Plastic Lumber Demand by Application 235
18 Agricultural Wood-Plastic Composite & Plastic Lumber Demand by Material & Market 237
SECTION VI -- REGIONS
1 Population by Region 244
2 Gross Domestic Product by Region 246
3 Construction Expenditures by Region 248
4 Regional Housing Indicators 251
5 Wood-Plastic Composite & Plastic Lumber Demand by Region 254
6 Northeast Wood-Plastic Composite & Plastic Lumber Demand by Subregion & Application 257
7 Midwest Wood-Plastic Composite & Plastic Lumber Demand by Subregion & Application 262
8 South Wood-Plastic Composite & Plastic Lumber Demand by Subregion & Application 267
9 West Demand for Wood-Plastic Composite & Plastic Lumber by Subregion & Application 275
SECTION VII -- INDUSTRY STRUCTURE
1 Wood-Plastic Composite & Plastic Lumber Sales for Selected Companies, 2010 282
2 Selected Acquisitions & Divestitures 303
3 Selected Cooperative Agreements 305
LIST OF CHARTS
SECTION II -- MARKET ENVIRONMENT
1 Year of Construction of Housing Stock, 2010 36
2 World Composite & Plastic Lumber Demand by Region, 2010 59
SECTION III -- MATERIALS
1 Plastic Lumber Demand by Resin Type, 2010 79
SECTION IV -- APPLICATIONS
1 Wood-Plastic Composite & Plastic Lumber Demand by Application, 2010 92
2 Wood-Plastic Composite Lumber Decking Market Share, 2010 110
3 Plastic Lumber Decking Market Share, 2010 124
4 Wood-Plastic Composite & Plastic Lumber Molding & Trim Market Share, 2010 144
5 Wood-Plastic Composite & Plastic Lumber Fencing Demand Market Share, 2010 159
6 Wood-Plastic Composite & Plastic Lumber Windows & Doors Market Share, 2010 186
SECTION V -- MARKETS
1 Wood-Plastic Composite & Plastic Lumber Demand by Market, 2010 196
2 Residential Wood-Plastic Composite & Plastic Lumber Demand by Application, 2010 208
3 Nonresidential Building Construction Wood-Plastic Composite & Plastic Lumber Demand by Application, 2010 226
SECTION VI -- REGIONS
1 Wood-Plastic Composite & Plastic Lumber Demand by Region, 2010 254
SECTION VII -- INDUSTRY STRUCTURE
1 Wood-Plastic Composite & Plastic Lumber Market Share, 2010 285
