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The cost/performance advantages of composite and plastic lumber, coupled with improved product appearance and ongoing interest in recycled building products, will help drive demand.
US demand to grow 10% annually through 2011
Demand for wood-plastic composite and plastic lumber is projected to advance 10 percent per year through 2011 to $5.5 billion. These alternative lumber materials are expected to continue to penetrate the building materials market at a rapid pace, particularly in decking applications. Both composite and plastic lumber benefit from their performance characteristics, such as durability, weatherability, low maintenance requirements and low life cycle cost. Demand for these products will also be driven by increasing consumer and contractor familiarity, a widening distribution network and product improvements that enhance appearance. Furthermore, ongoing interest in “greenâ€Â building products will bolster use of composite and plastic lumber made with recycled content.
Wood-plastic composites to outpace pure plastics
Wood-plastic composite lumber will fare better than plastic types. Demand for wood-plastic composite lumber will grow 14 percent per year, reaching $2.6 billion in 2011, compared to a seven percent growth rate for plastic lumber. Composite lumber growth will be fueled primarily by strong demand for the material in decking, which is by far the largest application for composite lumber. Rapid expansion in window and door applications, as well as in smaller niche applications (e.g., porches, site and leisure furniture), will also boost demand. Growth in demand for plastic lumber will decelerate from the 2001 to 2006 rate, a result of direct competition from woodplastic lumber. Significant applications for plastic lumber include molding and trim, as well as fencing and decking.
Decking, windows and doors to lead market gains
Window and door applications are anticipated to post the fastest gains through 2011. This small segment is making inroads because of its lower maintenance requirements, durability in exterior applications and similarities to wood. The large decking segment will continue to see strong gains, and will be the largest end use for composite and plastic lumber by 2011. Molding and trim will also remain a key market, but will see below-average growth through 2011. Increasing market maturity in the plastic lumber segment will limit growth, as will a weak new housing environment. Fencing applications will see strong, although below-average, gains due to increasing maturity in the plastic lumber segment. All other applications are projected to see rapid growth from small bases. Playground equipment and site and leisure furniture applications are expected to see the fastest gains through 2011, driven by the environmentally friendly profile of composite and plastic lumber, as well as their performance and maintenance characteristics.
Table of Contents
INTRODUCTION
I. EXECUTIVE SUMMARY
II. MARKET ENVIRONMENT
General
Macroeconomic Overview
Consumer Income & Spending - Demographic Trends
Construction Trends
Building Construction Trends
Nonbuilding Construction Trends
Pricing Issues
Environmental Issues
Regulations & Standards
International Activity & Foreign Trade
III. MATERIALS
General
Material Demand
Wood-Plastic Composite Lumber
Plastic Lumber
IV. APPLICATIONS
General
Molding & Trim
Decking
Fencing
Windows & Doors
Other
V. MARKETS
General
Residential Building
Nonresidential Building
Nonbuilding Construction
VI. INDUSTRY STRUCTURE
General
Industry Composition
Market Share
Manufacturing
Product Development
Competitive Strategies
Marketing
Distribution
Mergers & Acquisitions
Cooperative Agreements
Company Profiles
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