NEW YORK, Feb. 9, 2011 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:
US demand to rise 2.7% annually through 2014
US demand for decking is forecast to rise 2.7 percent per year to 3.5 billion lineal feet in 2014, valued at $6.2 billion. This pace will represent a rebound from the 2004-2009 period, when demand fell less than one percent annually, reflecting the collapse of the housing market between 2007 and 2009. Through 2014, decking demand gains will be driven by a rebound in housing completions from their low 2009 base.
Residential market to grow fastest from depressed base
The residential market accounted for 59 percent of decking demand in 2009, a lesser share than the historical average, which is indicative of the low level of housing activity in that period. Through 2014, decking demand in the residential market is forecast to advance at the most rapid pace of all markets. Rebounding housing completions and improvement and repair expenditures will spur gains. Growth will also be supported by homeowners' desire for larger decks. Not only do these larger decks require more deck boards, but many homeowners will install additional railings and other accessories to create separate areas for dining and entertaining, or to add safety features to prevent falls by small children or older adults.
Nonresidential market to outpace nonbuilding sector
Decking demand in the nonresidential market is projected to rise 2.4 percent annually through 2014. Rebounding office and commercial construction expenditures will drive growth. Owners of such facilities as restaurants and resorts will add decks to increase space for leisure activities. Demand for decking in the nonbuilding construction market will rise slowly through 2014, as budget constraints on government agencies will cause the delay or cancellation of deck installation and maintenance projects.
Alternative decking materials to post double-digit gains
Alternative decking materials, such as wood-plastic composite and plastic lumber, are expected to experience double-digit demand gains through 2014. Consumers will be attracted to alternative decking materials because of their long lifespans, minimal maintenance requirements and imperviousness to degradation caused by general wear and tear and long-term exposure to moisture. While decks made from these materials generally cost more initially, they require less annual maintenance than most wood decks, and thus can offer customers savings in the long term. Efforts by producers to create decking materials that more closely resemble natural wood will also boost demand, as will accelerating consumer perception of alternative decking materials as environmentally friendly products.
Wood decking to remain largest material segment
Wood decking will continue to account for the majority of decking demand in volume and value terms. Demand for wood decking is forecast to rise less than one percent annually to 2.7 billion lineal feet in 2014. Gains will be restrained by heavy competition from other materials. However, consumer interest in tropical hardwoods, such as ipe, will provide growth opportunities in the residential building and nonbuilding construction markets.
This new industry study, Wood & Competitive Decking, presents historical demand data (1999, 2004 and 2009) plus forecasts for 2014 and 2019 by material type (e.g., wood, wood-plastic composite, plastic), market (residential buildings, nonresidential buildings, nonbuilding) and US region. The study also considers market environment factors, evaluates company market share and profiles industry competitors.
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