Wood Window and Door Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 958 wood window and door manufacturers in the US produce window and door units, window and door frames, window sashes, and doors from wood or wood clad with metal or plastics. Large firms primarily use a high volume/low margin operating model, while small firms generally focus on custom products with high margins. Most large firms also produce windows and doors made of metal, plastic, or composite materials.
Competition from Alternative Materials
Wood window and door manufacturers face competition from products made with alternative types of materials, which are generally less expensive and easier to maintain.
Dependence on Residential Construction
Demand for wood windows and doors is highly dependent on the residential construction industry, which is vulnerable to changes in economic conditions.
Industry size & Structure
The average wood window and door manufacturer operates out of a single location, employs about 54-55 workers, and generates about $14 million annually.
- The wood window and door manufacturing industry consists of about 958 companies that employ 52,200 workers and generate about $13.6 billion annually.
- The industry is concentrated at the top and fragmented at the bottom; the top 50 companies account for about 82% of industry revenue.
- Large firms include Pella, Andersen, Masonite, JELD-WEN, and Weathershield. Large firms offer products made with alternative materials (vinyl, steel, aluminum, fiberglass) and most have operations in foreign countries.
Industry Forecast
Wood Window and Door Manufacturers Industry Growth
Recent Developments
Mar 27, 2023 - Lower Lumber Demand May Have Minimal Effect on Prices
- North American lumber consumption is expected to decline by about 7% in 2023, but that may not have much of an effect on pricing, according to a lumber analyst with Forest Economic Advisors. Lumber demand is softening as high interest rates and elevated home prices slow the housing market. Remodeling boomed during the pandemic, but home improvement spending is projected to fall as much as 8% from its peak during the health crisis. While lumber demand is forecast to drop, supplies in key producing regions, including British Columbia and the US West Coast, are tight. Meanwhile, sawmills are curtailing production or even closing mills, while new planned mills are slow to come online. Lumber prices may be held in check by softening demand, tight supplies, and high inventories on the retail level.
- Tight existing home inventories are pushing buyers into the new home market, which helped move home builder confidence higher in March, according to the National Association of Home Builders (NAHB). Home builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), rose two points to 44 in March 2022 2022, although the HMI remained in bearish territory. Any HMI reading over 50 indicates that more builders see conditions as good than poor. While stress in the US financial system pushed mortgage interest rates down, affordability is still a significant roadblock to homeownership for many. The NAHB said a side effect of the increased pressure on regional banks would be a further tightening of acquisition, development, and construction (AD&C) loans for home builders.
- Mortgage rates dipped slightly after the collapse of Silicon Valley Bank, but housing industry watchers are uncertain if lower rates will persist long enough to provide much relief from the affordability issues that have slowed the US housing market, according to Yahoo Finance. Some financial market watchers note that the banking sector's jitters could slow the Federal Reserve’s strategy of taming inflation with rate hikes. Redfin chief economist Daryl Fairweather told Yahoo Finance, “There's still a lot of uncertainty, but in the near term, I do expect mortgage rates to drop. And I expect buyers to take advantage of those mortgage rates because we've seen buyers be incredibly sensitive to those interest rates.” However, some industry insiders suggest that rates would need to drop and stay low for a sustained period to lure more buyers into the market.
- In their recent fourth-quarter reporting, home improvement retail giants Home Depot and Lowe’s warned of weaker results in 2023 as consumers pull back on remodeling and shift more spending to services. Lowe’s CEO said consumers have grown more cautious amid inflation and higher interest rates. Home Depot also expects home improvement demand to moderate as spending shifts to experiences such as dining out and travel. Lowe’s said it estimates its same-store sales to, at best, be flat for 2023 and could drop by as much as 2%. Home Depot plans to invest $1 billion in higher wages for hourly workers, which it expects will contribute to a mid-single-digit drop in the company’s adjusted per-share earnings in 2023.
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