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 947 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 947 companies that employ 59,000 workers and generate about $16 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
                                Source: Vertical IQ and Inforum

                                Recent Developments

                                Jan 25, 2024 - Remodeling Activity Weakens
                                • Home remodeling spending is expected to weaken in 2024 but may hit bottom near the end of the year, according to the Leading Indicator of Remodeling Activity (LIRA) report released in January by the Joint Center for Housing Studies at Harvard. Homeowner improvements and repairs are expected to decrease by 1.2% to $464 billion in the first quarter of 2024 compared to Q1 2023. In the second quarter of 2024, remodeling spending will drop to $454 billion, down 6.3% from Q2 2023. Spending will then decline to $452 billion in Q3 2024, down 7.8% from Q3 2023. However, in the fourth quarter of 2024, year-over-year spending is forecast to drop 6.5% to $450 billion. The Joint Center expects that by the end of the year, improvements in homebuilding activity and lower interest rates may help slow the steady decline in remodeling spending. Kitchen remodels are a key demand driver for new appliance purchases.
                                • Home builder confidence improved in December amid moderating mortgage rates that remained well below 7%, according to the National Association of Home Builders (NAHB). Home builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), rose seven points to 44 in December 2022, which marked the second consecutive month of strengthening confidence. Any HMI reading over 50 indicates that more builders see conditions as good than poor. The NAHB said that while lower interest rates have improved affordability and drawn more buyers back to the market, 2024 could bring supply-side headwinds, including shortages of workers, materials, and available lots.
                                • Because the housing market is such a crucial segment of the US economy, its current weakness can be a drag on adjacent industries, including home improvement, according to The New York Times. High home prices and interest rates have reduced home sales, and homeowners with a low mortgage rate are reluctant to sell. About 80% of homeowners with a mortgage have a rate under 5%, and a quarter of homeowners have a rate under 3%, according to Redfin. Historically, homeowners who can’t afford to upgrade to a new home opt to renovate, but many consumers postponed improvements in 2023 because financing them was too expensive.
                                • Pressures, including high interest rates and a shortage of new homes available to purchase, are prompting housing bulls on Wall Street to construct entire build-to-rent communities, according to The Wall Street Journal. In Q3 of 2023, large landlords that own between 100 and 1,000 homes purchased just 1% of homes sold in the US, compared to 3% for all of 2022, according to John Burns Research and Consulting. Once a model that worked well when foreclosure rates were higher, industry watchers suggest that finding and managing investment homes individually has become too time-consuming, costly, and inefficient. While the build-to-rent community market is still small – about 900 neighborhoods in the US, according to the Urban Institute – the National Association of Home Builders believes that soon 10% of new homes will be build-for-rent.
                                Get A Demo

                                Vertical IQ’s Industry Intelligence Platform

                                See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.

                                Build valuable, lasting relationships by having smarter conversations -
                                check out Vertical IQ today.

                                Request A Demo