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 925 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 62 workers, and generates about $14 million annually.

    • The wood window and door manufacturing industry consists of about 925 companies that employ 57,600 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

                                May 28, 2024 - Improved but Flat Industry Growth
                                • The wood window and door manufacturing industry is expected to see weaker sales growth this year, and growth over the next several years will be flat. The industry’s year-over-year sales growth increased by 5.3% in 2022 before dropping to 2.3% in 2023, according to Inforum and the Interindustry Economic Research Fund, Inc. Sales growth is projected to improve slightly to about 2.6% in 2024, then rise to 3.3% in 2025. The industry will then see steady but mostly flat average annual growth of about 3.5% through 2028, according to Inforum and the Interindustry Economic Research Fund, Inc.
                                • A recent downturn in Home Depot’s sales could signal that a decade-long surge in home improvement spending is softening, according to The Wall Street Journal. In May, Home Depot reported first-quarter revenue of $37.26 billion, down 4.2% from the same period a year earlier. The home improvement giant also revised its full-year guidance downward to a sales decline between 2% and 5% from a February estimate of flat 2024 growth. Some industry observers suggest homeowners may have completed many of their home projects during the pandemic. Consumers may also be pulling back on their spending amid growing economic uncertainty and high interest rates and inflation.
                                • The recent What Home Buyers Really Want Study by the National Association of Home Builders highlights home features that are most attractive to prospective home buyers. Study participants were given a list of more than 200 home features and were asked to rate each as essential, desirable, indifferent, or do not want. With 83% of respondents rating them essential or desirable, Energy Star windows were the third most essential home feature after laundry rooms (86%) and patios (86%).
                                • Sales of existing US homes decreased by 1.9% in April from March and were also down 1.9% year-over-year, according to the National Association of Realtors (NAR). High home prices and interest rates may be continued barriers to entry for some potential homebuyers. The median price for all types of homes in April was $407,600, up 5.7% from a year earlier. As of May 16, 2024, the 30-year fixed-rate mortgage averaged 7.02%, up from 6.39% for the same period in 2023. NAR chief economist Lawrence Yun said, "Home prices reaching a record high for the month of April is very good news for homeowners. However, the pace of price increases should taper off since more housing inventory is becoming available." Homeowners often replace doors and windows before putting their house on the market, and buyers typically do remodels, including window and door upgrades, before moving in.
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