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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, 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
                                Source: Vertical IQ and Inforum

                                Coronavirus Update

                                Jun 24, 2022 - Homebuilder Confidence Drops for Sixth Straight Month
                                • Homebuilder sentiment, as measured by the National Association of Home Builders/Wells Fargo Housing Market Index, decreased to 67 in June 2022 from 69 in May, marking the sixth consecutive monthly decline. Higher mortgage rates and inflation have unsettled the US housing market, especially for potential first-time homebuyers. Builders are taking a more cautious stance as demand weakens amid rising interest rates.
                                • Wood product firms Boise Cascade and Louisiana-Pacific were downgraded from buy to neutral in late June by BofA Securities amid a “more bearish” outlook for the US housing market, according to MarketWatch. BofA also recently downwardly revised its estimate for 2023 single-family housing starts from 1.1 million to between 800,000 to 900,000. BofA analysts suggested several drivers that have underpinned the housing market have “largely played out,” including above-average lumber pricing, and rising new home and remodeling expenditures.
                                • Home remodeling spending is expected to remain strong for most of 2022 before tapering off in the fourth quarter, according to the Leading Indicator of Remodeling Activity (LIRA) report released in April by the Joint Center for Housing Studies at Harvard. Homeowner improvements and repairs are expected to increase 11.5% to $391 billion in the first quarter of 2022 compared to Q1 2021. On a year-over-year basis, quarterly remodeling spending levels are forecast to rise 15.8% in Q2, 19.7% in Q3, then moderate slightly to 17% in Q4 when spending will reach $431 billion.
                                • Russia’s invasion of Ukraine is disrupting global wood product trade flows, especially in Europe. According to Wood Resources International, Russia, Belarus, and Ukraine exported 34 million tons of lumber in 2021, and 25% of that volume was exported to countries that have sanctioned Russia and Belarus. Europe’s timber imports from Russia and Belarus accounted for nearly 10% of the continent’s consumption in 2021. Wood certification organizations Forest Stewardship Council (FSC) and Programme for the Endorsement of Forest Certification (PEFC) have designated all timber from Russia and Belarus “conflict timber,” which cannot be used to manufacture certified products, including lumber and plywood. Even after peace returns to Europe, timber trade flows have likely been permanently altered.
                                • Lumber markets have been volatile throughout the pandemic. Lumber traded at $610 per thousand board feet on June 21, 2022, down from the record high of $1,686 per thousand board feet on May 7, 2021, but remained well above pre-pandemic levels.
                                • Total construction spending increased 0.2% in value month over month on an adjusted basis and 12% in value year over year on an unadjusted basis in April 2022, according to the US Census Bureau. Residential construction spending increased 0.9% month over month and 18.8% year over year in April. Nonresidential construction spending declined 0.4% month over month and increased 5.8% year over year in April.
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