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Open-Door Optimism

Open-Door Optimism. A growing economy and increasing employment and construction have contributed to a 22.6% increase in the annual revenues of the residential and commercial windows and doors market, from $18.6 billion for 2012 to $22.8 billion for 2014.

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Open-Door Optimism

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  1. Open-Door Optimism • A growing economy and increasing employment and construction have contributed to a 22.6% increase in the annual revenues of the residential and commercial windows and doors market, from $18.6 billion for 2012 to $22.8 billion for 2014. • Although not quite as optimistic as its 2013 forecast, The Freedonia Group still expects the demand for windows and doors to increase 6.9% per year through 2018, resulting in total revenues of$31.9 billion. • The total units of residential windows shipped during 2014 were slightly less than 2013, at 48.3 million and 48.5 million, respectively. Shipped units of exterior entry doors also decreased from 14.8 million for 2013 to 14.6 million for 2014.

  2. Building Across the Board • Although construction of new, single-family homes was sluggish during 2014, FannieMae has estimated a 23.1% increase for 2015, and a 16.5% increase when new multi-family construction is included. • In the American Institute of Architect’s Consensus Construction Forecast 2015, the data revealed that two sectors would increase by double digits: retail and other commercial, 11.5%, and office, 10.8%. • Construction in the religious and public safety sectors is expected to be positive during 2015, following 2014’s decreases: religious from -1.7% to +1.3% and public safety from -0.2% to +3.1%.

  3. Replace…Remodel…Renew • Sales of existing homes are forecast to increase 4.4% during 2015, following 2014’s 3.3% decrease; and this segment of the housing market is a specific driver of remodeling and home improvement projects. • According to the National Association of the Remodeling Industry’s (NARI), its Remodeling Business Pulse index for Q3 2014 was 6.41 (on a scale of 1 to 9), which continued the strong increases recorded for Q1 of 6.07 and Q2 of 6.29. • All five categories in the Remodeling Business Pulse increased from Q2 to Q3 2014, each exceeding a 6.0 index: current business conditions, 6.41; number of inquiries, 6.51; requests for bids, 6.41; conversions of bids, 6.01; and sales value of jobs, 6.27.

  4. Dynamic Demand for More Windows and Doors • According to the American Architectural Manufacturers Association’s (AMMA) 2013/2014 Study of the U.S. Market for Windows, Doors and Skylights, shipments of residential windows will increase 12.8% for 2015, and then another 9% for 2016. • Residential door shipments will increase 10.5% for 2015 and 7.2% for 2016, with steel for residential entry doors and vinyl for patio doors the materials most in demand.

  5. On the Track for Trends • Trends in the European window and door industry are expected to impact the North American market. Added to energy efficiency, thermal performance and other green environment factors are product durability and products’ effects on sustainability and energy conservation. • The 5 fastest growing window and door dealers for 2014 were HomeSealed Exteriors, Milwaukee, WI; Pearce Windows and Doors, Boynton Beach, FL; Madaris Siding and Window, Delray Beach, FL; NewSouth Retail, Tampa, FL; and Architectural Visions, Alpharetta, GA. • According to the annual Window & Door Industry Pulse survey, 60% of the participating manufacturers said they plan to modernize their facilities and increase efficiency during 2015. Approximately 75% said they will or are considering hiring more workers during the next 12 months.

  6. Advertising Strategies • Recommend that dealers plan their peak season advertising and promotions (with your suggestions) during January and to make TV a major channel in their plans to show the quality and durability of products and ease of installation. • With existing home sales expected to increase during 2015, suggest that dealers offer a no-obligation, free window and door energy and safety inspection within 30 days of new homeowners taking possession. Add a drawing of all homeowners to win a free door or 25% off a replacement project. • Suggest dealers create a series of case-study commercials that reveal data on how quickly customers will recoup the cost of replacement windows and/or doors in energy savings.

  7. Social Media Strategies • To combat the bad publicity the occasional “fly-by-night” installer creates, well-established, local dealers should write and upload blog entries that identify them by name and photo, sharing information and ideas that build both business awareness and consumer trust. • Video can be a very effective social media tool for window and door dealers, including factory videos to show quality of construction, videos of employees receiving training, videos of installation to show professionalism and care of crew and before-and-after videos of residential replacement projects. • Dealers can use social media to create community support (and publicity for themselves) for a project to install afree, highly secure door in the homesof low-income seniors or to donatedoors and/or windows for Habitatfor Humanity projects.

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