Vinyl siding faces competition from new materials | Plastics News

Vinyl siding has competition from other plastics in home construction.

Building products manufacturer Alside added a new board and batten product to its portfolio of composite cladding extruded from a glass-reinforced polymer with weatherable pigments and impact modifiers and then adhered to a graphite-infused polystyrene foam.

Called Ascend, the brand of siding was named the most innovative building material of 2021 at the virtual International Builders' Show and has been lauded for combining beauty, performance and easy installation, especially compared with fiber cement and engineered wood.Ascend is in a class of its own as a "non-vinyl/non-cementitious" composite product, according to Alside officials.

A growing number of other siding products also are manufactured with plastic materials other than PVC, prompting the Alexandria, Va.-based trade group Vinyl Siding Institute to change its name to the Polymeric Exterior Products Association (PEPA) earlier this year. The name change also reflects the trade group's move beyond siding into products that complement it, including trim, decking, fencing, roofing, windows, railing, doors, gutters and downspouts.

For siding, injection molded polypropylene products and profiles of composite wood and polyethylene, including Trex decking, are providing new options for evolving customer preferences.

As of June, Ascend also comes in a popular 12-inch vertical profile suitable for the modern farmhouse and other trends in addition to a 7-inch plank. The products have Class A fire ratings, withstand winds up to 180 mph, offer a 2.0 R-value and don't need sealing.

"From the moment we introduced Ascend, in 2020, sales were strong out of the gate, confirming the market's demand for a superior siding solution," Shawn Hardy, vice president and general manager of product and marketing for Alside parent company, Associated Materials LLC, said in an email.

Sales have increased year after year, showing both market approval and the effectiveness of the product, Hardy added.

"By continuously innovating and enhancing our offerings, we aim to further solidify our position as a leader in the siding manufacturing industry, providing our customers with the best possible solutions for their needs," Hardy said.

Both products are manufactured in West Salem, Ohio.

With estimated sales of $390 million, Cuyahoga Falls, Ohio-based Associated Materials, which is owned by SVP Global LLC, ranks No. 19 among North American pipe, profile and tubing producers, according to Plastics News' latest ranking.

In addition to "non-vinyl, non-cementitious" siding like Ascend, some builders and remodelers are incorporating Trex decking boards into facades, especially for commercial applications. The boards can be installed vertically or horizontally and feature an open-joint façade system to provide airflow over a rainscreen assembly.

Trex officials see a $100 million-plus market opportunity for the Transcend decking line, according to a Q1 2024 investor presentation.

With sales of $1.09 billion, Trex Co. Inc. is the No. 7 pipe, profile and tubing extruder in North America, according to PN's latest ranking.

Another recently introduced product, Everlast advanced composite siding, is described as a proprietary mix of inorganic materials with polymeric resins that have an acrylic cap for color. The siding colors are produced online as the product is extruded.

Everlast siding is manufactured by Oakmont, Pa.-based Chelsea Building Products Inc., which identifies all the inputs as calcium stearate, calcium carbonate, impact modifier, blowing agent, process lubricant, virgin PVC, a substrate colorant, PVC regrind, acrylic capstock and three acrylic cap colorants.

Everlast competes mostly against fiber cement with its water resistance and sturdy composition, Chelsea officials said. The product was nominated for a 2024 Best of International Builders' Show award in February.

With $136 million in annual sales, Chelsea Building Products is the No. 40 pipe, profile and tubing extruder in North America, according to PN's latest ranking.

Overall, U.S. siding demand is expected to see modest annual growth of less than 1 percent to 106.8 million squares by 2027, according to Freedonia Group.

Growth has been restrained by the decline in conventional housing starts going back to 2022 and only sluggish gains are seen on the horizon for the residential market.

The bright spots are commercial, institutional, office and industrial construction following pandemic-induced declines. This rebound is fueled by construction of manufacturing plants, warehouses and office, retail and lodging sites.

Commercial siding demand is forecast to grow at an annual average rate of 1.5 percent to 22 million squares in 2027, Freedonia said.

By value, siding demand will rise annually by 1.4 percent to $16 billion by 2027, Freedonia projects, with prices for most products moderating after spikes caused by supply chain issues and high raw material costs.

Demand by value is expected to come in at $14.2 billion this year, which is down from $14.8 billion in 2023. However, small gains to $14.5 billion and then $15.3 billion in 2025 and 2026, respectively, are also expected.

By material, brick stays in the top spot in terms of demand value this year through the forecast, in part because it costs more per square. The No. 2 spot changes from small-volume materials — stone, natural wood, polypropylene, composites, steel, aluminum, and exterior insulation and finish systems (EIFS) — in 2024 and 2025 to vinyl in 2026.

EIFS products generally consist of a polystyrene or polyisocyanurate insulation board that has a base coat embedded with fiberglass-reinforcing mesh and a finish coat of synthetic stucco that often utilizes acrylic copolymer technology to hold color and resist cracks, according to Freedonia analyst Jeremy Boyd.

In terms of demand value, Freedonia projects brick to top materials again in 2026 at $3.81 billion with vinyl siding in the No. 2 spot at $2.21 billion.

Boyd said "brick's durability and common use in Southern housing styles and the ready availability of the raw materials needed to produce brick" are among its advantages. The weight of brick limits its transportation potential, Boyd added, but its appeal endures where it can be hauled.

"Ongoing demand will continue to be supported by the continued perception of brick as an attractive, low-maintenance material that raises property values and enhances curb appeal," Boyd said.

Vinyl siding is anticipated to gain market share over the forecast period, thanks to advancements in its performance and appearance.

With an annual average growth rate of 2 percent, vinyl siding demand is predicted to reach 26.2 million squares by 2027, contributing to a market value increase of 2.6 percent annually to $2.4 billion by the same year.

Vinyl siding will be hindered by prices coming down from elevated 2022 levels as inflationary pressures ease and supply chain issues subside, Freedonia said.

However, market share gains are forecast for vinyl siding through 2027 at the expense of fiber cement and engineered wood.

Fiber cement was the second-most-used siding material in 2022, Freedonia said. Analysts expect its penetration rate will moderate through the forecast period due in part to the improving quality of competitive materials.

Compared with engineered wood, vinyl siding can mimic the appearance while being more durable and requiring little maintenance.

The new board and batten profile of Ascend provides visual depth and has architectural appeal as a vertical accent or as a whole-house exterior, Hardy said, pointing to both the traditional farmhouse design and contemporary home styling.

"This product gives homeowners, residential architects and builders more versatile options to fit a wide range of home styles," Hardy said.

The expansion of the Ascend product is part of a $100 million investment Associated Materials is making in equipment, digital technologies and new work methods. Hardy said the "transformation strategy" calls for enhancing the company's portfolio, operations and capacity across all major product categories of vinyl windows, doors and siding in addition to composite cladding.

One of the investments will bring new siding technology that automates in-process color reads while others include laser, camera and welding equipment and automated insulated glass assembly to improve weather seals and increase operational efficiencies.

For Ascend siding, Associated Materials offers two textures: matte and woodgrain, which is also unique to the industry.

"The demand is coming from designers and architects in the professional space as well as homeowners who want more unique yet timeless siding options for their homes," Hardy said. "The matte finish provides a smooth, modern appearance, while the woodgrain texture mimics the look of real wood without the maintenance."

The Ascend products come in 20 fade-resistant colors from so-called Glacier White to Fired Brick.

At Westlake Royal Building Products, sales are split pretty evenly between new construction and remodeling.

Company officials have been partnering more with large builders, including Dr. Horton, Pulte and Toll Brothers, to grow with them.

"We're gaining share with the people who are gaining share," Scott Szwejbka, senior vice president of Westlake Royal Building products, said in a June 13 online "teach in" about the company's housing and infrastructure products.

"For 15 of the last 17 years, we've fallen below the 1.5 million home starts that we really need to keep up with population growth. That's pent-up demand," Szwejbka said. "Every time we don't make 1.5 million homes, we add to the gap, which provides for a long-term good future for new home construction."

In addition to being underbuilt, a new group of first-time homebuyers is coming into the market at a time of high interest rates.

"Affordability is a big issue, so if you look at the product categories we offer, they're very cost-effective. There is no less expensive way to clad your home than vinyl siding," Szwejbka said. "We provide the beautiful products that go into the new homes but also help with the affordability problem that people are dealing with these days."

With $2.8 billion in estimated sales, Westlake Royal holds the No. 3 spot among North American pipe, profile and tubing extruders, according to PN's latest ranking.

Today's gains in new construction will bring new opportunities in the remodeling market decades from now.

"When people decide they want a new look on their house, they tend to remodel with the products that are on the house," Szwejbka said. "So, 20 years from now, when the homeowner who has a vinyl-sided house decides to update to new colors or new styles, they're most likely going to replace with vinyl siding."

Also, remodeling projects tend to be a higher-margin business compared with large-tract builders constructing subdivisions of 20 or more houses with the same basic floor plan.

"It's about efficiency, and it's about scale, and it's about standardization," Szwejbka said. "But every single remodel project in the country is customized. They're all individual to the project in mind so that value add tends to lead to higher margins."

Still, consumer spending on improvements and repairs to owner-occupied homes is projected to decrease this year and into the first quarter of 2025, but at a moderating rate, according to the Leading Indicator of Remodeling Activity (LIRA), which in April released the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University.

LIRA projects spending for home renovations and maintenance will decline by more than 7 percent in the third quarter of 2024 before easing to a decline of about 2.6 percent through the first quarter of 2025.

"Residential remodeling is expected to benefit from the rebounding housing market and stabilizing material costs as we move into next year," Carlos Martín, project director of the Remodeling Futures Program, said in a news release. "While home improvement and repair spending is down from pandemic-induced highs, the nation's aging homes continue to need investment in critical replacements, home performance deficiencies, as well as modernization."

Spending on homeowner improvements and repairs over the coming year is expected to total $451 billion compared with $463 billion spent over the last year, according to Abbe Will, associate project director of the Remodeling Futures Program.

"Yet, the remodeling downturn is poised to be fairly modest and short-lived with market expenditures steadying at near record levels," Will said in the release.

Cornerstone Building Brands introduced EverPlank, the latest innovation of the Mastic brand, which has been around for more than 75 years, to regional markets in 2023 and now is selling it nationally. The new product line mimics both the look and sturdiness of wood plank with what Cornerstone Brand Marketing Director Nikki Savard calls a sophisticated color palate.

An insulated foam backing gives the plank rigidity, while a special designed bonding plate and custom-formulated adhesive form an interlocking system to reduce gaps and boost strength and durability against strong winds.

"It's the elevation of vinyl. It looks just like plank siding but has all the benefits of vinyl. It will never warp. It will last a lifetime. The color will never fade, and you never need to paint it like some alternatives on the market," Savard said at IBS.

Cornerstone also came out with a new line of black exterior accessories in addition to black soffits and gutters.

"The contrast between the black and white has been really popular, and we want to make sure our contractors have that option," Savard said. "This year we leaned into the black accessories for our vents, mounting blocks and shutters. It really brings a high-end look."

The black accessories have a true color match, she added.

"You don't have to worry about getting more of a smoky color or a limousine leather color. It will be the same, and it will not fade over time," Savard said.

With $3.43 billion in estimated sales, Cornerstone ranks No. 2 among North American manufacturers of pipes, profiles and tubing, according to PN's latest ranking.

CertainTeed, a subsidiary of Saint-Gobain North America, announced a $28 million expansion of its facility in Williamsport, Md., to increase production, shipping and warehouse space.

The goal is to create one centralized distribution site for all products and save on shipping, a September 2023 company news release said.

The Williamsport facility, which employs more than 300 people, began operations in 1971 and is one of the largest vinyl siding plants in the United States.

With $1.1 billion in estimated sales, CertainTeed is the No. 6 pipe, profile and tubing extruder in North America, according to PN's latest rankings.

In the competition for wall share, stucco and vinyl siding remain the top two exterior wall materials installed on some 999,000 new single-family houses completed in 2023.

The percent of distribution also stayed the same, with stucco covering 27 percent of new houses completed in 2023 compared with vinyl siding on 24 percent.

The figures come from the annual Survey of Construction for the U.S. Census, which tracks the characteristics of new privately owned residential structures, such as square footage, number of bedrooms and bathrooms, type of wall material and sales price.

The survey shows only slight changes for fiber cement, which lost 1 percent of its distribution to 22 percent, and brick and wood, which each increased 1 percent to 20 percent and 5 percent, respectively. The final category of "other," which consists mostly of concrete block, stone and aluminum siding, has been at 2 percent of wall distribution since 2008.

The construction survey also indicates the median size of a completed single-family home is down to 2,233 square feet compared with the 2015 peak of 2,467 square feet.

Tracking of vinyl siding as a primary wall material began in 1992, when it was installed on 23 percent of new houses, and it peaked in 2002, when it covered 40 percent of new homes. Now, back close to its early share of wall distribution, vinyl siding still tops competing materials in two of the four U.S. regions tracked.

In the Northeast, where about 61,000 new homes were built, vinyl siding was installed on 70 percent of new homes, followed by wood (12 percent), fiber cement (9 percent), brick (5 percent), other (2 percent) and stucco (1 percent).

Vinyl siding also does well in the Midwest, where it was the primary material on 59 percent of the 126,000 new homes constructed, ahead of fiber cement and wood (16 percent each), brick (5 percent), other (3 percent) and stucco (1 percent).

However, in the South, where 598,000 new homes were constructed, brick's domination notched up to 31 percent of primary wall distribution, followed by stucco (26 percent), fiber cement (20 percent), vinyl siding (19 percent), wood and other (2 percent each).

In the West, stucco mostly was used on 55 percent of the 214,000 new houses, followed by fiber cement (34 percent), wood (6 percent), vinyl siding (4 percent), and brick and other (1 percent each).

In Iowa, PEPA achieved another legislative win this past spring, opening markets to member products. The state joined Indiana, North Carolina, Tennessee, Oklahoma, Arkansas and Texas in banning local mandates with siding restrictions.

Iowa Gov. Kim Reynolds signed HF-2388 into law.

"It's a game-changer for home-buyers putting the power back in consumers' hands by prohibiting cities and counties from imposing restrictive ordinances on exterior cladding and finish materials for residential buildings beyond the state building code," said Matt Dobson, vice president of PEPA. "What does this mean? There will be no more local mandates that insist on more expensive materials such as brick. Iowans can now say hello to more choices, more creativity and more personalized homes that truly reflect their style and needs."

PEPA staff and members also continue to monitor pending legislation in states such as Georgia, South Carolina, Minnesota and Washington as well as advocate for the polymeric products industry in ASTM and building code bodies.

"We successfully passed 17 of our proposals in the last code development cycle," Dobson said.

PEPA also watches what happens in city halls.

"Some municipalities throughout the country continue their efforts to rig the market against vinyl and other polymeric cladding in favor of more expensive and less durable alternatives," Dobson said.

Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]

Please enter a valid email address.

Please enter your email address.

Please verify captcha.

Please select at least one newsletter to subscribe.

Find more newsletters at plasticsnews.com/newsletters.You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.