Trends in siding a

[!XTERIOR residential siding in North America repreI-lsents an $8-billion-a-year market with another $3 billion spent on exterior trim, mouldings and shutters, according to a new study by Principia Partners.

Growth will only continue. Vinyl siding-the most common residential siding material, accounting for 397o of North American siding value in 2005-is expected to remain the largest category through 2010.

However, Prinicipia expects fiber cement and manufactured stone to register larger gains in value terms. Replica cedar siding from panelized western red cedar brands, fiber cement shingles, injection-molded polypropylene shakes, and new wood-plastic composites will grow the fastest in percentage terms.

Performance of all siding products and materials continues to improve. While the industry is not known for rapid advances in technology, continued improvement in factoryapplied coatings, cementitious plaster stucco, and the use of acrylic resins in vinyl siding has led to products with greater resistance to fading, improved impact resistance, and longer lifetimes.

One of the more exciting developments in vinyl siding has been the introduction and rapid spread of darker colors. Dark colors tend to be offered only in premium vinyl brands. Thicker panels provide a more stable substrate and are less prone to surface distortion. The acrylic capstock is combined with additives that limit fade resistance to a level not perceivable by the human eye.

New architectural accessories that complete the job, such as matching corner posts and longer length lineals, may help keep vinyl's sales stable over the next five years, in addition to new colors and textures.

Principia considers wood-plastic composite products to be the industry's "holy gra7l," combining the best performance characteristics of multiple synthetic materials with the workability and appearance of wood. Currently, WPCs are used primarily in decking and railing. However, many observers are convinced that the next product innovation in siding will be a composite product similar in weight to fiber cement, able to be colored, and never needing painting. Alcoa is experimenting with a composite siding product, and Principia suspects that CertainTeed, Alside, and Crane may be doing the same.

In fiber cement, Nichiha is employing nanotechnology to create a "self-cleaning" surface finish. Working with paint manufacturers, Nichiha has created a microscopic coating layer to protect the finish. It is possible for dirt and soot to be easily removed from the surface of the panels by rain or a spray of water.

Rising energy costs have prompted the move to higher R-value properties in siding materials. There is also an increasing emphasis on systemization, the interdependence of siding and trim materials with proper flashing, rainscreens, moisture barriers, and housewrap. Built-in sheathing and waterproofing also appeal to builders and contractors striving lor installation time savings.

Overall, residential siding sales are anticipated to increase 3.57o a year from 2005 to 2010, growing from $8.2 billion to $9.7 billion. The bulk of the growth should come from manufactured stone ($67 1 million), fiber cement ($564 million), engineered wood ($300 million), and stucco ($252 million).

Although new residential construction represents approximately two-thirds of the demand for siding and trim products in Nonh America, growth in repair and remodeling is expected to outpace new construction over the next two years.

Regionally, the South and West will continue to experience above-average growth in siding and trim demand through 2010, with a heavy reliance on new single-family home construction. The Northeast and Midwest will follow closely behind, buoyed by remodeling and replacement.

- For more inJbrmation on the study "Residential Siding and Exterior Trim, 2006," contact Principia Partners, (484) 8753 1 73 ; www.p rincipiaconsuking.com.

TnHERE i-lrL' \()nre huzz woltls that dculcrs arc hearin-g I thesc dlrr s: ltru -nurintcnarrcc, wood rcplacements. man-madc. ancl thc utnittrrrts "eatL-g()t'y shift." So, with limited tinc in y'our clur'. horr do 1'ou sifi through the myriard ncw builcling nratclials that claint to be bcttcr. faster and r.norc durablc thln thc olcl lurttbet' standbl"l

Conrrnitting to il nc\\ procluct artd r.nanaging thc shift is sorncthing yor,r shoulcl not takc li-uhtly. As most of yttu hlvc cxpcricncccl. nrost ner.r' prctdttcts have a touch tinrc living up to thc h1'pc. Hor.lever. thc success of eotttpositc dccking ancl l'iber cer)rcnt siding have rnadc the ultsiclc o1' wood rcplaccnrcnts an attractir"e alternatirc to the clcalcr. Woocl has ncver been a branded product. stt it is u'itl'ror-rt thc promiscs that a brandcd product proviclcs. FortLrrlltcll'. today's building product dealers havc nran\ bratrd nittlc altcrnatives" eiich rcpresentin-e a cliffcrcnl sct of philostr phics. i,alue propositions. and stiinclartls.

The heightencd awareness ol' altcrrrativc protlr-rcls. attcl thc lif'e c1'cle and low mairrtcnitncc ittlvantagcs thcl' olter consumers. makcs the extcrior ol' thc hotnc thc logical place fbr valuc added invcstnrcnt. With thc cxtclior bcing one of the nlost tloublcsonrc ancl cxpcnsivc areas of thc horne for consLlnlcrs tu rluirttuin. it is ttrrt strrprisin-u that manv of the brancl choiccs clealcrs arc llccd with currently are in thc erterior product catcgofy.

Anvtime a catcgor\ shift stalts thcrc will be many choices oflcrccl. Witlr so nriurv cl-ttticcs ancl scl much noise making the ri-ght choicc is not casy. As wc see a shift ar.'nav trorn woocl cxtclior building materials lor uses such as trinr. herc arc sonrc points to help y<tu make a more inlirrnrccl clecision.

Do your homervork

First. look ut tlic procluct itsclf. It seems as though cvcryonc luLrnching a neu product claims it is thc best. #1. runlikc any othcr. ctc. Break through the clutter by trying to fincl inclcpcndcnt or thircl partv vcrification tcl back up such clainrs. ln our inclustry. buildin-r code a-eencics such us tlrc Irrtcrnational Cocle Council (ICC) exist. in Ilart. to cstablisl.r l unilirrn.r standard fbr products used in builcling. A start irrg qr-restion would bc does the product \']otl are Iookin-q at havc any sort of codc reports'l Follor.r Llp clLlcstiolts woLrlcl bc to f ind out about the manufacturins histt)rv ltttcl cxltr.t.t yrles of a track record.

If you are like most dealcrs. vor-l Arc looking lirr a longternr relationship ancl truc busincss partrlcr. Look at the brand. its history, ancl whcrc it is in thc channcl. Arc nra.jor distribr-rtors carrving it now antl hrtving strcccss riith it'l Is it alu'a,vs in stock'l Dclivcry tinlc histofy is extremclv important-y'oll ncvcr want to run shorl or have a customer in the nridcllc o1'a pro.jcct 1.hat cannot bc finished on time. ln aclclition to dclivcrl'lirtrc track rccord, ensul'e that the manufucturcr hls thc calracitv. tucilitics and expunsion to support vour busincss unrl sustain 1,our busincss growth.

Trade magazines are a great resource for leaming about companies and brands. See who the major advertisers are and check out their websites and literature. This will give you a quick snapshot of who the industry leaders are.

Find out if they provide timely and qualified leads that convert to sales and note the size and geographic coverage of their sales force. "Feet on the street," as we call them, are vital to the sales pull through efforts in many new products categories. Having salespeople dedicated to growing your business is a huge investment by a manufacturer and will demonstrate their dedication to making sure their product sells and performs in the field.

Also measure the value of their dealer incentives and special programs, all of which can solidify the partnership. Having confidence that a manufacturer will be there to meet your needs next year and beyond will keep you and your customers happy.

For our company, as we sell the new generation of trim, mouldings and decking, fulfilling these areas of need for a dealer ensures that success is not only imminent but oneoing.

Know the benefits, sell the value

The migration to alternative products seems to happen faster as the benefits of products that replace wood have become clear. As new categories are opening up, dealers are quickly tuning into these shifts in the marketplace and becoming part of the movement.

Innovation is accelerating, as dealers seek to satisfy builder and remodeler appetites for the latest and greatest in time and labor savers and sustainable, low-maintenance exterior building products. While there will always be a market for wood, wood quality has diminished over the years, creating a ready market for wood replacements products for problem areas such as trim and decking.

Trends in the architectural community are increasing the use of trim and more ornate trimincluding more elaborate mouldings. More and more communities are being built with a New Urbanism and Traditional Build look that accentuates the trim. While this increased demand for trim and elaborate mouldings represents a great sales opportunity for a low maintenance trim product, the key to selling alternative trim and mouldings is to understand your customers' needs and give them the expertise to purchase the right trimboard and the correct moulding profiles.

There are several benefits to cellular PVC mouldings, including the elimination of milling costs and no need for painting (although they can be painted). To make them easier to sell, be sure the moulding products you offer are a one-for-one replacement for their wood complements. Another important aspect to selecting the right products to offer your customer is to ensure that your cellular PVC trim and mouldings have the same look and feel, especially if your customer doesn't plan on painting. Compatible materials ensure a gteat looking job and will reduce jobsite costs by eliminating any unnecessary painting.

For your customers, a cellular PVC moulding should easily meet or exceed the quality and avail- ability of wood mouldings. In addition to the obvious life cycle, sustainability, and aesthetic advantages of cellular PVC trim over wood, there are some less than obvious advantages. For example, using a cellular PVC adhesive to join cut edges creates a bond that will never open. For applications such as window trim this means your miter seams when sealed with cellular PVC adhesive will never open. Even the best of woods installed under the best practices will shrink over time, causing gaps at the mitered seams.

Education and training

Ongoing education and training are imperative during a category shift. Learning the nuances of the products you offer will allow you to be an invaluable resource to your customers. For example, although the uses for wood trim and cellular PVC trim are identical, there are differences in the way the products need to be sold.

To successfully sell an alternative trim product, make sure your supplier has provided all of the pertinent information tools for selling a premium product. For instance, the higher price point of a cellular PVC trim can sometimes be an objection, but when you can answer your cus- tomer honestly with facts on the costs vs. value, the objection can be overcome. In the case of trim, you would want to be armed with information such as "on the wall costs," lifecycle costs, breadth of product line, widths and lengths. maintenance requirements (or lack thereof!), sustainability, and warranty details. just to mention a few. Armed with this type of information from your supplier, you can easily discuss the advantages of alternative materials over wood.

Very often, new materials also offer new opportunities. Finding and taking advantage of these opportunities can further separate your business from your competition. Look for the strengths of new materials and then identify how you can offer that product or service in your market. In the case of cellular PVC trim, new trim alternatives can be heated and formed around radius curves or shaped into arches, resulting in reduced time and labor costs.

Also, dealers that have selected a cellular PVC trim that can be milled have been successful in expanding their millwork divisions by producing high-demand, low-maintenance milled items such as columns, railings, gingerbread, and custom profiles.

In the end, being able to instruct your customer on best practices in the field, to get the most of the material will most significantly increase your value to that customer. When selecting a supplier, require that they provide training on all aspects of installation so your staff can both sell the added value and be a resource for the customer.

Partner solutions

Many real-life product innovations and solutions either arise on the jobsite or evolve through partnerships with manufacturers. It is ideal to know who your manufacturers are aligned with and how it can help you sell and grow the category. For example, Azrx Building Products entered into partnerships with Pella Windows, Walpole Woodworkers, and many national column manufacturers so backyard accents, amenities and more elaborate columns made with our low maintenance material are easily available across the country.

Oftentimes, it is your customer's need that prompts a call to a manufacturer as you work to solve their challenge. In response to a call like this, partnerships are often a source of ongoing product technological advances as a reputable manufacturer would seek to improve and provide appropriate solutions. For example, when contractors contacted Azer about the best way to fill nail holes, we found a nail hole and bonding solution from Devcon, and offered dealers the exclusive on their

TrimBonder product line. When some contractors wanted to paint their Azpr trim darker colors, which is often an issue with cellular PVC-based products, we aligned with Sherwin Williams to promote paints with VinylSafe Color Technology as a solution to painting trim dark coiors.

The bottom line? Make sure your trim manufacturer has the industry connections that will keep the innovations and solutions flowing. By partnering with a leader, you will also be a leader.

Market slowdown = new opportunities

The recent market downturn represents an opportunity for dealers to stand apart. Offering branded products, backed by manufacturing quality and capacity, branding and marketing programs, dealer incentive programs, web-based leads, architectural specs, and a sales force for pull through, is the best path to success in today's market.

In the trim category, along with all of traditional product Q&A's you will ask, you will want to identify a trim manufacturer that is set up to support your sales efforts with pull through support, whether from leads, sales support, or selling tools. You will also want to investigate the product's stocking distributors to determine their commitment to the product as well as their level of product availability, product line depth, and customer service. Remember that this distributor will be your front line of support and your partner through the market transition so their commitment and support can be invaluable.

As you do with any other product you sell, keep the big picture in mind. Trim is a year-round business, not seasonally driven like some of the other products you may sell. Therefore, you will have the opportunity to sell trim products throughout the year. Selecting the right product, knowing the product you sell, and bringing the full value of your trim product to your customers-from education to distribution-will go a long way to ensuring that you will succeed in selling the new generation oftrim products.

- Ralph Bruno is president of Azex Building Products, Inc., which specialiTes in low-maintenance exterior products, including Aznx Trimboards, Azex Mouldings, and Procell decking. He can be reached via www.azek.com.