US demand for decking is forecast to rise 2.4 percent per year to 3.3 billion lineal feet in 2016, valued at $5.7 billion. This pace represents a rebound from the declines seen between 2006 and 2011, when housing completions plummeted and residential improvement and repair expenditures contracted from their elevated 2006 base. Through 2016, decking demand will be driven by an expected advance in housing completions and continuing consumer interest in decks as a way to increase outdoor leisure space. These and other trends are presented in Wood & Competitive Decking, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Wood-plastic composite and plastic lumber decking materials are expected to experience double-digit annual gains in demand through 2016. Plastic decking will see the most rapid growth. Consumers are expected to opt for the material because of its durability and low maintenance requirements. Moreover, increasing availability of cellular PVC decking that better resembles natural wood will promote advances among residential consumers. Composite decking demand will be supported by its favorable performance properties and reputation as a “green” product that uses recycled materials. Because wood scraps are a key component, composite decking looks more like wood decking than many plastic varieties, a feature that will aid in its adoption.

Wood decking will continue to account for the majority of decking demand in volume and value terms. However, demand for wood decking is forecast to rise less than one percent annually to 2.7 billion lineal feet in 2016. Advances will be checked by competition from composite and plastic decking, which need less maintenance.

The residential market accounted for 61 percent of decking demand in 2011, a lower share than the historical average. The depressed level of housing completions suppressed demand, as did an unfavorable lending environment that made it more difficult for homeowners to take out home equity loans, a common method of funding such projects as deck installation and replacement. Going forward, residential decking demand is forecast to rise at the fastest pace of all markets. Rebounding housing completions will spur gains in the new residential segment and less restrictive credit conditions will support residential improvements and repairs.

                                                                                                                                               

US DECKING DEMAND

(million lineal feet)

 

% Annual Growth

Item     

2006

2011

2016

2006-

2011

2011-

2016

 

 

 

 

 

 

Decking Demand

3245

2925

3300

-2.1

  2.4

Wood

2688

2606

2730

-0.6

  0.9

Wood-Plastic Composite

450

245

420

-11.4

11.4

Plastic & Other

107

74

150

-7.1

15.2

 

 

 

 

 

 

 © 2012 by The Freedonia Group, Inc.

Wood & Competitive Decking (published 10/2012, 366 pages) is available for $5300 from The Freedonia Group, Inc., 767 Beta Drive, Cleveland, OH 44143-2326. For further details, please contact Corinne Gangloff by phone 440.684.9600, fax 440.646.0484 or e-mail pr@freedoniagroup.com. Information may also be obtained through www.freedoniagroup.com.

Source: The Freedonia Group

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