The Marketplace
The millwork market includes seven segments: window units, window sash, window and door frames, interior and exterior doors, specialty doors, moldings, and other millwork products. The construction market is among the leading factors affecting demand for millwork products. In addition, the millwork industry can depend on the remodeling/replacement market to boost demand during periods of low construction activity.
In 2003, U.S. manufacturers sales of millwork products increased by 1.2% to reach $13.9 billion. Stronger competition from vinyl products and other materials, coupled with a weakened economy, has resulted in a slowdown of growth in the millwork market since 2000. Business Trend Analysts expects this slow growth to continue through 2006, when the market will total an estimated $14.5 billion. Millwork sales are projected to grow at an average annual rate of 1.2% from 2004 to 2014 to reach $15.9 billion in the latter year.
New Construction Market
Trends in new construction activity are among the key ingredients underlying demand patterns in the millwork market. Despite steady gains in the value of public construction, the value of private construction dropped each year from 2001 to 2003. In 2003, the total value of new construction in the U.S. declined by 0.8% to $686.9 billion measured in constant 1996 dollars). Construction activity is expected to stabilize in the coming years as the economy continues to recover.
Remodeling/Replacement Market
The remodeling/replacement market is less volatile than the construction market because these projects generally require smaller amounts of funding. Maintenance and repair work has blossomed in recent years, thanks to the historically low interest rates instituted by the Federal Reserve Board. Housing affordability has surged, which in turn expanded the potential customer base for the millwork industry.
Competition from Vinyl
Demand for vinyl windows has been rising for more than a decade, particularly in the remodeling/replacement market. The material s low maintenance requirements and traditionally lower cost compared to wood are the main contributors to its growing popularity. Although wood continues to hold a slight lead in the market for prime windows used in the new construction industry, vinyl s market share for prime windows used in the remodeling/replacement market has been over 50% since the late 1990s. Vinyl is also leading in the remodeling/replacement market for patio doors.
Foreign Markets
Foreign trade does not play a significant role in the overall market for millwork, although the industry is still affected by global affairs. The U.S. trade deficit for millwork has been rising for well over a decade, as the growth in imports has outpaced the growth in exports since 1990. In 2003, U.S. millwork imports were valued at $1.4 billion, which translated into 9.2% of U.S. apparent consumption. Exports totaled only $267.4 million, representing a mere 1.9% of U.S. manufacturers sales. For the future, Business Trend Analysts expects that China s growing economy will offer opportunities for domestic millwork suppliers seeking to expand their markets on a global scale.
Industry Consolidation
Consolidation has been an ongoing trend in the millwork industry since the late 1990s. Many of the dominant players have acquired the businesses and other assets of their competitors. Two recent examples of consolidation activity include the 2003 acquisition of American Millwork Corporation by RAF Industries, Inc., and Masonite International s purchase of a 75% interest in Kronodoor, a major Eastern European door manufacturer, in July 2004.
TABLE OF CONTENTS
SECTION I: OVERVIEW OF THE U.S. MILLWORK INDUSTRY
- Analysis:
- The Marketplace
- New Construction Market
- Remodeling/Replacement Market
- Competition from Vinyl
- Foreign Markets
- Industry Consolidation
SECTION II: THE U.S. MARKET FOR MILLWORK
- Analysis:
- Overview
- The Overall Market
- Wood Window Units
- Wood Window Sash
- Wood Window and Door Frames
- Wood Doors
- Interior and Exterior Wood Doors
- Specialty Wood Doors
- Wood Moldings
- Other Millwork Products
- Tables:
- U.S. Manufacturers Sales of Millwork:
- Total
- Dollar Sales, by Type
- Product Mix of Dollar Sales
- Growth Comparison for Dollar Sales, by Type
- U.S. Manufacturers Sales of Wood Window Units:
- Dollar and Unit Sales and Average Prices
- Dollar Sales, by Type
- Product Mix of Dollar Sales
- Growth Comparison for Dollar Sales, by Type
- Unit Sales, by Type
- Product Mix of Unit Sales
- Growth Comparison for Unit Sales, by Type
- Average Prices, by Type
- U.S. Manufacturers Sales of Wood Window Sash:
- Total
- Dollar Sales, by Type
- Product Mix of Dollar Sales
- Growth Comparison for Dollar Sales, by Type
- U.S. Manufacturers Sales of Wood Window and Door Frames:
- Total
- Dollar Sales, by Type
- Product Mix of Dollar Sales
- Growth Comparison for Dollar Sales, by Type
- Product Mix of U.S. Manufacturers Dollar Sales of Wood Doors
- U.S. Manufacturers Sales of Wood Interior and Exterior Doors:
- Total
- Dollar Sales, by Type
- Product Mix of Dollar Sales
- Growth Comparison for Dollar Sales, by Type
- U.S. Manufacturers Sales of Specialty Wood Doors:
- Total
- Dollar Sales, by Type
- Product Mix of Dollar Sales
- Growth Comparison for Dollar Sales, by Type
- U.S. Manufacturers Sales of Wood Moldings:
- Total
- Dollar Sales, by Type
- Dollar Sales, by Type and Species
- Product Mix of Dollar Sales
- Growth Comparison for Dollar Sales, by Type and Species
- U.S. Manufacturers Sales of Other Millwork Products:
- Total
- Dollar Sales, by Type
- Product Mix of Dollar Sales
- Growth Comparison for Dollar Sales, by Type
SECTION III: U.S. CONSTRUCTION ACTIVITY AND THE HOUSING MARKET
- Analysis:
- Overview
- The Economy Recovers
- New Private Construction
- New Private Residential Building Construction
- Characteristics of New Housing
- Shifting Consumption of Materials in Housing
- New Public Construction
- Tables:
- U.S. Gross Domestic Product
- U.S. Gross Private Domestic Investment
- U.S. Industrial Production Index
- U.S. Disposable Personal Income
- U.S. Per Capita Disposable Personal Income
- U.S. Personal Consumption Expenditures
- U.S. Per Capita Personal Consumption Expenditures
- Consumer Confidence Index
- Interest Rates Charged by U.S. Banks
- Value of New Construction in the U.S.:
- Total
- By Type
- New Private Construction, by Type
- New Private Residential Building Construction, by Type
- Privately Owned Housing Starts:
- By Type
- Distribution, by Type
- By Region
- Average Square Feet of Floor Area in New Privately Owned One-Family Housing, by Region
- Privately Owned Housing Units Completed:
- By Type
- By Region
- By Number of Stories
- By Number of Bathrooms
- By Number of Bedrooms
- By Types of Parking Facilities
- Principal Type of Exterior Wall Material Used in New Privately Owned
- One-Family Housing Units Completed
- Lumber Costs in a 2,300-Square-Foot Home
- Value of New Private Nonresidential Building Construction, by Type
- Value of New Public Construction, by Type
- Value of New Public Building Construction, by Type
SECTION IV: REMODELING, REPLACEMENT, AND REPAIR ACTIVITY
- Analysis:
- Overview
- Millwork and the Market for Maintenance and Repair Work
- Housing Affordability
- Sales of Existing Homes
- Tables:
- Distribution of Expenditures on Owner-Occupied Properties (Graphs):
- Replacement Expenditures
- Maintenance and Repair Expenditures
- Expenditures on Interior Additions
- Expenditures on Interior Alterations
- Expenditures on Outside Additions and Alterations
- Average Annual Consumer Expenditures on Maintenance and Repair
- Services and Commodities:
- By Region
- By Age
- By Occupation
- Housing Affordability
- First-Time Home Buyer Affordability
- Average Sale Prices of Existing Single-Family Homes Sold, by Region
- Median Sale Prices of Existing Single-Family Homes Sold, by Region
- Existing Home Sales, by Region
- Existing Apartment, Condominium, and Co-Op Sales, by Region
- U.S. Resident Population Trends and Projections
- U.S. Resident Population Trends and Projections, by Age Group
- Age Distribution of the U.S. Population
- U.S. Population and Household Trends and Projections
- U.S. Resident Population Projections, by Region
- U.S. Resident Population Projections, by State
- Distribution of the U.S. Population, by State
- Number of Live Births, by Gender
SECTION V: WHOLESALE AND RETAIL DISTRIBUTION OF MILLWORK
- Analysis:
- Overview
- Wholesalers
- Retailers
- Home Improvement Centers
- Tables:
- Sales of U.S. Lumber and Other Construction Material Wholesalers
- Number of U.S. Lumber, Plywood, and Millwork Wholesalers
- Number of U.S. Lumber, Plywood, and Millwork Wholesalers, by
- Employment Size
- Financial Profile of Lumber and Millwork Wholesalers:
- Total
- Sorted by Sales
- Sorted by Assets
- Sales of U.S. Building Material and Supply Retailers
- Number of U.S. Lumber and Other Building Material Retailers
- Number of U.S. Lumber and Other Building Material Retailers, by
- Employment Size
- Financial Profile of Home Centers:
- Total
- Sorted by Sales
- Sorted by Assets
- Total Retail Sales of Home Improvement Centers
- Ranking of the Top 10 Do-It-Yourself Home Center Chains
- Market Share of the Top 25 Hardware, Home Center, and Lumberyard
- Chains
- Distributor Profiles:
- Introduction
- 84 Lumber Company:
- Overview
- Retail Operations
- Component Plants
- News
- Outlook
- Boise Cascade, LLC:
- Overview
- Boise Building Solutions
- Timber
- Outlook
- The Home Depot, Inc.:
- Overview
- Products Sold
- Home Depot Stores
- EXPO Design Center Stores
- Other Stores
- Store Modernization
- Outlook
- Financial Summary and Analysis
- Lowe s Companies, Inc.:
- Overview
- Markets
- Distribution
- Addressing Women
- Outlook
- Financial Summary and Analysis
- Menard, Inc.
- Sears, Roebuck and Co.:
- Overview
- Retail Operations
- The Great Indoors
- Outlook
- Financial Summary and Analysis
- Stock Building Supply:
- Overview
- Growth Through Acquisition
- Distribution
- Wolseley plc
SECTION VI: MILLWORK CONSUMPTION
- Analysis:
- Overview
- The Prime Window Market
- Fiberglass: A Future Threat?
- Tables:
- Residential Interior Door Shipments
- Storm Door Shipments
- Unit Shipments of Prime Windows, by Market Segment
- Unit Shipments of Prime Windows, by Market Segment (Graph)
- Unit Shipments of Prime Windows, by Type (Graph)
- Unit Shipments of Prime Windows for New Construction, by Type
- Unit Shipments of Prime Windows for New Construction, by Type (Graph)
- Material Shares of Unit Shipments of Prime Windows for New Construction (Graph)
- Unit Shipments of Prime Windows for Remodeling and Replacement, by Type
- Unit Shipments of Prime Windows for Remodeling and Replacement, by Type (Graph)
- Material Shares of Unit Shipments of Prime Windows for Remodeling and Replacement (Graph)
- Residential Patio Door Usage
SECTION VII: THE U.S. LUMBER SUPPLY
- Analysis:
- Overview
- Lumber Production Rebounds
- Softwood Lumber Production
- Hardwood Lumber Production
- Trade Issues Affecting Supply
- Tables:
- U.S. Lumber Production, by Type
- U.S. Softwood Lumber Production, by Type
- U.S. Eastern Lumber Production, by Species
- U.S. Western Lumber Production, by Species
- Production, Exports, Imports, and U.S. Apparent Consumption of
- Softwood Lumber
- U.S. Production and Exports of Softwood Lumber, by Detailed Type
- Tables: (cont d.)
- Production, Exports, Imports, and U.S. Apparent Consumption of
- Hardwood Lumber
- U.S. Production and Exports of Hardwood Lumber, by Detailed Type
- U.S. Lumber Mill Stocks
SECTION VIII: PRICING IN THE U.S. MILLWORK INDUSTRY
- Analysis:
- Overview
- Lumber Prices
- Producer Prices for Wood Window Units
- Producer Prices for Wood Doors
- Producer Prices for Wood Moldings
- Tables:
- Producer Price Trends:
- General Millwork
- Wood Window Units
- Wood Window Units, by Type
- Wood Sash
- Wood Window and Door Frames and Door Frames Shipped in Units
- Wood Doors
- Wood Doors, by Type
- Wood Moldings
- Other Millwork
SECTION IX: ADVERTISING TRENDS IN THE U.S. MILLWORK INDUSTRY
- Analysis:
- Overview
- Erratic Nature of Media Spending
- Leading Advertisers
- Advertising Venues
- Tables:
- Total Media Expenditures by Window and Door Manufacturers
- Top Media Spenders Among Window and Door Manufacturers
- Top Advertised Brands of Windows and Doors
- Media Expenditures by Window and Door Manufacturers, by Company
- and Brand
SECTION X: HOME BUILDER BRAND PREFERENCE/USAGE SURVEYS
- Analysis:
- Introduction
- Wood and Wood-Clad Windows
- Skylights and Roof Windows
- Interior Passage Doors
- Entry Doors
- Garage Doors
- Patio Doors
- Decorative Molding/Trim/Columns
- Tables:
- Quality Ratings:
- Wood and Wood-Clad Windows:
- By Census Region
- By Average Home Sale Price
- By Number of Units Built
- Skylights and Roof Windows:
- By Census Region
- By Average Home Sale Price
- By Number of Units Built
- Interior Passage Doors:
- By Census Region
- By Average Home Sale Price
- By Number of Units Built
- Entry Doors:
- By Census Region
- By Average Home Sale Price
- By Number of Units Built
- Garage Doors:
- By Census Region
- By Average Home Sale Price
- By Number of Units Built
- Patio Doors:
- By Census Region
- By Average Home Sale Price
- By Number of Units Built
- Decorative Molding/Trim/Columns:
- By Census Region
- By Average Home Sale Price
- By Number of Units Built
- Brands Used the Most:
- Wood and Wood-Clad Windows:
- By Census Region
- By Average Home Sale Price
- By Number of Units Built
- Skylights and Roof Windows:
- By Census Region
- By Average Home Sale Price
- By Number of Units Built
- Interior Passage Doors:
- By Census Region
- By Average Home Sale Price
- By Number of Units Built
- Entry Doors:
- By Census Region
- By Average Home Sale Price
- By Number of Units Built
- Garage Doors:
- By Census Region
- By Average Home Sale Price
- By Number of Units Built
- Patio Doors:
- By Census Region
- By Average Home Sale Price
- By Number of Units Built
- Decorative Molding/Trim/Columns:
- By Census Region
- By Average Home Sale Price
- By Number of Units Built
SECTION XI: FOREIGN TRADE ACTIVITY
- Analysis:
- Overview
- U.S. Balance of Trade
- U.S. Apparent Consumption of Millwork
- U.S. Exports of Millwork Products
- A Slow Boat to China
- U.S. Imports of Millwork Products
- Tables:
- Foreign Exchange Rates
- Fixed Euro Conversion Rates
- U.S. Apparent Consumption of Millwork
- U.S. Balance of Trade for Millwork
- U.S. Balance of Trade for Millwork, by Type
- U.S. Exports of Millwork (Graph)
- Top 20 U.S. Export Destinations for Millwork
- Dollar Market Shares of the Top 20 U.S. Export Destinations for Millwork
- Leading U.S. Export Destinations for Millwork (Graph)
- U.S. Exports of Millwork, by Type
- U.S. Exports of Millwork, by Country of Destination:
- Coniferous Wood Moldings
- Nonconiferous Wood Moldings
- Wood Windows, French Windows, and Their Frames
- Wood Flush Doors
- Wood Doors and Their Frames and Thresholds
- Wood Blinds, Shutters, and Screens
- U.S. Imports of Millwork (Graph)
- Top 20 U.S. Import Sources for Millwork
- Dollar Market Shares of the Top 20 U.S. Import Sources for Millwork
- Leading U.S. Import Sources for Millwork (Graph)
- U.S. Imports of Millwork, by Type
- U.S. Imports of Millwork, by Country of Origin:
- Coniferous Standard Wood Moldings
- Other Coniferous Wood Moldings
- Nonconiferous Standard Wood Moldings
- Other Nonconiferous Wood Moldings
- Pine Standard Wood Moldings
- Wood Windows, French Windows, and Their Frames
- Wood French Doors
- Wood Flush Doors
- Other Wood Doors and Their Frames and Thresholds
- Wood Blinds, Shutters, Screens, and Shades
- Wood Blinds, Shutters, Screens, and Shades, Without Louver Boards or Slats
SECTION XII: STRUCTURE OF THE U.S. MILLWORK INDUSTRY
- Analysis:
- Overview
- Operating Structure
- Employment Trends
- New Capital Expenditures
- Consolidation
- Number of Establishments
- Explanation of Terms
- Tables:
- The U.S. Millwork Industry:
- Operating Structure
- Gross Operating Margin
- Value Added by Manufacture
- Vertical Integration Index
- Employment Structure
- Total Labor Costs
- Average Hourly Earnings of Production Workers
- Cost of Living Index for Production Workers
- Labor Productivity
- Indexes of Real Labor Productivity
- New Capital Expenditures
- Plant vs. Equipment Expenditures
- Ending Inventories
- Capacity Utilization Rates
- Number of Establishments
- Number of Manufacturing Plants, by State and Employment Size
- The Plant Manager s Workbook:
- How to Use This Section
- Gathering Your Data
- Developing Your Ratios
- How Does Your Plant Stack Up?
SECTION XIII: CORPORATE ACTIVITY
- Introduction
- Tables:
- Financial Profile of Wood Window and Door Manufacturers:
- Total
- Sorted by Sales
- Sorted by Assets
- Financial Profile of Manufacturers of Dimension Lumber or Stock Made
- from Purchased Lumber or Cut Stock:
- Total
- Sorted by Sales
- Sorted by Assets
- Financial Profile of Other Millwork Manufacturers:
- Total
- Sorted by Sales
- Sorted by Assets
- Company Profiles:
- Andersen Corporation:
- Overview
- Products
- Distribution
- Manufacturing
- The Centennial Celebration
- Project Odyssey
- Causeway Lumber Company
- Edward Hines Lumber Co.
- Griffon Corporation:
- Overview
- Garage Doors
- Manufacturing
- Outlook
- Financial Summary and Analysis
- Hurd Millwork Company, Inc.:
- Overview
- Products and Distribution
- Manufacturing
- Total Window Control
- Outlook
- JELD-WEN, inc.:
- Overview
- Products
- Success of AuraLast
- Kolbe & Kolbe Millwork Co., Inc.:
- Overview
- Products
- Distribution
- Manufacturing
- Marvin Windows and Doors:
- Overview
- Windows
- Doors
- Manufacturing and Distribution
- Outlook
- Masonite International Corporation:
- Overview
- Manufacturing and Distribution
- Global Expansion
- Outlook
- Financial Summary and Analysis
- Milgard Manufacturing, Inc.:
- Overview
- Manufacturing and Distribution
- WoodClad
- Masco Corporation
- Pella Corporation:
- Overview
- Products
- Manufacturing
- News
- Pioneer Millworks
- Weather Shield Manufacturing, Inc.:
- Overview
- Products
- Manufacturing
- Newest Entry Door Line
- Weyerhaeuser Company:
- Overview
- Wood Products
- Manufacturing
- News
- Outlook
- Financial Summary and Analysis
APPENDIX A: GLOSSARY OF SELECTED WINDOW TERMS
APPENDIX B: DIRECTORY OF SELECTED U.S. MANUFACTURERS OF MILLWORK
- Introduction
- Directory
