Researched by: Ducker Research Company, Inc. 1250 Maplelawn Drive Troy, MI 48084 (248) 644-0086

Executive Report

Study of the U.S. Market For Windows, Doors and Skylights

Copyright © 2012 - Co-published April 2012 by:

www.ducker.com

American Architectural Manufacturers Association (AAMA) 1827 Walden Office Square, Suite 550 Schaumburg, Illinois 60173 Tel: (847) 303-5664/Fax: (847) 303-5774

Window & Door Manufacturers Association (WDMA) 401 North Michigan Avenue Chicago, Illinois 60611 Tel: (312) 321-6802 www.wdma.comwww.aamanet.org

TABLE OF CONTENTS

Section Description Page A. INTRODUCTION AND METHODOLOGY 1 1. Methodology 2. Purpose 3. Methodology and Time Line 4. Terminology B. U.S. CONSTRUCTION ACTIVITY 7 1. U.S. Summary 2. U.S. Residential Starts

3. Nonresidential Floor Area

C. DOOR MARKET 20 1. Summary 2. Market Size by Application 3. Segmentation by Material 4. Wood Doors by Application 5. Wood Doors Segmented by Type 6. Residential Wood Flush Doors 7. Architectural (Nonresidential) Flush Doors

8. Wood Stile and Rail Doors 9. Historic and projected Growth

D. WINDOW MARKET 41 1. Summary 2. Residential-Type Market Size by Application 3. Residential-Type Window Segmented by Application and Material

4. Residential-Type Wood Windows in Conventional Applications 5. Residential-Type Vinyl Windows in Conventional Applications 6. Historic and Projected Growth 7. U.S. Nonresidential Glass and Windows Market Size 8. Nonresidential Historic and Projected Growth

E. PATIO DOOR MARKET 82 1. Summary 2. Market Size by Application 3. Segmentation of Wood Units 4. Patio Door Forecasts F. SKYLIGHT MARKET 92 1. Summary 2. Market Size by Application 3. Commercial Skylights

APPENDICES: A. Eleven U.S. Census Regions B. U.S. Entry and Interior Door Market by Region

C. U.S. Conventional Residential Window Market by Region D. Nonresidential Vision Area Models E. U.S. Patio Door Market by Region F. U.S. Glass Usage by Region

LIST OF EXHIBITS

Section Number & Type Description Page

A A.1 Time Line Program Time Line 2009 – 2010 • Program Approval • Draft Report • Report Publication

3

B B.1 Bar Graph U.S. New Residential Construction

Segmented by Type of Structure 2007-2015 • Manufactured Homes • Multi-Family • Single Family

9

B.2 Map U.S. Conventional Housing Starts

by Geographic Region 2011 • 11 Regions

10

B.3 Bar Graph Forecasted U.S. Residential Construction

Segmented by Type of Structure 2012F – 2015F • Manufactured Homes • Multi-Family • Single Family

11

B.4 Pie Chart U.S. Residential Housing Starts by Region

2011 • South • West • Midwest • Northeast

12

B.5 Pie Chart U.S. Residential Housing Starts by Region

2015 Forecasted • South • West • Midwest • Northeast

12

B.6 Table Expenditures and Growth Over Prior Year

• 2006 – 2015F 13

B.7 Bar Chart Total U.S. Residential Improvement Expenditures

• Billions of Dollars 2006-2015F 13

B (cont.) B.8 Table New U.S. Housing by Type of Structure Private and Public, Including Farm 2006 – 2015F • Total Shelter • Manufactured Housing • Total Conventional • Single Family • Multi-Family

14

B.9 Table New U.S. Conventional Housing by Geographical Region

Private and Public, Including Farm 2006 – 2015F • Northeast • Midwest • South • West

15

B.10 Table U.S. Manufactured Housing Shipments to Dealers

by Geographical Region Private and Public, Including Farm 2006 – 2015F • Northeast • Midwest • South • West

15

B.11 Bar Chart Forecasted Nonresidential Contract Awards by Floor Area Segmented by Major Building Category 2009 – 2015F • Manufacturing/Warehouse • Office/Hotel/Institutional • Store/Mercantile

16

B.12 Map New U.S. Nonresidential Contract Awards by Geographical Region

2011 • 11 Regions

17

B.13 Pie Chart Nonresidential Contracts by Region

2011 • South • West • Midwest • Northeast

18

B.14 Pie Chart Nonresidential Contracts by Region

2012 Forecasted • South • West • Midwest • Northeast

18

B (cont.) B.15 Table Nonresidential Contract Awards (Reported) by Selected Building Types and Regions 2009 – 2015F • Manufacturing/Warehouse • Office/Hotel/Institutional • Store/Mercantile • Total Nonresidential

19

C C.1 Table Total Market for U.S. Doors by Application

2011 • Residential Entry • Residential Interior • Nonresidential Entry • Nonresidential Interior

22

C.2 Table Total U.S. Market for Doors by Construction Type and Application

2011 • New Construction • Remodeling • Replacement

23

C.3 Pie Chart U.S. Residential Entry Doors by Material

2011 • Steel • Wood • Fiberglass

24

C.3.1 Pie Chart U.S. Residential Fiberglass Entry Doors by Finish 2011 • Smooth • Molded/Textured

24

C.4 Pie Chart

Residential Interior Doors by Material 2011 • Wood • Other

25

C.5 Pie Chart Nonresidential Entry Doors by Material

2011 • Steel • Aluminum • Wood • Other

26

C.6 Pie Chart Nonresidential Interior Doors by Material

2011 • Wood • Aluminum • Steel • Other

27

C (cont.) C.7 Table U.S. Market for Wood Doors by Application

2011 • Residential Entry • Residential Interior • Nonresidential Entry • Nonresidential Interior

28

C.8 Table U.S. Market for Wood Doors by Construction Type and

Application 2011 • New Construction • Remodeling • Replacement

28

C.9 Table U.S. Market for Wood Doors Flush Versus Stile and

Rail Construction 2011 • Residential Entry • Residential Interior • Nonresidential Entry • Nonresidential Interior

29

C.10 Pie Chart Wood Residential Interior Doors by Type

2011 • Flush • Stile and Rail

30

C.11 Pie Chart Wood Nonresidential Interior Doors by Type

2011 • Flush • Stile and Rail

30

C.12 Table 2011 Wood Flush Door Market by Core Construction

• Hollow Core • Solid Core • Fire Door

31

C.13 Pie Chart Residential Wood Flush Doors by Material

2011 • Molded Hardboard • Flush Veneer • Flush Hardboard • Other

32

C.14 Table Architectural Wood Passage Flush Door Shipments by Core

Construction 2011 • Hollow Core • Solid Core • Fire Door

33

C (cont.) C.15 Bar Chart Relative Impact of Building Construction and Market Conditions

on Sale of Architectural Flush Doors 2009 vs. 2011

33

C.16 Pie Chart Solid Core and Fire Rated Wood Architectural Flush Passage

Doors by Core Types 20011 • Particleboard • Mineral • SCL • Stave

34

C.17 Pie Chart Fire Rated Wood Architectural Flush Passage Doors by Rating

2011 • 90 Minutes • 60 Minutes • 45 Minutes • 20 Minutes

34

C.18 Pie Chart Architectural Wood Flush Doors by Face Material

2011 • Wood Veneer • Laminates • MDO/Others

35

C.19 Table Architectural Flush Veneers by Wood Species Used

2011 • Red Oak • Birch • Maple • Cherry • Mahogany • White Oak • Walnut • Lauan/Related • Ash • Other Hardwoods

36

C.20 Pie Chart Architectural Wood Veneer Flush Doors by Ply Construction

2011 • 5 Ply • 7 Ply • Other

36

C (cont.) C.21 Table Architectural Wood Flush Doors by Door Height

2011 • 7’0” • 9’0” • 6’8” • 8’0” • 7’10” • 7’2” • Other

37

C.21.1 Table

Architectural Wood Flush Doors by Door Width 2011

37

C.22 Table

• <36” • 36” • 42” • 48” and above

Wood Stile and Rail Doors by Application 2011 • Residential Entry • Residential Interior • Nonresidential Entry • Nonresidential Interior

38

C.23 Pie Chart Fire Rated Wood Architectural Stile and Rail Passage Doors by

Rating 2011 • 90 minutes • 60 minutes • 45 minutes • 20 minutes

38

C.24 Table Sales of U.S. Doors by Material and Application

2006-2015F • Steel • Wood • Fiberglass • Aluminum

40

D D.1 Table Total Market for Residential-Type Window Units by Application

2009 and 2011 • Residential New Construction • Residential Remodel • Residential Replacement • Manufactured Housing • Nonresidential New Construction • Nonresidential Remodel • Nonresidential Replacement

43

D (cont.) D.2 Table Total U.S. Market for Residential-Type Window Units by

Application and Framing Material 2009 and 2011 • Residential, Nonresidential and Manufactured Housing Window

Units • Wood and Clad Wood • Vinyl • Aluminum • Other

45

D.3 Bar Graph Total U.S. Conventional Residential Window Demand

Historic and Forecasted Window Usage by Framing Material 2006 – 2015F • Wood and Clad Wood • Aluminum • Vinyl • Other

46

D.4 Table U.S. Conventional Residential Window Usage by Framing Material

Segmented by Construction Type 2009 and 2011 • New, Remodel, and Replacement • Wood and Clad Wood • Vinyl • Aluminum • Other

47

D.5 Table Conventional Residential Window Usage

Segmented by Framing Material 2009 and 2011 • Wood • Aluminum Clad Wood • Vinyl Clad Wood • Aluminum with Thermal Break • Aluminum without Thermal Break • Vinyl • Other

48

D (cont.)

D.6 Table Conventional Residential Window Usage Segmented by Configuration 2009 and 2011 • Wood, Vinyl, Aluminum, and Other • Double Hung • Single Hung • Casement • Gliding/Slider • Awning • Fixed • Specialty

49

D.7 Pie Chart Conventional Residential Window Volumes

Segmented by Customization 2009 and 2011 • Standard Stock Windows • Customized Windows

51

D.8 Table Conventional Residential Window Glass Usage

Segmented by Framing Material 2009 and 2011 • Single Lite, Two Lite Sealed IG, Other • Wood • Vinyl • Aluminum • Other

52

D.9 Pie Chart Conventional Residential Windows – Insulating Glass

Segmented by Type of Spacer 2009 and 2011 • Rigid Warm Edge • Non-Rigid Warm Edge • Aluminum Spacer

53

D.10 Pie Chart Conventional Residential Windows – Hurricane Resistant

Florida, All Other Regions 2009 and 2011 • Non Hurricane • Hurricane Impact Glazing • Hurricane Non-Impact Glazing

54

D.11 Table Conventional Residential Windows

Segmented by Glass Type 2009 and 2011 • Wood, Vinyl, Aluminum, and Other • Clear • Tinted/Reflective • Low-E

55

D.12 Pie Chart Conventional Residential Windows – Low-E

Segmented by Coating Type 2009 and 2011 • Sputtered • Pyrolytic

56

D (cont.) D.13 Table Conventional Residential Windows – Energy Ratings

Segmented by Rating Type 2009 and 2011 • Wood, Vinyl, Aluminum/Other • NFRC Rating • NFRC and Energy Star Rating • No Rating

57

D.14 Table Conventional Residential Wood Window Units

Segmented by Configuration 2009 and 2011 • Double Hung • Single Hung • Casement • Gliding/Slides • Awning • Fixed • Specialty

58

D.15 Table Conventional Residential Wood Window Units – Window Sash and

Frame Segmented by Wood Species Used 2009 and 2011 • Ponderosa Pine • Southern Yellow Pine • Radiata Pine • White Pine • Fir/Hemlock • Other Softwoods • Oak • Other Hardwoods

59

D.16 Pie Chart Conventional Residential Wood Window Units – Non-Clad

Segmented by Exterior Finish 2009 and 2011 • Primed/Prefinished • Natural • No Finish

60

D.17 Pie Chart Conventional Residential Wood Window Units

Segmented by Type of Insulating Spacer 2009 and 2011 • Rigid Warm Edge Spacer • Non-Rigid Warm Edge • Aluminum Spacer

61

D.18 Pie Chart Conventional Residential Wood Window Units

Segmented by Low-E Usage and Technology 2009 and 2011 • Sputtered • Pyrolytic

61

D (cont.) D.19 Table Conventional Residential Vinyl Window Units Segmented by Configuration 2009 and 2011 • Double Hung • Single Hung • Casement • Gliding/Slider • Awning • Fixed • Specialty

62

D.20 Pie Chart Conventional Residential Vinyl Window Units

Segmented by Type of Insulating Spacer 2009 and 2011 • Rigid Warm Edge Spacer • Non-Rigid Warm Edge • Aluminum Spacer

63

D.21 Pie Chart Residential Vinyl Window Units

Segmented by Fabrication Method 2009 and 2011 • Fully Welded Frame • Mechanically Fastened Frame • Hybrid of Mechanically Fastened Frame and Fully Welded Frame

63

D.22 Pie Chart Conventional Residential Vinyl Window Units

Segmented by Solid Extrusion Color 2009 and 2011 • White • Tan • Other

64

D.23 Table Conventional Residential Windows Usage

2006-2015 Forecast • New Construction, Remodel/Replacement and Total Construction • Wood • Aluminum • Vinyl • Fiberglass • Other

65

D (cont.) D.24 Table New Nonresidential Construction and Major Additions Segmented by Building Category 2009 and 2011 • Curtainwall, Storefront, Site Fabricated Windows, and Shop

Fabricated Windows • Office and Bank • Stores, Other Mercantile • Manufacturing/Warehouses • Educational • Hospital/Health Care (incl. Government) • Public/Government • Religious • Amusement/Recreational • Hotel/Motel/Dormitory • Miscellaneous • High Rise Multi-Family

68

D.25 Table Total Nonresidential Vision Area

Segmented by Type of Construction 2009 and 2011 • New Building/Major Additions and Replacement • Curtainwall • Storefront • Site Fabricated Windows • Shop Fabricated Windows

69

D.26 Table Framing Materials Used in Nonresidential Construction

2009 and 2011 • Curtainwall, Storefront, Site Fabricated Windows, and Shop

Fabricated Windows • Aluminum with Thermal Break • Aluminum without Thermal Break • Wood • Vinyl, Other

70

D.27 Table Nonresidential Aluminum Framing

Segmented by Finish Material 2009 and 2011 • Anodized Finish • Standard Paint • High End paint

71

D.28 Table Calculations –High-Rise Construction – New and Major Additions

2009 and 2011 • Ratio High-Rise, High-Rise Vision Area, Total Vision Glass Area • Office/Bank • All Other

72

D.29 Table Total U.S. Nonresidential Glass Usage

Segmented by Glazing Configuration 2009 and 2011 • Single Lite and Non-Sealed • Insulating glass units

73

D (cont.) D.30 Table Glass Usage – Nonresidential Windows 2007 to 2011 • Clear • Tint • Reflective • Low-E

73

D.31 Pie Chart Usage of Low-E Segmented by Coating Technology

2009 and 2011 • Sputter and Suspended Film • Pyrolytic

74

D.32 Pie Chart Non Residential Glazing – Hurricane Resistant

Florida, All Other Regions 2011 • Non Hurricane • Hurricane Impact Glazing • Hurricane Non Impact Glazing

75

D.33 Picture U.S. Market for Commercial Windows Segmented by Window

Type 2011 • Site Fabricated • Shop Fabricated

76

D.34 Pie Chart U.S Market for Architectural Rated Shop-Fabricated Windows by

Rating Segmented by Window Rating Type 2009 and 2011 • AW • C • H/C

76

D.35 Table U.S. Architecturally-Rated Shop-Fabricated Windows Segmented

by Window Configuration 2009 and 2011 • Fixed • Projected / Awning • Slider • Hung • Door • Specialty/Other

77

D.36 Pie Chart U.S Shop-Fabricated Patio and Terrace Doors

Segmented by Door Type 2011 • Hinged • Sliding

78

D.37 Table U.S. Window Usage in Nonresidential Buildings – 2008-2015F

• New Construction • Remodeling & Replacement

79

E E.1 Table Total U.S. Market for Residential Patio Doors

Segmented by Framing Material 2007 - 2011 • Wood • Aluminum • Vinyl • Steel • Fiberglass • Other

83

E.2 Table Total U.S. Market for Residential Patio Doors

Segmented by Construction Type and Framing Material 2009 and 2011 • New Construction, Remodel, and Replacement • Wood • Aluminum • Vinyl • Steel • Fiberglass • Other

84

E.3 & E.4. Pie Charts

Patio Doors by Framing Material 2009 and 2011 • Wood • Aluminum • Vinyl • Steel • Fiberglass • Other

85

E.5 Table Total U.S. Market for Residential Patio Doors Segmented by Application and Framing Material 2009 and 2011 • Hinged and Sliding • Wood • Aluminum • Vinyl • Steel • Fiberglass • Others

86

E (cont.)

E.6 Table Total U.S. Sliding and Hinged Patio Doors Segmented by Number of Panels 2009 and 2011 • One Panel, Two Panel, and Three or More Panels • Wood • Aluminum • Vinyl • Steel • Fiberglass • Others

87

E.7 Table Total U.S. Market for Residential Patio Doors Segmented by Low-E Usage and Technology 2009 and 2011 • Clear, Tinted, Reflective and Low-E • Wood • Aluminum • Vinyl • Steel • Fiberglass • Others

88

E.8 Table Wood Patio Doors

Segmented by Cladding and Type of Door 2009 and 2011 • Hinged and Sliding • Clad • Non-Clad

89

E.9 Pie Chart Non-Clad Wood Patio Doors

Segmented by Finish Type 2009 • Primed/Painted • Natural Finish • No Finish

90

E.10 Table Wood Patio Door Lumber Type

Segmented by Wood Species 2011 • Ponderosa Pine • Southern Yellow Pine • Radiata Pine • White Pine • Fir/Hemlock • Oak • Other Softwoods • Other Hardwoods

90

E.11 Table Residential Patio Door Market

2004 – 2013F • New Construction • Remodel and Replacement

91

F F.1 Table Residential-Type Skylights (Including Light Commercial)

2006 – 2011 • New Construction • Remodel/Replacement

93

F.2 Table Skylights by Type and Application

2011 • Plastic Glazed Skylight and Glass Glazed Skylight • Residential • Light Commercial

93

F.3 Pie Chart Total Market for Skylights by Type

2009 and 2011 • Glass Glazed Skylights • Plastic Glazed Skylights

94

F.4 Pie Chart Plastic Glazed Skylights by Type 2011 • Acrylic • Polycarbonate • Fiberglass

95

F. 5 Pie Chart Plastic Glazed Skylights by Type

2011 • Translucent/Diffusing • Tinted/Colored • Clear

95

F.6 Pie Chart Glass Glazed Skylights by Type

2011 • Low E • Clear • Tinted • Reflective

96

F.7 Pie Chart Residential-Type Skylights by Framing Material

2011 • Vinyl • Aluminum • Wood and Clad wood • Frameless / Other

97

F.8 Table Residential-Type Skylights by Type and Application

2011 • Plastic Glazed Skylights and Glass Glazed Skylights • Fixed • Venting • Venting – Motorized/Operable

98

F.9 Table Forecast of Residential-Type Skylights

2011 – 2015F • New • Remodeling / Replacement

99

Appendix

A APDX-A.1

Map

APDX-A.2 Table

Eleven U.S. Census Regions Four to Eleven Region Conversion and Abbreviation Definitions

Appendix

B Table U.S. Entry and Interior Door Market Segmented by Application

and Estimated Geographic Segmentation 2011 • Residential • Nonresidential

Appendix

C Table U.S. Conventional Residential Window Market Segmented by

Application and Estimated Geographic Segmentation 2011 • New Construction • Remodeling and Replacement

Appendix

D APDX-D.1

Graphic Conversion: Total Vision Glass Area

APDX-D.2

Graphic Model: Total Vision Glass Area

APDX-D.3

Table United States Nonresidential New and Major Additions 2011 Contract Awards • Office and Bank • Stores, other Mercantile • Manufacturing/Warehouse • Educational • Hospital/Healthcare (incl. Government) • Public/Government • Religious • Amusement/Recreational • Hotel/Motel/Dormitory • Miscellaneous • High Rise Multi Family

APDX-D.4

Table U.S. Nonresidential Total Wall Area – New and Additions 2011 • Floor Area and Wall-to-Floor Ratio • Office and Bank • Stores, other Mercantile • Manufacturing/Warehouse • Educational • Hospital/Healthcare (incl. Government) • Public/Government • Religious • Amusement/Recreational • Hotel/Motel/Dormitory • Miscellaneous • High Rise Multi Family

APDX-D.5 Table

U.S. Nonresidential Vision and Opaque Wall Area – New and Additions Segmented by Building Category 2011 • Total Wall Area and Vision Glass • Office and Bank • Stores, other Mercantile • Manufacturing/Warehouse • Educational • Hospital/Healthcare (incl. Government) • Public/Government • Religious • Amusement/Recreational • Hotel/Motel/Dormitory • Miscellaneous • High Rise Multi Family

Appendix E

Table U.S. Patio Door Market Segmented by Application and Estimated Geographic Segmentation2011 • New Construction • Remodeling and Replacement

Appendix

F Table U.S. Glass Usage

Segmented by Glass Type and Estimated Geographic Segmentation 2011

• Clear • Tinted • Low E

Copyright © 2012 AAMA and WDMA

All rights reserved.

This report or any part thereof may not be reproduced in any form without the written permission of the publisher.

A. INTRODUCTION AND METHODOLOGY Ducker Worldwide has been conducting the study of the U.S. residential and

nonresidential window and door markets for the WDMA (Window & Door Manufacturers Association) in combination with AAMA (American Architectural Manufacturers Association) since October 1994. This particular study details market volumes and trends in the U.S. for 2011, forecasted through 2015, as well as historical volumes. Additionally, a review of eleven U.S. regions and a top level view of the U.S. are presented in the Statistical Review portion of the report.

Ducker has been conducting residential and nonresidential market studies

continuously since 1982 for AAMA. Prior to that, studies were conducted for the Sealed Insulating Glass Manufacturers Association (SIGMA) since 1978. This association is now called the Insulating Glass Manufacturers Alliance (IGMA). Additionally, our research history goes back to 1972 when we first developed a demand model for flat glass usage in the United States. Ducker further produces many syndicated and custom market research studies for the fenestration and building products markets annually. These include the annual studies of the North American Flat Glass Market Study and a bi-annual study of the Northern American Fabricated Glass Market among many others.

This following report is the result of a combined market study and a database

analysis funded by AAMA and WDMA in a cooperative effort. The intent in combining these studies is to develop a full database and a comprehensive report on all segments of the window and door market. The database is designed to be utilized for studies into the foreseeable future and to compare ongoing trends.

1. Methodology The role of Ducker Worldwide is to combine primary and secondary market research efforts with its own body of knowledge to profile and track residential and nonresidential segments of fenestration market volume. As a major input to the research, Ducker receives confidential disclosures from AAMA and WDMA members along with non-members. However, multiple industry sources, such as demand models, raw material and component suppliers, and internal

1

databases, are necessary and consistently used to triangulate market statistics. Public databases are also utilized, such as the U.S. Bureau of Census and other sources of construction metrics. In addition, Ducker interviewed several hundred home builders, contractors, installers and distributors, which help to develop indicative product usage factors and channel flow as a cross reference to the various manufacturers’ input. This report, the U.S. National Statistical Review and Forecast, and associated regional reports were prepared by Ducker Worldwide LLC. Opinions and estimates constitute the best judgment as of the date of this material and are subject to change without notice, as additional information becomes available. Any interpretations derived from these findings are the sole responsibility of those using the report. Reproduction without the explicit, written consent of Ducker Worldwide LLC, AAMA, or the WDMA is strictly prohibited. The metrics published throughout the report represent the best judgment of Ducker through March of 2011; however the Census or other sources of construction metrics frequently do not finalize the totals of 2011 data until late into 2011, and they also will revise historical information. Ducker takes into account these historical revisions when updating models and thus minor differences between published construction data may occur. These revisions do not impact market size estimates for fenestration categories unless stated throughout the report. Please note that while all individual numbers are accurate as rounded, totals may not always add due to rounding.

The following report represents our research and analytical efforts beginning in late 2011.

2. Purpose The purpose of this study is to provide a comprehensive single report detailing the window and door market for WDMA and AAMA.

3. Methodology and Time Line Study findings are based upon disclosures from window and door manufacturers, suppliers, secondary construction data metrics and our prior database and experience in providing this information in the past. Study findings are segmented by geographic region as illustrated in Appendix A to this report.

2

The research program for the WDMA and AAMA spans from December 2011 through April 2012. A timeline is provided on the following page as Exhibit A.1.

Exhibit A.1

Program Time Line 2011 – 2012

Program Draft Report Approval Report Publication

• Present draft results • Fieldwork complete • Review draft reports

with WDMA/AAMA advisory committees

• Make revisions, final edits

• Kick-off meeting • Initiate fieldwork • Analyze and report

information

December 2011 early-April, 2012 end-April, 2012

For purposes of presenting data in this report, the term Exhibits will be used to display all graphics, charts, and tables.

4. Terminology Certain terms are used throughout the report which may require definition. Also, in our analysis, assumptions are made regarding units and construction activity. The following is a list of definitions and assumptions used in the development of this report. Specific questions on terminology throughout the report can also be directed to Ducker Worldwide, LLC. Bifold Door: An interior application utilizing two or more individual door leafs, conjoined with hinges, which operate on a sliding track. A bifold door is primarily a form of a closet door. However, bifold doors do not include folding doors or overlapping sliding doors. Bifold door volume counted on a per leaf basis. Included in interior door volume. Closet Doors: An interior door used for passage from room or hallway to closet. Included in interior door volume, but not reported separately.

3

Doors: Units are defined as actual door slabs and panels, rather than openings where one or more slabs would be used. Excluded from door units are closet doors, bifold doors and service and industrial doors. Entry Doors: A door opening that allows passage from the exterior of a building or home to the interior. In the residential market, hinged rear entrance doors connecting an attached garage to a home are included, while patio doors are excluded and reported separately. In the nonresidential market, entry doors also include vestibule doors. Flush Door Construction: A method of door construction whereby a thin face material is attached to a light internal frame (often made of wood). Face material may include high density fiberboard, steel, wood veneer, MDO, or other products. Framing: Metal, wood, fiberglass, vinyl, or composite members comprising the window. In operable windows, framing members include both a operational portion and fixed portion of the window. Insulating Glass: A combination of two or more panes of glass with a hermetically sealed air space between the panes of glass separated by a spacer. This space may or may not be filled with an inert gas, such as argon. Interior Door: Includes both Passageway and Closet doors. Nonresidential: Nonresidential construction is defined as all commercial buildings, from small to large, that are not meant for residence. Hotels, motels, and dormitories are included in nonresidential figures. Patio Doors: Units are defined as openings at the manufacturer level, to avoid double counting units due to multiple operable, or inoperable panels. For example, a double French door and a triple panel sliding door are all considered one unit. Figures in this report identify units with single panels and multiple panels alike as one singular unit. Further segmentation by number of panels in detailed in the Patio Door section of this report. Passageway Doors: An interior door used for passage from room or hallway to room. Excluded from this are garage hinged and service doors.

4

5

Residential: Residential construction is defined as dwelling units: single-family attached, single-family detached, multi-family and manufactured homes. Apartment buildings, although considered commercial construction, are included in our residential figures, except for high rise construction which uses commercial shop fabricated windows. Stile and Rail Door Construction: A traditional method of construction for wood doors whereby the structural components are exposed. Structural components include wood stiles (vertical beams) and rails (horizontal beams), which encompass wood panels. Stiles and rails are held together using glue and dowel pins, while panels often “float” within channels grooved into the stile and rail components. Skylights: Standardized unit specified by product. Not included in window volumes. Sloped Glazing: Nonstandard specification, also called custom skylights or monumental glazing. This product is captured in curtainwall data, but not segmented out. Does not include sunrooms, which are a separate category. Study Regions: Eleven geographic regions are used throughout the report. Appendix A to this report illustrates the definition of these regions. Sunrooms: Separate classification from sloped glazing. Not included in window volumes, but some windows may be ultimately destined for use in a sunroom. Vision Glass Area: Unless otherwise noted, glass area figures are surface measure of vision glass area. Figures for spandrel glass materials also are surface measured. Windows: Units are defined as openings at the manufacturer level. However, the definition of a unit differs among manufacturers (e.g., a bay window to some may be three openings while to others it may be one). This does not account for multiple windows that are nailed together at the distributor level for one opening. Figures in this report more closely reflect units at the manufacturer level, rather than openings at the job site. Sliding and hinged patio or French doors are considered a separate market from windows.

* * *

2011/2012 U.S. National Statistical Review and Forecast

Forecast: Ducker Research Company, Inc.

Copyright © 2012- Co-published by:

Introduction Market estimates in the U.S. Industry Statistical Review and Forecast are driven not only by statistics published by the Census Bureau and other construction statistics organizations, but also from primary interviews with leading manufacturers of windows, doors and skylights, as well as component suppliers. All forecasts are based on projections of construction activity as of March 2011 and appropriate usage factors and tabulations developed by Ducker Worldwide LLC, which is solely responsible for the data. Any questions on the Review or its contents should be directed to Ducker. Please note that totals may not always add due to rounding. Ducker has been conducting residential and nonresidential market studies continuously since 1982 for the American Architectural Manufacturers Association (AAMA). From 1978 to 1981, studies were conducted for the Sealed Insulating Glass Manufacturers Association (SIGMA- (currently referred to as IGMA). Ducker has been conducting the update study of the U.S. residential and nonresidential window and door markets for AAMA in combination with the Window and Door Manufacturers Association (WDMA) since October of 1994. The U.S. Industry Statistical Review and Forecast is published annually. Additional and much more detailed information on window, door and skylight markets is contained in the (2011/2012) Study of the U.S. Market for Windows, Doors and Skylights, and The Distribution of Residential and Nonresidential Windows and Doors in the 2011/2012 U.S. Market, as well as individual Statistical Review and Forecast market overview reports for each of the 11 major U.S. regional markets. All reports are available from AAMA or WDMA.

Contents

Residential Construction Activity Privately owned housing 1 New housing by type of structure 1 Residential construction activity 2 Improvement expenditures 3 Manufactured housing shipments 4 Existing home sales 4 Residential Product Statistics Prime windows 5-6 Skylights 7 Patio doors 8 Entry and passage door usage 9-10 Door forecast 11 Nonresidential Product Statistics Entry and passage door usage 10 Door forecast 11 Insulating glass statistics 12 Nonresidential Construction Activity Contract awards 13-14 Regional construction 15 Window usage 16-17 U.S. Map of Geographic Division 18

American Architectural Manufacturers Association (AAMA) 1827 Walden Office Square, Suite 550 Schaumburg, Illinois 60173 Tel: (847) 303-5664/Fax: (847) 303-5774 www.aamanet.org

Window & Door Manufacturers Association (WDMA) 401 North Michigan Avenue Chicago, Illinois 60611 Tel: (312) 321-6802 www.wdma.com

Researched and Edited in March 2012 by: Ducker Worldwide, LLC 1250 Maplelawn Dr. Troy, MI 48084 (248) 644-0086 www.ducker.com

Executive Report

The Distribution of Residential and Nonresidential Windows and Doors in the 2011 U.S. Market

Copyright © 2012 - Co-published April 2012 by:

Researched by: Ducker Research Company, Inc. 1250 Maplelawn Troy, MI 48084 (248) 644-0086 www.ducker.com

American Architectural Manufacturers Association (AAMA) 1827 Walden Office Square, Suite 104 Schaumburg, Illinois 60173 Tel: (847) 303-5664/Fax: (847) 303-5774 www.aamanet.org

Window & Door Manufacturers Association (WDMA) 401North Michigan Avenue Chicago, Illinois 60611 www.wdma.com

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TABLE OF CONTENTS

Section Description Page I. EXECUTIVE SUMMARY .................................................................... 4 II. INTRODUCTION AND METHODOLOGY .......................................... 6 A. Introduction B. Study Objectives C. Study Methodology III. CHANNEL MEMBER DEFINITIONS AND PROFILES ...................... 9 A. Characteristics of Channel Members B. Characteristic Definitions C. Distributor Profiles IV. PRODUCT FLOW ANALYSIS ......................................................... 25 A. Market Size B. Distribution Discussion C. Windows

D. Patio Doors E. Entry Doors

F. Interior Doors V. ISSUES AND TRENDS .................................................................... 66 A. Channel Member Trends

B. Regional Trends VI. NONRESIDENTIAL WINDOWS AND DOORS ................................ 71 A. Nonresidential Products Specification Process B. Nonresidential Windows and Glazing

C. Nonresidential Windows and Glazing Supply Channel Chain Definitions

D. Nonresidential Window Distribution Analysis E. Nonresidential Door Channel Member Definitions F. Nonresidential Door Distribution Analysis

INDEX OF EXHIBITS Exhibit Title Page Number III.1 Definitions – Categorizing Process .............................................................. 10 III.2 Millwork Wholesaler Profile .......................................................................... 13 III.3 Big Box Profile .............................................................................................. 16 III.4 Lumberyard Profile ....................................................................................... 18 III.6 Shortline Distributor Profile ........................................................................... 20 III.7 Specialty Retailer Profile .............................................................................. 22 III.8 Summary of Distribution Definitions ............................................................. 24 IV.1 2011 Market Size - Residential .................................................................... 25 IV.2 2011 Windows – Manufacturer Direct .......................................................... 28 IV.3 2011 Windows – Secondary Distribution Channels ...................................... 29 IV.4 2011 Windows - Total Volume by Channel Distribution ............................... 30 IV.5 2011 Millwork Wholesaler – Actual Window Purchases and Sales .............. 31 IV.6 2011 Big Box – Actual Window Purchases and Sales ................................. 32 IV.7 2011 Lumberyard – Actual Window Purchases and Sales ........................... 33 IV.9 2011 Shortline Distributor – Actual Window Purchases and Sales .............. 34 IV.10 2011 Specialty Retailer – Actual Window Purchases and Sales .................. 35 IV.11 2011 Summary of Window Volumes – Segmented by End User ................. 36 IV.12 2011 Summary of Window Volumes – Segmented by Construction Type ... 37 IV.13 2011 Patio Doors – Manufacturer Direct ...................................................... 38 IV.14 2011 Patio Doors – Major Distribution Channels .......................................... 39 IV.15 2011 Patio Doors – Total Volume by Channel of Distribution ....................... 40 IV.16 2011 Millwork Wholesaler – Actual Patio Door Purchases and Sales .......... 41 IV.17 2011 Big Box – Actual Patio Door Purchases and Sales ............................. 42 IV.18 2011 Lumberyard – Actual Patio Door Purchases and Sales ....................... 43 IV.20 2011 Shortline Distributor – Actual Patio Door Purchases and Sales .......... 44 IV.21 2011 Specialty Retailer – Actual Patio Door Purchases and Sales .............. 45 IV.22 2011 Summary of Patio Door Volumes – Segmented by End User ............. 46 IV.23 2011 Summary of Patio Door Volumes – Segmented by Construction Type46 IV.24 2011 Entry Doors – Manufacturer Direct ...................................................... 47 IV.25 2011 Entry Doors – Secondary Distribution Channels ................................. 48 IV.26 2011 Entry Doors – Total Volume by Channel of Distribution ...................... 49 IV.27 2011 Millwork Wholesaler – Actual Entry Door Purchases and Sales .......... 50 IV.28 2011 Big Box – Actual Entry Door Purchases and Sales ............................. 51

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INDEX OF EXHIBITS (continued)

Exhibit Title Page Number IV.29 2011 Lumberyard – Actual Entry Door Purchases and Sales ...................... 52 IV.30 2011 Shortline Distributor – Actual Entry Door Purchases and Sales .......... 53 IV.31 2011 Specialty Retailer – Actual Entry Door Purchases and Sales .............. 54 IV.32 2011 Summary of Entry Door Volumes – Segmented by End User ............. 55 IV.33 2011 Summary of Entry Door Volumes – Segmented by Construction Type55 IV.34 2011 Interior Doors – Manufacturer Direct ................................................... 56 IV.35 2011 Interior Doors – Secondary Distribution Channels .............................. 57 IV.36 2011 Interior Doors – Total Volume by Channel of Distribution .................... 58 IV.37 2011 Millwork Wholesaler – Actual Interior Door Purchases and Sales ....... 59 IV.38 2011 Big Box – Actual Interior Door Purchases and Sales .......................... 60 IV.39 2011 Lumberyard – Actual Interior Door Purchases and Sales .................... 61 IV.40 2011 Shortline Distributor – Actual Interior Door Purchases and Sales ....... 62 IV.41 2011 Specialty Retailer – Actual Interior Door Purchases and Sales ........... 63 IV.42 2011 Summary of Interior Door Volumes – Segmented by End User .......... 64 IV.43 2011 Summary of Interior Door Volumes – Segmented by Construction Type ............................................................................................................. 64 V.1 Historic View of Window and Door Product Distribution Channel Characteristics ............................................................................................. 67 V.2 Historic View of Window and Door Product Distribution Flow – 2003-2011 ...................................................................... 68 VI.1 Nonresidential Construction Specification Process and Cycle....................... 71 VI.2 Architectural Glazing Products Supply Chain ................................................ 78 VI.3 Shop Fabricated Commercial Window Supply Chain .................................... 82 VI.4 Nonresidential Door Product Flow ................................................................. 85

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This report or any part thereof, may not be reproduced in any form without the written permission of the publisher.

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