SCOPE AND METHODOLOGY

The Catalina Report on Siding is a guide to opportunities in fiber cement, metal, vinyl, and wood sidings; and bricks, concrete products, and building stone. In addition, Catalina reviewed trends in the market for exterior insulated finish systems (EIFS). This comprehensive database covers U.S. shipments, price trends, exports, imports, the cost structure of domestic plants, end-use markets, and the competitive environment. In addition, leading manufacturers and marketers are profiled in order to review major competitor strategies.

Overall U.S. siding shipments are analyzed in the Executive Summary Section (Section 1). Catalina compiled U.S. Department of Commerce shipment statistics on 12 product lines and estimated shipments of fiber cement siding from the sales of the leading manufacturer. Shipment data are for all domestic manufacturers, whether plants are owned by U.S.- or foreign-based companies and whether or not plants specializing (50% or more of total facility revenues) in one or more of the industry’s products. Catalina also provides a growth analysis for price trends and end-use markets. In addition, manufacturer market shares are calculated for the entire industry using data compiled in the Company Profiles section, and brands are ranked by product sector from data compiled from the 2002 Brand Study conducted by Professional Builder magazine. The Professional Builder survey was conducted in February 2002 for purchases over the past 12 months. 

Shipment and brand data are further segmented into four major product chapters — wood siding; vinyl and metal siding; brick, concrete, and stone siding; and fiber cement and EIFS. Wood siding (Section 2) covers shipments of solid wood siding, wood shingles and shakes, softwood plywood siding, hardboard siding, particleboard siding, and cellulosic fiberboard siding. Solid wood siding shipments are provided for nontreated and treated products. The number of U.S. manufacturers is provided for each product line. Import data for solid wood siding and wood shingles and shakes are derived from U.S. Customs records. Combined with export statistics, Catalina calculated U.S. market sales (shipments minus exports plus imports) for solid wood siding and wood shingles and shakes. Price trends for cedar shingles and shakes and softwood lumber materials are analyzed from Bureau of Labor Statistics surveys. In addition, Catalina provided quantity shipments for plywood and engineered wood sidings from U.S. Department of Commerce surveys.

Section 2 also includes brand shares for wood siding and hardwood/engineered wood siding. Brand shares are provided for new home builders, luxury home builders, and remodeling contractors. Brand shares add to more than 100% since contractors report the use of more than one brand. For the top brands, shares are also provided by region, cost of home, the number of units built or remodeled, and the home type. Shares for these characteristics that are above the U.S. average indicates that the brand is more likely to be used for that particular characteristic.

Section 3 covers metal and vinyl siding products. Metal siding shipments include aluminum and steel sheet metal sidings and accessories, and metal panels. Aluminum siding shipments are further segmented into residential and nonresidential product lines. The report also provides vinyl siding and accessories shipments. The section includes price trends for all product lines and material inputs, exports and imports for aluminum siding and related products, the cost structure of sheet metal siding plants, and the number of manufacturers. Brand shares are calculated for aluminum and vinyl siding, as well as for shingle/shake panels.

Shipments of brick, concrete, and stone products are analyzed in Section 4. Brick data include unit and dollar shipments, the number of U.S. manufacturers and plants, the cost structure of U.S. plants, regional and state shipments and number of plants, exports, imports, and price trends. Shipments, the number of manufacturers, and price trends are also provided for precast concrete wall panels and decorative concrete block. Shipments and number of manufacturers are provided for building stone. Building stone shipments are further segmented by granite, limestone, and marble and other products. Brand shares are provided for clay brick and manufactured stone.

Brand shares are provided for fiber cement and EIFS in Section 5. Market trends were analyzed based on the leading suppliers. Fiber cement shipments were estimated from James Hardie sales and shipment data.

End-use market sales and factors affecting demand are divided into four sections — new residential construction, manufactured buildings, residential remodeling and repair, and nonresidential markets. Siding product spending for the residential remodeling and repair and the manufactured building market is compiled from various U.S. Department of Commerce surveys. Catalina Research estimated the spending levels in new residential construction and nonresidential construction markets based on the data uncovered in these and other government surveys and company profile information.

The new residential construction market section (Section 6) segments siding usage in new single-home construction for six categories of siding. Siding usage in new single-home construction is further segmented by region, home price, and style of home. The manufactured building chapter (Section 7) provides an analysis of siding purchases by mobile home and other prefabricated wood building plants. Section 8 analyzes homeowner spending on siding improvements. Spending includes those for alterations, major replacements, and maintenance and repair. The section on nonresidential construction (Section 9) reviews trends in various siding markets by type of building.

Siding contractor revenues and operating ratios are evaluated in Section 10. Data trends cover siding contractors, masonry and stone contractors, and stucco contractors. Statistics include the number of contractors, subcontracting work, number of employees, and payrolls.

Catalina supplements U.S. Department of Commerce data with individual company information (Section 11). Annual reports, databases, and trade journals were searched for growth- and profit-oriented strategies and recent developments. Sales and profit trends are provided for selected manufacturers.

Action-oriented executives are urged to use this comprehensive statistical database and competitor information to develop new products, take advantage of growing end-use markets, expand foreign market sales, and initiate profitable operating strategies. Executives are urged to compute their own company’s market share and compare their company’s own operating ratios to the industry averages as part of this process.