Warranties are winning
It should come as no surprise that product durability and ease of maintenance remain top of mind for both the contractor and the homeowner— the contractor wants to know that the product he or she is installing will not result in callbacks, and the homeowner wants to know that their siding choice won’t result in continual maintenance on their part yet still maintain its visual appeal year after year.
Boral’s Aaron Sims points out that contractors and consumers alike need to consider how a siding product impacts them directly when making a purchasing decision, and distributors need to be prepared to answer those questions. “For example,” he says, “in regards to durability, longevity, and ease of maintenance, does the product accept paint? Can you clean it? What are the things that can impact it? If you clean it, does it void the warranty? One of the best things a dealer can do is get to know their customers—what attributes are most important to them? How will that home be lived in? What challenges does the contractor want to avoid? Dealers who know their products well will be able to offer the ideal solution for each customer and project.”
For Ply Gem’s Delaina Lee, these factors equate to peace of mind. “We understand that when recommending siding—and all exterior building products—it’s important for builders and contractors to fully understand their homeowner customer’s personal design preferences and house performance needs,” she explains. “We continue to encourage dealer customers to highlight durability, quality and beauty. Our materials are built to last and we invest an incredible amount of time and effort into testing, researching and developing. We want to ensure that builders and contractors can have confidence when choosing to install Ply Gem products. That peace of mind is then passed down to the homeowner as well.”
Thinking inside the boxAt its most basic form, a house is nothing more than a very large box, and when it comes to dressing the outside of that box, siding is an obvious and natural fit. But if you’re not incorporating siding within the box as well, you’re losing out on a potential sales opportunity. Using wood siding to create unique ceiling treatments or statement walls that incorporate rustic textures and unique colors is an emerging design trend that’s poised for continued growth. “Demand for the reclaimed/barnwood siding continues to grow in the traditional markets; however, where we are also seeing growth is into the contemporary style building market,” says Eric Pommerening, Director of Sales for Coeur d’Alene Wood. “Architects, designers, and home owners are looking to add a reclaimed look siding or a rustic interior accent wall to their contemporary design.” Likewise, Universal Forest Products sees strong growth opportunity in the interior use of wood siding products. “Our UFP-Edge brand continues to grow and add value with both contractors and the DIY market,” said Bryan Hoexum, Director of Independent Retail Sales for Universal Forest Products (UFP). “Consumers are asking for vintage styles they can customize, and our Rustic Collection allows them to do that. Rustic lumber is one of the hottest trends in home decorating and remodeling.” |
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For both builder and homeowner, that peace of mind comes from the warranty that backs the siding product. “On the builders’ side, a manufacturer’s warranty speaks to consistency of the product and tells them that the product has been tested for quality,” explains LP’s Wyeth. “For homeowners, warranties offer confidence in their investment and assure them that their home’s aesthetic will last for years to come.”
Not all warranties are the same, however, and many can be confusing in their verbiage or require additional steps or paperwork on the part of the builder or homeowner—the simpler and more inclusive, the better. “The warranty should have limited exceptions and/or uncovered conditions,” points out ProVia’s Mickle. “We’ve seen warranties that are so restrictive that the risk burden is exclusively on the homeowner. A common standard exception is color fading. Rather than having an arbitrary way of defining the fading, it is important that the degradation is based on established standards. For example, having a valid claim based on the color difference being more than four standard color units as measured through a color meter.”
Ralph Bruno, CEO of Derby Building Products (home of Tando and Novik brands of exterior cladding) agrees. “While warranties are a consideration, they can be confusing and overwhelming to the consumer. Many warranties become void if the product is not regularly maintained. Tando products come with a 50-year performanceplus warranty, ensuring the products will not rot, decay, have any moisture or insect damage, all with little to no upkeep.”
Extras seal the deal
Builders have many choices in siding products, and those from reputable manufacturers all come with warranties and the ability to deliver longterm satisfaction (whether in color, durability or ease of maintenance). So what is it that going to truly differentiate one siding product from another? According to the manufacturers, it’s the extras.
Differentiators that make installation easier, cuts overall install time, or adds value to the builder or homeowner can make the difference between completing the sale and watching a potential customer walk out the door. “It’s important to remember the ‘extras’—the accompanying accessories, accents, and trim that truly complete a home’s look,” explains Grayne’s Franklin. “These upgrades typically offer higher margins with minimal impact on the budget.”
In highlighting these “extras,” manufacturers recommend distributors focus on unique product features that help define one product from another. For example, Versetta Stone stresses that its stone veneer is mortarless and therefore doesn’t require the skill of a stonemason to install. In the case of CertainTeed, it’s proprietary installation features STUDfinder and PanelThermometer that provide for accurate and correct installation. And for its SmartSide siding line, LP Building Products highlights how the product is engineered to withstand extreme temperature, high humidity, freeze/thaw cycles, fungal decay, and termites.
In short, it’s about completing more jobs. “In today’s market we start with labor and how they can install the jobs faster in any weather with our products,” says Derby Building Products’ Bruno. “This will help the contractor complete more projects and ultimately earn more money.”
Foreseeing the future
Despite the vagaries of changing style, evolving products, and an unpredictable Mother Nature, both the immediate and long-term future of the siding market looks strong for both manufacturer and distributor. In its most recent “Siding” report, the Freedonia Group predicts demand for siding in the U.S. to rise 5.6% per year to 100 million squares in 2019, valued at $10.7 billion.
A rebound in building construction activity, in particular double-digit gains in housing completions, will drive siding demand in the new residential market, which is expected to become the largest siding market by 2019.
“2018 looks to be another good year for siding,” says Royal Building Products’ Booz. “New construction—both single-family and multi-family—are showing signs of strength already this year, with further growth alongside some new reports that show we are not building enough new homes. For the remodeling sector, we see continued investment in low-maintenance exteriors, which continues to drive growth for siding products as people remodel their homes.”
Grayne’s Franklin agrees with Booz’s optimism. “The residential new construction and remodeling markets continue to be strong, and that is translating into steady business for exterior cladding,” he says. “On the polymer side of things, the Vinyl Siding Institute reports an increase of about 2.5% over last year. But we expect that to continue to grow, as the lingering winter in parts of the country has pushed the busy season to a later start. The indicators I’m seeing are that it should rebound and we should definitely exceed 2017’s volume.”
In terms of market segment, indicators seem to point towards growth across the board. From single-family to multi-family, new construction to remodeling, residential to commercial, manufacturers are expecting 2018 to be a profitable one. “In the premium siding category, we’re seeing more new home construction, and that’s driving our business,” explains Boral’s Aaron Sims. “In the market as a whole, we’re seeing more multi-family and remodeling, because of Millennials getting into the market and the fact that there is a lack of inventory for new starter homes and the price of starter homes is so high. Buying a house is very different today, and one of the answers to that is multi-family. The Millennials are the largest population base in the country, but that demographic is not being serviced right now. Fortunately for the premium category, Baby Boomers also represent a huge economy, and they’re retiring and buying high-end, low-maintenance houses.”
LP’s Wyeth shares Sims’ optimism, especially in regards to multi-family. “Because of the increase in construction in downtown or metropolitan areas, we’re seeing a more rapid growth in multi-family homes like apartment complexes and townhomes,” she says. “In terms of single-family homes, we’re seeing an influx in paired homes, as homebuyers are gravitating towards the appeal of spending less of their home budget on the actual land while still getting the home features and modern amenities they’re looking for.”
Ply Gem’s Lee adds, “We expect to see continued new project activity in multi-family and light-commercial applications, as well as new construction. The one market in which we’re seeing growth is in remodeling. We have focused research and development to provide the durability and performance upgrades necessary to meet the specific needs of contractors and their customers.”
Considering all the choices available to builders and homeowners, combined with a promising future, it’s hard to not see the siding segment as one that’s primed to deliver hefty returns for distributors. So don’t be afraid to mix it up. Get to know your customers, and then be prepared to deliver options and solutions that are as unique as they are. In the end, your success will be as expertly put together as that Garanimals outfit.
Internet Information
Companies in bold participated in this article.
Allura:
www.allurausa.com
Alside:
www.alside.com
AZEK:
www.azek.com
BlueLinx:
www.bluelinxco.com
Boral North America:
www.boralamerica.com
Cedar Valley:
www.cedar-valley.com
CertainTeed:
www.certainteed.com
Claymark:
www.claymark.com
Coeur d’Alene:
www.cdawood.com
Environmental StoneWorks:
www.estoneworks.com
Georgia-Pacific:
www.gpvinylsiding.com
Grayne Siding (The Tapco Group):
www.grayne.com
Holmes Manufacturing:
www.holmesmanufacturing.com
James Hardie:
www.jameshardie.com
LP Building Products:
www.lpcorp.com
Maxitile:
www.maxitile.com
MiraTEC by Jeld-Wen:
www.miratectrim.com
Nichiha:
www.nichiha.com
Ply Gem:
www.plygem.com
Premier Forest Products:
www.premierforestproducts.com
ProVia:
www.provia.com
Rollex:
www.rollex.com
Roseburg Forest Products:
www.roseburg.com
Royal Building Products:
www.royalbuildingproducts.com
RoyOMartin:
www.royomartin.com
Style Crest:
www.stylecrestinc.com
Tando Building Products:
www.tandobp.com
TruWood Siding & Trim:
www.collinsco.com
Universal Forest Products:
www.ufpi.com
Woodtone:
www.woodtone.com
