Paneling viewed from the top

The biggest thing we've been seeing is the increased demand for beaded paneling. Our beaded hardboard products that replicate a country-style look have been Proving very popular in the past six months.

Don Grimm Director of Marketing Building Products Hardboard Croup Masonite

The prefinished wall paneling market remains vital, showing more than a l506 increase in total shipments over the last six years. The ups and ? fu dow.ns of the , z vailous types within the overall category of prefinished paneling, reflect the high level of activity among manufacturers as they develop new and more contemporary panels.

Now, more than ever, the industry, along with the Plywood Paneling

Council, is working to produce and promote higher quality and higher style products to consumers. The long term health of the industry depends on our ability to produce attractive products that represent high value as well as low cost.

As an industry, I believe we are doing a credible job of this, and it will get even better. New patterns, colors, textures and wood species are steadily coming into the market making this an exciting time to be a part of the industry.

Diane Montoya President States Industries, Inc.

Broader product selection and improved dealer services are the focus of manufacturers and wholesalers distributing prefinished panel products. More light woodgrains, more specialty decorator woodgrains, and more textured non-woodgrain decorators have been introduced.

We're emphasizing the full spec- trum of prefinished plywood backed panels with new low end woodgrains, and proven mid-range selections. We feel a lot of pressure to work more effectively in the areas of training, point of purchase and promotions in conjunction with our distributors. Today's consumers have many decorating options. We have to keep the category in front of them all the time.

Jerry T. Hood Marketing Executive Plywood Panels Inc.

The paneling industry, always a favorite with do-it-yourselfers, has gone through some positive changes in the last few years. Traditionally, paneling for the home took the form of woodgrains and was primarily installed in finished basements and family rooms/dens. Today the emphasis has shifted to decorative "designer" inspired panels. These panels combine the ease of installation of the typical 4' x 8' sheet of plywood with the look and feel of wallpaper. Increasingly, paneling is moving out of the basement and into living rooms, bedrooms and, in fact, to every room in the house.

Decorative wall panels now are a significant portion of the paneling selection offered by most home centers. This shift has excited retailers because they now have a brighter, more fashion-oriented paneling department. They also have a new story to tell their customers because paneling is now perfect for every room in the home.

Howard Steinberg President Ply*Gem Manufacturing

Many of our paneling retailers are seeing sales growth of 7o/o to 390/o over previous years, including both large retail chains and independents in the South, Central and the Northeast. All are realizing both sales growth and profit returns due to greater advertising, promotion, broader selection and display e(orts. The most successful are those who merchandise wall paneling yearround and those who sell the entire decorating project. This includes everything from molding to nails to ceiling tiles. Everything that the consumer needs to complete a decorating project.

Other keys to maximizing profit potential and growth in paneling include the need for the retailer to be perceived by d-i-y and contractor customers as the place to buy decorative wall products in the trading area. having a broad selection and being dominant in the paneling product category. A broad product selection aimed to appeal to the women shoppers is important. The trend is definitely toward softer pastels and related colors, the use of lighter colors to brighten and open up spaces. Textures are also a favorite. There is definitely an underlying desire for quality paneling products like hardwood veneer wall panels. Everyone is upgrading in all their decorating projects. Half wall treatments are in. Wainscotting with wallpaper-type paneling on the top and beaded paneling on the bottom is still growing in popularity.

Robert T. Renfro President Weyerhaeuser Paneling Division

The overall interior paneling market for the past three years has been relatively stable. Total shipments of paneling have been just under 3 billion feet, varying up and down by 2o/o and 30h. Within the market we're seeing an increase in the usage of tileboard decorative overlay panels but less interest in woodgrain panels.

Lou Wasko General Product Manager Abitibi Price

We expect the popularity of light colors in paneling to continue. Consumers are also enjoying not only the variety of grooving patterns manufacturers are offering, like the oldfashioned Victorian beaded look, but also the selections available for upscale housing, from a bleached look to a deep walnut or cherry panel.

Dick Rose General Manager Paneling Division Georgia-Pacific

Story at a Glance

Where paneling is headed... what's selling, what's not. how paneling manufacturing execs see their product and its future. why retaibrs can profit from changes.