Tumultuous decking market remains strong

ffEelfHY sales increases are prelldicted for the deck industry, even as what kind of decking dealers are selling continues to change.

U.S. demand for decking is expected to rise 2.8Vo annually over the next four years to reach 5.7 billion bd. ft. valued at $5.8 billion by 2O09, according to a new forecast by the Freedonia

Group.

The continued, relatively stable growth of the decking market stems from the fact that more than 85Vo of demand is generated through repair and improvement activity, which is inherently less cyclical than the new construction market. New markets will offer more mixed prospects.

The U.S. decking market has seen a shift in poduct mix in recent years. In 1994, wood decking materials accounted for 97% of volume demand, with only minimal use of alternative decking materials, such as wood-plastic composites, plastic and aluminum. Between 1994 and 2(XX, the replacement of natural wood materials with alternative materials accelerated significantly. By 20A4, alternative materials in the aggregate had acquired ll% of the 5 billion bd. ft. marker, posting double-digit gains in most markets.

Composite decking will provide the strongest growth opportunities, posting 15% annual growth through 2009 to almost 900 million bd. ft. Demand for composite decking will be fueled by its high durability and low maintenance requirements, as well as by product advances that provide a more realistic wood appearance.

Other alternative decking materials such as plastic and aluminum will also show strong growth, rising nearly I l% per year through 20O9. Demand for these materials will benefit from many of the same performance characteristics composite materials have. However, these decking materials often provide less favorable aesthetics and a much higher price than composite or wood materials, which often limits their use in the key residential market.

Despite significant competition from alternative materials. wood will remain the dominant material used to produce and repair decks in the U.S., accounting for 8l% of total decking demand by 2009. Wood decking will continue to reap the rewards of its good reputation and preference among consumers, builders and contractors, as well as its aesthetic appeal.

INCBEASING innovations and end-user acceptance are fostering big gains for composite decking.

Pressure treated wood in particular will continue to benefit from its lower price compared to other woods and alternative decking materials. However, demand for wood decking is forecast to expand only 1.07o annually through 2009, a significantly slower pace than the overall decking market.

Among decking producers, 2005 was a year of tremendous change, particularly in the composite arena.

' Consolidations. Last year, Nexwood auctioned off its assets and Pultronex discontinued E-Z Deck. Liberty Diversified Industries purchased GeoDeck from Kadant Composites. Elk Composite Building Products acquired the assets of RailWayz, Inc.

Product Improvements. Several producers introduced boards with reversible patterns, new textures, more colors, and additional accessories. CorrectDeck launched CorrectDeck CX with SafeGuard, an antimicrobial composite decking said to resist mold, mildew, stains and color fading, as well as to enhance traction.

* Entirelv New Lines. Tamko introduced Elements decking, an extruded line to complement its EverGrain compression-molded products. Vinyl producer Royal Crown Ltd. announced plans to unveil a new line of composite decking, Harmony Select. Alcoa introduced Oasis composite deck and railing, with distribution handled through Weyerhaeuser's customer service centers.

The most active decking plaYer appeared to be Universal Forest Products, which in the span of l2 months introduced a new Latitudes line of composite products, acquired Maine Ornamental Woodworkers' deck post cap business as well as baluster and accessory producer fN concept. it's exceedingly simple: Iconvert logs to wood strands and then bind thJ strands together wirh adhesive under heat and pressure. The result: a multi-purpose structural panel.

DecKorators, signed an exclusive distribution agreement for Crane's Eon plastic decking, and formed a separate Universal Consumer Products division to market the growing portfolio of outdoor living products.

Expect the innovations-and heated competition-to intensify through 2006. The market leader in wood-plastic composites in Europe, Tech-Wood Nederland BV of Holland, just agreed to purchase 30 acres in Greenwood county, s.c., to build a 30,000-sq. ft. manufacturing plant. Tech-Wood expects to begin production at the $150 million operation by late third quarter or early fourth quarter of this year.

It's not quite that simple, of course. Initial uses of waferboard, OSB's predecessor, included packaging, farm construction and other applications where building codes did not apply. It was clear early on, however, that if the product were to compete in regulated construction markets, significant product performance, and processing advances would be required.

Today's oriented strand board is an engineered wood product that owes its phenomenal marketplace success to the continuous research and development investments of manufacturers. their associations, and suppliers.

The first step in the OSB success story was development of a performance standard recognized by building codes. That was achieved in 1980 when the Council of American Building Officials issued an approval report for APA Performance-Rated Panels. The APA Performance Standard and Policies for Structural-Use Panels established product qualification, evaluation and ongoing quality assurance requirements, setting the stage for the tremendous growth to follow.

Since then, a number of processing advances also have occurred. and more are still under development. Following is a quick list of improve-