Molding & Trim to 2011

Demand for molding and trim is forecast to increase 2.2 percent per year through 2011 to $12.6 billion. Advances will be supported by healthy new nonresidential construction activity. The strongest op-portunities for molding and trim advances will be seen in the office and commercial segment, where demand will rebound from the weak results posted between 2001 and 2006. The institutional building segment, which had supported growth in the nonresidential market in the 2001-2006 period, will decelerate through 2011. However, gains in that segment will still be solid as new construction continues to expand. Nonresidential improvement and repair spending is anticipated to accelerate through 2011, also aiding molding and trim demand.

The residential building market will continue to dominate molding and trim demand through 2011. However, an expected decline in new single-family housing completions will significantly hamper growth. Gains will be faster in the aftermarket than in new applications through 2011, aided by a healthy outlook for residential improvement and repair activity. In addition, the large, aging US housing stock will support residential replacement demand. Furthermore, molding and trim demand in value terms will be limited by a moderation in pricing through 2011, after a period of healthy growth in average pricing between 2001 and 2006.

Interior moldings are the largest product segment of the molding and trim market. These products will continue to benefit from widespread use in all of the major types of housing, where they provide decorative ornamentation as well as a functional use such as concealing joints. Moldings are also relatively common in selected nonresidential applications such as office, commercial and institutional structures.

Demand for stairwork products will slow significantly through 2011, restrained by a moderation in raw material prices for metal and wood from their highs between 2001 and 2006. Additionally, demand will be limited by the weak new housing market through 2011. Nevertheless, use will be supported by installation in nonresidential structures, as demand for stairwork will benefit from the projected upturn in nonresidential construction.

Other products, including exterior molding and trim, will see above-average growth, bolstered by the recovery in nonresidential construction. A healthy outlook for residential improvement and repair spending will also support advances, as exterior molding and trim products need replacement more often because of exposure to weather.

Although wood materials will continue to account for the majority of molding and trim demand in 2011, the other major material types will offer more favorable growth prospects. Demand for plastic molding and trim will experience the fastest gains, driven by the material' s desirable performance characteristics and low maintenance requirements. In addition, increasing acceptance of these products by consumers and building professionals, and ongoing product developments that improve aesthetics and performance, will bolster demand.

Molding & Trim is a new Freedonia industry study presents historical demand data for the years 1996, 2001 and 2006 as well as forecasts for 2011 and 2016 by material, product and market. This study also considers market environment factors, evaluates market share data and profiles 37 manufacturers.