Bright Outlook for Exterior Railing Despite Housing Downturn; Principia Study Focuses on this $5 Billion Category

EXTON, Pa.--(BUSINESS WIRE)--Exterior railing is estimated at $5 billion today and is showing resiliency despite the current building products industry downturn. Industry statistics indicate that as many as 70% of homes built by 2015 will have a front porch. The Traditional Neighborhood Development movement is a key driver for the renewed interest of the front porch. Of course, many porches are built with railing. Additionally, the growing demand for low-maintenance outdoor livings space is transforming backyards and increasing the demand for decks with customized railing systems.

Steve Van Kouteren, a Principal at Principia Partners explains, “Demand for exterior railing in the residential sector is coming from balconies, porches and decks in single and multi-family housing. In addition, such trends as the return of popularity of the front porch and the growth in demand for low-maintenance outdoor living products will provide railing manufacturers with greater opportunities.”

Homeowners often look to customize railing systems to differentiate their deck from their neighbors. Demand for multi-material railing systems (wood and metal, composites and metal or glass, etc.), unique balusters, top and bottom rails with colors that match exterior trim and cladding, and the use of decorative lighting systems is growing.

“We also see growing demand for powder-coated and vinyl-clad aluminum railing systems in both the residential and commercial market. During the last two years, manufacturers have especially noticed the growth in demand for balcony railing in the commercial market. Many ornamental aluminum fence companies have responded to this growing demand by introducing new railing products for 2008, including Digger Specialties, Elite Fence, Evolution Fence, Press Fit Aluminum and Ultra Aluminum,” said Mr. Van Kouteren.

Principia Partners announces a new study assessing the fast changing exterior railing market. The study is designed to support manufacturers and marketers when planning marketing and business initiatives, as well as for new product development purposes. Principia’s study will serve as an important baseline analysis for forecasting and strategic planning purposes by existing and new industry participants. Using 2007 as the baseline, the study will analyze the drivers and trends of the exterior railing market by region, distribution channel, market segment and material type, and will provide forecasts covering the next five years. It will also provide insights into current and future products and competitive positioning, and will help companies anticipate unmet customer needs.

Mr. Van Kouteren further adds, “We are very excited about conducting this in-depth business assessment. There are many applications for these products and Principia is best positioned to analyze the numerous opportunities for this industry. Railing has evolved into highly aesthetic and exceptionally low maintenance products with a dizzying array of choices. As interior décor styles and aesthetics are being extended to the outdoor living environment, we see more mass customization from suppliers, and better margins compared to decking or fencing product lines. These trends are attracting attention from the large building products companies, and as a result, they have begun acquiring railing manufacturers.”

Principia Partners is a leading international strategy consulting firm, and has extensive experience in building products and plastics industries. In particular, the Firm has closely monitored the market for building products over the past 10 years through various research efforts. For more information, visit the Industry Reports section of the Publishing portion of the company's web site at www.PrincipiaConsulting.com.

A prospectus of this study is also available by calling Steve Van Kouteren at US + 1-800-378-8330, extension 242 or direct at US +1-505-466-3749.