DUBLIN--(BUSINESS WIRE)--The "Siding Distribution Market in the US by Channel, Market and Type" report has been added to ResearchAndMarkets.com's offering.
This study presents historical sales and demand data (2006, 2011, and 2016) and a forecast (2021) by sales channel (direct sales, siding distributors), market (residential, commercial), and US subregion. The study also evaluates company market share and provides competitive analysis on industry participants.
Building Construction Activity and Rising Channel Share to Spur Distributors’ Sales
A combination of rising new building construction activity and a shift toward increased use of distributors for siding sales will drive advances. In the residential market, siding sales via distributors will be boosted by rising housing completions, while in the nonresidential segment gains will arise from the increased construction of commercial structures.
Siding Distributors to Account for a Growing Share of Total Siding Sales
Though distributors’ sales accounted for less than a third of end user sales of siding in 2016, they are expected to increase their share of the market going forward. The rising channel share will be supported by the construction industry’s increasing reliance on small- and medium-sized contractors -which are more likely to purchase siding from distributors than directly from manufacturers- to perform siding installation and repair jobs. Distributors’ efforts to improve their competitive market position by offering services such as jobsite delivery, technical advice, and credit assistance will also boost sales.
Residential Market to Offer Best Opportunities
Sales of siding by distributors to the residential market are expected outpace the commercial market through 2021. Sustained growth in housing completions will drive increases in demand, with distributors’ sales also being bolstered by the trend of homebuilders increasingly subcontracting out siding installation jobs to local contractors.
While commercial contractors will also increasingly turn to distributors for siding materials, in part because of the special services they offer, growth in distributors’ sales to the commercial market will be held back by modest growth in the US commercial construction stock and a contraction in new industrial building investment.
Siding Market to Remain Fragmented
The siding industry in the US is fragmented, as the six leading siding distributors -ABC Supply, Alside, Beacon Roofing Supply, Builders FirstSource, Home Depot, and Lowe’s- combined to account for less than one-third of overall distributors’ sales in 2016. Though consolidation among siding distributors is expected to be robust going forward, the siding distribution industry as a whole is expected to remain fragmented through the forecast period.
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