Executive Report

Study of the U.S. Market For Windows, Doors and Skylights

Copyright © 2016 - Published May 2016 by:

Researched by: Ducker Research Company, Inc. 1250 Maplelawn Drive Troy, MI 48084 (248) 644-0086 www.ducker.com

American Architectural Manufacturers Association (AAMA) 1827 Walden Office Square, Suite 550 Schaumburg, Illinois 60173 Tel: (847) 303-5664 www.aamanet.org

TABLE OF CONTENTS

Section Description Page A. INTRODUCTION AND METHODOLOGY 1

1. Methodology 2. Purpose 3. Methodology and Time Line 4. Terminology

B. U.S. CONSTRUCTION ACTIVITY 6

1. U.S. Summary 2. U.S. Residential Starts 3. Non-residential Floor Area

C. DOOR MARKET 19

1. Summary 2. Market Size by Application 3. Segmentation by Material 4. Wood Doors by Application 5. Historic and Projected Growth

D. WINDOW MARKET 26 1. Summary 2. Residential-Type Market Size by Application 3. Residential-Type Window Segmented by Application and Material

4. Residential-Type Wood Windows in Conventional Applications 5. Residential-Type Vinyl Windows in Conventional Applications 6. Historic and Projected Growth 7. U.S. Non-residential Glass and Windows Market Size 8. Non-residential Historic and Projected Growth

E. PATIO DOOR MARKET 65 1. Summary 2. Market Size by Application 3. Segmentation of Wood Units 4. Patio Door Forecasts F. SKYLIGHT MARKET 75 1. Summary 2. Market Size by Application 3. Commercial Skylights

APPENDICES: A. B. C. D. E. F.

Eleven U.S. Census Regions U.S. Entry Door Market by Region U.S. Conventional Residential Window Market by Region Non-residential Vision Area Models U.S. Patio Door Market by Region U.S. Glass Usage by Region

LIST OF EXHIBITS

Section Number & Type Description Page

A A.1 Time Line Program Time Line 2015 – 2016 • Program Approval • Draft Report • Report Publication

3

B B.1 Bar Graph U.S. New Residential Construction Segmented by Type of Structure 2009-2018F • Manufactured Homes • Multi-Family • Single Family

8

B.2 Map U.S. Conventional Housing Starts

by Geographic Region 2015 • 11 Regions

9

B.3 Pie Chart U.S. Residential Housing Starts by Region

2015 • South • West • Midwest • Northeast

10

B.4 Pie Chart U.S. Residential Housing Starts by Region

2017 Forecasted • South • West • Midwest • Northeast

10

B.5 Table Expenditures and Growth Over Prior Year

• 2008 – 2018F 11

B.6 Bar Chart Total U.S. Residential Improvement Expenditures

• Billions of Dollars 2008-2018F 11

B.7 Table New U.S. Housing by Type of Structure

Private and Public, Including Farm 2008 – 2018F • Total Shelter • Manufactured Housing • Total Conventional • Single Family • Multi-Family

12

B (cont.) B.8 Table New U.S. Conventional Housing by Geographical Region Private and Public, Including Farm 2008 – 2018F • Northeast • Midwest • South • West

13

B.9 Table U.S. Manufactured Housing Shipments to Dealers

by Geographical Region Private and Public, Including Farm 2008 – 2018F • Northeast • Midwest • South • West

13

B.10 Bar Chart Forecasted Non-residential Contract Awards by Floor Area Segmented by Major Building Category 2013 – 2020F • Manufacturing/Warehouse • Office/Hotel/Institutional • Store/Mercantile

14

B.11 Map New U.S. Non-residential Contract Awards by Geographical Region

2015 • 11 Regions

15

B.12 Pie Chart Non-residential Contracts by Region

2015 • South • West • Midwest • Northeast

16

B.13 Pie Chart Non-residential Contracts by Region

2016 Forecasted • South • West • Midwest • Northeast

16

B.14 Table Non-residential Contract Awards (Reported) by Selected Building

Types and Regions 2014 – 2020F • Manufacturing/Warehouse • Office/Hotel/Institutional • Store/Mercantile • Total Non-residential

17

C C.1 Table Total Market for U.S. Doors by Application 2015 • Residential Entry • Non-residential Entry

19

C.2 Table Total U.S. Market for Doors by Construction Type and Application

2015 • New Construction • Remodeling • Replacement

20

C.3 Pie Chart U.S. Residential Entry Doors by Material

2015 • Steel • Wood • Fiberglass

21

C.4 Pie Chart U.S. Residential Fiberglass Entry Doors by Finish 2015 • Smooth • Molded/Textured

21

C.5 Table Non-residential Entry Doors by Material

2015 • Steel • Aluminum • Wood • Other

22

C.6 Table Wood Doors by Application

2015 • Residential Entry • Non-residential Entry

23

C.7 Table Sales of U.S. Doors by Material and Application 2009-2018F • Steel • Wood • Fiberglass • Aluminum

24

D D.1 Table Total Market for Residential-Type Window Units by Application 2013 and 2015 • Residential New Construction • Residential Remodel • Residential Replacement • Manufactured Housing • Non-residential New Construction • Non-residential Remodel • Non-residential Replacement

27

D (cont.) D.2 Table Total U.S. Market for Residential-Type Window Units by

Application and Framing Material 2013 and 2015 • Residential, Non-residential and Manufactured Housing Window

Units • Wood and Clad Wood • Vinyl • Aluminum • Other

29

D.3 Bar Graph Total U.S. Conventional Residential Window Demand

Historic and Forecasted Window Usage by Framing Material 2009 – 2018F • Wood and Clad Wood • Aluminum • Vinyl • Other

30

D.4 Table U.S. Conventional Residential Window Usage by Framing Material

Segmented by Construction Type 2013 and 2015 • New, Remodel, and Replacement • Wood and Clad Wood • Vinyl • Aluminum • Other

31

D.5 Table Conventional Residential Window Usage

Segmented by Framing Material 2013 and 2015 • Wood • Aluminum Clad Wood • Vinyl Clad Wood • Aluminum with Thermal Break • Aluminum without Thermal Break • Vinyl • Other

32

D (cont.)

D.6 Table Conventional Residential Window Usage Segmented by Configuration 2013 and 2015 • Wood, Vinyl, Aluminum, and Other • Double Hung • Single Hung • Casement • Gliding/Slider • Awning • Fixed • Specialty

33

D.7 Pie Chart Conventional Residential Window Volumes

Segmented by Customization 2013 and 2015 • Standard Stock Windows • Customized Windows

35

D.8 Table Conventional Residential Window Glass Usage

Segmented by Framing Material 2013 and 2015 • Single Lite, Two Lite Sealed IG, Other • Wood • Vinyl • Aluminum • Other

36

D.9 Pie Chart Conventional Residential Windows – Insulating Glass

Segmented by Type of Spacer 2013 and 2015 • Rigid Warm Edge • Non-Rigid Warm Edge • Aluminum Spacer

37

D.10 Pie Chart Conventional Residential Windows – Hurricane Resistant

Florida, All Other Regions 2013 and 2015 • Non Hurricane • Hurricane Impact Glazing • Hurricane Non-Impact Glazing

38

D.11 Table Conventional Residential Windows

Segmented by Glass Type 2013 and 2015 • Wood, Vinyl, Aluminum, and Other • Clear • Tinted/Reflective • Low-E

39

D.12 Pie Chart Conventional Residential Windows – Low-E

Segmented by Coating Type 2013 and 2015 • Sputtered • Pyrolytic

40

D (cont.) D.13 Table Conventional Residential Windows – Energy Ratings

Segmented by Rating Type 2013 and 2015 • Wood, Vinyl, Aluminum/Other • NFRC Rating • NFRC and Energy Star Rating • No Rating

41

D.14 Table Conventional Residential Wood Window Units

Segmented by Configuration 2013 and 2015 • Double Hung • Single Hung • Casement • Gliding/Slides • Awning • Fixed • Specialty

42

D.15 Table Conventional Residential Wood Window Units – Window Sash and

Frame Segmented by Wood Species Used 2013 and 2015 • Ponderosa Pine • Southern Yellow Pine • Radiata Pine • White Pine • Fir/Hemlock • Other Softwoods • Oak • Other Hardwoods

43

D.16 Pie Chart Conventional Residential Wood Window Units – Non-Clad

Segmented by Exterior Finish 2013 and 2015 • Primed/Prefinished • Natural • No Finish

44

D.17 Pie Chart Conventional Residential Wood Window Units

Segmented by Type of Insulating Spacer 2013 and 2015 • Rigid Warm Edge Spacer • Non-Rigid Warm Edge • Aluminum Spacer

45

D.18 Pie Chart Conventional Residential Wood Window Units

Segmented by Low-E Usage and Technology 2013 and 2015 • Sputtered • Pyrolytic

45

D (cont.) D.19 Table Conventional Residential Vinyl Window Units Segmented by Configuration 2013 and 2015 • Double Hung • Single Hung • Casement • Gliding/Slider • Awning • Fixed • Specialty

46

D.20 Pie Chart Conventional Residential Vinyl Window Units

Segmented by Type of Insulating Spacer 2013 and 2015 • Rigid Warm Edge Spacer • Non-Rigid Warm Edge • Aluminum Spacer

47

D.21 Pie Chart Residential Vinyl Window Units

Segmented by Fabrication Method 2013 and 2015 • Fully Welded Frame • Mechanically Fastened Frame • Hybrid of Mechanically Fastened Frame and Fully Welded Frame

47

D.22 Pie Chart Conventional Residential Vinyl Window Units

Segmented by Solid Extrusion Color 2013 and 2015 • White • Tan • Other

48

D.23 Table Conventional Residential Windows Usage

2008-2018 Forecast • New Construction, Remodel/Replacement and Total Construction • Wood • Aluminum • Vinyl • Fiberglass • Other

49

D (cont.) D.24 Table New Non-residential Construction and Major Additions Segmented by Building Category 2013 and 2015 • Curtain Wall, Storefront, Site Fabricated Windows, and Shop

Fabricated Windows • Office and Bank • Stores, Other Mercantile • Manufacturing/Warehouses • Educational • Hospital/Health Care (incl. Government) • Public/Government • Religious • Amusement/Recreational • Hotel/Motel/Dormitory • Miscellaneous • High Rise Multi-Family

52

D.25 Table Total Non-residential Vision Area

Segmented by Type of Construction 2013 and 2015 • New Building/Major Additions and Replacement • Curtain Wall • Storefront • Site Fabricated Windows • Shop Fabricated Windows

53

D.26 Table Framing Materials Used in Non-residential Construction

2013 and 2015 • Curtain Wall, Storefront, Site Fabricated Windows, and Shop

Fabricated Windows • Aluminum with Thermal Break • Aluminum without Thermal Break • Wood • Vinyl, Other

54

D.27 Table Non-residential Aluminum Framing

Segmented by Finish Material 2013 and 2015 • Anodized Finish • Standard Paint • High End paint

55

D.28 Table Calculations –High-Rise Construction – New and Major Additions

2013 and 2015 • Ratio High-Rise, High-Rise Vision Area, Total Vision Glass Area • Office/Bank • All Other

56

D.29 Table Total U.S. Non-residential Glass Usage

Segmented by Glazing Configuration 2013 and 2015 • Single Lite and Non-Sealed • Insulating glass units

57

D (cont.) D.30 Table Glass Usage – Non-residential Windows 2011 to 2015 • Clear • Tint • Reflective • Low-E

57

D.31 Pie Chart Usage of Low-E Segmented by Coating Technology

2013 and 2015 • Sputter and Suspended Film • Pyrolytic

58

D.32 Pie Chart Non Residential Glazing – Hurricane Resistant

Florida, All Other Regions 2015 • Non Hurricane • Hurricane Impact Glazing • Hurricane Non Impact Glazing

59

D.33 Picture U.S. Market for Commercial Windows Segmented by Window Type

2015 • Site Fabricated • Shop Fabricated

60

D.34 Pie Chart U.S Market for Architectural Rated Shop-Fabricated Windows by

Rating Segmented by Window Rating Type 2013 and 2015 • AW • C • H/C

60

D.35 Table U.S. Architecturally-Rated Shop-Fabricated Windows Segmented by

Window Configuration 2013 and 2015 • Fixed • Projected / Awning • Slider • Hung • Door • Specialty/Other

61

D.36 Pie Chart U.S Shop-Fabricated Patio and Terrace Doors

Segmented by Door Type 2015 • Hinged • Sliding

62

D.37 Table U.S. Window Usage in Non-residential Buildings – 2011-2018F

• New Construction • Remodeling & Replacement

63

E E.1 Table Total U.S. Market for Residential Patio Doors

Segmented by Framing Material 2011 - 2015 • Wood • Aluminum • Vinyl • Steel • Fiberglass • Other

65

E.2 Table Total U.S. Market for Residential Patio Doors

Segmented by Construction Type and Framing Material 2013 and 2015 • New Construction, Remodel, and Replacement • Wood • Aluminum • Vinyl • Steel • Fiberglass • Other

66

E.3 & E.4. Pie Charts

Patio Doors by Framing Material 2013 and 2015 • Wood • Aluminum • Vinyl • Steel • Fiberglass • Other

67

E.5 Table Total U.S. Market for Residential Patio Doors Segmented by Application and Framing Material 2013 and 2015 • Hinged and Sliding • Wood • Aluminum • Vinyl • Steel • Fiberglass • Others

68

E.6 Table Total U.S. Sliding and Hinged Patio Doors

Segmented by Number of Panels 2013 and 2015 • One Panel, Two Panel, and Three or More Panels • Wood • Aluminum • Vinyl • Steel • Fiberglass • Others

69

E (cont.) E.7 Table Total U.S. Market for Residential Patio Doors Segmented by Low-E Usage and Technology 2013 and 2015 • Clear, Tinted, Reflective and Low-E • Wood • Aluminum • Vinyl • Steel • Fiberglass • Others

70

E.8 Table Wood Patio Doors

Segmented by Cladding and Type of Door 2013 and 2015 • Hinged and Sliding • Clad • Non-Clad

71

E.9 Pie Chart Non-Clad Wood Patio Doors

Segmented by Finish Type 2015 • Primed/Painted • Natural Finish • No Finish

72

E.10 Table Wood Patio Door Lumber Type

Segmented by Wood Species 2015 • Ponderosa Pine • Southern Yellow Pine • Radiata Pine • White Pine • Fir/Hemlock • Oak • Other Softwoods • Other Hardwoods

72

E.11 Table Residential Patio Door Market

2009 – 2018F • New Construction • Remodel and Replacement

73

F F.1 Table Residential-Type Skylights (Including Light Commercial)

2009 – 2015 • New Construction • Remodel/Replacement

75

F.2 Table Skylights by Type and Application

2015 • Plastic Glazed Skylight and Glass Glazed Skylight • Residential • Light Commercial

75

F.3 Pie Chart Total Market for Skylights by Type

2013 and 2015 • Glass Glazed Skylights • Plastic Glazed Skylights

76

F.4 Pie Chart Plastic Glazed Skylights by Type 2015 • Acrylic • Polycarbonate

77

F. 5 Pie Chart Plastic Glazed Skylights by Type

2015 • Translucent/Diffusing • Tinted/Colored • Clear

77

F.6 Pie Chart Glass Glazed Skylights by Type

2015 • Low E • Clear • Tinted • Reflective

78

F.7 Pie Chart Residential-Type Skylights by Framing Material

2015 • Vinyl • Aluminum • Wood and Clad wood • Frameless / Other

79

F.8 Table Residential-Type Skylights by Type and Application

2015 • Plastic Glazed Skylights and Glass Glazed Skylights • Fixed • Venting • Venting – Motorized/Operable

80

F.9 Table Forecast of Residential-Type Skylights

2014 – 2018F • New • Remodeling / Replacement

80

Appendix

A APDX-A.1 Map APDX-A.2 Table

Eleven U.S. Census Regions Four to Eleven Region Conversion and Abbreviation Definitions

Appendix

B Table U.S. Entry Door Market Segmented by Application and Estimated

Geographic Segmentation 2015 • Residential • Non-residential

Appendix

C Table U.S. Conventional Residential Window Market Segmented by

Application and Estimated Geographic Segmentation 2015 • New Construction • Remodeling and Replacement

Appendix

D APDX-D.1 Graphic

Conversion: Total Vision Glass Area

APDX-D.2

Graphic Model: Total Vision Glass Area

APDX-D.3

Table United States Non-residential New and Major Additions 2015 Contract Awards • Office and Bank • Stores, other Mercantile • Manufacturing/Warehouse • Educational • Hospital/Healthcare (incl. Government) • Public/Government • Religious • Amusement/Recreational • Hotel/Motel/Dormitory • Miscellaneous • High Rise Multi Family

APDX-D.4

Table U.S. Non-residential Total Wall Area – New and Additions 2015 • Floor Area and Wall-to-Floor Ratio • Office and Bank • Stores, other Mercantile • Manufacturing/Warehouse • Educational • Hospital/Healthcare (incl. Government) • Public/Government • Religious • Amusement/Recreational • Hotel/Motel/Dormitory • Miscellaneous • High Rise Multi Family

APDX-D.5

Table U.S. Non-residential Vision and Opaque Wall Area – New and Additions Segmented by Building Category 2015 • Total Wall Area and Vision Glass • Office and Bank • Stores, other Mercantile • Manufacturing/Warehouse • Educational • Hospital/Healthcare (incl. Government) • Public/Government • Religious

• Amusement/Recreational • Hotel/Motel/Dormitory • Miscellaneous • High Rise Multi Family

Appendix E

Table U.S. Patio Door Market Segmented by Application and Estimated Geographic Segmentation 2015 • New Construction • Remodeling and Replacement

Appendix

F Table U.S. Glass Usage

Segmented by Glass Type and Estimated Geographic Segmentation 2015

• Clear • Tinted • Low E

Copyright © 2016 AAMA

All rights reserved.

This report or any part thereof may not be reproduced in any form without the written permission of the publisher.

1

A. INTRODUCTION AND METHODOLOGY Ducker Worldwide has been conducting the study of the U.S. residential and

non-residential window and door markets for AAMA (the American Architectural Manufacturers Association) since 1982. It is the only program of its kind to have served the fenestration industry continuously for over 30 years, and it is the longest and most commonly referenced research program in the industry. This particular study details market volumes and trends in the U.S. for 2015, forecasted through 2018, as well as historical volumes. A summary report, the Statistical Review and Forecast Report, is also available.

Prior to 1982, studies were conducted for the Sealed Insulating Glass

Manufacturers Association (SIGMA) since 1978. This association is now called the Insulating Glass Manufacturers Alliance (IGMA). Additionally, Ducker’s fenestration research history goes back to 1972 when we first developed a demand model for flat glass usage in the United States. Ducker further produces many syndicated and custom market research studies for the fenestration and building products markets annually. These include the annual studies of the North American Flat Glass Market Study and a bi-annual study of the Northern American Fabricated Glass Market among many others.

This following report is the result of a combined market study and a database

analysis funded by AAMA. The intent of this study is to develop a full database and a comprehensive report on all segments of the window and door market. The database is designed to be utilized for studies into the foreseeable future and to compare ongoing trends.

1. Methodology The role of Ducker Worldwide is to combine primary and secondary market research efforts with its own body of knowledge to profile and track residential and non-residential segments of fenestration market volume. As a major input to the research, Ducker receives confidential disclosures from AAMA members along with non-members. However, multiple industry sources, such as demand models, raw material and component suppliers, and internal databases, are necessary and consistently used to triangulate market statistics.

2

Public databases are also utilized, such as the U.S. Bureau of Census and other sources of construction metrics. In addition, Ducker interviewed several hundred home builders, contractors, installers and distributors, which help to develop indicative product usage factors and channel flow as a cross reference to the various manufacturers’ input. This report, the U.S. National Statistical Review and Forecast, and associated regional reports were prepared by Ducker Worldwide LLC. Opinions and estimates constitute the best judgment as of the date of this material and are subject to change without notice, as additional information becomes available. Any interpretations derived from these findings are the sole responsibility of those using the report. Reproduction without the explicit, written consent of Ducker Worldwide, LLC or AAMA is strictly prohibited. The metrics published throughout the report represent the best judgment of Ducker through March of 2016; however, the Census or other sources of construction metrics frequently do not finalize their 2015 data totals until late into 2016, and they also will revise historical information. Ducker takes into account these historical revisions when updating models and thus minor differences between published construction data may occur. These revisions do not impact market size estimates for fenestration categories unless stated throughout the report. Please note that while all individual numbers are accurate as rounded, totals may not always add due to rounding.

The following report represents our research and analytical efforts beginning in January 2016.

2. Purpose The purpose of this study is to provide a comprehensive single report detailing the window and door market for AAMA.

3. Methodology and Time Line Study findings are based upon disclosures from window and door manufacturers, suppliers, secondary construction data metrics and our prior database and experience in providing this information in the past. Study findings are segmented by geographic region as illustrated in Appendix A to this report. The research program for AAMA spans from December 2015 through April 2016. A timeline is provided on the following page as

3

Exhibit A.1. Exhibit A.1

Program Time Line

2015 – 2016

Program Draft Report Approval Report Publication

December 2015 April 2016 May 2016

For purposes of presenting data in this report, the term Exhibits will be used to display all graphics, charts, and tables.

4. Terminology Certain terms are used throughout the report which may require definition. Also, in our analysis, assumptions are made regarding units and construction activity. The following is a list of definitions and assumptions used in the development of this report. Specific questions on terminology throughout the report can also be directed to Ducker Worldwide, LLC. Doors: Units are defined as actual door slabs and panels, rather than openings where one or more slabs would be used. Excluded from door units are closet doors, bifold doors and service and industrial doors. Entry Doors: A door opening that allows passage from the exterior of a building or home to the interior. In the residential market, hinged rear entrance doors connecting an attached garage to a home are included, while patio doors are excluded and reported separately. In the non-residential market, entry doors also include vestibule doors.

• Agree scope • Initiate fieldwork • Analyze and report

information

• Present draft results • Fieldwork complete • Review draft reports

with AAMA advisory committees

• Make revisions, final edits

4

Framing: Metal, wood, fiberglass, vinyl or composite members comprising the window. In operable windows, framing members include both an operational portion and fixed portion of the window. Insulating Glass: A combination of two or more panes of glass with a hermetically sealed air space between the panes of glass separated by a spacer. This space may or may not be filled with an inert gas, such as argon. Non-residential: Non-residential construction is defined as all commercial buildings, from small to large, that are not meant for residence. Hotels, motels and dormitories are included in non-residential figures. Patio Doors: Units are defined as openings at the manufacturer level, to avoid double counting units due to multiple operable, or inoperable panels. For example, a double French door and a triple panel sliding door are all considered one unit. Figures in this report identify units with single panels and multiple panels alike as one singular unit. Further segmentation by number of panels in detailed in the Patio Door section of this report. Residential: Residential construction is defined as dwelling units: single-family attached, single-family detached, multi-family and manufactured homes. Apartment buildings, although considered commercial construction, are included in our residential figures, except for high rise construction which uses commercial shop-fabricated windows. Skylights: Standardized unit specified by product. Not included in window volumes. Sloped Glazing: Nonstandard specification, also called custom skylights or monumental glazing. This product is captured in curtainwall data, but not segmented out. Does not include sunrooms, which are a separate category. Study Regions: Eleven geographic regions are used throughout the report. Appendix A to this report illustrates the definition of these regions. Sunrooms: Separate classification from sloped glazing. Not included in window volumes, but some windows may be ultimately destined for use in a sunroom. Vision Glass Area: Unless otherwise noted, glass area figures are

5

surface measure of vision glass area. Figures for spandrel glass materials also are surface measured. Windows: Units are defined as openings at the manufacturer level. However, the definition of a unit differs among manufacturers (e.g., a bay window to some may be three openings while to others it may be one). This does not account for multiple windows that are nailed together at the distributor level for one opening. Figures in this report more closely reflect units at the manufacturer level, rather than openings at the job site. Sliding and hinged patio or French doors are considered a separate market from windows.

* * *

2015/2016 U.S. National Statistical Review and Forecast – April 2016

Forecast: Ducker Worldwide LLC

Copyright 2016 - Published by:

Researched and edited in April 2016 by:

Ducker Worldwide, LLC 1250 Maplelawn Dr. Troy, MI 48084 (248) 644-0086 www.ducker.com

Introduction

Market estimates in the U.S. Industry Statistical Review and Forecast are driven not only by statistics published by the Census Bureau and other construction statistics organizations, but also from primary interviews with leading manufacturers of windows, doors and skylights, as well as component suppliers. All forecasts are based on projections of construction activity as of March 2016 and appropriate usage factors and tabulations developed by Ducker Worldwide LLC, which is solely responsible for the data. Any questions on the Review or its contents should be directed to Ducker. Please note that totals may not always add due to rounding.

Ducker has been conducting residential and non-residential market studies continuously since 1982 for the American Architectural Manufacturers Association (AAMA).

The U.S. Industry Statistical Review and Forecast is published annually in the spring. Additional and much more detailed information on window, door and skylight markets is contained in the (2015/2016) Study of the U.S. Market for Windows, Doors and Skylights and the (2015/2016) Distribution of Residential and Non-residential Windows and Doors in the U.S. Market. All reports are available from AAMA.

Contents

Residential Construction Activity

1 1 2 3 4

New residential housing New housing by type of structure Residential construction activity Improvement expenditures Manufactured housing shipments Existing home sales 4

Residential Product Statistics

5-6 7 8 9

Prime windows Skylights Patio doors Entry door usage Door forecast 10

Non-residential Product Statistics

9 10

Entry door usage Door forecast Insulating glass statistics 11

Non-residential Construction Activity

12-13 14

Contract awards Regional construction Window usage 15-16

U.S. Map of Geographic Division 17

American Architectural Manufacturers Association (AAMA) 1827 Walden Office Square, Suite 550 Schaumburg, Illinois 60173 Phone: (847) 303-5664 www.aamanet.org

Executive Report

The Distribution of Residential and Non-residential Windows and Doors in the 2015 U.S. Market

Copyright 2016 - Published May 2016 by:

American Architectural Manufacturers Association (AAMA) 1827 Walden Office Square, Suite 104

Schaumburg, Illinois 60173 Phone: (847) 303-5664

www.aamanet.org

Researched by: Ducker Research Company, Inc. 1250 Maplelawn Troy, MI 48084 (248) 644-0086 www.ducker.com

1

TABLE OF CONTENTS

Section Description Page I. EXECUTIVE SUMMARY ....................................................................4 II. INTRODUCTION AND METHODOLOGY ..........................................6 A. Introduction B. Study Objectives C. Study Methodology III. CHANNEL MEMBER DEFINITIONS AND PROFILES ......................9 A. Characteristics of Channel Members B. Characteristic Definitions C. Distributor Profiles IV. PRODUCT FLOW ANALYSIS ......................................................... 25 A. Market Size B. Distribution Discussion C. Windows

D. Patio Doors E. Entry Doors

V. ISSUES AND TRENDS .................................................................... 55 A. Channel Member Trends

B. Regional Trends VI. NON-RESIDENTIAL WINDOWS AND DOORS............................... 59 A. Non-residential Windows and Glazing

B. Non-residential Windows and Glazing Supply Channel Chain Definitions

C. Non-residential Window Distribution Analysis D. Non-residential Door Channel Member Definitions E. Non-residential Door Distribution Analysis

2

INDEX OF EXHIBITS Exhibit Title Page Number III.1 Definitions – Categorizing Process .............................................................. 10 III.2 Millwork Wholesaler Profile .......................................................................... 13 III.3 Big Box Profile .............................................................................................. 16 III.4 Lumberyard Profile ....................................................................................... 18 III.6 Shortline Distributor Profile ........................................................................... 20 III.7 Specialty Retailer Profile .............................................................................. 22 III.8 Summary of Distribution Definitions ............................................................. 24 IV.1 2015 Market Size - Residential .................................................................... 25 IV.2 2015 Windows – Manufacturer Direct .......................................................... 27 IV.3 2015 Windows – Secondary Distribution Channels ...................................... 28 IV.4 2015 Windows - Total Volume by Channel Distribution ............................... 29 IV.5 2015 Millwork Wholesaler – Actual Window Purchases and Sales .............. 30 IV.6 2015 Big Box – Actual Window Purchases and Sales ................................. 31 IV.7 2015 Lumberyard – Actual Window Purchases and Sales ........................... 32 IV.9 2015 Shortline Distributor – Actual Window Purchases and Sales .............. 33 IV.10 2015 Specialty Retailer – Actual Window Purchases and Sales .................. 34 IV.11 2015 Summary of Window Volumes – Segmented by End User ................. 35 IV.12 2015 Summary of Window Volumes – Segmented by Construction Type ... 36 IV.13 2015 Patio Doors – Manufacturer Direct ...................................................... 37 IV.14 2015 Patio Doors – Major Distribution Channels .......................................... 38 IV.15 2015 Patio Doors – Total Volume by Channel of Distribution....................... 39 IV.16 2015 Millwork Wholesaler – Actual Patio Door Purchases and Sales .......... 40 IV.17 2015 Big Box – Actual Patio Door Purchases and Sales ............................. 41 IV.18 2015 Lumberyard – Actual Patio Door Purchases and Sales....................... 42 IV.20 2015 Shortline Distributor – Actual Patio Door Purchases and Sales .......... 43 IV.21 2015 Specialty Retailer – Actual Patio Door Purchases and Sales .............. 44 IV.22 2015 Summary of Patio Door Volumes – Segmented by End User ............. 45 IV.23 2015 Summary of Patio Door Volumes – Segmented by Construction Type45 IV.24 2015 Entry Doors – Manufacturer Direct ...................................................... 46 IV.25 2015 Entry Doors – Secondary Distribution Channels ................................. 47 IV.26 2015 Entry Doors – Total Volume by Channel of Distribution ...................... 48 IV.27 2015 Millwork Wholesaler – Actual Entry Door Purchases and Sales .......... 49 IV.28 2015 Big Box – Actual Entry Door Purchases and Sales ............................. 50

3

INDEX OF EXHIBITS (continued)

Exhibit Title Page Number IV.29 2015 Lumberyard – Actual Entry Door Purchases and Sales ...................... 51 IV.30 2015 Shortline Distributor – Actual Entry Door Purchases and Sales .......... 52 IV.31 2015 Specialty Retailer – Actual Entry Door Purchases and Sales .............. 53 IV.32 2015 Summary of Entry Door Volumes – Segmented by End User ............. 54 IV.33 2015 Summary of Entry Door Volumes – Segmented by Construction Type54 V.1 Historic View of Window and Door Product Distribution Channel Characteristics ............................................................................................. 57 V.2 Historic View of Window and Door Product Distribution Flow – 2003-2015 ...................................................................... 58 VI.1 Non-residential Construction Specification Process and Cycle ..................... 60 VI.2 Architectural Glazing Products Supply Chain ................................................ 67 VI.3 Shop-fabricated Commercial Window Supply Chain ..................................... 70 VI.4 Non-residential Door Product Flow ................................................................ 73

Copyright 2016 AAMA

All rights reserved.

This report, or any part thereof, may not be reproduced in any form without the written permission of the publisher.