U.S. Demand for Composite and Plastic Lumber to Reach $5.4 Billion
Demand for wood-plastic composite and plastic lumber in the United States
is projected to advance more than 13 percent per year to $5.4 billion
in 2015, creating a market for 2.6 billion pounds of plastic. Wood-Plastic
Composite and Plastic Lumber is a new study from the Freedonia Group Inc.,
a Cleveland-based industry market research firm. The study says advances
will be driven by a rebound in construction expenditures from a depressed
2010 base and growth will be further boosted by increasing consumer demand
for building products made from composite and plastic lumber, instead
of more traditional materials, such as natural wood.
According to the study, decking, which was the leading application for
composite and plastic lumber in 2010, will experience the most rapid demand
advances through 2015. Among other applications, moulding and trim, and
doors and windows are expected to post the most rapid demand gains through
2015. Homeowners are expected to install doors and windows made from cellular
PVC and composite lumber because of their resistance to rotting and resemblance
to natural wood. Demand for composite and plastic lumber in landscape
and outdoor products, fencing and other applications will also be promoted
by increasing consumer recognition of the performance properties of these
materials, according to the announcement.
In addition, demand for wood-plastic composite lumber is expected to post
more rapid gains than that for plastic lumber through 2015, advancing
more than 16 percent annually to $2.5 billion. Gains will be driven by
ongoing consumer interest in composite lumber as a substitute for natural
wood products in such applications as decking and fencing, according to
The study also reports that plastic lumber demand is expected to rise
nearly 11 percent per year to $2.8 billion in 2015, with gains spurred
by rising consumer interest in the material because of its low maintenance
properties. The efforts of manufacturers to create plastic lumber with
more realistic woodgrain textures and surfaces will also support demand,
says the report.
More Cities Join the List of Improving Housing Markets
The list of housing markets showing measurable improvement expanded by
29 metro areas in February to include a total of 98 entries on the National
Association of Home Builders (NAHB)/First American Improving Markets Index
(IMI). Thirty-six states are now represented by at least one market on
The index identifies metropolitan areas that have shown improvement from
their respective troughs in housing permits, employment and house prices
for at least six consecutive months. The February index adds some metropolitan
areas that have been particularly weak; this is due to the fact that the
IMI measures improvement from a bottom, and some of the hardest hit markets
are showing signs of coming off of extreme lows. New entrants include
Miami, Boston; Detroit; Kansas City, Mo.; Portland, Ore.; Memphis, Tenn.;
and Salt Lake City.
Seven markets dropped from the NAHB/First American Improving Markets Index
in February as they experienced softening house prices. These metros include
San Jose, Calif.; Washington, D.C.; Kankakee, Ill.; New Orleans; Worcester,
Mass.; Jackson, Miss.; and Sherman, Texas.
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