W&D Weekly - October 17, 2007 | Vol 2, Num 41
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Fiberglass Front and Center at Remodeling Show
If the 2007 Remodeling Show is an indicator, the mood in the remodeling business is becoming more upbeat. A number of manufacturers at the event reported that sales in the remodeling segment have really picked up...
Las Vegas—If the 2007 Remodeling Show is an indicator, the mood in the remodeling business is becoming more upbeat. A number of window and door manufacturers at the event, held here last week, reported that sales in the remodeling segment have really picked up during the second half of the year.
Peachtree introduced a replacement version of its Series 700 clad-wood window in Las Vegas.
Vergola’s electrically operated louvered patio roof was attracting attention at the Remodeling Show. In addition to providing optimal shade or sun, the louvers close to provide protection from rain.
“The remodelers we’re talking to here are all busy,” said Ralph Pfeiffer of Great Lakes Window. “People are fixing up their homes.”
Judging by the products featured, more window and door manufacturers expect people to do that with fiberglass. This year saw continued expansion in fiberglass entry door lines. Plastpro and Therma-Tru each displayed a wide variety of styles and colors. Milgard Windows & Doors, which launched its fiberglass door line last year, introduced a new mahogany version at this year’s event.
Also introducing a new fiberglass entry door line was Armaclad. The Pennsylvania-based company was acquired recently by Sound Solutions Windows & Doors, a Chicago-based manufacturer started by former Republic Windows executive Ron Spielman. The company was featuring both its new door line and a variety of window products.
Fiberglass windows also appeared prominently at the event. Milgard was showing both its wood-clad version and its all-fiberglass Ultra product. The performance features of the line, together with the growing desire of many dealers to offer something different than vinyl has made fiberglass “a real growth business for us,” said Jim Sheehan.
Marvin Windows featured both its wood line and Integrity line, and reported continued growth with fiberglass products. Although it wasn’t showing its Infinity replacement line, the company’s Tom Goldsmith noted that business has been expanding with a steady addition of new dealers around the country that “want to break out of the vinyl pack.”
Pella used the show to feature a new wood entry door, a new addition to its line resulting from its purchase of MAI Doors, earlier this year. The company was featuring its Impervia fiberglass line as well, however, which the company’s Duane Putz reports, continues to see growing demand. Pella offers the line in a dark bronze that’s proving particularly successful, because it’s a color not available in vinyl.
Finally, Andersen Corp. was showing a new swinging patio door model for its 200 Series that incorporated fiberglass profiles. It’s truly a composite product, noted the manufacturer’s Cameron Snyder, explaining that it brings together numerous materials and uses each where they “make sense.”
THE MOVE WEST
Vinyl window and door products could be found walking the aisles of the exhibition floor, but were definitely less prominent than at previous Remodeling Shows. One reason was the show’s location out West—a first for the Remodeling Show—making the event less relevant for some of the show’s traditional exhibitors. Vinyl replacement window specialists, such as Gorell, Republic and Sunrise, which usually had large displays at the show when it was held in the Midwest or Northeast, opted not to show in Las Vegas, probably because the bulk of their business is back East.
The move West was welcomed by others, however, and most industry exhibitors seemed to think the location was working fairly well, noting they enjoyed the opportunity to talk to more remodelers from California, Arizona and the Rocky Mountain states. Pointing to the popularity of Las Vegas, several noted that they were seeing customers and prospects from the Midwest and East.
The big window and door manufacturers typically like to save their product launches for the International Builders’ Show, but attendees did see a handful of new products. Peachtree was featuring a new replacement version of its 700 Series clad wood line. With numerous wood species, and exterior color and grille options, the line provides homeowners with a premium replacement product without the complications and expense of a full frame replacement.
Vergola Southwest was showing a louvered patio roof it was importing from Australia. The automated system can be closed completely to provide protection from rain, as well as optimal shade protection, depending on the sun’s location in the sky, according to the company’s John Johnston. The product has been on the market for more than 20 years, he added, and his firm started bringing it to the U.S. about a year ago. Vergola is a dealer for the product in Southern California, and to date has established 16 dealers in six states.
Next year, the Remodeling Show returns to more familiar haunts. The event is scheduled for September 10-12 at the Baltimore Convention Center. Information is available at www.theremodelingshow.com.
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AAMA Storms Orlando
As part of AAMA's national fall conference, conducted this week in Orlando, members got an up close look at the U. of Fla.’s hurricane simulation equipment...
As part of the American Architectural Manufacturers Association’s national fall conference, conducted this week in Orlando, members got an up close look at the University of Florida’s hurricane simulation equipment. The portable hurricane wind simulator, transported from its home in Gainesville, Fla., to the meeting location, is the mechanism by which Dr. Forrest Masters’ University of Florida research team is studying the effects of hurricanes on building products such as windows.
AAMA attendees got a peek at the eye of the storm—a hurricane simulation lab developed by the University of Florida’s Dr. Forrest Masters.
Masters demonstrated for AAMA attendees and dozens of local media representatives the way the engines will generate winds up to 110 mph at a test wall. Researchers then will collect data on the effects of wind and rain to draw conclusions about what type of stresses products truly face during a hurricane.
“Fasten your seat belts,” joked Masters as the massive engines fired up, producing winds strong enough to send roof shingles flying into a parking lot adjoining the demonstration.
Masters said his team can be categorized as “storm chasers” but this simulation equipment will allow them to further study wind-driven rain by “bringing the hurricane back to the lab.”
AAMA organizers arranged for the special demonstration to be held in conjunction with its fall meeting. As part of regular business, some other developments included:
- With issues in the media surrounding imports containing dangerous levels of lead paint, the residential window group decided to form a study group comprised of both residential and commercial manufacturers as well as component suppliers, to look at the scope of the lead problem in the fenestration industry. The group proposed an immediate 90-day blind study of the “touch points” of windows, during which inspectors from Associated Laboratories Inc., which serves as the validator in AAMA’s window certification program, will conduct a swab test as part of regular inspections to report anonymous results to the lead study group. “We need a scope of what we’re seeing here,” said Ray Garries, Jeld-Wen. From there, the group will decide what actions AAMA should take regarding lead levels in products. “Mattel is not sitting in a very good spot and I don’t want us to be in that same position,” said Doug Johnson, Truth Hardware.
- The association commissioned a study on the market penetration of its certification program and competing label programs among architects, dealers and builders. Most of the 250 respondents were not familiar with any certification programs, leaving a vacuum in the market that AAMA hopes to fill with its current certification awareness campaign. The category of respondents most well versed in the AAMA certification program was dealers and retailers, leading marketing officials to budget a heavier push in this category in 2008. With minor adjustments, the marketing steering committee gave the nod to print and other advertising, public relations efforts and web streamlining efforts for 2008 to continue its certification awareness campaign.
- AAMA members formed a new green and sustainability group to track environmental issues both internally and in the marketplace. The group will facilitate AAMA’s internal sustainability activities and aims to conduct industry outreach to educate architects, builders, dealers and others who turn to AAMA for guidance. The new group does not, however, plan to develop test methods or energy modeling tools, nor serve as an NFRC liaison.
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New Investor at Skyline Windows
Merit Capital has acquired a stake in Skyline Windows, a manufacturer and installer of architectural aluminum replacement windows...
Merit Capital Partners has acquired a stake in Skyline Windows LLC, a New York-based manufacturer and installer of architectural aluminum replacement windows. Skyline was a portfolio company of Linx Partners, a private equity firm with offices in Atlanta and Scarsdale, N.Y., which retains a minority interest.
Skyline serves New York City and the East Coast, focusing on commercial and high-end residential applications. More than 75 years old, the company’s line includes hurricane- and blast-resistant products, as well as custom products designed to meet the needs of historic applications.
Based in Chicago, Merit Capital is operated by affiliates of William Blair & Co., another investment firm that has previously been involved in the window and door industry through its stake in ABC Windows in Ontario, Calif.
The Skyline transaction was announced by Lincoln International, an investment banking firm that was an advisor to Linx Partners during the sales process. It was the 17th transaction completed by Lincoln’s building and construction group this year, the firm notes.
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Eastern European Window Market
Surpassing West
The window market in Eastern Europe could surpass the West’s in size by 2008, predicts Interconnection Consulting...
With growth rates that have exceeded Western Europe for years, the window market in Eastern Europe is poised to surpass the West’s in size by 2008, predicts Interconnection Consulting. The Vienna-based market research firm reports Eastern European window sales totalled 47.5 million units sold in 2006, with a total value of 6.9 billion Euros.
That growth will continue to be strong for years to come, according to Interconnection’s new study, which covers Bosnia and Herzegovina, Bulgaria, Estonia, Latvia, Lithuania, Croatia, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, the Czech Republic, Ukraine and Hungary. Together, these countries represent a window market that grew by 26.9 percent in 2006.
By 2008, the Eastern European market is expected to reach 77 million window units. That is the approximate number of units now sold annually in Western Europe. By 2010, the Eastern market volume is predicted to have nearly tripled to 130 million window units sold annually. The value of windows sold will exceed 20 billion Euros.
Russia and the Ukraine will be the drivers for much of this growth and are expected to account for 77 percent of the Eastern European market in 2010. These booming markets are currently growing by more than 30 percent per year.
In the more mature European Union-markets, growth amounted to “only” 9.3 percent, analysts note, and only Hungary suffered declining quantities. The Baltic countries, which saw falling numbers back in 2000, are back on track, growing again by more than 20 percent per year. The Balkan countries, which were up 15.3 percent in 2006, will soon reach their peak, expected for 2007-2008.
Pointing to continued growth potential, Interconnection notes that throughout Eastern Europe there are too few apartments, too little modern office space, public buildings are in need of renovation and many private dwellings need new, energy-efficient windows. In the next four years, yearly growth will be between 10 percent and 35 percent, depending on the country.
Additionally, incomes continue to rise and with that trend, there are some shifts in window preferences. Offering value-priced performance, PVC’s share of the Eastern European market accounted for about 70 percent in 2006, Interconnection notes. Other issues are now driving preferences in the direction of wood and clad-wood windows, which are considered both ecologically sound and pleasing to the eye, it is noted. The shift, however, is not expected to decrease PVC sales at all.
More information about the latest study is available at www.interconnectionconsulting.com.
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Washington Millwork Firm Expands Capacity
King Brothers Woodworking is expanding its operations into the space immediately adjacent to its existing plant...
King Brothers Woodworking Inc. is expanding its manufacturing operations into the recently purchased space immediately adjacent to its existing plant in Union Gap, Wash. The company is moving wood door and millwork production, as well as countertop fabrication operations into the new facility.
“The addition of this new space will permit us to dramatically increase our woodworking manufacturing operations to meet the current and future demands of our products,” says Gary King, president.
“This expansion provides us with much needed additional manufacturing capacity and better positions us competitively in the region,” adds Douglas P. Badertscher, CEO of Kesselring Holding Corp., the parent company of King Brothers.
Kesselring operates a number of subsidiaries in Washington and Florida that have been independently operating since 1948 in the areas of restoration, construction, aluminum products, cabinetry, woodworking, and door and hardware materials. In Florida, its Kesselring Aluminum Corp. distributes and installs window and door products that meet hurricane impact requirements.
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- WEBINAR: Accessibility Issues in Multifamily Housing
from Steven Winter Associates - Home Improvement Value Faceoff:
Home Depot vs. Lowe’s
from Seeking Alpha - Builder Marks Homes That May Have Bombs
On Property
from WFTV.com
...
WEBINAR: Accessibility Issues in Multifamily Housing
from Steven Winter Associates
“Fair Housing: Are You Covered” is the title of a webinar organized by Steven Winter Associates, scheduled for October 30 from 3:00 to 4:30 pm. Designed to provide an overview of legal and compliance issues, as well as specifics on seven key design and construction requirements, the $135 course is targeted to architects, builders and other professionals involved in multifamily housing... read more
Home Improvement Value Faceoff: Home Depot vs. Lowe’s
from Seeking Alpha
Home equity loans are costing significantly more now and future home price appreciation expectations are finally getting back to reality. These factors have caused investors and shoppers to curtail their demand for home improvement retailers. Home Depot and Lowe’s dominate the home improvement retail sector. Both of these stocks are trading close to their 52-week lows. Interest in these stocks started to pick up on Value Investing News, so I started a poll on September 26th to find out which of these leading home improvement stocks provides a better value... read more
Builder Marks Homes That May Have Bombs On Property
from WFTV.com
A local builder marked dozens of Orange County houses Monday that may have bombs on the property. Lennar Homes will dig up the yards of the marked houses in the Vista Lakes subdivision, off Lee Vista Road, near Odyssey Middle School. The Warwick area of Vista Lakes has quite a few spots spray-painted by geophysicists who spent the day marking people's yards. They used a GPS tracking device and identified where munitions from the old Pinecastle Jeep Bombing Range might be buried... read more