AAMA Market Study Results and Industry Forecast Discussed at AAMA Summer Conference

Nick Limb
Photo source
Nick Limb | Photo: aamanet.org
In a members-only session at the AAMA Summer Conference, Nick Limb gave a presentation about the latest AAMA market study, including information about its most recent results as well as the methodology behind how it is conducted.

In a members-only session at the American Architectural Manufacturers (AAMA) 2018 Summer Conference, Nick Limb, Board Member and Managing Principal at Ducker Worldwide, gave a presentation about the latest AAMA market study, including information about its most recent results as well as the methodology behind how it is conducted.

The market study, which contains three smaller studies and was updated and released last month, is an AAMA member benefit and can be purchased in AAMA's Online Store.

Ducker performs market research in several industries, including building and construction. Limb noted that the most recent AAMA study showed what many suspected: The economy is currently strong and stable, including in the fenestration industry. Limb said to expect to see that continue for the next three years, at least.

“Current and historic market assessments are conducted using multi-faceted primary market research throughout the value chain,” explained Limb of Ducker’s methodology. “Manufacturers and suppliers are interviewed, and secondary research is used to support the overall analysis.”

Interviews with AAMA member and non-member companies are conducted following responses to interview requests, with a residential focus on original equipment manufacturers (OEMs) and a non-residential focus on material suppliers. Limb said that responding to an interview request from Ducker helps to support efforts related to the AAMA market study.

“Responding to interview requests makes the research stronger and that benefits you,” said Limb.

Ducker does not rely on a "survey says" approach. Data from multiple sources is triangulated, and Ducker's extensive internal database and network is key.

“There is a big representation of the industry in the research,” he added, saying Ducker has more than 50 percent participation of the market, “leaving us in good shape for rigorous analysis.”

Next, Limb reviewed results from the May 2018 study, noting that non-residential growth lags behind residential, but the industry outlook remains strong.

While renovation activity grows steadily, there has not been the same demand for windows and doors as other product categories in the renovation market. Instead, homeowners are focusing on the exterior, kitchen and bath.

New home construction continued to grow 3.3 percent in 2017, and there is a growth forecast of 8.3 percent for 2018.

“We are still well below peak levels from back in the mid-2000s,” said Limb.

A new feature to Ducker's work is tracking building and construction material trade expenditures as published by the U.S. Census Bureau on a monthly basis. Combined expenditures were up 7.6 percent in 2017, although commodity price inflation factored into this growth.

When it comes to non-residential construction, Limb reported that contract awards are the leading indicator of non-res construction demand and that those were up 4 percent in 2017.

Limb concluded by offering a forecast, stating that Ducker sees 4 percent renovation demand growth in 2018, 3 percent growth in 2019 and 3 percent in 2020.

“There is good growth demand across all categories for 2018,” said Limb. “We see that moderating somewhat in 2019 and into 2020. We see a healthy market and a strong forecast for the future.”

More information about AAMA and its activities can be found via the AAMA website.

600450 AAMA Market Study Results and Industry Forecast Discussed at AAMA Summer Conference glassonweb.com

Others also read

PaneraTech has announced their plans to launch the industry’s first furnace health management platform during the first half of 2019.
Those attending the AAMA 2018 Fall Conference were encouraged to think about the Occupational Safety and Health Administration (OSHA) in a different light when it comes to implementing a culture of workplace safety.
The WDMA-Northeast Winter Conference will take place on January 28-29, 2019 in Baltimore, Maryland at the Radisson Inner Harbor Hotel.
SentryGlas® proves to be a shade above the rest for innovative rapid transit system in California.
Eco Glass Production (ECO), is doubling facility size and significantly increasing capacity with a new North Glass tempering furnace sold and serviced by HHH Tempering Resources (HHH).
Intigral Inc., a world leader in manufacturing insulating glass units and blinds between glass, is expanding by opening a new location.

From industry

10924 Granite Street, Suite 200
Charlotte, NC 28273
United States

10301 North Enterprise Drive
Mequon, WI 53092
United States

NEWS RELATED PRODUCTS

Trex Commercial Products
Trex Commercial Products
Diamon-Fusion International, Inc.
Trex Commercial Products
Diamon-Fusion International, Inc.
Diamon-Fusion International, Inc.

Add new comment