US plastic & wood-plastic composite materials demand to expand nearly 13% annually through the...

US demand for plastic and wood-plastic composite materials in construction applications is forecast to expand nearly 13 percent annually through 2006, approaching $2 billion in value and using over 2 billion pounds of plastic resin. Advances will result from both supplantation of wood in existing

applications and introduction into previously untapped construction uses. The various applications for composite and plastic lumber can be classified into two groups based on the length of time since these materials first appeared. Growth will be strongest in the applications entered since 1990, such as decking, windows and doors, and fencing. A more mature application for composite and plastic lumber, moulding and trim, will see slower gains, although still in excess of overall moulding and trim growth. These and other trends are presented in Composite & Plastic Lumber, a new study from The Freedonia Group, Inc., a Cleveland-based industrial market research firm.

The increasing market penetration for composite and plastic lumber will help offset a lackluster construction outlook, as growth in construction expenditures are expected to lag those of the 1996-2001 period. The most rapid increases are forecast for decking, where the favorable performance characteristics of the materials will spur adoption. Also aiding demand for these alternatives in decking will be concerns about use of pressure-treated wood. Demand for composite and plastic lumber in decking is projected to reach $900 million in 2006.

Other applications for composite and plastic lumber expected to post double-digit annual gains are fencing and windows and doors. In fencing applications, advances will primarily be at the expense of wood, as composite and plastic materials can offer similar aesthetics with advantages in reduced maintenance costs. Vinyl fencing will account for the vast majority of growth. Vinyl fencing's greater durability and low maintenance requirements can give it a lower life cycle cost than wood fencing. Wood-plastic composite windows combine the low maintenance requirements of plastics with the aesthetic benefits of wood.

Demand for composite and plastic lumber in the large residential construction market is projected to expand more than twelve percent per year through 2006 to $1.2 billion. Gains will be fueled by the capture of an increasing share of the decking and fencing segments at the expense of wood, along with further advances in window and door applications. This intermaterial substitution will allow composite and plastic lumber to expand sales in spite of sluggish residential construction spending, especially in the new housing segment

Composite & Plastic Lumber (published 06/2002, 202 pages)is available for $3,700 from The Freedonia Group, Inc., 767 Beta Drive, Cleveland, OH 44143-2326. For further details, please contact Corinne Gangloff by phone 440.684.9600, fax 440.646.0484 or e-mail pr@freedoniagroup.com. Information may also be obtained through www.freedoniagroup.com.

A limited license to use or reprint information from this news release is granted to you provided attribution for same--including, if possible, the price of the report--is given to The Freedonia Group, Inc. (Cleveland, OH). We would also appreciate the courtesy of receiving a copy of the article or publication in which we appear.

COMPOSITE & PLASTIC LUMBER DEMAND
(million dollars)

                                                        % Annual Growth

Item                               1996   2001   2006    01/96   06/01

Composite & Plastic Lumber Demand   558   1070   1950     13.9   12.8
  Decking                           195    410    900     16.0   17.0
  Moulding & Trim                   218    330    430      8.6    5.4
  Fencing                            55    160    315     23.8   14.5
  Windows & Doors *                  15     65    135     34.1   15.7
  Other *                            75    105    170      7.0   10.1

[C] 2002 by The Freedonia Group, Inc.

* includes composite lumber but excludes plastic lumber used in siding,
windows & doors