Demand for engineered-wood molding and trim is expected to grow 79% to $550 million in 2016 from 2011 as increased residential construction spending is paired with consumers' desire for exterior building products that better resist impact and moisture, Cleveland-based market research firm Freedonia reports. The engineered wood category accounted for 5.7% of the $5.4 billion molding and trim market in 2011, a share that is expected to grow to 6.1% of a $9-billion value market in 2016, the report found.
Engineered molding is forecast to increase by 12% annually through 2016 to $260 million. Freedonia credits the material's easier installation, dimensional stability, and longer lengths—when compared with dimensional lumber and plastic—and that it does not require painting or staining, for the category's market-share gains. Engineered stairwork is expected to see similar gains, growing 11% annually through 2016 to $145 million, but will fall behind hardwood lumber and metal in overall market share.
Freedonia expects the overall U.S. demand for molding and trim to grow 10.7% annually through 2016 to value $9 billion riding on new home-building activity and some growth in nonresidential construction, although the gains still place the sector short of surpassing its 2006 value of $9.4 billion.
The numbers are part of a 328-page report, "Molding & Trim," that Freedonia is selling for $5,100.
Follow Hallie on Twitter @HallieBusta_HW