Executive Report

Study of the U.S. Market For Windows, Doors and Skylights

Copyright © 2006 - Co-published April 2006 by:

American Architectural Manufacturers Association (AAMA) 1827 Walden Office Square, Suite 104 Schaumburg, Illinois 60173 Tel: (847) 303-5664/Fax: (847) 303-5774 www.aamanet.org

Window & Door Manufacturers Association (WDMA) 1400 East Touhy Avenue, Suite 470 Des Plaines, Illinois 60018 Tel: (847) 299-5200/Fax: (847) 299-1286 www.wdma.com

Researched by: Ducker Research Company, Inc. 1250 Maplelawn Drive, Troy, MI 48084 (248) 644-0086 www.ducker.com

TABLE OF CONTENTS Section Description Page A. INTRODUCTION AND METHODOLOGY 1 1. Methodology 2. Purpose 3. Methodology and Time Line 4. Terminology B. U.S. CONSTRUCTION ACTIVITY 6 1. U.S. Summary 2. U.S. Residential Starts

3. Nonresidential Floor Area

C. DOOR MARKET 16 1. Summary 2. Market Size by Application 3. Segmentation by Material 4. Wood Doors by Application 5. Wood Doors Segmented by Type 6. Residential Wood Flush Doors 7. Architectural (Nonresidential) Flush Doors

8. Wood Stile and Rail Doors 9. Historic and projected Growth

D. WINDOW MARKET 39 1. Summary 2. Residential-Type Market Size by Application 3. Residential-Type Window Segmented by Application and Material

4. Residential-Type Wood Windows in Conventional Applications 5. Residential-Type Vinyl Windows in Conventional Applications 6. Historic and Projected Growth 7. U.S. Nonresidential Glass and Windows Market Size 8. Nonresidential Historic and Projected Growth

E. PATIO DOOR MARKET 82 1. Summary 2. Market Size by Application 3. Segmentation of Wood Units F. SKYLIGHT MARKET 92 1. Summary 2. Market Size by Application G. U.S. STORM WINDOW AND DOOR MARKET 100

APPENDICES: A. Eleven U.S. Census Regions B. U.S. Entry and Interior Door Market

C. U.S. Conventional Residential Window Market D. Nonresidential Vision Area Models E. U.S. Patio Door Market F. U.S. Glass Usage

LIST OF EXHIBITS

Section Number & Type Description Page

A A.1 Time Line Program Time Line

2005 – 2006 • Program Approval • Draft Review • Committee Review • Report Publication

2

B B.1 Bar Graph U.S. New Residential Construction

Segmented by Type of Structure 2001-2005 • Manufactured Homes • Multi-Family • Single Family

6

B.2 Map U.S. Conventional Housing Starts

by Geographic Region 2005 • 11 Regions

8

B.3 Bar Graph Forecasted U.S. Residential Construction

Segmented by Type of Structure 2006 – 2009F • Manufactured Homes • Multi-Family • Single Family

9

B.4 Pie Chart U.S. Residential Housing Starts by Region

2005 • South • West • Midwest • Northeast

10

B.5 Pie Chart U.S. Residential Housing Starts by Region

2009 Forecasted • South • West • Midwest • Northeast

10

B.6 Table Expenditures and Growth Over Prior Year

• 2000 – 2009F 10

B.7 Bar Chart Total U.S. Residential Improvement Expenditures

• Billions of Dollars 11

B (cont.) B.8 Table New U.S. Housing by Type of Structure Private and Public, Including Farm 2000 – 2009F • Total Shelter • Manufactured Housing • Total Conventional • Single Family • Multi-Family

11

B.9 Table New U.S. Conventional Housing by Geographical Region

Private and Public, Including Farm 2000 – 2009F • Northeast • Midwest • South • West

12

B.10 Table U.S. Manufactured Housing Shipments to Dealers

by Geographical Region Private and Public, Including Farm 2000 – 2009F • Northeast • Midwest • South • West

12

B.11 Bar Chart Forecasted Nonresidential Contract Awards by Floor Area Segmented by Major Building Category 2003 – 2009F • Manufacturing/Warehouse • Office/Hotel/Institutional • Store/Mercantile

13

B.12 Map New U.S. Nonresidential Contract Awards by Geographical Region

2005 • 11 Regions

14

B.13 Pie Chart Nonresidential Contracts by Region

2005 • South • West • Midwest • Northeast

13

B.14 Pie Chart Nonresidential Contracts by Region

2009 Forecasted • South • West • Midwest • Northeast

13

B (cont.) B.15 Table Nonresidential Contract Awards (Reported) by Selected Building

Types and Regions 2000 – 2009F • Manufacturing/Warehouse • Office/Hotel/Institutional • Store/Mercantile

15

C C.1 Table Total Market for U.S. Doors by Application

2005 • Residential Entry • Residential Interior • Nonresidential Entry • Nonresidential Interior

18

C.2 Table Total U.S. Market for Doors by Construction Type and Application

2005 • New Construction • Remodeling • Replacement

19

C.3 Pie U.S. Residential Entry Doors by Material

2005 • Steel • Wood • Fiberglass

20

C.4 Pie Chart Residential Interior Doors by Material

2005 • Wood • Other

21

C.5 Pie Chart Nonresidential Entry Doors by Material

2005 • Steel • Aluminum • Wood • Other

22

C.6 Pie Chart Nonresidential Interior Doors by Material

2005 • Wood • Aluminum • Steel • Other

23

C (cont.) C.7 Table U.S. Market for Wood Doors by Application 2005 • Residential Entry • Residential Interior • Nonresidential Entry • Nonresidential Interior

24

C.8 Table U.S. Market for Wood Doors by Construction Type and

Application 2005 • New Construction • Remodeling • Replacement

24

C.9 Table U.S. Market for Wood Doors Flush Versus Stile and

Rail Construction 2005 • Residential Entry • Residential Interior • Nonresidential Entry • Nonresidential Interior

25

C.10 Pie Chart Wood Residential Interior Doors by Type

2005 • Flush • Stile and Rail

26

C.11 Pie Chart Wood Nonresidential Interior Doors by Type

2005 • Flush • Stile and Rail

26

C.12 Table 2005 Wood Flush Door Market by Core Construction

• Hollow Core • Solid Core • Fire Door

27

C.13 Pie Chart Residential Core Materials by Type Solid and Fire Rated

Wood Flush Doors 2005 • Particle Board • MDF • Mineral Core • Other

28

C (cont.)

C.14 Pie Chart Residential Wood Flush Doors by Material 2005 • Molded Hardboard • Flush Veneer • Flush Hardboard

29

C.15 Pie Chart Residential Wood Flush Veneer Doors by Ply Construction

2005 • 7 Ply • 9 Ply • Other

29

C.16 Pie Chart Interior Flush Veneer Doors by Wood Species Used

2005 • Red Oak • Birch • Maple • Lauan/Related • Cherry • White Oak • Mahogany • Walnut • Ash • Other Hardwoods • Softwoods • Other

30

C.17 Table Architectural Wood Passage Flush Door Shipments by Core

Construction 2005 • Hollow Core • Solid Core • Fire Door

31

C.18 Pie Chart Solid Core and Fire Rated Wood Architectural Flush Passage

Doors by Core Types 2005 • Particleboard • Mineral • SCL • Stave

31

C.19 Pie Chart Fire Rated Wood Architectural Flush Passage Doors by Rating

2005 • 90 Minutes • 60 Minutes • 45 Minutes • 20 Minutes

32

C (cont.)

C.20 Pie Chart Architectural Wood Flush Doors by Face Material 2005 • Wood Veneer • Laminates • MDO/Others

32

C.21 Pie Chart Architectural Flush Veneers by Wood Species Used

2005 • Red Oak • Birch • Maple • Lauan/Related • Cherry • White Oak • Mahogany • Walnut • Ash • Other Hardwoods

33

C.22 Pie Chart Architectural Wood Veneer Flush Doors by Ply Construction

2005 • 5 Ply • 7 Ply

34

C.23 Table Architectural Wood Flush Doors by Door Height

2005 • 7’0” • 6’8” • 9’0” • 8’0” • 7’10” • 7’2” • Other

34

C.24 Table Wood Stile and Rail Doors by Application

2005 • Residential Entry • Residential Interior • Nonresidential Entry • Nonresidential Interior

35

C (cont.)

C.25 Table Stile and Rail Wood Species Used 2005 • Ponderosa Pine • Radiata/Imported • White Pine • Other Pines • Fir/Hemlock • Other Softwoods • Oak • Cherry • Mahogany • Lauan • Walnut • Maple • Poplar • Other Hardwoods

36

C.26 Table Sales of U.S. Doors by Material and Application

2000-2009F • Steel • Wood • Fiberglass

38

D D.1 Table Total Market for Residential-Type Window Units by Application

2003 and 2005 • Residential New Construction • Residential Remodel • Residential Replacement • Manufactured Housing • Nonresidential New Construction • Nonresidential Remodel • Nonresidential Replacement

41

D (cont.)

D.2 Table Total U.S. Market for Residential-Type Window Units by Application and Framing Material 2003 and 2005 • Residential, Nonresidential and Manufactured Housing Window

Units • Wood and Clad Wood • Vinyl • Aluminum • Other

43

D.3 Bar Graph Total U.S. Conventional Residential Window Demand

Historic and Forecasted Window Usage by Framing Material 2001 – 2009 F • Wood and Wood Clad • Aluminum • Vinyl • Other

44

D.4 Table U.S. Conventional Residential Window Usage by Framing Material

Segmented by Construction Type 2003 and 2005 • New, Remodel, and Replacement • Wood and Clad Wood • Vinyl • Aluminum • Other

45

D.5 Table Conventional Residential Window Usage

Segmented by Framing Material 2003 and 2005 • Wood • Aluminum Clad Wood • Vinyl Clad Wood • Aluminum with Thermal Break • Aluminum without Thermal Break • Vinyl • Other

46

D (cont.)

D.6 Table Conventional Residential Window Usage

Segmented by Configuration 2003 and 2005 • Wood, Vinyl and Aluminum/Other • Double Hung • Single Hung • Casement • Gliding/Slider • Awning • Fixed • Specialty

47

D.7 Pie Chart Conventional Residential Window Volumes

Segmented by Customization 2003 and 2005 • Standard Stock Windows • Customized Windows

49

D.8 Table Conventional Residential Window Glass Usage

Segmented by Framing Material 2003 and 2005 • Single Lite, Two Lite, Non-Sealed, Two Lite, Sealed IG, Two Lite,

Sealed IG W/Storm, and Triple Lite, Sealed IG • Wood • Vinyl • Aluminum • Other

50

D.9 Pie Chart Conventional Residential Windows – Insulating Glass

Segmented by Type of Spacer 2003 and 2005 • Rigid Warm Edge • Non-Rigid Warm Edge • Aluminum Spacer

51

D.10 Pie Chart Conventional Residential Windows With Sealed IG

Segmented by Seal Configuration 2003 and 2005 • Single Sealed • Double Sealed

52

D.11 Pie Chart Conventional Residential Windows – Secondary Sealant

Segmented by Seal Type 2003 and 2005 • Polyurethane • Silicone • Polysulfide • Hot Melt

53

D (cont.) D.12 Pie Chart Conventional Residential Windows – Hurricane Resistant

Florida, All Other Regions • Non Hurricane • Hurricane Impact Glazing • Hurricane Non-Impact Glazing

54

D.13 Table Conventional Residential Windows

Segmented by Glass Type 2003 and 2005 • Wood, Vinyl, Aluminum, and Other • Clear • Tinted • Reflective • Low-E

54

D.14 Pie Chart Conventional Residential Windows – Low-E

Segmented by Coating Type 2003 and 2005 • Sputtered • Pyrolytic

56

D.15 Pie Chart Conventional Residential Windows – Energy Ratings

Segmented by Rating Type 2003 and 2005 • Wood, Vinyl, Aluminum/Other • NFRC Rating • Energy Star Rating • No Rating

57

D.16 Table Conventional Residential Wood Window Units

Segmented by Configuration 2003 and 2005 • Clad Wood and Non-Clad • Double Hung • Single Hung • Casement • Gliding/Slides • Awning • Fixed • Specialty

58

D.17 Table Conventional Residential Wood Window Units – Window Sash and

Frame Segmented by Wood Species Used 2005 • Ponderosa Pine • Southern Yellow Pine • Radiata Pine • White Pine • Fir/Hemlock • Other Softwoods • Oak • Other Hardwoods

59

D (cont.)

D.18 Pie Chart Conventional Residential Wood Window Units – Non-Clad Segmented by Exterior Finish 2005 • Primed/Prefinished • Natural • No Finish

60

D.19 Pie Chart Conventional Residential Wood Window Units

Segmented by Type of Insulating Spacer 2003 and 2005 • Rigid Warm Edge Spacer • Non-Rigid Warm Edge • Aluminum Spacer

61

D.20 Pie Chart Conventional Residential Wood Window Units

Segmented by Low-E Usage and Technology 2003 and 2005 • Sputtered • Pyrolytic

61

D.21 Table Conventional Residential Vinyl Window Units

Segmented by Configuration 2003 and 2005 • Double Hung • Single Hung • Casement • Gliding/Slider • Awning • Fixed • Specialty

62

D.22 Pie Chart Conventional Residential Vinyl Window Units

Segmented by Type of Insulating Spacer • Rigid Warm Edge Spacer • Non-Rigid Warm Edge • Aluminum Spacer

63

D.23 Pie Chart Residential Vinyl Window Units

Segmented by Fabrication Method 2003 and 2005 • Fully Welded Frame • Mechanically Fastened Frame • Hybrid of Mechanically Fastened Frame and Fully Welded Frame

63

D.24 Pie Chart Conventional Residential Vinyl Window Units

Segmented by Solid Extrusion Color 2003 and 2005 • White • Tan • Other

64

D (cont.)

D.25 Table Conventional Residential Windows Usge 2003-2009 Forecast • New Construction, Remodel/Replacement and Total Construction • Wood • Aluminum • Vinyl • Fiberglass • Composite Other

65

D.26 Table New Nonresidential Construction and Major Additions Segmented by Type of Wall Construction 2003 and 2005 • Curtainwall, Storefront, Site Fabricated Windows, and Shop

Fabricated Windows • Office and Bank • Stores, Other Mercantile • Manufacturing/Warehouses • Educational • Hospital/Health Care (incl. Government) • Public/Government • Religious • Amusement/Recreational • Hotel/Motel/Dormitory • Miscellaneous

68

D.27 Table Total Nonresidential Vision Area

Segmented by Type of Construction 2003 and 2005 • New Building, Major Additions, and Remodel • Curtainwall • Storefront • Site Fabricated Windows • Shop Fabricated Windows

69

D.28 Table Framing Materials Used in Nonresidential Construction

2003 and 2005 • Curtainwall, Storefront, Site Fabricated Windows, and Shop

Fabricated Windows • Aluminum with Thermal Break • Aluminum without Thermal Break • Wood • Vinyl, Other

70

D.29 Pie Chart Nonresidential Aluminum Framing

Segmented by Finish Material 2003 and 2005 • Anodized Finish • Standard Paint • High End paint

71

D (cont.)

D.30 Table Calculations – New High-Rise Construction 2001 and 2003 • Wall Area, Ratio High-Rise, High-Rise Wall Area, Vision Glass

Area • Office/Bank • All Other

72

D.31 Table Total U.S. Nonresidential Glass Usage

Segmented by Glazing Configuration • Single Lite • Two-Lite, Not Sealed • Two-Lite, Sealed • Two-Lite Sealed IG, with Stormlite • Triple Glazed, Sealed IG, other

73

D.32 Table Glass Usage – Nonresidential Windows

• Clear • Tint • Reflective • Low-E

73

D.33 Pie Chart Usage of Low-E Segmented by Coating Technology

2003 and 2005 • Sputter and Suspended Film • Pyrolytic

74

D.34 Pie Chart Usage of Reflective Glass Segmented by Coating Technology

2003 and 2005 • Sputter • Pyrolytic

74

D.35 Picture Conversion: Total Insulated Vision Glass Area

• Insulating Glass, Sealed • Square Feet to Lineal Feet

75

D.36 Table Insulating Glass Sealants Segmented by Sealant Configuration

2001 and 2003 • Double Sealed • Single Sealed

75

D.37 Table Double Sealed Insulating Glass - Secondary Sealant Usage

2003 and 2005 • Polysulfide • Silicone • Polyurethane

76

D.38 Pie Chart Non Residential Glazing – Hurricane Resistant

Florida, All Other Regions • Non Hurricane • Hurricane Impact Glazing • Hurricane Non Impact Glazing

77

D (cont.)

D.39 Picture U.S. Market for Commercial Windows Segmented by Window Type 2005 • Site Fabricated • Shop Fabricated

78

D.40 Pie Chart U.S Market for Architectural Rated Shop-Fabricated Windows by

Rating Segmented by Window Rating Type • AW • C • H/C

78

D.41 Table U.S. Shop-Fabricated Windows Segmented by Window

Configuration 2003 and 2005 • Hung • Slider • Projected • Fixed • Sliding Door • Specialty/Other

79

D.42 Pie Chart U.S Shop-Fabricated Patio and Terrace Doors

Segmented by Door Type • Hinged • Sliding

80

D.43 Table U.S. Window Usage in Nonresidential Buildings – 2003-2009F

• New Construction • Remodeling & Replacement

81

E E.1 Table Total U.S. Market for Residential Patio Doors

Segmented by Framing Material 2005 • Wood • Aluminum • Vinyl • Steel • Fiberglass • Others

83

E (cont.)

E.2 Table Total U.S. Market for Residential Patio Doors Segmented by Construction Type and Framing Material 2003 and 2005 • New Construction, Remodel, and Replacement • Wood • Aluminum • Vinyl • Steel • Fiberglass • Other

84

E.3 & E.4. Pie Charts

Patio Doors by Framing Material 2003 and 2005 • Wood • Aluminum • Vinyl • Steel • Fiberglass • Other

85

E.5 Table Total U.S. Market for Residential Patio Doors Segmented by Application and Framing Material 2003 and 2005 • Hinged and Sliding • Wood • Aluminum • Vinyl • Steel • Fiberglass • Others

86

E.6 Table Total U.S. Sliding and Hinged Patio Doors

Segmented by Number of Panels 2003 and 2005 • One Panel, Two Panel, and Three or More Panels • Wood • Aluminum • Vinyl • Steel • Fiberglass • Others

87

E (cont.)

E.7 Table Total U.S. Market for Residential Patio Doors Segmented by Low-E Usage and Technology 2003 and 2005 • Clear, Tinted, Reflective and Low-E • Wood • Vinyl • Aluminum • Steel • Fiberglass • Others

88

E.8 Table Wood Patio Doors

Segmented by Cladding and Type of Door 2003 and 2005 • Hinged and Sliding • Clad • Non-Clad

89

E.9 Pie Chart Non-Clad Wood Patio Doors

Segmented by Finish Type 2005 • Primed/Painted • No Finish • Natural Finish

90

E.10 Table Wood Patio Door Lumber Type

Segmented by Wood Species 2005 • Ponderosa Pine • Southern Yellow Pine • Radiata Pine • White Pine • Fir/Hemlock • Other Softwoods • Oak • Other Hardwoods

91

E.11 Table Residential Patio Door Market

2000 – 2009F • New Construction • Remodel • Replacement

91

F F.1 Table Residential-Type Skylights (Including Light Commercial)

2000 – 2005 • NewConstruction • Remodel • Replacement

93

F.2 Table Skylights by Type and Application

2005 • Plastic Glazed Skylight and Glass Glazed Skylight • Residential • Light Commercial

94

F.3 Pie Chart Total Market for Skylights by Type

2003 and 2005 • Glass Glazed Skylights • Plastic Glazed Skylights

94

F.4 Pie Chart Plastic Glazed Skylights by Type 2005 • Acrylic • Polycarbonate • Fiberglass

95

F. 5 Pie Chart Plastic Glazed Skylights by Type

2005 • Translucent/Diffusing • Tinted/Colored • Clear

96

F.6 Pie Chart Glass Glazed Skylights by Type

2005 • Low E • Clear • Tinted • Reflective

96

F.7 Pie Residential-Type Skylights by Framing Material

2005 • Vinyl and Aluminum Vinyl • Aluminum • Wood and Clad wood • Frameless

97

F.8 Table Residential-Type Skylights by Type and Application

2005 • Plastic Glazed Skylights and Glass Glazed Skylights • Fixed • Venting • Venting – Motorized/Operable

98

F (cont.)

F.9 Table Forecast of Residential-Type Skylights 2005 – 2009F • New • Remodel • Replace

99

G G.1 Table U.S. Historic Storm Window and Door Shipments

2000 – 2004 • Windows • Doors

100

G.2 Table Forecasted U.S. Storm Window and Door Shipments

2005 – 2009F • Windows • Doors

101

Appendix

A Map Table

Eleven U.S. Census Regions Four to Eleven Region Conversion and Abbreviation Definitions

Appendix

B Table U.S. Entry and Interior Door Market Segmented by Application

and Estimated Geographic Segmentation 2005 • Residential • Nonresidential

Appendix

C Table U.S. Conventional Residential Window Market Segmented by

Application and Estimated Geographic Segmentation 2005 • New Construction • Remodeling and Replacement

Appendix D

APDX-D.1 Graphic

Conversion: Total Vision Glass Area

APDX-D.2

Graphic Model: Total Vision Glass Area

APDX-D.3

Table United States Nonresidential Contract Awards 2002 Contract Awards • Office and Bank • Stores, other Mercantile • Manufacturing/Warehouse • Educational • Hospital/Health Care (incl. Government) • Public/Government • Religious • Amusement/Recreational • Hotel/Motel/Dormitory • Miscellaneous

APDX-D.4

Table U.S. Nonresidential Total Wall Area – New and Additions 2003 • Floor Area and Wall-to-Floor Ratio • Office and Bank • Stores, other Mercantile • Manufacturing/Warehouse • Educational • Hospital/Health Care (incl. Government) • Public/Government • Religious • Amusement/Recreational • Hotel/Motel/Dormitory • Miscellaneous

APDX-D.5

Table U.S. New Nonresidential Vision and Opaque Wall Area – New and Additions Segmented by Building Category • Total Wall Area and Vision Glass • Office and Bank • Stores, other Mercantile • Manufacturing/Warehouse • Educational • Hospital/Health Care (incl. Government) • Public/Government • Religious • Amusement/Recreational • Hotel/Motel/Dormitory • Miscellaneous

Appendix E

Table U.S. Patio Door Market Segmented by Application and Estimated Geographic Segmentation2003 • New Construction • Remodeling and Replacement

Appendix

F Table U.S. Glass Usage

Segmented by Glass Type and Estimated Geographic Segmentation 2003

• Clear • Tinted • Reflective • Low E • Combination

Copyright © 2006 AAMA and WDMA

All rights reserved.

This report or any part thereof, may not be reproduced in any form without the written permission of the publisher.

1

A. INTRODUCTION AND METHODOLOGY Ducker Research Company (DRC) has been conducting the study of the U.S.

residential and nonresidential window and door markets for WDMA (Window & Door Manufacturers Association) in combination with AAMA (American Architectural Manufacturers Association) since October 1994. This study details market volumes and trends in the U.S. for 2005, forecasted through 2009.

Ducker Research has been conducting residential and nonresidential market

studies continuously since 1982 for AAMA. Prior to that, studies were conducted for the Sealed Insulating Glass Manufacturers Association (SIGMA) since 1978. This association is now called the Insulating Glass Manufacturers Association (IGMA) Additionally, our database goes back to 1972 when we first developed a demand model for flat glass usage in the United States. Ducker further produces many syndicated and custom market research studies for the fenestration market annually. These include the annual studies of the North American Flat Glass Market and bi-annual study of the Northern American Fabricated Glass Market.

This following report is the result of a combined market study and a database

analysis funded by AAMA and WDMA in a cooperative effort. The intent in combining these studies is to develop a full database and a comprehensive report on the window and door market. The database is designed to be utilized for studies into the foreseeable future.

1. Methodology The role of Ducker Research is to combine primary and secondary market research efforts with its own body of knowledge to profile and track residential and nonresidential fenestration market volume. As a major input to the research, Ducker receives confidential disclosures from AAMA and WDMA members and non-members. However, multiple industry sources, such as demand models, raw material and component suppliers, and internal databases, are necessary and consistently used to triangulate market statistics. Public databases are also utilized, such as the U.S. Bureau of Census and other statistics sources.

2

In addition, Ducker interviewed several hundred home builders, contractors, installers and distributors, which helped develop indicative product usage factors and channel flow as a cross reference to manufacturers’ sales figures. Please note that there have been several important revisions to data from 2003 due to new and improved data received at both national and local levels. Current numbers reflect the adjustment and all historical numbers have been restated accordingly. The overall participation from manufacturers in general was significantly higher for the latest study, and this coupled with additional insight gained from related Ducker work over the past 2 years has provided better insight into the following areas:

• Residential windows: The wood window market in particular was found to have been overstated for several years, with both vinyl and aluminum conversely understated.

• Patio doors: Similar to residential windows, the wood patio door market was found to have been overstated.

• Skylights: The total market was found to be overstated previously and has been revised down.

• Distribution: While the numbers were not restated as such, we eliminated a distributor category, Wholesale Retailers, and reallocated this volume primarily to lumberyards, but also somewhat to specialty retailers. This was done partly to simplify and to better align with the definitions used by most manufacturers, and partly because trends in the market were leading to the blurring of lines between wholesale retailers and other categories .

The following report represents our research and analytical efforts beginning in the Fall of 2005. 2. Purpose

The purpose of this study is to provide a comprehensive single report detailing the window and door market for WDMA and AAMA.

3. Methodology and Time Line Study findings are based upon disclosures from window and door manufacturers, secondary data and our experience in providing this information for several years. Study findings are segmented by geographic region as illustrated in Appendix A to this report. The research program for the WDMA and AAMA spans from September 2005 through April 2006. A detailed timeline is provided, below, as Exhibit A.1.

3

Exhibit A.1

Program Time Line

2005 – 2006

Program Draft Committee Report Approval Review Review Publication

September, 2005 late-March, 2006 early-April, 2006 mid-April, 2006

For purposes of presenting data in this report, the term Exhibits will be used to display all graphics and tables.

4. Terminology Certain terms are used throughout the report which require definition. Also, in our analysis, assumptions are made regarding units and construction activity. The following is a list of definitions and assumptions used in the development of this report. Bifold Door: An interior application utilizing two or more individual door leafs, conjoined with hinges, which operate on a sliding track. A bifold door is primarily a form of a closet door. However, bifold doors do not include folding doors or overlapping sliding doors. Bifold door volume counted on a per leaf basis. Included in interior door volume. Closet Doors: An interior door used for passage from room or hallway to closet. Included in interior door volume. Doors: Units are defined as actual door slabs and panels, rather than openings where one or more slabs would be used. Excluded from door units are closet doors, bifold doors and service and industrial doors.

• Kick-off meeting • Initiate fieldwork

• Present draft results • Fieldwork complete

• Review draft reports with

WDMA/AAMA advisory committees

4

Entry Doors: A door opening that allows passage from the exterior of a building or home to the interior. In the residential market, hinged rear entrance doors connecting an attached garage to a home are included, while patio doors are excluded and reported separately. In the nonresidential market, entry doors include vestibule doors. Flush Door Construction: A method of door construction whereby a thin face material is attached to a light internal frame (often made of wood). Face material may include high density fiberboard, steel, wood veneer, MDO, or other products. Framing: Metal, wood, fiberglass, vinyl, or composite members comprising the window. In operable windows, framing members include both a operational portion and fixed portion of the window. Insulating Glass: Two- or three-lite, sealed. Distinct from two-lites, not sealed and distinct from storm windows. Interior Door: Includes both Passageway and Closet doors. Nonresidential: Nonresidential construction is defined as all commercial buildings, from small to large, that are not meant for residence. Hotels, motels, and dormitories are included in nonresidential figures. Patio Doors: Units are defined as openings at the manufacturer level, to avoid double counting units due to multiple operable, or inoperable panels. For example, a double French door and a triple panel sliding door are all considered one unit. Figures in this report identify units with single panels and multiple panels alike as one singular unit. Further segmentation by number of panels in detailed in the Patio Door section of this report. Passageway Doors: An interior door used for passage from room or hallway to room. Excluded from this are garage hinged and service doors. Residential: Residential construction is defined as dwelling units: single-family attached, single-family detached, multi-family and mobile homes. Apartment buildings, although considered commercial construction, are included in our residential figures. Stile and Rail Door Construction: A traditional method of construction for wood doors whereby the structural components are

5

exposed. Structural components include wood stiles (vertical beams) and rails (horizontal beams), which encompass wood panels. Stiles and rails are held together using glue and dowel pins, while panels often “float” within channels grooved into the stile and rail components. Skylights: Standardized unit specified by product. Not included in window volumes. Sloped Glazing: Nonstandard specification, also called custom skylights or monumental glazing. This product is captured in curtainwall data, but not segmented out. Does not include sunrooms, which are a separate category. Study Regions: Eleven geographic regions are used throughout the report. Appendix A to this report illustrates the definition of these regions. Sunrooms: Separate classification from sloped glazing. Not included in window volumes. Vision Glass Area: Unless otherwise noted, glass area figures are surface measure of vision glass area. Figures for spandrel glass materials also are surface measured. Windows: Units are defined as openings at the manufacturer level. However, the definition of a unit differs among manufacturers (e.g., a bay window to some may be three openings while to others it may be one). This does not account for multiple windows that are nailed together at the distributor level for one opening. Figures in this report more closely reflect units at the manufacturer level, rather than openings at the job site.

* * *

Executive Report

U.S. Industry Statistical Review and Forecast

Copyright © 2006 - Co-published April 2006 by:

American Architectural Manufacturers Association (AAMA) 1827 Walden Office Square, Suite 104 Schaumburg, Illinois 60173 Tel: (847) 303-5664/Fax: (847) 303-5774 www.aamanet.org

Window & Door Manufacturers Association (WDMA) 1400 East Touhy Avenue, Suite 470 Des Plaines, Illinois 60018 Tel: (847) 299-5200/Fax: (847) 299-1286 www.wdma.com

Researched by: Ducker Research Company, Inc. 1250 Maplelawn Drive, Troy, MI 48084 (248) 644-0086 www.ducker.com

Introduction Market estimates in the U.S. Industry Statistical Review and Forecast are driven not only by statistics published by the Census Bureau and other organizations, but also from primary interviews with leading manufacturers of windows, doors and skylights, as well as component suppliers. All forecasts are based on projections of construction activity as of February and appropriate usage factors developed by Ducker Research Company, which is solely responsible for the data. Any questions on the Review, or its contents should be directed to Ducker Research Company. Ducker has been conducting residential and nonresidential market studies continuously since 1982 for the American Architectural Manufacturers Association (AAMA). From 1978 to 1981, studies were conducted for the Sealed Insulating Glass Manufacturers Association (SIGMA- (currently referred to as IGMA). Ducker has been conducting the update study of the U.S. residential and nonresidential window and door markets for the Window and Door Manufacturers Association (WDMA) in combination with AAMA since October of 1994. The U.S. Industry Statistical Review and Forecast is published annually. Additional and much more detailed information on window, door and skylight markets is contained in the updated (2005) Study of the U.S. Market for Windows, Doors and Skylights, and The Distribution of Residential and Non-Residential Windows and Doors in the 2005 U.S. Market, as well as individual Statistical Review and Forecast market overview reports for each of the 11 major U.S. regional markets. All reports are available from AAMA, WDMA, or Ducker.

Contents

Residential Construction Activity Privately owned housing 1 New housing by type of structure 1 Residential construction activity 2 Improvement expenditures 3 Manufactured housing shipments 4 Existing home sales 4 Residential Product Statistics Prime windows 5-6 Storm windows/doors 7 Skylights 7 Patio doors 8 Entry and passage door usage 9-10 Door Forecast 11 Nonresidential Product Statistics Entry and passage door usage 10 Door Forecast 11 Insulating glass statistics 12 Nonresidential Construction Activity Contract awards 13-14 Regional construction 15 Window usage 16-17 U.S. Map of Geographic Division 18

Executive Report

The Distribution of Residential and Nonresidential Windows and Doors

in the 2005 U.S. Market

Copyright © 2006 - Co-published April 2006 by:

American Architectural Manufacturers Association (AAMA) 1827 Walden Office Square, Suite 104 Schaumburg, Illinois 60173 Tel: (847) 303-5664/Fax: (847) 303-5774 www.aamanet.org

Window & Door Manufacturers Association (WDMA) 1400 East Touhy Avenue, Suite 470 Des Plaines, Illinois 60018 Tel: (847) 299-5200/Fax: (847) 299-1286 www.wdma.com

Researched by: Ducker Research Company, Inc. 1250 Maplelawn Drive, Troy, MI 48084 (248) 644-0086 www.ducker.com

Executive Summary April, 2006

TTAABBLLEE OOFF CCOONNTTEENNTTSS

Section Description Page I. EXECUTIVE SUMMARY....................................................................1 II. INTRODUCTION AND METHODOLOGY..........................................3 A. Introduction B. Study Objectives C. Study Methodology III. CHANNEL MEMBER DEFINITIONS AND PROFILES......................6 A. Characteristics of Channel Members B. Characteristic Definitions C. Distributor Profiles IV. PRODUCT FLOW ANALYSIS .........................................................23 A. Market Size B. Distribution Discussion C. Windows

D. Patio Doors E. Entry Doors

F. Interior Doors V. ISSUES AND TRENDS....................................................................63 A. Channel Member Trends

B. Regional Trends VI. NONRESIDENTIAL WINDOWS AND DOORS................................71 A. Nonresidential Windows and Glazing

B. Nonresidential Windows and Glazing Supply Channel Chain Definitions

C. Nonresidential Window Distribution Analysis D. Nonresidential Door Channel Member Definitions E. Nonresidential Door Distribution Analysis

Appendix A ............................................................................................85

Executive Summary April, 2006

IINNDDEEXX OOFF EEXXHHIIBBIITTSS Exhibit Title Page Number II.1 Interviews Conducted - Respondent Type .....................................................5 III.1 Definitions – Categorizing Process ................................................................8 III.2 Millwork Wholesaler Profile ..........................................................................11 III.3 Big Box Profile..............................................................................................14 III.4 Lumberyard Profile.......................................................................................16 III.6 Shortline Distributor Profile...........................................................................18 III.7 Specialty Retailer Profile ..............................................................................20 III.8 Summary of Distribution Definitions .............................................................22 IV.1 2005 Market Size - Residential ....................................................................23 IV.2 2005 Windows – Manufacturer Direct ..........................................................26 IV.3 2005 Windows – Secondary Distribution Channels......................................27 IV.4 2005 Windows - Total Volume by Channel Distribution ...............................28 IV.5 2005 Millwork Wholesaler – Actual Window Purchases and Sales ..............29 IV.6 2005 Big Box – Actual Window Purchases and Sales .................................30 IV.7 2005 Lumberyard – Actual Window Purchases and Sales...........................31 IV.9 2005 Shortline Distributor – Actual Window Purchases and Sales ..............32 IV.10 2005 Specialty Retailer – Actual Window Purchases and Sales ..................33 IV.11 2005 Summary of Window Volumes – Segmented by End User .................34 IV.12 2005 Summary of Window Volumes – Segmented by Construction Type ...35 IV.13 2005 Patio Doors – Manufacturer Direct ......................................................36 IV.14 2005 Patio Doors – Major Distribution Channels..........................................37 IV.15 2005 Patio Doors – Total Volume by Channel of Distribution.......................38 IV.16 2005 Millwork Wholesaler – Actual Patio Door Purchases and Sales..........39 IV.17 2005 Big Box – Actual Patio Door Purchases and Sales .............................40 IV.18 2005 Lumberyard – Actual Patio Door Purchases and Sales.......................41 IV.20 2005 Shortline Distributor – Actual Patio Door Purchases and Sales ..........42 IV.21 2005 Specialty Retailer – Actual Patio Door Purchases and Sales..............43 IV.22 2005 Summary of Patio Door Volumes – Segmented by End User .............44 IV.23 2005 Summary of Patio Door Volumes – Segmented by Construction Type44 IV.24 2005 Entry Doors – Manufacturer Direct ......................................................45

Executive Summary April, 2006

IINNDDEEXX OOFF EEXXHHIIBBIITTSS (continued)

Exhibit Title Page Number IV.25 2005 Entry Doors – Secondary Distribution Channels .................................46 IV.26 2005 Entry Doors – Total Volume by Channel of Distribution ......................47 IV.27 2005 Millwork Wholesaler – Actual Entry Door Purchases and Sales..........48 IV.28 2005 Big Box – Actual Entry Door Purchases and Sales .............................49 IV.29 2005 Lumberyard – Actual Entry Door Purchases and Sales ......................50 IV.30 2005 Shortline Distributor – Actual Entry Door Purchases and Sales ..........51 IV.31 2005 Specialty Retailer – Actual Entry Door Purchases and Sales..............52 IV.32 2005 Summary of Entry Door Volumes – Segmented by End User .............53 IV.33 2005 Summary of Entry Door Volumes – Segmented by Construction Type53 IV.34 2005 Interior Doors – Manufacturer Direct ...................................................54 IV.35 2005 Interior Doors – Secondary Distribution Channels ..............................55 IV.36 2005 Interior Doors – Total Volume by Channel of Distribution....................56 IV.37 2005 Millwork Wholesaler – Actual Interior Door Purchases and Sales.......57 IV.38 2005 Big Box – Actual Interior Door Purchases and Sales ..........................58 IV.39 2005 Lumberyard – Actual Interior Door Purchases and Sales....................59 IV.40 2005 Shortline Distributor – Actual Interior Door Purchases and Sales .......60 IV.41 2005 Specialty Retailer – Actual Interior Door Purchases and Sales...........61 IV.42 2005 Summary of Interior Door Volumes – Segmented by End User ..........62 IV.43 2005 Summary of Interior Door Volumes – Segmented by Construction Type .............................................................................................................62 V.1 Historic View of Window and Door Product Distribution Channel Characteristics .............................................................................................66 V.2 Forecasted View of Window and Door Product Distribution Channel Characteristics .............................................................................................67 V.3 Historic and Expected Changes in Window and Door Product Distribution Flow – 2003-2009......................................................................68 VI.1 Nonresidential Construction Specification Process and Cycle.......................71 VI.2 Architectural Glazing Products Supply Chain ................................................78 VI.3 Shop Fabricated Commercial Window Supply Chain ....................................81 VI.4 Nonresidential Door Product Flow .................................................................84

Executive Summary April, 2006

IINNDDEEXX OOFF EEXXHHIIBBIITTSS (continued)

Exhibit Title Page Number Appendix A – Exhibit I – 2003 Window Distribution Restated – Manufacturer Direct........................................................................85 Appendix A – Exhibit II – 2003 Patio Door Distribution and Volume Restated – Manufacturer Direct ..........................................................85

Executive Report

Summary of Findings Regarding Installation Practices and Procedures

2005 U.S. Market

Copyright © 2006 - Co-published April 2006 by:

American Architectural Manufacturers Association (AAMA) 1827 Walden Office Square, Suite 104 Schaumburg, Illinois 60173 Tel: (847) 303-5664/Fax: (847) 303-5774 www.aamanet.org

Window & Door Manufacturers Association (WDMA) 1400 East Touhy Avenue, Suite 470 Des Plaines, Illinois 60018 Tel: (847) 299-5200/Fax: (847) 299-1286 www.wdma.com

Researched by: Ducker Research Company, Inc. 1250 Maplelawn Drive, Troy, MI 48084 (248) 644-0086 www.ducker.com

TTAABBLLEE OOFF CCOONNTTEENNTTSS

Section Description Page I. INTRODUCTION AND METHODOLOGY..........................................1 II. MANUFACTURER INPUT .................................................................2 A. Installation Support Materials B. Installation Crews C. Installation Materials III. INSTALLER INPUT............................................................................5 A. Window Installations B. Window Flashings C. Window Sealants

IINNDDEEXX OOFF EEXXHHIIBBIITTSS

Exhibit Title Page Number

I.1 Number of Respondents by Region ..................................................................1 II.1 Manufacturer Inclusion of Printed Installation Instructions ............................... .2 II.2 Printed Instructions Follow AAMA Installation Masters or ASTM 2112 Guidelines ................................................................................ .2 II.3 Manufacturers With Own Installation Crews..................................................... .3 II.4 Manufacturer Contracts With Exclusive Installers ............................................ .3 II.5 Flashing Materials: Manufacturer Involvement with Customers ....................... .4 II.6 Sealant Materials: Manufacturer Involvement with Customers......................... .4 III.1 Window Installations With/Without Fins - Overall ............................................ .5 III.2 Window Installations With/Without Fins – Regional Segmentation ..................5 III.3 Window and Door Installations Involving Sill Pans – Overall ……………………6 III.4 Window Installations Involving Sill Pans – Regional Segmentation ..................6 III.5 Door Installations Involving Sill Pans – Regional Segmentation…………….…..7 III.6 Window and Door Installations Involving Sill Pans – Regional Segmentation…7 III.7 Flexible Flashing Segmented by Type ............................................................. .8 III.8 Flexible Flashing Use Segmented by Region....................................................8 III.9 Flexible Flashing Type Segmented by Region ..................................................9

III.10 Incidence of Building Inspectors Checking Flashing Installations ..................... .9 III.11 Instruction Guide Utilized for Window and Door Flashing ................................ .10 III.12 Reported Utilization of Sealant in Window Installations ................................... .11 III.13 Reported Sealant Utilization for Window Installation......................................... 11 III.14 Reported Sealant Utilization for Window Installation - By Region .................... 12