Insulated Vinyl Boosts Siding Distributors' Sales

Insulated Vinyl Boosts Siding Distributors' Sales

In mid-March, Winter Storm Stella tore across the East Coast, dumping upwards of 30 inches of snow on the New England area.  Massive snowstorms such as this can do major damage to homes, including to their siding.  Excessive snowfall piled against the side of a home causes a buildup of moisture, which damages siding over time, especially wood siding.  Extreme cold weather conditions can also be costly for homeowners, as more energy (and money) must be spent to keep the home warm. 

Homeowners looking to keep their energy bills low and avoid costly damage to existing wood siding are increasingly seeking out new alternatives. Among the options, insulated vinyl siding has proved particularly popular.  This siding material is sturdy, and is far more likely to withstand severe weather events such as Winter Storm Stella than wood.  Insulated vinyl siding also boosts a home’s energy efficiency through an R-value up to five times that of competing materials like wood, brick, and standard vinyl, meaning that heater won’t be running as much on those cold winter nights.  Other performance benefits associated with insulated vinyl siding include increased durability, minimal maintenance requirements, and sound-blocking properties.

Building Code Changes Provide Additional Incentives

Another development expected to boost usage of insulated vinyl siding is the increased adoption of the 2015 International Energy Conservation Code (IECC), which provides building code standards for residential and commercial structures.  The most recent 2015 version differs from its predecessors in that it allows insulated vinyl siding to be used to meet R-1 value requirements regarding energy efficiency in homes.  While not mandatory at the federal level, several states and municipalities across the country have voluntarily adopted the 2015 version.  Over ten states have already adopted the 2015 IECC (or an equivalent building code), boosting demand for insulated vinyl siding going forward.

Distributors’ Sales to Grow

The majority of insulated vinyl siding is sold through distributors.  A distributor is a company that purchases siding from a manufacturer and then sells it to a third party for installation, such as a contractor.  Distributors offer contractors services including technical advice, and as such can explain the benefits of choosing insulated vinyl siding.  Going forward, distributors are expected to make up an even larger share of sales.  The installation of siding on new homes and re-siding projects are both increasingly being undertaken by small- to medium-sized contractors, who are more likely to purchase siding from distributors than directly from the manufacturers.  This is due to the specialized services provided by distributors such as jobsite delivery, as well as the ability to purchase small quantities of siding materials. 

Key Siding Distributors to Benefit

Key siding distributors are expected to benefit from increased demand for insulated vinyl siding.  For example, Alside, one of the largest siding distributors in the US, sells a variety of insulated vinyl siding materials.  Other specialty distributors of insulated vinyl siding include ABC Supply and Allied Building Products.  Additionally, big box retailers such as Lowe’s and Home Depot carry the material.  

To Learn More:

For more information about the US siding distribution market, check out Siding Distribution in the US by Channel, Market, and Type, a new report from The Freedonia Group. In addition to evaluating the siding distribution industry across several dimensions, it provides market share and competitive analysis on industry participants. 

For more new information about siding distributors by revenue and US subregion, check out Siding Distributors in the US

About the Author:

Nick Cunningham is an Industry Analyst at The Freedonia Group where he covers the US and global construction and building products industries.