Last month on this blog we mentioned that strong demand for decking had spurred Trex – a leading supplier of wood-plastic composite (WPC) decking – to expand one of its manufacturing sites, boosting its annual production capacity. The company recently released its fourth quarter sales report, with results that seem to have more than justified that decision, with a nearly 40% increase in sales. This growth was mainly driven by sales of residential products. Furthermore, Trex expects that sales of its decking products will remain strong going forward, , as homeowners continue to install decks to add outdoor living and recreational space.
In addition to rising sales of WPC decking, demand for decks made from pressure-treated lumber (the most commonly used decking material in the US) will also post gains going forward. Consumers, particularly homeowners contemplating DIY projects, will continue to select natural wood lumber because of its low cost and favorable aesthetic properties. Indeed, this expected increase in wood decking demand has caused firms to expand their presence in the market.
One such move was made by UFP Industries, which announced its was acquiring Spartanburg Forest Products, a producer of pressure-treated lumber, decking accessories, and other related wood products. The acquisition will expand UFP’s network of pressure-treated lumber treatment facilities, helping to make sure that the company will be able to meet strong demand for pressure-treated lumber decking materials going forward.
For more information and discussion of opportunities, see The Freedonia Group’s extensive collection of off-the-shelf research, including Wood & Competitive Decking, Outdoor Furniture & Grills, Outdoor Kitchens, Fencing, Residential Fencing, and Plastic Fencing (Lumber report coming soon). Freedonia Custom Research is also available for questions requiring tailored market intelligence.