FGIA Releases New Industry Review, Forecast

TUESDAY, MAY 2, 2023


Yesterday (May 1), the Fenestration and Glazing Industry Alliance released its latest industry review and forecast, delivering information on window, door and skylight market trends and product relationships.

“As those in the industry are aware, recent years have been unusual ones for the market due to the pandemic and inflation across the globe,” said Angela Dickson, FGIA Marketing and Communications Director.

“This report reflects how those factors continue to affect our industry and their forecasted impacts for the next couple years. This information will be helpful as companies adapt to an everchanging environment.”

Report Findings

Historic data for 2012 through 2022, as well as forecast data for 2023 through 2025, are included in the “FGIA 2022/2023 U.S. Industry Statistical Review and Forecast.” Forecasts are reportedly based on projections of construction activity as of March.

According to the report, following 12 consecutive years of growth, total housing starts fell in 2022 by 2.5% overall. Included in this, single-family starts steeply declined by 11%, offset by 15% growth in multi-family housing starts.

Going forward, the FGIA anticipates that the overall new housing market is expected to continue to fall further in 2023 by 17% before returning to growth of 8% and 7% in 2024 and 2025, respectively.

New construction demand in 2022 grew for entry doors in the residential market by 1%. However, entry door remodeling and replacement demand declined by 13%. The total market also declined by 8% compared to 2021, along with anticipated declines this year followed by growth in 2024 and 2025.

Similarly, last year, non-residential construction demand for entry doors declined by 3%. Total volume decreased to 2.0 million units. A recovery is reportedly expected in 2023 with minor declines expected in 2024 and 2025.

Looking at windows, the FGIA notes that the demand for prime windows was flat in 2022 with marginal growth of 0.5%. The demand for windows in new housing increased by 1% in 2022, with backlogs particularly in multi-family housing maintaining shipments as starts fell.

Remodel and replacement demand for windows was also flat. Additionally, an overall decrease of 7% is forecasted for 2023 shipments, driven by a 14% decline in new construction demand, before rebounding with growth of 5% and 4% in 2024 and 2025, respectively.

The FGIA reports that the non-residential glazing market decreased by 3% last year, with decreases across all applications. New construction increased 1%, while renovation demand declined by 11%. Moving forward, an increase of 4% is forecasted for 2023, with flat demand anticipated in 2024 followed by a decline of 3% in 2025.

In terms of residential skylights, the report indicated a decline of 8% over 2021 volume. New construction skylight activity was up 3% while remodeling and replacement skylight activity was down 10% compared to the year prior.

The updated “FGIA 2022/2023 U.S. Industry Statistical Review and Forecast,” as well as the other reports, are available for purchase from the FGIA Online Store.

Housing Start Promise

Data released in March by U.S. Department of Housing and Urban Development and the U.S. Census Bureau showed that home building increased in February for the first time in five consecutive months, reportedly suggesting that the housing market may be starting to stabilize.

Overall housing starts in February increased 9.8% to a seasonally adjusted annual rate of 1.45 million units. According to Bloomberg, this pace of starts exceeded all forecasts in a survey of economists that had a median projection of 1.31 million.

Within this overall number, single-family starts increased 1.1% to a seasonally adjusted annual rate of 830,000. However, this remains 31.6% lower than a year ago. The multifamily sector, which includes apartment buildings and condos, increased 24% to an annualized 620,000 pace.

Building permits, an indicator of future construction, climbed 13.8% to an annualized pace of 1.52 million units, reflecting gains in permits for both single-family and multifamily projects. However, this number is still 17.9% below the rate this time last year.

Breaking this number down, single-family authorizations were at a rate of 777,000, while authorizations of units in buildings with five units or more were at a rate of 700,000.

The number of home completions also surged in February, rising more than 12% to a 1.56 million pace. Reports indicate that this number, led by a jump in multifamily projects, is the fastest pace since 2007.

On a regional basis compared to the previous month, combined single-family and multifamily starts were 16.5% lower in the Northeast, 70.3% higher in the Midwest, 2.2% higher in the South and 16.8% higher in the West.

The full Monthly New Residential Construction report can be found here.

   

Tagged categories: Asia Pacific; Building Envelope; Commercial / Architectural; Commercial Construction; Decorative Finishes; Design - Commercial; Doors; Economy; EMEA (Europe, Middle East and Africa); Fenestration and Glazing Industry Alliance; Housing starts; Latin America; Market; Market data; Market forecasts; Market research; Market trends; New Construction; North America; Program/Project Management; Residential; Residential Construction; Windows; Z-Continents

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