The 2023, 2024, and 2025 reports provide a comprehensive picture of the challenges and opportunities in the window and door industry. Here’s a breakdown of key trends across these years, highlighting growth areas and those in decline.
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1. Market Performance and Sales Outlook
2023:
• Market Growth: The 2023 report indicates a decline in sales with only 50% of companies expecting an increase in sales, compared to 80% in 2022. Many businesses were trying to avoid negative growth by exploring new business opportunities.
• Challenges: Affordability, high interest rates, and inflation were significant hurdles. Housing affordability was at its lowest in a decade, leading to decreased demand, particularly in new construction.
2024:
• Mixed Performance: The market was expected to stabilize despite ongoing economic challenges. Many companies planned investments in product innovation, employee retention, and automation.
• Stability vs. Growth: 50% of companies expected flat or slight declines in 2024, while 60% of sales forecasted growth, primarily driven by remodeling projects rather than new construction.
2025:
• Slow Recovery: The market is predicted to continue evolving, with a 5-10% growth expected in 2025. Key drivers include a shift toward premium products and a potential increase in remodeling projects as homeowners continue to opt for renovation due to high mortgage rates and housing affordability issues.
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2. Product Trends and Demand
2023:
• Vinyl Windows Dominating: The demand for vinyl windows was still the strongest, followed by multi-panel patio doors. Energy Star-rated products also saw an uptick as sustainability became more prominent.
• Innovative Product Features: The focus was on energy efficiency and aesthetics, with a noticeable rise in smart home features integrated into doors and windows.
2024:
• Shift to Smart Products and Efficiency: Companies continued to innovate, focusing on energy-efficient solutions, smart features, and customization options. Products were expected to evolve in line with Energy Star 7.0 standards, emphasizing sustainability and performance.
• Diversification in Materials: There was an increasing demand for aluminum, wood, and hybrid windows, while vinyl continued to dominate. Manufacturers were investing in sustainable products and smart home technologies to meet consumer demand.
2025:
• Higher-Value Products in Demand: The trend towards premium, energy-efficient products continues, with a growing focus on sustainability and smart features.
• Customization and Innovation: Homeowners are now prioritizing customization (colors, materials) and larger window sizes, alongside energy-efficient options. Technology integration will likely drive future growth, with a focus on reducing environmental impact and improving building performance.
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3. Consumer Behavior and Remodeling Trends
2023:
• Stagnation in New Construction: Single-family housing was slowing, with affordability becoming a significant barrier to new projects. More homeowners were opting for renovations instead of moving, as evidenced by higher demand for replacement windows and doors in the remodeling sector.
• Labor Shortages and Inflation: These issues hampered growth, with many companies struggling to maintain production capacity due to higher labor costs and raw material shortages.
2024:
• Increased Focus on Remodeling: Remodeling is now expected to outperform new construction. This is seen as an opportunity for window and door companies that are adapting to the shift by offering high-end products and energy-efficient solutions.
• Market Shifts: A renewed focus on smart home integration and sustainability as consumers seek long-term value from their investments. The demand for multifamily housing and commercial construction also rose.
2025:
• Resurgence in Remodeling: There is a strong potential for increased remodeling projects, particularly with 46% of homeowners planning renovations, driven by high home equity and the increasing age of first-time homebuyers. Renovation projects are expected to account for a larger share of sales, as affordability continues to drive decisions to upgrade rather than move.
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4. Labor and Employee Challenges
2023:
• Labor Shortages: A major challenge reported in 2023 was labor shortages, particularly in skilled positions. This problem was exacerbated by high demand during the pandemic, making it harder for companies to keep up.
• Retention Issues: Companies struggled with employee retention and training, further complicating operations during periods of low production.
2024:
• Labor and Automation: Labor continues to be the top challenge in 2024, with companies focusing heavily on automation to reduce dependence on manual labor. There’s also a push towards employee engagement and retention strategies, with significant investments in training and workplace culture.
• Increased Automation: Many companies are investing in automated machinery to reduce labor costs and improve efficiency. The digital transformation of operations is ongoing, with AI integration starting to play a role in business operations.
2025:
• Adapting to Labor Shortages: The labor shortage issue continues into 2025, but companies are adapting by leveraging AI, automation, and advanced software solutions to optimize their workforce.
• Workforce Development: Increased investments in employee training and fostering a supportive company culture will be key to retaining skilled labor and maintaining productivity in the face of ongoing challenges.
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5. Economic Influences and Material Costs
2023:
• Rising Material Costs: Material prices continued to rise, especially in glass, aluminum, and hardware, causing some companies to adjust their product offerings to meet cost demands.
• High Interest Rates: High mortgage rates were a significant barrier to new construction, making it more difficult for homeowners to move or undertake major home-building projects.
2024:
• Material Price Stabilization: While inflation and material costs remain high, supply chain issues that plagued the industry during the pandemic largely subsided. However, companies still faced challenges related to securing quality materials.
• Operational Adjustments: Many companies focused on improving operational efficiency through better supply chain management and lean manufacturing practices to counteract rising costs.
2025:
• Material Costs Continue to Challenge: Despite efforts to streamline operations, material costs remain a concern for the window and door industry, particularly with the push for sustainable materials and energy-efficient products.
• Sustainability and Energy Efficiency: Products will need to balance cost efficiency with environmental responsibility, with Energy Star 7.0 compliance and sustainable material sourcing becoming a growing priority.
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Key Takeaways: What’s Rising and What’s Declining
• Rising Trends:
• Demand for premium, energy-efficient products.
• Focus on remodeling over new construction due to affordability challenges.
• Automation and AI adoption for improved efficiency and productivity.
• Sustainability and smart home integration driving product innovation.
• Declining Trends:
• New construction activity, particularly single-family homes, continues to decrease.
• Labor shortages remain a persistent challenge, though automation is helping mitigate this.
• Material costs remain a major hurdle, affecting profit margins.
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This comparison shows a shifting landscape in the glazing industry, where remodeling, energy efficiency, and automation are emerging as key drivers for growth, while new construction and labor shortages continue to pose challenges.
Source: https://www.windowanddoor.com/