Demand for Siding to Remain Flat in the U.S.

Demand for siding materials is forecast to remain flat through 2010 at 117 million squares, according to a study by Cleveland-based market research firm the Freedonia Group.

Strong growth is expected in nonresidential markets, as industrial, commercial and office building activity recovers from a cyclical low in 2005. These gains are expected to offset the decline in demand from the larger residential building market, which will be negatively impacted by a decrease in single-family home construction.

Vinyl siding will maintain its position as the leading type of siding in use, due to its competitive cost and established position in the market in the residential improvement and repair sector. However, the study predicts vinyl’s total market share will begin to erode, reflecting growing competition from products such as fiber cement.

The Freedonia study predicts that fiber cement siding materials will continue to take market share from other products, and will post among the fastest gains through 2010, surpassing wood and brick in use.