From innovation and market demand to labor and materials, the new year looks promising for the fenestration market

(By: Jeff Jackson)With interest rates on the rise, the uncertainty of an election year looming and a rocky lending environment, it may seem like 2024 is not off to a great start; however, in the fenestration market, there is a window of opportunity for growth. From innovation and market demand to labor and materials, the new year looks promising for the window and door industry.

INNOVATION AND TRENDS

Let’s start with innovation. The window and door industry is on the cusp of several new technological updates with the potential to revolutionize customer experiences. For example, integrating new glass technology for all the openings in a home will make windows and doors an essential, more viable part of residences nationwide in terms of energy efficiency, safety and even energy generation.
New technology that meets the stringent Energy Star Version 7 guidelines will make glass a hot commodity, keeping home temperatures more regulated and earning homeowners substantial rebates and incentives. Larger sizes and more glass in modern homes will continue to dominate window and door trends, with some residential customers considering commercial products in their homes for aesthetic purposes.

MARKET DEMAND

For those with the infrastructure and ability to serve a larger audience, market demand will continue to increase modestly in the fenestration industry. Overall, new construction is down about 22%, with the renovation and remodel market down 8% to 9%. From a growth standpoint, expect a flat market; however, those companies with multiple product lines and a solid infrastructure will remain stable.

In the Florida condominium market, 2022 legislation requiring associations to fund repairs to ensure the structural integrity of older buildings will have ramifications in 2024 and beyond. Lighter glass technologies will be a good fit for these renovations as they relieve building joint stress. Products that offer additional benefits, such as impact resistance or energy efficiency, coupled with lighter weight, will be a great alternative for these renovations. This will dramatically increase the demand for innovative glass options over the next few years.

WORKFORCE DEVELOPMENT

The job market is still solid, and the labor market is good; however, companies must continue various efforts to attract and retain talented, skilled workers. While unemployment is still low, some dealers and distributors continue to experience challenges in hiring skilled labor. Installers, machine operators, technicians and truck drivers are still in high demand. Many manufacturing companies in the industry are now turning to robust apprenticeship programs and student outreach to build career pipelines.

PGT Innovations has attracted new team members to skilled trade positions and developed their abilities through apprenticeship programs. Partnering with CareerSource Suncoast, they established an official apprenticeship program in its tool-and-die department and will launch another apprenticeship program for its line maintenance department.

The Pathway to PGTI program allows local high school students to spend two hours each school day in PGTI’s on-site training center, working alongside skilled mentors.

MATERIALS AND COSTS

Regarding materials in the new year, the biggest change involves aluminum. In 2023, the U.S. Department of Commerce and the U.S. Trade Commission enacted anti-dumping duties on imports of aluminum extrusions. This will drive aluminum costs higher as companies move sources inshore and increase domestic demand tremendously.

MERGERS AND ACQUISITIONS

Finally, the fenestration industry is ripe for consolidation. With many smaller firms in the marketplace, keeping up with the innovation and technology investments ahead may be challenging. Integrating state-of-the-art technology is expensive, and without big purchasing power, it will be difficult for smaller players to compete on price, especially in a challenging environment.

Despite the hurdles many organizations will face in 2024, I’m confident that the window and door industry is poised for a strong year. Overall, the outlook for the fenestration market is positive, and companies in this industry are well-positioned to capitalize on the opportunities ahead.