March, 2007

In Depth: Windows

Regional variations in codes, energy needs, and styles drive new products and expanded options.

By Craig A. Shutt

The range of window products continues to expand, as regional preferences for specific attributes and styles grow stronger. Manufacturers are finding their SKU count expanding, and dealers must be certain they are meeting the market-specific needs of each of their locations. Those demands vary based on upgraded building codes, climate, architectural styling, and other factors.

Dealers can’t rely on tradition to determine what architectural styles will be popular in their market, stresses Dave Koester, brand manager at Weather Shield Windows & Doors in Medford, Wis. "People are migrating all over the country, and they take their styles and preferences with them,” he says. In addition, styles often flow from one region to another, often from west to east, so staying in contact with architects and builders to learn what customers are responding to is critical. "Code changes for performance and energy efficiency have segmented the market more than in the past and made it more challenging to accommodate everyone’s needs.”

Market Presents Challenges

This year presents some added challenges for window makers and dealers as housing starts slow across the country. But as with product preferences, the housing slowdown is a regional factor. "Interest rates are still reasonable, and some areas of the country are having an upswing, so it’s difficult to say what type of year it will be overall,” says Chris Reilly, director of marketing communications for Atrium Companies in Dallas. Reilly anticipates some soft markets but no overall downturn. "The replacement market is doing very well in many areas, and we continue to see steady business and moderate growth in a good number of our predominantly new-construction markets.”

Brian Shilling, director of business development for MI Windows & Doors in Annapolis, Md., agrees. "We intend to seek out the markets that are still doing well and focus on more secondary markets to penetrate deeper.” The company offers windows in several materials, including aluminum, vinyl, and a composite, he notes. "We fit every niche, so we expect to be able to add market share even with a smaller pie available.”

Many manufacturers will target strong niches, such as custom builders and remodelers, with specialized products and replacement units. "We anticipate the window market overall might drop this year, but we don’t anticipate a slowdown for our sales,” says Cindy Bremer, director of marketing for Kolbe & Kolbe Windows & Doors in Wausau, Wis. The company’s higher-end products are targeted to custom builders, she notes, and it also is expanding its replacement-window line in 2007.

As many marketers point out, the slowdown can be termed that only in relation to the recently hot market. "Five to 10 years ago, this year’s housing starts would have been considered fantastic,” notes Koester. "There’s plenty of business to go around, and we expect this year to be business as usual as we develop new products.”

Demand To Increase Slightly

Indeed, demand for windows and doors is expected to increase 3.3% annually through 2010 to $36.5 billion, according to a report released in February by The Freedonia Group Inc. in Cleveland. But that represents a decline in forecasted growth owing to "a sharp decline in single-family housing completions.”

Nonresidential markets will offset some of that decline, shifting the market, players, and types of products, the report indicates. It anticipates that nonresidential building will advance 8% a year through 2010 to nearly $11 billion. These products often are more heavy-duty and need to withstand a lot of use.

Tom Sinning, director of dealer sales at Marvin Windows & Doors in Eagan, Minn., has seen shifts in the market already. "There are more and more warehouses being redone from manufacturing uses to lofts and condos. That’s not a new trend, but it’s continuing into new areas and types of buildings.” Older homeowners, especially empty-nesters, are eschewing suburban sprawl to return to city activities and a more compact lifestyle. As a result, replacement and larger styles suited to loft dwellings are taking up some of the slack from markets with faltering residential sales.

The report indicates that, with replacement windows taking up a larger portion of the total, "plastic [vinyl, fiberglass, and wood-plastic composite] windows will continue to make inroads as replacement for both wood and metal products,” it says. The report predicts demand in this material will increase 6.5% annually.

Material choices are definitely moving in favor of vinyl and wood, notes MI’s Shilling. "Aluminum products continue to decrease their market share, due to energy codes and conservation needs, and the price of the material is going up, too,” he says. "Vinyl is by far the largest share of what we produce.”

Codes Trigger Changes

A key reason for geographic variations in product preferences comes from the changing building codes around the country, particularly along the East and Gulf coasts. "The impact of hurricanes is getting a lot of attention from everyone,” says Atrium’s Reilly. "Window manufacturers are putting together strong programs to ensure they have the right product lines for each market.” Those markets are expanding beyond Texas and Florida up the Atlantic coastline, he notes. "Codes are getting more strict, so our responsibility is to have the proper offering.”

Those changes also are impacting existing homes says Chris Monroe, vice president of marketing for Simonton Windows in Parkersburg, W.Va. "We see strong business-growth potential for our coastal products in 2007,” he says. "We envision a significant push toward enforcement of coastal codes in renovation situations. Remodelers should pay close attention to all coastal-code changes and updates in their areas so that projects are not shut down.” In the past, he notes, builders were aware of changes. "Now, we’re seeing remodel and renovation projects receiving this same level of intense scrutiny.”

Other new standards will impact products, too, he says, pointing to changes in codes adapted by the American Architectural Manufacturers Association for Forced Entry Resistance. The hand-manipulation test added by AAMA to ensure hardware on windows meets resistance standards will be a major focus for manufacturers. Another initiative will require testing of mulled-window units.

Energy Remains Key

Manufacturers agree that energy efficiency remains a key reason why customers choose the windows they do. Weather Shield, for example, has introduced a package of energy-saving features including gas filling, film coatings, and spacers. "We’re seeing more emphasis in the market on energy-efficiency overall,” says Koester. "It’s a great sales strategy in a down market for a builder to be able to show that the homeowner can save money and be more energy efficient.”

Windsor Windows & Doors in West Des Moines, Iowa, made low-emissivity film a standard feature in its wood window line in February, says Cathy Leonard, marketing communications manager. "In certain parts of the country, it’s expected to be there,” she says. "Whereas in other places, it’s a struggle to get them to accept it. Some states require it, and it’s very much driven by the region.” Builders are less likely to try new things if their customers aren’t clamoring for them, she notes. "But they are seeing the benefits and are understanding that it can help them compete better.”

Even southern markets are realizing that the day of the single-glazed window is past, adds Kolbe & Kolbe’s Bremer. "They’re going to insulated products and looking harder at energy performance,” she says. MI’s Shilling agrees. "Florida energy codes are upgrading to require better energy savings and the use of low-e coatings.” The films can help protect against glare and UV fading in those markets especially, adding benefits if energy efficiency isn’t a compelling enough reason.

Solar-heat gain has led many customers to look more closely at their glazing options, she adds. "Higher design-pressure ratings are becoming more important, and manufacturers are continuing to enhance products to achieve those.” In late 2006, Weather Shield introduced the Zo-e-shield glazing system for many of its windows, says Koester. The glazing is offered in three levels of efficiency. The company also offers triple-glazed windows, which fewer manufacturers have retained with the increase in low-e films, he notes.

"Every buying audience—builders, remodelers, and homeowners—is embracing energy-efficient glass packages for windows and doors right now,” says Simonton’s Monroe. "Energy Star qualifications and programs have made a strong impact on people no matter what their geographical market. Ever since fuel costs started to rise, we’ve seen a steady and continuing increase in requests for energy-efficient glass packages.”

Glass packages also can aid with lowering sound transmission, keeping the home quieter, Koester notes. The Zo-e-shield program offers options specifically to reduce transmissions. Adds Monroe, "People are very interested in keeping external sounds outside. They’re also looking for ways to help protect their homes from intruders. Higher-end glass packages can help them achieve both of those goals.”

This is the last year for the energy-tax credits that are being offered for installing energy-efficient products, notes Atrium’s Reilly. "That provides a credible incentive for doing work this year,” he points out.

Easier Being Green

Energy efficiency ties into another topic that has become a key selling point: environmental friendliness. "There is more concern in the market about staying green by reusing materials or remodeling homes, and that market is strong today,” says Marvin’s Sinning. The company stresses its use of wood from sustainable forests and the recyclability of its aluminum and glass.

It also has emphasized its recently introduced sill-pan system, which prevents water intrusion into the wall cavity. The system is manufactured from recycled car batteries, making it environmentally friendly and an aid to ensuring efficient installation. "We’re looking at green trends all the time, and we expect there will continue to be a trend in encouraging healthy homes,” he says. "Global warming also will have all of industry reviewing its manufacturing processes overall.”

Weather Shield’s Koester agrees that the environment will offer a key selling point. The Leadership in Energy & Environmental Design (LEED) standards established by the U.S. Green Building Council are gaining awareness, especially as the program expands to include residential applications. "LEED is gathering steam and becoming more popular, and the recognition given to the Energy Star program has been fantastic. It gives homeowners a standard to use as a base. It was a homerun for the government, because it’s easy to understand and beneficial for us to participate in.”

More Species Offered

One key area where geography is playing a role is in the species of wood being used in the windows’ construction. "There are getting to be more species all the time,” says Marvin’s Sinning. "Where we used to offer Ponderosa pine and oak, we’ve now got green fir, mahogany, white oak, and cherry. It’s a matter of adapting to the marketplace and listening to customer desires.” Kolbe & Kolbe likewise has expanded its offerings, Bremer reports, to include mahogany, maple, walnut, and alder, while Windsor added alder a few years ago and has expanded to include fir this year.

"There is a desire for an increased level of finish and to match woodwork in the home and in cabinetry,” says Windsor’s Leonard. "They want to be more complete.” Bremer agrees. "There is more attention being paid to detail and design in woods,” she says. "The finishing touches are being carried through to the windows to add more quality. It can create an entirely different feeling to change the species of wood used in your windows.”

The expansions create more inventory concerns for manufacturers, Sinning notes, but the goal is to provide dealers with the products their customers want. And those customers are becoming more diverse in their desires around the country.

Styles Differ Across Country

Certainly the window styles that are most popular depend on geography. Weather Shield has emphasized those differences with its new Collections lines, which are geared to providing architectural accuracy and historic authenticity, says Koester. "Architects and builders want products to look more like historic wood windows, but they don’t want to lose out on today’s low-maintenance technology to have that.”

The company is rolling out several looks, starting with a Spanish Colonial design aimed at Southwest markets. That will be followed by a Neoclassical line geared to the Eastern seaboard and Southeast. But Koester knows they will be popular in other locations too, as people take their background with them to new locations and try to make their new homes stand out.

Homeowner demands also have made manufacturers expand their lines of impact-resistant windows, he notes. "We used to produce only casements in that line, as they made it easier to meet impact-resistance standards. But the market told us that it wanted double-hung windows, too, so we had to refine our technology. Consumers are driving much of the technology that is in the market today.”

"You definitely need a variety of styles of windows to handle national capabilities,” says Atrium’s Reilly. "There is definitely a need for the right style for the right geography today.” Horizontal windows are more popular in the Midwest, he notes, while Colonial styles are typical in New England and larger windows are the norm in Texas. Marvin also has found its black (ebony) casing has become popular in Chicago, Sinning notes.

Colors in general are expanding for external trim packages, says Windsor’s Leonard. The company offers seven standard colors and another 30 as feature colors for its cladding. "The market is demanding variety,” she says. "Architects are specifying certain colors for exterior trim, and they want window trim to match that. And the colors vary by region.”

Hardware Options Expand

Hardware options too are evolving, tying into other decorative accents in the home, says Atrium’s Reilly. "Residential design elements have to be considered in developing all of these products today,” he says. "We have to be sure we’re listening to what’s going on in the market to continue providing customers with the cosmetic product enhancements they want to complement their homes.”

Even as hardware-finish preferences shift to brushed nickel, oil-rubbed bronze, stainless steel, and other sophisticated looks, the variety is expanding, too, says Marvin’s Sinning. "Twenty years ago, there were fewer colors and choices, we each offered one or two,” he says. "Now, we all have six or seven.”

Hardware also is becoming more durable, especially for larger size windows that have heavier glazing units. "Larger windows are very much in demand,” says Windsor’s Leonard. The biggest challenge for producing larger windows, Sinning notes, is handling them in the plant and the yard.

The trend toward larger windows goes hand in hand with environmental concerns, notes Weather Shield’s Koester, as it eliminates the need for artificial lighting. "The trend toward cocooning in your home continues, and people want to be able to connect with the outdoors. So we’re seeing larger windows and more glass.” Manufacturers find meeting all these needs difficult as options expand and inventorying needs rise. Dealers have it somewhat easier, as they can track and stock what sells best in their market.

How To Sell More Windows

Looking for ways to upsell your customers or expand your window sales in a tightening market? Marketers offer these suggestions:

1. Know Your Products. "Dealers need to know the material and the benefits of each feature,” says Dave Koester of Weather Shield. "Empowered consumers today use the Internet and other information sources to learn everything they can. They want to know why features work as they do.”

2. Use Display Pieces. "It’s critical to have displays and show the options that are available,” says Kolbe & Kolbe’s Cindy Bremer. "A lot of people don’t realize all the possibilities, from mouldings to species to finish colors and other options. People are visually oriented, and if they see it, they can relate to it.”

3. Tout Your Services. "Many manufacturers have comparable lines,” says Atrium’s Chris Reilly. "Our emphasis is on touting our differentiation in services, and dealers should do the same.” Those features include online ordering and added services to make the process smoother. "We want to create strategic partnerships to drive business. The new-construction business can be incredibly competitive, but you can add value if you are able to offer product upgrades and business tools that allow builders and dealers to operate more profitably and efficiently. The ante for this industry is having the right core product, but service is the key to success.”

4. Promote Value-Added Options. "Dealers have to promote value-added options that help builders stand out,” says MI Windows & Doors’ Brian Shilling. "Often, builders look for plain-jane options, but there are a lot of ways to enhance the home with the options available. They don’t add a significant cost, but they create a custom look.

5. Communicate With Architects. "Seek out architects and show them the benefits of the windows you sell,” suggests Weather Shield’s Koester. "They have a lot of sway in the final product decisions.” Bremer agrees. "A lot of our projects go through architects, and they tell us they have work.”

6. Consider Installation Services. "More dealers are telling us that they might as well install the products themselves, since they are delivering to the job site already,” says Tom Sinning of Marvin Windows & Doors. Marvin offers training to aid in creating an installation service that can provide true differentiation among product suppliers.

CRAIG A. SHUTT, senior contributing editor of the magazine, has nearly 30 years experience covering the LBM industry.