September, 2006

In Depth: Siding

Personalization, durability and performance are driving the selection of siding products.

By Craig A. Shutt

Siding products have become a higher-profile product line in recent years as options expand and homeowners realize the value and appeal of personalizing their homes’ exteriors. Marketers have found that the desire to create a distinctive and individual look couples with interest in durability and maintenance requirements to create a triumvirate of key factors that drive the selection process.

"The housing market is cooling down, so homebuilders have to put more thought into how they build their homes and how they promote those benefits,” says Kevin Everhart, vice president of marketing for James Hardie Siding Products in Mission Viejo, Calif. That puts more emphasis on the siding products, because homeowners are realizing the value that derives from having an upscale exterior appearance for their home.

"People are focusing on their homes’ exterior quality more and looking for ways to personalize them,” says Gary Moss, director of sales and marketing for Rollex in Elk Grove Village, Ill. Indeed, recent studies have indicated that homebuyers assume a higher value for homes with attractive exteriors, and the incremental difference tends to be larger than the actual cost of the upgrades.

That perception leads to more of a focus on product quality and key brands, he adds. "Customers want to trade up to longer warranties and higher-performing products. They’re looking more at the past history of the company and the brand credibility.”

Ben Skoog, brand manager for siding products at LP Building Products in Nashville, Tenn., agrees that quality is uppermost. "We’re seeing a real demand for more craftsmanship in products,” he says. "It’s not an anti-vinyl vibe, but vinyl isn’t always seen as the best crafted product. As a result, there’s a turn toward more engineered wood, fiber-cement products, synthetic stones and other options.”

Vinyl siding dominates the market, having surpassed wood siding about a dozen years ago for new-home construction. It has been the preferred material for even longer in the remodeling market, which tends to feature upgraded products. But other materials, particularly fiber-cement siding, are gaining popularity.

The total market for siding is expected to reach 111 million squares in 2008, a 1.4% annual growth rate, according to The Freedonia Group Inc., a Cleveland-based market-research firm. This will occur despite a drop in single-family housing completions during this period, it notes, as the non-residential market regains strength. Growth in value is expected to outgain volume demand, the study says, meaning higher-priced products will be at the forefront of choices.

One of the reasons for vinyl siding’s dominance is that it has become more popular among upscale homes, says Jery Y. Huntley, president of the Vinyl Siding Institute in Washington, D.C. "It is becoming very prevalent in higher-end homes, and that keeps its market potential growing.” Indeed, studies indicate that vinyl siding has a high rate of return for the investment, returning more than 90% of the money put into the installation through higher resale value.

That growth can be attributed to enhancements in the three key factors of aesthetics, durability and performance, marketers say. Foremost among the changes has been the expansion of the color palette to include darker, richer colors. "Color material science has made significant improvements in the last 10 years, so that now manufacturers can offer a wider range of colors with a no-fade guarantee,” says Walt Hoyt, director of marketing communications for the CertainTeed siding-products group in Valley Forge, Pa. "Color performance has improved and expanded, particularly in darker colors.”

That’s a substantial expansion from only a few years ago, adds Mark Axelrod, director of marketing for Crane Performance Siding in Columbus, Ohio. "Several years ago, there was mostly earthtones and lighter shades,” due primarily to technological restrictions, he says. "Today, we see a lot bolder colors of all types.”

Those colors are well-received, prompting manufacturers to create more. "The deeper, darker colors we can now offer customers are obviously preferred in many cases,” says Jay Riley, vice president of sales and marketing in the U.S. for Mitten Vinyl Siding in Paris, Ontario. "Homeowners are looking to get more creative with their exterior designs and personalize them more.”

The variety extends to architectural styling, too. "There’s an incredible range of styles and profiles available today,” says Hoyt. Designs are being mixed and matched to add interest, combining clapboards with shakes, fish scales and other contrasting styles. "People want a unique look.”

The second key factor, durability, also has been expanded, with more emphasis placed on long-term warranties to stress that point. "Customers want their siding to last,” says Hoyt. "And vinyl siding has impact resistance.” That has resulted in warranties as long as 50 years or even lifetime-lengths for specific attributes.

Durability is a key aspect stressed by foam-backed products, which are growing in popularity, as the Freedonia study noted. A variety of manufacturers are offering these products, which include insulating foam on the panel’s back. This addition provides higher energy efficiency, more sound control plus insect and mold resistance. It also enhances impact resistance, making it as much as three times more resistant than traditional vinyl siding.

"The rise in energy costs is making these products more attractive to homeowners,” says Mitten’s Riley. Prices are somewhat higher, he notes, but the products also add value. Bob Heath, marketing leader for the Cultured Stone division of Owens Corning, which also makes vinyl siding, agrees that these products are gaining ground. "They provide more rigidity and significant energy efficiency, which are key points.” These products also can help with wind resistance, including some that are rated for winds beyond 200 mph, well beyond most tornadoes or hurricanes.

The product’s stability expands the range of design styles, notes Crane’s Axelrod. "Traditional vinyl siding has a narrow design range of about 4 to 5 in.,” he explains. "The added stability of the foam-backed products allows us to go to 6 or 7 in., which can better replicate wood’s look.” In fact, the company’s 7-in. style is a double profile, offering a 14-in. depth, and it also offers a triple-six style that’s 18 in. deep. No sheathing is required due to the foam, which saves time during installation as well.

The durability aspects of vinyl siding are enhanced by VSI’s product-certification program, says Huntley. "The change in the quality of the products since the program began in 1998 has been tremendous,” she says. The revenue-neutral program ensures all certified products conform to ASTM standards by using third-party auditors to inspect plants twice a year to ensure quality standards are met. "It has really shaped up the product and given it consistently high quality.” Manufacturers take advantage of the performance certification provided for weatherability, windload, and impact resistance by providing longer warranties that showcase the durability.

VSI also has instituted a color-retention certification program to further enhance the material’s standing. The program certifies colors to meet or exceed ASTM color-retention requirements, so they will resist major color changes in a variety of climates, based on two-year outdoor weathering studies. "We’re enthusiastic about the quality that vinyl siding can provide and why warranties can be so long today,” says Huntley.

Just as important as durability and good looks these days is how the material performs over time and its ability to free homeowners from maintenance. "Maintenance is a key issue for homeowners, and there’s nothing that will change that,” says Rollex’s Moss. Adds VSI’s Huntley, "Families of all sizes and ages are busy with other activities today, and they want products that are easy to maintain. They don’t want to have to worry about painting or caulking, but they still want a good-looking exterior.”

"Consumers today are better educated, and they are looking for products that are authentic looking but provide maintenance freedom,” agrees Crane’s Axelrod. "That’s been a trend for a long time, and the challenge has been providing both attributes in the same siding.”

Indeed, how the product looks on the home involves more than color and style. It’s a critical issue, and it can vary with each project, says CertainTeed’s Hoyt. "Often framing isn’t precise with new construction, and settling has occurred on remodeling projects that keeps siding from being installed exactly. The newest products provide more structural stability, so the panels can be placed over uneven facing without a problem. To aid installation, CertainTeed created a "Studfinder” capability, with that word repeated across its panels to take up 16 in. That corresponds to the typical 16-in. on-center stud placement, ensuring studs can be found quickly.

Foam-backed products offer particular benefits with the long-term performance, marketers say, because they can cover a variety of substrates. "Many times substrates are different in different parts of the home, and these materials can cover any of them and still lay flat,” explains Hoyt. The foam backing provides more structural stability, so the panels can be placed over uneven facing without a problem.

VSI also is helping to ensure long-term performance by extending its certification programs beyond the product itself. In 2005, it launched a certified-installer program, which trains and tests vinyl-siding installers on standardized techniques. More than 500 installers have been certified to date, Huntley says.

"We have worked to control the product, but we also need to control how that product is installed, to ensure it works as it was designed,” she explains. "Builders and homeowners want to ensure their vinyl siding goes on properly and maintains its beauty,” she says. "Now, vinyl-siding professionals can demonstrate that they know the best way to install the product and set themselves apart from the competition.”

The key attributes for vinyl siding also are key reasons why the fiber-cement siding market is growing, marketers say. "Fiber cement is expected to post the strongest gains through 2008, advancing 6.4% per year to nearly 14 million squares,” the Freedonia report says. The material benefits from a variety of performance advantages, the study notes, including resistance to fire, moisture, rot, warping, buckling and insect infestations. "It will continue to wrest market share from wood and, to a lesser extent, vinyl,” the report says.

Fiber-cement siding could someday take over as market leader owing to its added benefits, says James Hardie’s Everhart. "Education by consumers has put a strong emphasis on durability and maintenance-free products, and fiber-cement siding offers those,” he says. Combined with the other aspects, particularly fire resistance and resistance to warping, gives the products a strong statement.

"Fiber-cement siding gained its stronghold in markets where performance issues arose with wood siding about eight or nine years ago,” says Hoyt of CertainTeed, which also makes a fiber-cement product. "Customers like the look and feel and heft of the products, as well as their imperviousness to fire, moisture and insects. They also can have a deeper woodgrain.” That is enhanced by the wider profiles that can be provided, achieving a more traditional wood appearance.

At the same time, he notes, some maintenance is required, as the products need painting about every 15 years. For that reason, more fiber-cement siding is seen in new-home construction, with remodeling projects opting for the maintenance-free qualities provided by vinyl.

Color choices also are expanding for these products, he notes. Hardie offers a range of 26 colors nationwide, with about 20 available in each region. The company worked with a color consultant who works with other large color-focused companies, including Crayola, to create a palette that has relevance and appeal. Darker colors are preferred in the Northwest, while lighter colors still predominate in the Southwest.

Stone-like products, such as Owens Corning’s Cultured Stone siding, also are gaining market share. "Manufactured stone veneer has been strong and continues to grow,” says Bob Heath, marketing leader for the Cultured Stone division of Owens Corning, based in Napa, Calif. "There’s a definite interest by homeowners in using stone, and the colors, textures and shapes introduced in the last few years have created a higher profile.” Owens Corning’s volume is outpacing the market’s own strong growth, he adds, rising about 25% per year compared with 15% to 20% for the rest of the manufactured stone-veneer market.

Heath attributes that growth to a variety of new product offerings, which point to the rising interest. "There is a greater demand for homes with different styles to stand out so homeowners can make the most of their investment. Stone veneers can provide textures and shapes that appeal to architects, and we are creating new colors that are in demand by gaining input from designers on what works with the other products they are using.”

Indeed, combinations of materials are becoming more popular, says Crane’s Axelrod. "Previously, a house would have one type of siding, but now homeowners want to mix exterior products. It’s absolutely widening the style choices homeowners are using.” Adds VSI’s Huntley, "We’re seeing traditional siding used with stone or cultured stone or brick, to create more texture and more personalization. The homeowners get the look they want while still getting maintenance-free features.”

That differentiation extends to trim products as well, which are widening in choices and becoming a separate design feature. Darker siding colors allow lighter colors to be used for trim, so each stands out. "Architects have told us that siding is offering the best opportunity to provide contrast on the house and bring out accents,” says Axelrod. That has resulted in more focus on varying trim styles, creating a "picture-frame” look around windows and doors.

"People want to avoid the ‘box’ look and add more trim detail and gingerbread effects that are architecturally correct,” says L-P’s Skoog. "Builders haven’t been able to do that because they didn’t have the materials. Now, architects and builders are getting together to make sure that the architect’s designs can be constructed. And our sales in trim pieces are reflecting that trend.”

James Hardie has followed suit for its fiber-cement accessories, creating wider trim pieces that provide thicker shadowlines as well as less maintenance. "Previously, homeowners would put on wood trim and have to maintain it,” says Everhart. "The new trim pieces have good workability and nailability without the maintenance needs of wood.”

These trends indicate that the expansion and improvements for siding products are far from finished. "In the future, you’ll see us and others continuing to do development work in material science in all three areas of key concern,” says CertainTeed’s Hoyt. "I expect to see additional colors and profiles, even better on-the-wall performance and increasing durability.”

CRAIG A. SHUTT, senior contributing editor of the magazine, has more than 27 years experience covering the LBM industry.