March, 2008

In Depth: Windows

New technologies address a growing demand for more energy efficient and lower-maintenance products.

By Craig A. Shutt

The impact of the residential housing market’s downturn has had a varied effect on both window lines and different regions of the country. In some cases, the turmoil is giving builders more time to ensure they’re getting the most bang for their window buck.

“Builders have more time now to research products, and they’re looking for quality information on product performance and material choices,” says Brett Boyum, director of marketing for Integrity Windows in Fargo, N.D. “They’re trying to make better decisions about which features are necessary in their products.”

Builders certainly are asking manufacturers and dealers to sharpen their pencils to provide the best deal, notes Rod Clark, product manager for wood windows at Jeld-Wen Windows & Doors in Klamath Falls, Ore. Builders are also looking for products that provide the best combination of price and benefits.

“Vinyl windows have been hurt the most by the drop in spec homes because those products are dominant in that market,” notes Cathy Leonard, marketing communications manager for Windsor Windows & Doors in West Des Moines, Iowa, which makes wood, vinyl, and cellular-PVC products. But she also has seen high-end homes moving toward premium-style vinyl windows. “Vinyl windows being used in $2-million homes is a new trend, but the extruded vinyl can provide a sturdy and substantial feel that is now acceptable in those high-end homes.”

Some Markets Holding On

Many custom builders are holding their own in this market, and the window companies that can tie into that market have a better chance of riding out the storm.

“Our architectural-services division has been very busy working with custom builders,” reports Jeff Williams, senior brand manager for Weather Shield Windows & Doors in Medford, Wis.

Brian Shilling, director of marketing and business development at MI Windows in Gratz, Pa., notes that custom builders are driving the market for larger and more ornate sizes. “Production builders are streamlining their sizes to make better use of one size, aimed at meeting code needs, while custom builders are using larger, decorative, and more varied sizes to create unique looks."

The replacement market also is maintaining its size, as homeowners remodel rather than move during a tough selling market. That market also uses more premium products, says Atrium’s Reilly. “The remodeler can sit with the homeowner and go over features and benefits. Those homeowners typically are looking to upgrade and invest in their home, and the contractor has the opportunity to explain the return on investment that’s possible.”

Marketers also are looking more heavily at light commercial to take up the slack in the market. “We’ve had tremendous success in light commercial,” says Integrity’s Boyum.

The aging population has increased the need for retirement and assisted-living facilities, as well as 55-plus communities, where low maintenance is a key benefit. “Those are good categories for us to develop because they want limited maintenance most of all.” Jeff Kibler, brand manager for Peachtree Doors & Windows, a division of Weather Shield, agrees, noting that the commercial market often is looking for larger sizes and different shapes than the residential side.

The market forecast is for continued growth, albeit at a smaller rate than in the first half of this decade, according to a new report by The Freedonia Group of Cleveland. It notes that the dropoff in single-family residential “will be offset, to some extent, by a strong rebound in nonresidential construction. The differing fortunes between these two markets will have a significant impact on window and door materials.” The repair and replacement market also will help sustain the category. While the new residential market is anticipated to decline through 2010, the replacement market will grow 6% annually.

Vinyl will remain the dominant player in the residential market, marketers say. “Builders aren’t shifting from one niche or material to another, but they’re looking to differentiate themselves more in a competitive market and find the best features,” says Jeld-Wen’s Clark. “Builders have to work harder and hone their sales pitches better, but the relationship among material types will stay constant.”

Energy Savings Are Key

Builders and consumers are most concerned about energy savings, all agree. “Energy efficiency has been a 15-year progression of improving and recognizing its value and return on investment,” says Chris Reilly, director of marketing communications and replacement programs for Atrium Windows & Doors in Dallas. That focus has led MI Windows to emphasize its Energy Star rating, notes Shilling. “We want to be recognized as a leader in the Energy Star program because we see the value there.”

A key area where improvements have occurred is low-emissivity coatings. The original one layer of reflective coating has moved to two layers, and some companies are using three layers. A few even offer four layers. “We’re seeing continued enhancements to low-e film,” says Atrium’s Reilly. “Glass manufacturers are continuing to improve the products they sell us, and that allows us to create better products.”

The coatings are helping with another key feature in some regions: solar-heat gain. Bright sun and heat are major problems in the South. Manufacturers have focused on this and made solar-heat control a key feature. New coatings can also eliminate the tinted appearance that was previously a drawback, says Weather Shield’s Williams.

“The tints hurt the view from the window, and architects recognized that it was difficult to design around that. Now, we can create clear coatings that knock down solar-heat gain dramatically while also blocking UV rays.”

These systems work in conjunction with new spacer systems that improve thermal performance. “They can create warmer edges to the glass and fight condensation,” Williams adds. Dave Koester, brand manager for Weather Shield, agrees: “Spacer systems are a science all to themselves, and they continue to improve.”

The importance of design-pressure ratings also is gaining momentum as consumers recognize the challenges of maintaining a home’s security in the face of a hurricane or tornado. Silver Line Windows & Doors in North Brunswick, N.J., is promoting its high design-pressure rating as evaluated by Consumer Digest magazine. “In some areas, energy efficiency is not as critical as the DP rating, because of the need to protect against wind-driven rain,” says Integrity’s Boyum.

The higher-profile for energy improvements comes at a good time, as the national energy-rebate program ended in December. However, most marketers say that it didn’t have a major impact. “We didn’t push the tax credit very much,” says Tom Sinning, director of dealer sales for Marvin Windows.“It was mostly used by sales people to help close a sale.”

Adds Kibler of Peachtree, “The tax credits created some education and opened the consumers’ eyes, and I think it generated some sales. But I don’t expect its ending to impact sales too much.” Jeld-Wen’s Clark agrees. “I’m not sure it was enough to really create new projects.”

Building Codes Tighten

The upgrading of code requirements is creating projects, particularly along coastlines from Maine to western Texas. “Florida is the leader in this regard, but the surrounding states are more interested or are changing their codes to increase the needed impact resistance,” says Brian Hedlund, product marketing manager for vinyl and aluminum windows at Jeld-Wen.

A number of companies have recently introduced impact-resistant products, including Integrity, which earlier this year began shipping its Impact family of products, and Kolbe Windows & Doors in Wausau, Wis., which has introduced the Windquest Series to meet high impact standards. “Any manufacturer of windows and doors will attest to the importance of addressing the ever-changing codes,” says Lance Premeau, Kolbe product manager.

The impact of impact resistance is moving further inland, too, says Weather Shield’s Koester. “I wouldn’t be surprised if insurance companies in tornado areas asked for building methods to be adjusted as well,” he says. “More areas are thinking about the benefits and applying them to their areas.”

He’s also seen interest from homeowners along golf courses and in secluded areas where security can be a concern, as well as near airports and Air Force bases due to the glass’s better acoustical dampening. These products also have increased in usage for light-commercial projects owing to the concern over terrorism threats.

Inland areas are finding reasons to revisit their standards, too, marketers say. “In certain regions, code requirements now are a very big factor,” says Windsor’s Leonard. “More and more, government regulations and codes are mandating better energy efficiency.” Adds Marvin’s Sinning, “Currently, code changes are focused on the coast, but some states have begun upgrading their energy-performance codes and even looking at codifying the installation of windows, because that makes such a difference.”

MI’s Shilling agrees. “Energy codes are slowly evolving, and I’d like to see that move faster to make people more conscious of the need for energy efficiency.”

Maintenance Is Key

A distant second—but still important—element in the purchasing decision is low maintenance. “Low maintenance is what sells today,” says Windsor’s Leonard. The company recently introduced the Legend Hybrid unit, which has a cellular PVC frame with a wood aluminum-clad sash. “It provides a wood look on the interior as well as a low-maintenance exterior,” she says. “It has really taken off in the last six months.”

“Maintenance is definitely a key factor,” says Weather Shield’s Koester. Exterior cladding has become a major focus.

“We’ve gotten much better at making aluminum look like wood,” he says. Combining cladding and the new glazing and maintenance features is attractive to homeowners. “The less often they need to touch the window, the better they like it.”

Technology that has created easier-cleaning glass also has gained attention. “It’s not new, but it’s become more popular as an option,” says Clark. Weather Shield’s Williams agrees. “We’re going to see a lot more development in the next decade that will improve maintenance greatly.”

The advancements will be in two areas, he says. “Hydrophilic” improvements, such as silicone-dioxide coatings that fill in ridges on the glass surface, allow dirt to more easily wash away when it rains. “Hydrophobic” improvements use bacteria catalysts activated by the sun to actually eat away dirt. The latter pose challenges due to shadowlines caused by roof edges, he notes, but those will be overcome. “We’re excited about these improvements because they represent the next evolution in products.”

Balancing aesthetics and durability creates a challenge, notes Kolbe’s Premeau. “Some homeowners continue to look for products that have a minimal amount of maintenance, while others focus on the traditional and aesthetic details more than low maintenance.”

Interior wood species are expanding to meet those aesthetic needs, notes Windsor’s Leonard. “Customers want more than pine, so they can match their other interior wood finishes,” she explains. Fir and alder are both in demand, as they create a rustic, cabin look that is growing in popularity.

Exterior colors also are expanding. To meet regional demand, Kolbe in December introduced a palette of 32 colors.

“Accent colors for windows, doors, and trim accessories can spice up otherwise neutral tones,” says Cindy Bremer, director of marketing. “Color preferences vary by

region, so we didn’t just add a single blue or green. Instead, we’ve responded with a selection of shades.”

The variety of options creates more flexibility for designs, notes Atrium’s Reilly. “Some designers are using single-hung windows downstairs with low-e glass along the southern exposure with double-hung units upstairs. They’re customizing the placement to take the most advantage of the options.”

It’s Easier To Be Green

Designers are taking better advantage of siting benefits in an effort to tap into the green building movement that is growing. “Three years ago, green building was a trend, but now it’s safe to say that it’s a movement,” says Weather Shield’s Koester. “Everyone is looking at both how the windows are constructed and how well they perform.”

Kolbe’s Premeau agrees. “Energy performance related to green buildings has surged in importance. We also see a trend to incorporate universal-design characteristics into unit designs.” That approach focuses on user friendliness and handicapped accessibility, so that any person can use the home comfortably, safely, and efficiently.

Window manufacturers point to more than simply the energy efficiency or low maintenance of their products, both high on environmental lists. They also promote how they are addressing environmental concerns in their plants. “We like to say that we were green before there was green,” says Atrium’s Reilly. “We recycle our extrusions, control our scrap, and produce little waste. That’s not really important to the homeowner, but it matters to us, and we continue to make improvements.”

Marvin’s Sinning agrees. “Builders want to be green, and they are on the front end promoting and talking green. There’s a lot of ‘greenwashing’ claims out there, so it still needs to be sorted out.

We’ve been burning our sawdust for 30 years and letting it be used for turkey bedding and other purposes. So it’s not a new idea to recycle as much as possible.”

As manufacturers jostle for position and incorporate new technologies, they know that product features aren’t the only factors in the equation. “You have to always be looking at what you can do to make [a builder’s] job easier, because you won’t always have the lowest price,” says Jeld-Wen’s Clark. “Builders are looking for service, and we’re getting pressure to perform better—as are dealers.”

The company is receiving more special packaging requests, such as more label information to help sort products at the job site, he notes. Dealers too have to help make builders more efficient in any way they can. “Dealers have to sell themselves better, too, just as builders have to do with their homes. When the jobs aren’t rolling in and there are many competitors, the best dealers will sell their services more effectively.”

Adds Atrium’s Reilly, “We all have access to the same technology; there’s not really much of a gap between the leader and last place in terms of product features. The key is in the price-value relationship. Customers are factoring in the business tools, marketing support, delivery consistency, field help and other services. The goal is to help reduce costs to create a better partnership.”

Innovations will continue, says Weather Shield’s Koester. “Customers are always looking to us to be better and smarter at what we do. They see what we’re capable of and what we’re providing, and they ask for more. They keep wanting to know what’s next.”

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

SIDEBAR: Sizes, Accessories Continue to Grow:

Custom builders and remodelers keep creating more dramatic window shapes and sizes, as well as looking for new and upgraded accessories, window marketers say.Improvements in energy efficiency are encouraging designers to create larger window walls. “We’re seeing more elaborate and unique configurations to bring in a lot of light,” says Cathy Leonard of Windsor Windows. “Arched shapes, circular, octagonal, even parallelograms are popular. Architects are pushing the limits in imagination.”It can be a battle between engineering and sales, notes Chris Reilly of Atrium Windows & Doors. “Customers want bigger, and we have to ensure the designs are safe for the homeowner as well as for the builder and framer. If the units get too large, we will split them in two and mull them in the middle to add structural stability.”Locking mechanisms also have become a focus. Jeld-Wen last fall introduced a magnetic one-touch automatic lock that offers security and ease of use. “Security is a huge point with customers,” says Brian Hedlund of Jeld-Wen. Adds Brian Shilling of MI Windows & Doors, “Auto-locking systems are being requested more often, and the technology is getting better. Customers want more simplified locking mechanisms.”Another addition is a roll-up screen introduced by Jeld-Wen last summer. The screening retracts into a small box above the window interior, allowing unobstructed views when the window is closed but providing insect protection when it’s open. It’s being used with a wide range of window styles, notes Rod Clark of Jeld-Wen. Hardware styles and accessory preferences vary by regions, marketers note, although rustic and brushed-nickel styles have replaced brass as the top choice. Weather Shield has introduced a line of heavy-sash products that use wax-cast bronze hardware, creating a heavy style. “It’s become a popular look,” says Jeff Williams of Weather Shield. “There’s a lot more versatility with hardware styles today.”But what is now out may be back in soon, notes Atrium’s Reilly. “I wouldn’t call any of these changes ‘trends,’” he says. “It’s just a measure of their current popularity that ebbs and flows.”

Internet Information: To learn more about these companies’ products, visit these Web sites:

· Atrium: www.atrium.com · AMSCO Windows: www.amscowindows.com· Andersen Windows: www.andersenwindows.com· Gienow Windows & Doors: www.gienow.com· Golden Windows: www.goldenwindows.com· Hurd Windows: www.hurd.com· Integrity: www.integritywindows.com · Jeld-Wen: www.jeld-wen.com · Kolbe: www.kolbe-kolbe.com · Lincoln Windows: www.lincolnwindows.com· Loewen: www.loewen.com· Marvin: www.marvinwindows.com · MI Windows: www.miwindows.com · Milgard Windows & Doors: www.milgard.com· Norwood Windows: www.norwoodwindows.com· Silver Line: www.silverlinewindow.com · Simonton Windows: www.simonton.com· Starline Windows: www.starlinewindows.com· Superseal: www.supersealwindows.com· Thermo-Tech Windows: www.thermo-techwindows.com· Weather Shield: www.weathershield.com or www.zoeshield.com · Windsor: www.windsorwindows.com