April, 2009

In Depth: Decks

Boost sales of decking products by focusing on replacements and expansions, as well as looking for new products and new markets.

By Craig A. Shutt

Deck season has arrived, but with it has come concern over how much the decline in the new-housing market will impact sales. Fortunately, deck projects are less tied to new-home sales than are sales on many other building materials, say product marketers. Dealers can find success in this category if they look for ways to differentiate themselves by targeting new products, service techniques, and new niches.

“It’s a tough market to predict this year, and dealers are apprehensive,” says Kevin Brennan, senior vice president of sales and marketing for TimberTech in Wilmington, Ohio. “But we view decking as a potential opportunity for this year, because it’s not tied as much to new-home building.

“The value of people’s homes has gone down, but it’s still their biggest investment. They aren’t going to sell it, so they want to make it the best place they can possibly live.”

The growing popularity of outdoor-living spaces also helps boost the market. “Outdoor living is one of the bright spots in the market, at least relative to other areas,” says Chris Beyer, vice president of marketing for Fiber Composites LLC in New London, N.C. “We’re seeing more outdoor kitchens and outdoor living areas of all kinds to extend the grace of a home.”

That means that, when deck projects are done, they are larger than they used to be, marketers agree. “The days of the 8- by 8-foot deck are gone except for production builders,” says Dick Gauthier, vice president of marketing for Universal Forest Products Inc., the Grand Rapids, Mich.-based manufacturer of Latitudes composite decking as well as wood decking. “When people add a deck, they are getting more imaginative, creating two tiers and larger square footage. And the larger they go, the more likely they are to use upgraded materials, such as composites.”

To tap into today’s trends, dealers need to be aware of niche openings that arise. Here are some tips from marketers on how to make the most of decking opportunities:

1. TAP INTO NEW MARKETS

The key market for 2009 will be in the remodeling area, as existing decks are upgraded or expanded, marketers agree. “We see bright spots in the market for decking all over the United States,” says Bob Simon, executive vice president with Gossen Corp. in Milwaukee. Replacement projects can upgrade the look of an existing deck while maintaining the existing substructure. “That’s a project that can be done without going to the bank for financing,” he points out. “It can have a big impact on the deck’s look for a small investment.”

The total-replacement market also offers opportunities, says Fiber Composites’ Beyer. “There are millions of decks that need replacement due to their age or lack of maintenance,” he says. Those projects can involve more than the deck boards even if they don’t remove the entire structure. As homeowners consider replacing or upgrading their outdoor spaces, they also look to expand the space to make it more useful, adding more material needs.

Christopher Kollwitz, director of marketing for Viance LLC in Charlotte, N.C., agrees. “Deck remodeling, resurfacing, deck additions, and enhancements to existing structures will be high on the spring to-do list for many homeowners,” he says. “These projects offer some truly great sales opportunities.”

Those trends mean dealers must stay in close contact with their remodelingcontractor customers and target their needs in particular. “Remodeling will be a bigger market this year, and buildingmaterial dealers need to ensure they are protecting those customers and giving them good deals, as they have tended to do for their new-home builders,” says Brent Gwatney, vice president of sales and marketing for Springdale, Ark.-based Advanced Environmental Recycling Technologies (AERT), makers of MoistureShield decking and EcoShield deck tiles. “Giving them good pricing will help pull in remodelers and ensure they are using the dealers’ showrooms to sell their own customers.”

AERT has focused attention on remodelers and deck builders, he notes. “Homeowners want to upgrade their homes, and we expect remodeling will be the first place the turnaround comes, and we’re already seeing that.”

The company offers plant tours to building-material dealers, who bring in their own customers to explain them the products. “We recently hosted three dealers and some of their contractor and deckbuilder customers, and they all left committed to using our products once they were educated about them.”

Commercial projects offer another market with potential, marketers say. AERT, for instance, touts its deck tiles’ capabilities to be installed over an existing deck or hard-packed surface, including rooftops, such as on apartments. Latitudes recently introduced a new composite board for marine applications that can be used at marinas, boardwalks and floating docks. “It’s a great alternative for marine and dock builders,” says Gauthier.

"Commercial projects represent a growing market, especially for composites,” says Fiber Composites’ Beyer. “It’s a small percentage of the overall market, but it’s still growing.”

2. STRESS PRODUCT BENEFITS

Letting customers know all of the different products’ key benefits can help sell them on creating a deck in the first place or upgrading and expanding an existing space. One of the benefits that can be stressed is the products’ contributions to “green” building, however that is defined.

“Green building is not feeling the same pinch as the rest of home-building, although it’s hard to define what green really is,” says Huck DeVenzio, manager of marketing communications for Atlantabased Arch Chemicals, makers of Wolmanized wood treatments. “That bodes well for treated wood, because wood is darn green.”

Osmose Inc. in Buffalo, N.Y., promotes its standing as an Environmentally Preferable Product (EPP) under the Scientific
Certification Systems’ program based on life-cycle assessment. “Green products are getting a lot of attention today, and EPP means a lot to people,” says Gary Converse, senior vice president. Viance LLC in Charlotte, N.C. promotes its receipt of the first U.S. EPA Green Chemistry Challenge Award, which it received for its Ecolife Stabilized Weather-Resistant Wood, a nonmetallic wood treatment. “It allows builders to build creatively with traditional wood-working tools,” says Christopher Kollwitz, director of marketing.

Composites, meanwhile, tout their use of recycled materials and durability. AERT, which began as a recycling company and expanded into building materials, knows the value of offering green products. “Green is becoming more important all the time,” says Gwatney. “But more education is needed about the green message overall.”

Treated-wood products, which make up the majority of all decks, offer cost benefits. “I hate to rely on price a selling point, but it’s definitely a benefit for treated wood,” says Arch Chemical’s DeVenzio. “It offers the cheapest alternative for decks, and right now, that’s pretty appealing.” Wood also ranks high for giving customers a good appearance. “Homeowners like the look of wood,” he says.

A variety of different treatments are available today, notes Osmose’s Converse, including those with low corrosion impacts and lighter colors that makes it easier to stain them. In some cases, De-Venzio adds, treaters actually add green tinting to their treatments to allay consumers’ fear that the wood isn’t treated. Composites, meanwhile, are offering a wider range and sophistication of colors and finish techniques that replicate the look of a growing variety of wood species while providing other benefits.

These include scratch resistance, fewer maintenance needs, hidden fastener systems, fade resistance and lighter-weight boards. “The low-maintenance aspects draw customers to composites,” says TimberTech’s Brennan.

A new type of product is gaining attention as a midway step between treated wood and composites and PVCs: thermally modified wood. The products are heat-treated to remove sugars, pine tar, and bacteria food sources, creating a wood product that won’t shrink, swell, or twist and also doesn’t use chemical preservatives.

The technique has been used in Europe for many years, says Ron Long, president of Kansas City-based Bay Tree Technologies, makers of PureWood products. Bay Tree began selling its wood products one year ago and offers three profiles.

Radiance Wood Products in Germantown, Pa., also offers thermally modified wood. “We’re finding that treated wood sells right now because it’s cheap, but people want something needing less maintenance,” says Lisa Priewe, a company spokesperson. “Our products serve as a bridge between treated wood and composites in terms of cost while offering beauty, wood perfection, and durability.”

3. EMPHASIZE YOUR BRAND NAMES

Customers are more aware of composite materials due to their own research, marketers agree, but helping them focus on the best products for their needs requires more direction. “Consumers are well educated, but they don’t know the differences between brands—although contractors often have preferences and will steer their customers to those brands,” says TimberTech’s Brennan. “They can sell the homeowner on a product if they know the differences in the products.”

Fiber Composites’ Beyer agrees. “People know about composites and may know one of the brand names, but there’s an enormous difference between product options and the performance they provide. A significant education effort is still needed to differentiate between products.”

The same is true for treated-wood decks, says DeVenzio. “A few years ago, brand names were more important to dealers, but now treated-wood products are sold more as a commodity, and they don’t distinguish. We try to ensure we provide literature and explain the differences.” As the types of products expands, more information on which treatments are being offered will be necessary for dealers.

Some products are certified by the American Wood Protection Association, an industry group that sets standards. “Our industry has undergone a number of changes in recent years, and the rush to market with new, unproven products by non-traditional approval processes is of great concern,” says Viance’s Kollwitz. “Viance prides itself on product testing, product assurance, and innovation.”

4. DIFFERENTIATE YOUR SELECTION

As selections grow, dealers have an opportunity to stand out from competitors by offering unique options. “There is ongoing product development in the treated-wood category, especially as the available species vary by region,” notes De- Venzio. Species in the West don’t accept treatments as easily as Southern yellow pine, for instance, so dealers could stand out by bringing in that type. In other areas, using higher grades of wood with no knots can stand out.

Water-repellant, fire-resistant, and mold-resistant treatments also are available, providing additional benefits. “Fireretardant treatments are especially popular in fire-prone areas, but otherwise they have never caught on,” says DeVenzio. “They definitely have potential, but they haven’t realized it yet.” Osmose’s Converse has seen growth in water repellant treatments, he notes, which help protect against swelling and help retain the wood’s natural beauty.

“Dealers should strive to be the best that they can be by examining new products and picking them up,” says Bay Tree’s Long. Products such as his, he notes, which are used for the deck boards, provide only a small incremental increase in cost for a deck because they comprise such a small percentage of the entire structure. “In the overall scheme, it’s not a lot more cost so it’s pretty easy to upsell.”

5. SHOWCASE ACCESSORIES

For both new and replacement decks, accessory options are gaining attention as homeowners look to personalize the look. TimberTech has added several types of lighting systems, including post-cap lights, baluster-mounted accent lights, postmounted accent lights and stair-riser lights to its line of railings and other pieces. “They offer an add-on sale for railing packages that capitalize on the desire for design flair, says Brennan. “We see a lot of opportunity for sales at the high end of the market, and we expect interest in lighting products to grow. Decking accessories provide a great opportunity to grow our business.”

Universal Forest Products entered the market early with accessories, including acquiring accessory-producing companies, notes Gauthier. “Others are now catching up to us,” he says. The company offers a wide range of post caps, he adds, because they offer great potential. “We’re so big on accessories because, for a minimal amount of money, consumers can change the outdoor environment significantly. Changing the railing system can give a deck a whole new look.” White railings have dominated in the past, adds Fiber Composites’ Beyer, but that’s changing.

“More people now are interested in colormatching their deck boards or finding a complementary color, or even mixing and matching. And a wider range of railing styles is becoming popular.”

Deck accessories are very important in deck construction, adds Viance’s Kollwitz. “Presenting capabilities to address the entire outdoor-living environment offers great sales opportunities for additional lighting, built-ins, landscaping, custom lattice work, arbors, and pergolas.”

6. USE DISPLAY MATERIALS

Most manufacturers offer a variety of display materials, from posters to full-size deck vignettes. The most popular seems to be countertop displays, which can show some options in a small space. “The lumber aisle is a difficult place to put up a display,” says Arch Chemical’s DeVenzio. “There’s typically a little space at the lumber desk that can be used.” Gossen has begun offering an A-frame display that can fit into warehouse racking. “It doesn’t take up much floor space, which is critical,” says Simon.

The most popular collateral pieces, adds Osmose’s Converse, are tips on designing decks and warranty information. “There’s not a big call for how-to plans, because so few homeowners are willing to undertake a deck project.” AERT will build a customsized deck for dealers to show off boards and railings. “Customers won’t buy from an empty closet,” Gwatney explains. “They have to see and understand the product. They want to kick the tires.”

No matter the size of the display, the key to its success is keeping it looking attractive, Gwatney adds. “The products have to be clean and presented well in the lumber aisle. Too often bundles get opened and products get dirty.

“I think we’ll see that change, and dealers will clean up their act. Customers expect to see a good presentation today.”

7. PROVIDE CUSTOMER SERVICE

The best way to upsell customers is to have employees who can explain the benefits and answer questions on the sales floor. “Customers aren’t always aware of the differences between products, but there’s more advertising out there and more products available, so they have questions,” says Gossen’s Simon.

That’s particularly true as decks grow in size and take on more functions. “Homeowners who want large decks don’t want large expanses of boards that are all the same,” says Universal Forest Products’ Gauthier. “They want patterns and decorations to reduce the scale and add aesthetic appeal.” Supplying customers with complementary choices and helping them understand how to break down the deck’s size will reassure them as the project gets larger and ensure they look attractive.

Design capabilities through software programs can help ease homeowner concerns, and making use of manufacturer’s Web sites also can aid the process. Some of them offer design programs, such as TimberTech’s array of tools, comprising a product selector, color visualizer, multimedia idea collection and a deck-design program. “There are some pretty cool deck tools available today to help dealers and homeowners,” says Brennan.

The goal for all dealers, says Viance’s Kollwitz, is to “Think creatively. Homeowners don’t want simple decks anymore, and these potential purchasers are looking for grand and value-added products and ideas for their homes. Think outside the box, don’t just think about the deck project.”

Customers want overall solutions that add to their home’s investment, he says. “Dealers need to capture every part of the sale that they can, and the knowledge and capabilities to sell these creative outdoor projects can be fun. They present exciting challenges and new revenue possibilities.”

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

TO LEARN MORE, VISIT THESE WEB SITES (COMPANIES IN BOLD PARTICIPATED IN THIS ARTICLE)

Arch Chemicals: www.wolmanizedwood.com
Advanced Environmental Recycling Technologies (AERT): www.moistureshield.com
AZEK Building Products: www.AZEK.com
Bay Tree Technologies: www.purewoodproducts.com
CertainTeed: www.CertainTeed.com
CorrectDeck: www.correctbp.com
Cox Wood Preserving: www.CoxWood.com
Deck Images: www.deckimages.com/dim
Deckorators: www.Deckorators.com
Fiberon by Fiber Composites: www.sensibuilt.com
Genovations: www.GenovaProducts.com

Genovations: www.GenovaProducts.com
GeoDeck: www.GeoDeck.com
Gossen: www.gossencorp.com
Great Southern Wood Preserving: www.GreatSouthernWood.com
Latitudes: www.LatitudesDeck.com
Northern Crossarm Company: www.crossarm.com
Osmose: www.osmosewood.com
PhibroWood: www.PhibroWood.com
Radiance: www.radiancewood.com
RhinoDeck: www.RhinoDeck.com
Tamko: www.Tamko.com
Tiger Deck: www.tigerdeck.com
TimberTech: www.timbertech.com
Trex: www.Trex.com
Viance: www.treatedwood.com

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