Design trends in nonresidential buildings are increasingly making energy efficiency and environmental friendliness a priority. In few markets is this more evident than in the commercial window and door market. 

How is the commercial market different from the residential market?

The residential market is more directly impacted by energy standards, such as those of the ENERGY STAR program. These are regularly updated and often come with federal tax breaks for homeowners. Additionally, homeowners immediately benefit from the energy bill savings and more comfortable indoor environments associated with efficient windows and doors. 

The recent announcement from Shaw Industries that it intends to acquire USFloors demonstrates the increasing demand for wood-plastic composite (WPC) flooring in the US.

WPC flooring — which consists of luxury vinyl tile (LVT) with a WPC core that serves as a backing — was introduced to the US by USFloors in 2013. This flooring’s attractive appearance and durability caused it to quickly gain acceptance among interior designers and homeowners. Seeking to capitalize on its popularity, several other hard surface flooring manufacturers developed their own lines of WPC flooring. 

Baseball managers have long kept tabs on their star players to make sure they stayed ready and rested for the big series.

Back in 1892, for example, when the Cleveland Spiders played the Boston Beaneaters in what was then called the World’s Championship Series, their star pitcher was Cy Young. Young was generally clean living, but he would occasionally get up early to go hunting for wild turkey in nearby woods, a potentially troublesome activity his manager had to watch out for.

Unsanctioned hunting is less of an issue in the Major Leagues now. Today, however, a manager has to make sure his starters don’t injure themselves by fiddling with a drone.

Homeowners are remodeling again. They are on the lookout for products that compete with traditional high-end materials but come with a mid-range price tag. The underlying strength of the US housing market and the rising valuations of people’s homes are supporting robust activity in residential improvement, repair and remodeling.

This fact is underscored by the recent earnings of several big-box/DIY retail chains like Lowe’s and Home Depot. Home Depot reported in August that comparable (same store) sales rose by 4.7% in Q2 2016 over the same period in 2015 [1], and Lowe’s reported a similar 4.0% rise for its Q2 same store sales over 2015 [2]. Both stores expect full-year same store sales growth for 2016 to range between 4.4% and 4.9% as compared to the latest US Federal Reserve estimate of 2016 growth of approximately 2.0% [3]. Home Depot’s CEO, Craig Menear, specifically called out generally rising home valuations as the basis for his company’s optimism going forward regarding sales growth and overall residential renovation spending.

The corrugated box. The wood crate. The five-gallon pail. These products have been used to ship and store food ever since we started sending it further than the local farm stand. But another option is gaining popularity — reusable bulk containers.

Reusable totes and crates are already commonly used in applications like motor vehicle manufacturing and assembly due to the long-term cost savings of container reuse.

However, reusable bulk systems are now seeing wider adoption in food applications, such as for the transport and display of fresh produce or baked goods. Where you used to see a wood crate or a printed corrugated box, plastic containers are gaining speed, especially for large volume users who are looking to minimize waste and promote environmentally friendly practices.

Tempur-Sealy International, a leading manufacturer of sleep products such as mattresses and foundations, received a rather rude wake-up call September 28. Tempur-Sealy’s shares (NYSE:TPX) fell over 20% that morning after the company announced that it expected full year sales to decline between 1% and 3% from 2015 levels. While Tempur-Sealy cited lower-than-expected third quarter sales for the revision, the company did not provide an explanation for that decline.

Competing manufacturer Select Comfort Corporation’s stock price (NASDAQ:SCSS) also fell on the news, suggesting that investors are concerned about the outlook of the broader industry.

The National Highway Traffic Safety Administration and the Environmental Protection Agency issued new Corporate Average Fuel Economy (CAFE) targets in August 2012, which increased the fuel economy requirements of light vehicles to an industry average of 35.5 miles per gallon (mpg) for model year 2016. The expectation for CAFE in model year 2025 is about 50 mpg.

As light vehicle manufacturers continue to increase fuel efficiency, they are scrutinizing input choices, including sheet metals such as steel and aluminum, in an effort to reduce vehicle weight and fuel consumption. These shifts in the motor vehicle industry are of particular import to sheet metal suppliers; transportation equipment represented the largest market for sheet metal in 2015, and motor vehicle stampings account for a large portion of the demand.

The expansion of natural gas production in the US has changed the landscape of thermoplastics. The largest building block in the industry, ethylene, can be produced from derivatives of crude oil or natural gas. Over the past few years, the increased production of natural gas in the US, supported by technological improvements related to horizontal drilling and hydraulic fracturing, caused the price of natural gas to see average annual declines of 11% between 2005 and 2015. This price shift, along with elevated oil prices throughout the past decade, caused many thermoplastic producers to prefer natural gas over oil in their production of feedstocks.

You may be eating one right now. And you’ll probably eat a few later on today. In fact, many health experts recommend consuming multiple servings of these foods each day.

So put down that cereal, pasta, pizza, sandwich, or organic/whole grain/quinoa snack chip that you’re eating, and let’s talk about … grain-based foods.    

Shipments of grain-based foods from US bakeries and factories are forecast to reach $110 billion in 2020, representing annual increases of 2.0% from $99.8 billion in 2015. Population growth will drive demand for such foods, since many of these products serve as dietary staples.

Among all of the services and capabilities we offer at Freedonia Custom Research, the most common are market sizing and competitive landscape studies. Important strategic decisions rely on valid data and clear market analysis. Clients come to Freedonia for our reliable and trustworthy market research process and our high level of collaboration. 

These services and capabilities include: