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Energy-Efficient Home Renovations Market, Part 1: Windows, Doors &
Insulation

July 1, 2009


Green building is no longer just a fad; in fact, energy-efficient remodeling and
renovating is one of the few aspects of the U.S. construction business that still holds a
positive outlook in the midst of the economic turmoil in 2009.

The U.S. residential construction market was $363 billion in 2008, down 41% from its
high of $620 billion in 2006. The home renovations market was $188 billion in 2008,
down 18% percent from 2007. But SBI estimates that the home energy efficiency
renovations market in the U.S. was $21 billion in 2008; down only 13% percent from
2007‟s $24 billion.

Remodeling to improve a home‟s energy efficiency instead of buying a new home has
become a preferred option in today‟s market. In fact, the National Association of Home
Builders found that 32% of home builders also provided remodeling services in 2008.
Homeowners are still seeing the benefits of improving their home‟s energy efficiency
even in the economic instability of 2009. With energy consciousness shooting to the
forefront of the media during the 2008 oil price peak, the Propane Education &
Research Council has found 80% of homeowners are now concerned about the energy
efficiency of their homes.

Home builders and remodelers have been quick to provide remodeling services that are
focused on energy conservation and green building practices; as an example, 85% of
remodelers surveyed by the National Association of Home Builders in 2008 used
energy-efficient windows on the majority of their projects. Retailers and manufacturers
of building projects, residential builders and remodelers, and even state and federal
organizations now have to be able to provide knowledgeable energy conservation
expertise to succeed in their business.

Home energy efficiency analysis now uses a ‘whole building’ approach, affecting
all categories of building materials, from windows and doors to insulation to
completely eliminating air leaks. To fully embrace this view, this report looks at
the impact energy-efficient building products are having on the renovations
market in a number of categories:

      Part I explores the market for energy-efficient doors and windows, caulking
      and weather stripping, and insulation used in home renovation projects.
      Part II examines the energy-efficient appliance and lighting markets for
      home remodeling.
      Part III looks at energy-efficient heating and cooling systems and the
      growing trend of energy-efficient roof renovations.

Report Methodology

Report data were obtained from government sources, including the U.S. Department of
Commerce, U.S. Census Bureau, U.S. Department of Housing and Urban Development
and ENERGY STAR; trade associations such as the National Association of Home
Builders (NAHB), and the National Association of the Remodeling Industry (NARI);
research organizations such as the American Council for an Energy-Efficient Economy
(ACEEE) and Harvard University‟s Joint Center for Housing Studies (JCHS); websites
of home improvement contractors, manufacturers and dealers, industry analysts and
print and online business and trade journals.

Consumer demographics and spending trends derive from data compiled by Simmons
Market Research Bureau, New York, NY. Trends and recent developments in the
industry come directly from personal interviews with key players in manufacturing and
sales of energy-efficient building products and discussions with knowledgeable insiders
of associations such as the National Association of Home Builders.

What You’ll Get in This Report

Energy-Efficient Home Renovations Market, Part I: Windows, Doors & Insulation
provides a concise, focused look on the world of whole home energy-efficient
renovations as it exists today, and shows where the market is moving towards in the
next five years. The report highlights key players in the industry and pinpoints ways
current and prospective competitors can capitalize on recent trends and spearhead new
ones. No other market research report provides both the comprehensive analysis and
extensive data that Energy-Efficient Home Renovations Market, Part I: Windows, Doors
& Insulation offers. Plus, you‟ll benefit from extensive data, presented in easy-to-read
and practical charts, tables and graphs.

How You’ll Benefit from this Report

If your company is already doing business in green home renovations or remodeling
specializing in energy efficiency, or is considering making the leap, you will find this
report invaluable as it provides a comprehensive package of information and insight not
offered in any other single source. You will gain a thorough understanding of the current
market for all aspects of energy-efficient renovations, as well as projected markets and
trends through 2013.

This report will help:

       Marketing managers identify market opportunities and develop targeted
       promotion plans for homeowners looking to renovate to reduce their utility costs.
       Research and development professionals stay on top of competitor initiatives
       and explore demand for current energy efficiency remodeling trends and new
       emerging energy-efficient construction products.
       Advertising agencies working with clients in the banking, retail and construction
       industries develop messages and images that compel homeowners to migrate
       towards energy-efficient products when considering home renovations.
       Business development executives understand the dynamics of the market and
       identify possible partnerships.
       Information and research center librarians provide market researchers, brand
       and product managers and other colleagues with the vital information they need
       to do their jobs more effectively.




Additional Information

Market Insights: A Selection From The Report



DIY Versus Pro by Product Segment

Both the American Housing Survey (AHS) and Experian Simmons surveys show that
professionals have been installing more than 75% of window replacement projects each
year since 2001. Experion Simmons data from 2004 to 2006 of insulated window
installations shows that the professionally installed portion of the market has been in a
slight decline since 2005‟s high of 78% market share, down to 71% share in 2008.

The JCHS tabulation of AHS survey data show that the percentage of professionally
installed insulation projects has hovered around 44% since 2001. However, the average
project cost for professionally completed insulation projects was $2240 in 2007; for DIY
projects, the average cost was $837, or 37% of the average professional project.

In 2008, DIY weather stripping projects accounted for 82% of all weather stripping
projects reported by Simmons, showing a very slight decline of less than 1% CAGR
since 2004. However, SBI calculates that the percentage of professional weather
stripping projects will increase by 4 to 6% in 2009 and 2010 as more homeowners try to
maximize stimulus tax credits available for home energy efficiency renovations.
In the News


 Energy-Efficient Renovations to Thrive as Consumers Cut Costs through Home
                                 Improvement

New York, July 7, 2009 - Energy-efficient home renovations will grow 50% faster than
the renovations market as a whole over the next five years as consumers seek to cut
costs during the recession through judicious home improvement, according to Energy-
Efficient Home Renovations Market, Part I: Windows, Doors & Insulation, the first
in a three part series from leading industrial market research publisher SBI. The energy-
efficient renovations market is projected experience a compound annual growth rate
(CAGR) of 15% from 2009 to 2013, and ultimately reach $35 billion by the end of the
forecast period.

“Green building is one of the few aspects of the U.S. construction business that retains
a positive outlook despite the economic downturn,” says Shelley Carr, publisher of SBI.
“Remodeling and renovating to improve a home‟s energy efficiency instead of buying a
new home has become a preferred option in today‟s market. Homeowners can save
anywhere between 3% and 52% on their yearly heating and cooling costs by installing
energy-efficient windows. And something as simple as adding insulation and weather
stripping during a renovation project can save up to 20% in costs.”

Within the market, the growth trajectory of energy-efficient window and door
replacement projects will mirror the energy-efficient home renovations market as a
whole, with a CAGR of 14%. However, the greatest growth is expected to be in the
insulation, caulking, and weather stripping segment, which SBI forecasts will grow 25%
in 2010 with a CAGR of 21% for the five year period ending 2013.

SBI estimates that the 2008 energy-efficient home renovations market totaled $21
billion in 2008, down 13% from 2007‟s $24 billion. Overall, the energy-efficient home
renovation market grew a CAGR of more than 10% from 2003 to 2008, and climbed
from accounting for just above 9% of the overall home renovations market to claim more
than 11% during the same period.

Energy-Efficient Home Renovations Market, Part I: Windows, Doors & Insulation
explores the market for energy-efficient doors and windows, caulking and weather
stripping, and insulation used in home renovation projects. The report provides a
concise, focused look at the world of whole home energy-efficient renovations as it
exists today, and shows where the market is moving towards in the next five years. Key
players in the industry are highlighted, and ways current and prospective competitors
can capitalize on recent trends and spearhead new ones are pinpointed.

The remaining reports in the series will be published throughout 2009. Part II examines
the energy-efficient appliance and lighting markets for home remodeling. While Part III
explores energy-efficient heating and cooling systems and the growing trend of energy-
efficient roof renovations.

About SBI

SBI (Specialists in Business Information) publishes research reports in the industrial,
energy, building/construction, automotive/transportation and packaging markets. SBI
also offers a full range of custom research services.



TABLE OF CONTENTS

Chapter 1: Executive Summary
     Scope of This Report
     Methodology
     The Market
     The U.S. Energy-Efficient Home Renovations Market
     Figure 1-1: Energy-Efficient Residential Renovations Market, 2003-2008 (in
     billion $)
     Energy-Efficient Product Segments for the Renovations Market
     Forecast
     Figure 1-2: Residential Energy-Efficient Renovations Market Forecast, 2009-
     2013 (in billion $)
     Figure 1-3: Residential Energy-Efficient Renovations Market Segments Forecast,
     2009-2013 (in billion $)
     Measuring Energy Efficiency
     Prescriptive Energy Efficiency Programs
     Home Energy Efficiency Auditing for Renovations
     Home Performance Programs
     Financial Programs
     State Energy Efficiency Renovation Incentives
     Government Assistance Programs
     Financial Benefits of Energy-Efficient Home Renovations
     Figure 1-4: Breakdown of Residential Energy Usage, 2006 (percent)
     Trends
     Figure 1-5: NAHB Remodeling Market Index & JCHS Leading Indicator for
     Remodeling Activity, 2002-2009
     Value of Remodeling Projects has gone down
     Consumers Want More Green!
     Fenestration Remodeling Trends
     Insulation & Air Sealing Remodeling Trends
     DIY and Pro
     Figure 1-6: Frequency of Energy Efficiency Products Commonly Installed by
     Remodelers, 2001-2008 (percent)
     Remodeling Industry Suffers from Unprofessional Image
The Future for Energy Efficiency Remodelers
     DIY Versus Pro by Product Segment
     Demographics
     Renovation Product Segment Demographics
     Manufacturers & Retailers
     Window & Door Manufacturers
     Insulation, Caulking & Weather Stripping Manufacturers
     Retailers
Chapter 2: The Market
     Scope of This Report
     Methodology
     A Note on the American Housing Survey
     Defining Energy-Efficient
     Energy-Efficient Windows & Doors
     Insulation, Caulking & Weather Stripping
     The Residential Construction Industry
     The U.S. Housing Construction Market
     Figure 2-1: Residential Construction Value Put in Place, 2002-2008 (in billion $)
     The U.S. Home Renovations Market
     Figure 2-2: Residential Renovations Market, 2001-2008 (in billion $)
     The U.S. Energy-Efficient Home Renovations Market
     Figure 2-3: Energy-Efficient Residential Renovations Market, 2003-2008 (in
     billion $)
     The U.S. Window and Door Market
     Table 2-1: U.S. Shipments of Windows and Doors, 2002-2008 (in billion $)
     The U.S. Window & Door Renovations Market
     Table 2-2: Residential Prime Window Renovation Sales, 2002-2008 (in million
     units)
     The Energy-Efficient Window & Door Renovations Market
     Figure 2-4: Residential Energy-Efficient Window & Door Renovations Market,
     2001-2008 (in billion $)
     The U.S. Insulation & Caulking Market
     Table 2-3: U.S. Shipments of Insulation & Caulking, 2002-2008 (in billion $)
     The Residential Renovations Insulation & Weatherization Market
     Figure 2-5: Residential Insulation, Caulking & Weather Stripping Renovations
     Market, 2001-2008 (in billion $)
     Figure 2-6: Residential Weather Stripping Renovations Market, 2005-2008 (in
     million $)
     Imports & Exports of Windows & Doors
     Table 2-4: U.S. Imports & Exports of Windows & Doors, 2002-2008 (in million $)
     Figure 2-7: Breakdown of Canadian Window & Door Imports to the U.S., 2008
     (percent)
     Imports & Exports of Insulation & Caulking
     Table 2-5: U.S. Imports & Exports of Mineral Wool Insulation & Caulking, 2002-
     2008 (in million $)
     Forecast
Figure 2-8: Residential Energy-Efficient Renovations Market Forecast, 2009-
     2013 (in billion $)
     Energy-Efficient Home Renovations Product Segment Forecasts
     Figure 2-9: Residential Energy-Efficient Window/Door and Insulation
     Renovations Project Market Forecast, 2009-2013 (in billion $)
Chapter 3: Measuring Energy Efficiency
     Independent Product Testing Organizations
     National Fenestration Rating Council
     ASTM International
     Prescriptive Energy Efficiency Programs
     ENERGY STAR
     Figure 3-1: ENERGY STAR Program Aided Vs. Unaided Consumer Awareness,
     2001-2008 (percent)
     International Energy Conservation Code
     Energy Efficiency Standards of Fenestration Products
     Table 3-1: ENERGY STAR Window Criteria, 2005, 2009
     Energy Efficiency Standards of Insulation Products
     Table 3-2: IECC 2009 Minimum Residential Insulation Requirements by
     Component, 2009 (R-Values)
     Home Energy Efficiency Auditing for Renovations
     Energy Efficiency Auditor Certifications
     Table 3-3: State Level Home Energy Auditor Certification Programs, 2009
     Home Performance with ENERGY STAR
     Home Performance Energy Auditing is a Fragmented Market
     Home Performance Energy Efficiency Rating Programs
     The RESNET HERS Index
     Home Environmental Rating Programs That Include Energy Performance
     The Future of Home Energy Rating
     Green Remodeling Certifications and Programs
     Table 3-4: National Green Remodeling Certification Programs, 2009
Chapter 4: Financial Programs
     ARRA Providing $20 Billion for Energy Efficiency
     Federal Energy Efficiency Renovation Incentives
     The ARRA Residential Tax Credits
     Future Federal Energy Efficiency Legislation
     State Energy Efficiency Renovation Incentives
     Energy Efficiency Home Renovation Programs by State
     Table 4-1: State & Utility Incentives for Whole Home Residential Energy
     Efficiency Renovations, 2009
     Table 4-2: State & Utility Incentives for Residential Window & Door Energy
     Efficiency Renovations, 2009
     Table 4-3: State & Utility Incentives for Residential Insulation & Air Sealing
     Energy Efficiency Renovations, 2009
     Government Assistance Programs
     EERE Weatherization Program
     Figure 4-1: Homes Weatherized Under the DOE EERE
Weatherization Assistance Program, 2000-2007 (in thousand homes)
     Table 4-4: EERE WAP State Funding Allocations Under the ARRA, 2009 (in
     million $)
     LIHEAP Weatherization Assistance Program
     Housing and Urban Development Programs
     Financial Benefits of Energy-Efficient Home Renovations
     Figure 4-2: Breakdown of Residential Energy Usage, 2006 (percent)
     Window & Door Energy Savings
     Table 4-5: Annual Savings by Upgrading Windows to ENERGY STAR Qualified
     Windows, 2009
     Insulation and Weatherization Energy Savings
Chapter 5: Trends
     Remodeling Indexes look Grim
     Figure 5-1: NAHB Remodeling Market Index & JCHS Leading Indicator for
     Remodeling Activity 2002-2009
     Value of Remodeling Projects has gone down
     Table 5-1: Window Replacement Projects Cost vs. Value, 2007-2008
     Government Now Much More Interested in Energy Efficiency
     State Level Residential Energy Efficiency Awareness
     Table 5-2: ACEEE State Energy Efficiency Ranking, 2008
     Green Remodeling Trends
     Consumers Want More Green!
     The Holy Grail of Energy Efficiency: Zero-Energy Homes
     The Downside of Increased Energy Efficiency Awareness: Greenwashing
     Energy Efficiency Remodeling for the Future
     Fenestration Remodeling Trends
     Current State-of-the-Art Window Energy Efficiency Technology
     Vacuum Insulating Glass: The Ultimate Window Insulation
     Windows that are More Than Just Windows
     Beyond Energy Efficiency: Ease of Installation and Impact Resistance
     Energy Efficiency is Not Key to Selling Doors
     Insulation Remodeling Trends
     Pink and Blue Become Green
     Recycling for Green
     Innovative Home Insulation Products
     Caulking Trends
Chapter 6: DIY and Pro
     The Remodelers View of the Market
     Remodeling is a Heavily Fragmented Market
     Remodeling Industry Suffers from Unprofessional Image
     Figure 6-1: Customer Willingness to Hire the Same Remodeler, 2008 (percent)
     Energy-Efficient Remodeling High on Remodelers‟ Lists
     Figure 6-2: Frequency of Energy Efficiency Products Commonly Installed by
     Remodelers, 2001-2008 (percent)
     The Future for Energy Efficiency Remodelers
     Majority of Fenestration Replacements Done by Pros
Figure 6-3: Pro and DIY Window and Door Installations, 2001-2008 (in billion $)
     DIY and Pro Insulation Projects Equal in Popularity
     Figure 6-4: Pro and DIY Insulation Installations, 2001-2008 (in billion $)
     Weather Stripping Remains a DIY Market
     Figure 6-5: Ratio of Pro and DIY Weather Stripping Installations, 2004-2008
     (percent)
Chapter 7: Demographics
     Note on Simmons Market Research Bureau Consumer Data
     Green Thinking and Energy Efficiency Renovations
     Figure 7-1: „Smart Greens‟ of Different Energy Efficiency Home Renovations,
     2008
     Energy-Efficient Window Renovation Demographics
     Table 7-1: Demographic Indicators and Resistors of Insulated Windows
     Installation Projects Finished in the Previous 12 Months, 2008 (index)
     Insulation and Weather Stripping Renovation Demographics
     Table 7-2: Demographic Indicators and Resistors of Weather Stripping
     Installation Projects Finished in the Previous 12 Months, 2008 (index)
     Table 7-3: Demographic Indicators and Resistors of Insulation Installation
     Projects Finished in the Previous 12 Months, 2008 (index)
     Regional Home Improvement Retailer Demographics
     Figure 7-2: Regional Penetration of Major Home Improvement Stores, 2008
     (percent)
Chapter 8: Manufacturers & Retailers
     Window & Door Manufacturers
     Andersen
     Overview
     Performance & Products
     Table 8-1: Andersen Energy-Efficient Replacement Fenestration Products, 2009
     JELD-WEN
     Overview
     Performance & Products
     Table 8-2: JELD-WEN Energy-Efficient Replacement Fenestration Products,
     2009
     Masonite
     Overview
     Performance & Products
     Table 8-3: Masonite Energy-Efficient Replacement Fenestration Products, 2009
     Pella
     Overview
     Performance & Products
     Table 8-4: Pella Energy-Efficient Replacement Fenestration Products, 2009
     Serious Materials Inc.
     Overview
     Performance & Products
     Table 8-5: Serious Materials Energy-Efficient Replacement Fenestration
     Products, 2009
Insulation, Caulking & Weather Stripping Manufacturers
       Dow Chemical
       Overview
       Performance & Products
       Table 8-6: Dow Chemical Residential Insulation Products, 2009
       Owens Corning
       Overview
       Performance & Products
       Table 8-7: Owens Corning Residential Insulation Products, 2009
       RPM International
       Overview
       Performance & Products
       Table 8-8: DAP Caulking and Air Sealing Products, 2009
       Thermwell
       Overview
       Performance & Products
       Table 8-9: Thermwell Residential Weather Stripping Products, 2009
       Retailers
       Figure 8-1: Frequency of Customer Visits in a 4-Week Period,Home Depot &
       Lowe‟s, 2004-2008
       The Home Depot
       Overview
       Performance
       Figure 8-2: Home Depot World Revenue, FY2005-2009(in billions of dollars)
       Lowe‟s
       Overview
       Performance
       Figure 8-3: Lowe‟s World Revenue, FY2004-2008(in billions of dollars)


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Energy-Efficient Home Renovations Market, Part 1: Windows, Doors & Insulation

  • 1. Get more info on this report! Energy-Efficient Home Renovations Market, Part 1: Windows, Doors & Insulation July 1, 2009 Green building is no longer just a fad; in fact, energy-efficient remodeling and renovating is one of the few aspects of the U.S. construction business that still holds a positive outlook in the midst of the economic turmoil in 2009. The U.S. residential construction market was $363 billion in 2008, down 41% from its high of $620 billion in 2006. The home renovations market was $188 billion in 2008, down 18% percent from 2007. But SBI estimates that the home energy efficiency renovations market in the U.S. was $21 billion in 2008; down only 13% percent from 2007‟s $24 billion. Remodeling to improve a home‟s energy efficiency instead of buying a new home has become a preferred option in today‟s market. In fact, the National Association of Home Builders found that 32% of home builders also provided remodeling services in 2008. Homeowners are still seeing the benefits of improving their home‟s energy efficiency even in the economic instability of 2009. With energy consciousness shooting to the forefront of the media during the 2008 oil price peak, the Propane Education & Research Council has found 80% of homeowners are now concerned about the energy efficiency of their homes. Home builders and remodelers have been quick to provide remodeling services that are focused on energy conservation and green building practices; as an example, 85% of remodelers surveyed by the National Association of Home Builders in 2008 used energy-efficient windows on the majority of their projects. Retailers and manufacturers of building projects, residential builders and remodelers, and even state and federal organizations now have to be able to provide knowledgeable energy conservation expertise to succeed in their business. Home energy efficiency analysis now uses a ‘whole building’ approach, affecting all categories of building materials, from windows and doors to insulation to completely eliminating air leaks. To fully embrace this view, this report looks at the impact energy-efficient building products are having on the renovations
  • 2. market in a number of categories: Part I explores the market for energy-efficient doors and windows, caulking and weather stripping, and insulation used in home renovation projects. Part II examines the energy-efficient appliance and lighting markets for home remodeling. Part III looks at energy-efficient heating and cooling systems and the growing trend of energy-efficient roof renovations. Report Methodology Report data were obtained from government sources, including the U.S. Department of Commerce, U.S. Census Bureau, U.S. Department of Housing and Urban Development and ENERGY STAR; trade associations such as the National Association of Home Builders (NAHB), and the National Association of the Remodeling Industry (NARI); research organizations such as the American Council for an Energy-Efficient Economy (ACEEE) and Harvard University‟s Joint Center for Housing Studies (JCHS); websites of home improvement contractors, manufacturers and dealers, industry analysts and print and online business and trade journals. Consumer demographics and spending trends derive from data compiled by Simmons Market Research Bureau, New York, NY. Trends and recent developments in the industry come directly from personal interviews with key players in manufacturing and sales of energy-efficient building products and discussions with knowledgeable insiders of associations such as the National Association of Home Builders. What You’ll Get in This Report Energy-Efficient Home Renovations Market, Part I: Windows, Doors & Insulation provides a concise, focused look on the world of whole home energy-efficient renovations as it exists today, and shows where the market is moving towards in the next five years. The report highlights key players in the industry and pinpoints ways current and prospective competitors can capitalize on recent trends and spearhead new ones. No other market research report provides both the comprehensive analysis and extensive data that Energy-Efficient Home Renovations Market, Part I: Windows, Doors & Insulation offers. Plus, you‟ll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs. How You’ll Benefit from this Report If your company is already doing business in green home renovations or remodeling specializing in energy efficiency, or is considering making the leap, you will find this report invaluable as it provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the current market for all aspects of energy-efficient renovations, as well as projected markets and
  • 3. trends through 2013. This report will help: Marketing managers identify market opportunities and develop targeted promotion plans for homeowners looking to renovate to reduce their utility costs. Research and development professionals stay on top of competitor initiatives and explore demand for current energy efficiency remodeling trends and new emerging energy-efficient construction products. Advertising agencies working with clients in the banking, retail and construction industries develop messages and images that compel homeowners to migrate towards energy-efficient products when considering home renovations. Business development executives understand the dynamics of the market and identify possible partnerships. Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively. Additional Information Market Insights: A Selection From The Report DIY Versus Pro by Product Segment Both the American Housing Survey (AHS) and Experian Simmons surveys show that professionals have been installing more than 75% of window replacement projects each year since 2001. Experion Simmons data from 2004 to 2006 of insulated window installations shows that the professionally installed portion of the market has been in a slight decline since 2005‟s high of 78% market share, down to 71% share in 2008. The JCHS tabulation of AHS survey data show that the percentage of professionally installed insulation projects has hovered around 44% since 2001. However, the average project cost for professionally completed insulation projects was $2240 in 2007; for DIY projects, the average cost was $837, or 37% of the average professional project. In 2008, DIY weather stripping projects accounted for 82% of all weather stripping projects reported by Simmons, showing a very slight decline of less than 1% CAGR since 2004. However, SBI calculates that the percentage of professional weather stripping projects will increase by 4 to 6% in 2009 and 2010 as more homeowners try to maximize stimulus tax credits available for home energy efficiency renovations.
  • 4. In the News Energy-Efficient Renovations to Thrive as Consumers Cut Costs through Home Improvement New York, July 7, 2009 - Energy-efficient home renovations will grow 50% faster than the renovations market as a whole over the next five years as consumers seek to cut costs during the recession through judicious home improvement, according to Energy- Efficient Home Renovations Market, Part I: Windows, Doors & Insulation, the first in a three part series from leading industrial market research publisher SBI. The energy- efficient renovations market is projected experience a compound annual growth rate (CAGR) of 15% from 2009 to 2013, and ultimately reach $35 billion by the end of the forecast period. “Green building is one of the few aspects of the U.S. construction business that retains a positive outlook despite the economic downturn,” says Shelley Carr, publisher of SBI. “Remodeling and renovating to improve a home‟s energy efficiency instead of buying a new home has become a preferred option in today‟s market. Homeowners can save anywhere between 3% and 52% on their yearly heating and cooling costs by installing energy-efficient windows. And something as simple as adding insulation and weather stripping during a renovation project can save up to 20% in costs.” Within the market, the growth trajectory of energy-efficient window and door replacement projects will mirror the energy-efficient home renovations market as a whole, with a CAGR of 14%. However, the greatest growth is expected to be in the insulation, caulking, and weather stripping segment, which SBI forecasts will grow 25% in 2010 with a CAGR of 21% for the five year period ending 2013. SBI estimates that the 2008 energy-efficient home renovations market totaled $21 billion in 2008, down 13% from 2007‟s $24 billion. Overall, the energy-efficient home renovation market grew a CAGR of more than 10% from 2003 to 2008, and climbed from accounting for just above 9% of the overall home renovations market to claim more than 11% during the same period. Energy-Efficient Home Renovations Market, Part I: Windows, Doors & Insulation explores the market for energy-efficient doors and windows, caulking and weather stripping, and insulation used in home renovation projects. The report provides a concise, focused look at the world of whole home energy-efficient renovations as it exists today, and shows where the market is moving towards in the next five years. Key players in the industry are highlighted, and ways current and prospective competitors can capitalize on recent trends and spearhead new ones are pinpointed. The remaining reports in the series will be published throughout 2009. Part II examines the energy-efficient appliance and lighting markets for home remodeling. While Part III
  • 5. explores energy-efficient heating and cooling systems and the growing trend of energy- efficient roof renovations. About SBI SBI (Specialists in Business Information) publishes research reports in the industrial, energy, building/construction, automotive/transportation and packaging markets. SBI also offers a full range of custom research services. TABLE OF CONTENTS Chapter 1: Executive Summary Scope of This Report Methodology The Market The U.S. Energy-Efficient Home Renovations Market Figure 1-1: Energy-Efficient Residential Renovations Market, 2003-2008 (in billion $) Energy-Efficient Product Segments for the Renovations Market Forecast Figure 1-2: Residential Energy-Efficient Renovations Market Forecast, 2009- 2013 (in billion $) Figure 1-3: Residential Energy-Efficient Renovations Market Segments Forecast, 2009-2013 (in billion $) Measuring Energy Efficiency Prescriptive Energy Efficiency Programs Home Energy Efficiency Auditing for Renovations Home Performance Programs Financial Programs State Energy Efficiency Renovation Incentives Government Assistance Programs Financial Benefits of Energy-Efficient Home Renovations Figure 1-4: Breakdown of Residential Energy Usage, 2006 (percent) Trends Figure 1-5: NAHB Remodeling Market Index & JCHS Leading Indicator for Remodeling Activity, 2002-2009 Value of Remodeling Projects has gone down Consumers Want More Green! Fenestration Remodeling Trends Insulation & Air Sealing Remodeling Trends DIY and Pro Figure 1-6: Frequency of Energy Efficiency Products Commonly Installed by Remodelers, 2001-2008 (percent) Remodeling Industry Suffers from Unprofessional Image
  • 6. The Future for Energy Efficiency Remodelers DIY Versus Pro by Product Segment Demographics Renovation Product Segment Demographics Manufacturers & Retailers Window & Door Manufacturers Insulation, Caulking & Weather Stripping Manufacturers Retailers Chapter 2: The Market Scope of This Report Methodology A Note on the American Housing Survey Defining Energy-Efficient Energy-Efficient Windows & Doors Insulation, Caulking & Weather Stripping The Residential Construction Industry The U.S. Housing Construction Market Figure 2-1: Residential Construction Value Put in Place, 2002-2008 (in billion $) The U.S. Home Renovations Market Figure 2-2: Residential Renovations Market, 2001-2008 (in billion $) The U.S. Energy-Efficient Home Renovations Market Figure 2-3: Energy-Efficient Residential Renovations Market, 2003-2008 (in billion $) The U.S. Window and Door Market Table 2-1: U.S. Shipments of Windows and Doors, 2002-2008 (in billion $) The U.S. Window & Door Renovations Market Table 2-2: Residential Prime Window Renovation Sales, 2002-2008 (in million units) The Energy-Efficient Window & Door Renovations Market Figure 2-4: Residential Energy-Efficient Window & Door Renovations Market, 2001-2008 (in billion $) The U.S. Insulation & Caulking Market Table 2-3: U.S. Shipments of Insulation & Caulking, 2002-2008 (in billion $) The Residential Renovations Insulation & Weatherization Market Figure 2-5: Residential Insulation, Caulking & Weather Stripping Renovations Market, 2001-2008 (in billion $) Figure 2-6: Residential Weather Stripping Renovations Market, 2005-2008 (in million $) Imports & Exports of Windows & Doors Table 2-4: U.S. Imports & Exports of Windows & Doors, 2002-2008 (in million $) Figure 2-7: Breakdown of Canadian Window & Door Imports to the U.S., 2008 (percent) Imports & Exports of Insulation & Caulking Table 2-5: U.S. Imports & Exports of Mineral Wool Insulation & Caulking, 2002- 2008 (in million $) Forecast
  • 7. Figure 2-8: Residential Energy-Efficient Renovations Market Forecast, 2009- 2013 (in billion $) Energy-Efficient Home Renovations Product Segment Forecasts Figure 2-9: Residential Energy-Efficient Window/Door and Insulation Renovations Project Market Forecast, 2009-2013 (in billion $) Chapter 3: Measuring Energy Efficiency Independent Product Testing Organizations National Fenestration Rating Council ASTM International Prescriptive Energy Efficiency Programs ENERGY STAR Figure 3-1: ENERGY STAR Program Aided Vs. Unaided Consumer Awareness, 2001-2008 (percent) International Energy Conservation Code Energy Efficiency Standards of Fenestration Products Table 3-1: ENERGY STAR Window Criteria, 2005, 2009 Energy Efficiency Standards of Insulation Products Table 3-2: IECC 2009 Minimum Residential Insulation Requirements by Component, 2009 (R-Values) Home Energy Efficiency Auditing for Renovations Energy Efficiency Auditor Certifications Table 3-3: State Level Home Energy Auditor Certification Programs, 2009 Home Performance with ENERGY STAR Home Performance Energy Auditing is a Fragmented Market Home Performance Energy Efficiency Rating Programs The RESNET HERS Index Home Environmental Rating Programs That Include Energy Performance The Future of Home Energy Rating Green Remodeling Certifications and Programs Table 3-4: National Green Remodeling Certification Programs, 2009 Chapter 4: Financial Programs ARRA Providing $20 Billion for Energy Efficiency Federal Energy Efficiency Renovation Incentives The ARRA Residential Tax Credits Future Federal Energy Efficiency Legislation State Energy Efficiency Renovation Incentives Energy Efficiency Home Renovation Programs by State Table 4-1: State & Utility Incentives for Whole Home Residential Energy Efficiency Renovations, 2009 Table 4-2: State & Utility Incentives for Residential Window & Door Energy Efficiency Renovations, 2009 Table 4-3: State & Utility Incentives for Residential Insulation & Air Sealing Energy Efficiency Renovations, 2009 Government Assistance Programs EERE Weatherization Program Figure 4-1: Homes Weatherized Under the DOE EERE
  • 8. Weatherization Assistance Program, 2000-2007 (in thousand homes) Table 4-4: EERE WAP State Funding Allocations Under the ARRA, 2009 (in million $) LIHEAP Weatherization Assistance Program Housing and Urban Development Programs Financial Benefits of Energy-Efficient Home Renovations Figure 4-2: Breakdown of Residential Energy Usage, 2006 (percent) Window & Door Energy Savings Table 4-5: Annual Savings by Upgrading Windows to ENERGY STAR Qualified Windows, 2009 Insulation and Weatherization Energy Savings Chapter 5: Trends Remodeling Indexes look Grim Figure 5-1: NAHB Remodeling Market Index & JCHS Leading Indicator for Remodeling Activity 2002-2009 Value of Remodeling Projects has gone down Table 5-1: Window Replacement Projects Cost vs. Value, 2007-2008 Government Now Much More Interested in Energy Efficiency State Level Residential Energy Efficiency Awareness Table 5-2: ACEEE State Energy Efficiency Ranking, 2008 Green Remodeling Trends Consumers Want More Green! The Holy Grail of Energy Efficiency: Zero-Energy Homes The Downside of Increased Energy Efficiency Awareness: Greenwashing Energy Efficiency Remodeling for the Future Fenestration Remodeling Trends Current State-of-the-Art Window Energy Efficiency Technology Vacuum Insulating Glass: The Ultimate Window Insulation Windows that are More Than Just Windows Beyond Energy Efficiency: Ease of Installation and Impact Resistance Energy Efficiency is Not Key to Selling Doors Insulation Remodeling Trends Pink and Blue Become Green Recycling for Green Innovative Home Insulation Products Caulking Trends Chapter 6: DIY and Pro The Remodelers View of the Market Remodeling is a Heavily Fragmented Market Remodeling Industry Suffers from Unprofessional Image Figure 6-1: Customer Willingness to Hire the Same Remodeler, 2008 (percent) Energy-Efficient Remodeling High on Remodelers‟ Lists Figure 6-2: Frequency of Energy Efficiency Products Commonly Installed by Remodelers, 2001-2008 (percent) The Future for Energy Efficiency Remodelers Majority of Fenestration Replacements Done by Pros
  • 9. Figure 6-3: Pro and DIY Window and Door Installations, 2001-2008 (in billion $) DIY and Pro Insulation Projects Equal in Popularity Figure 6-4: Pro and DIY Insulation Installations, 2001-2008 (in billion $) Weather Stripping Remains a DIY Market Figure 6-5: Ratio of Pro and DIY Weather Stripping Installations, 2004-2008 (percent) Chapter 7: Demographics Note on Simmons Market Research Bureau Consumer Data Green Thinking and Energy Efficiency Renovations Figure 7-1: „Smart Greens‟ of Different Energy Efficiency Home Renovations, 2008 Energy-Efficient Window Renovation Demographics Table 7-1: Demographic Indicators and Resistors of Insulated Windows Installation Projects Finished in the Previous 12 Months, 2008 (index) Insulation and Weather Stripping Renovation Demographics Table 7-2: Demographic Indicators and Resistors of Weather Stripping Installation Projects Finished in the Previous 12 Months, 2008 (index) Table 7-3: Demographic Indicators and Resistors of Insulation Installation Projects Finished in the Previous 12 Months, 2008 (index) Regional Home Improvement Retailer Demographics Figure 7-2: Regional Penetration of Major Home Improvement Stores, 2008 (percent) Chapter 8: Manufacturers & Retailers Window & Door Manufacturers Andersen Overview Performance & Products Table 8-1: Andersen Energy-Efficient Replacement Fenestration Products, 2009 JELD-WEN Overview Performance & Products Table 8-2: JELD-WEN Energy-Efficient Replacement Fenestration Products, 2009 Masonite Overview Performance & Products Table 8-3: Masonite Energy-Efficient Replacement Fenestration Products, 2009 Pella Overview Performance & Products Table 8-4: Pella Energy-Efficient Replacement Fenestration Products, 2009 Serious Materials Inc. Overview Performance & Products Table 8-5: Serious Materials Energy-Efficient Replacement Fenestration Products, 2009
  • 10. Insulation, Caulking & Weather Stripping Manufacturers Dow Chemical Overview Performance & Products Table 8-6: Dow Chemical Residential Insulation Products, 2009 Owens Corning Overview Performance & Products Table 8-7: Owens Corning Residential Insulation Products, 2009 RPM International Overview Performance & Products Table 8-8: DAP Caulking and Air Sealing Products, 2009 Thermwell Overview Performance & Products Table 8-9: Thermwell Residential Weather Stripping Products, 2009 Retailers Figure 8-1: Frequency of Customer Visits in a 4-Week Period,Home Depot & Lowe‟s, 2004-2008 The Home Depot Overview Performance Figure 8-2: Home Depot World Revenue, FY2005-2009(in billions of dollars) Lowe‟s Overview Performance Figure 8-3: Lowe‟s World Revenue, FY2004-2008(in billions of dollars) Available immediately for Online Download at http://www.marketresearch.com/product/display.asp?productid= 2287647 US: 800.298.5699 UK +44.207.256.3920 Int'l: +1.240.747.3093 Fax: 240.747.3004