The siding market is a billion dollar industry in the United States and is also spread in different parts of the world. It's an important part of home improvement - and one of the few things, besides your roof and foundation, that can improve your home's appearance.
But as it turns out, there are a number of challenges for this market: some homeowners don't have the money to replace their old siding; some cannot get around their busy schedules to get quotes from contractors or installers; and then there are those who simply do not know how to choose a type of siding for their homes.
The siding market is a constantly evolving one. New products are developed, and the popularity of particular brands rises and falls based on their ability to meet the needs of today's homeowners. As an installer, this leaves you always looking for the best way to benefit your customers and keep up with trends in order to stay ahead of your competition.
In this post, we will explore some of the key challenges and opportunities that affect siding installers directly. The first in a two-part series, this post will focus on challenges. Future posts will focus on opportunities that may be used to address these challenges.
When we last examined the Siding Market, we saw mostly positive outlooks for the market. The major growth driver was homeowners updating their homes to more energy-efficient options, but with interest rates on the rise and tough economic times here and abroad, it was unclear how consumers would respond. Thankfully we now see that despite some setbacks, the market's overall growth has been steady, and that many of our predictions have been correct (especially concerning vinyl's domination of the market).
But in today's business environment there are more challenges than ever before. New products, competitors, and a slew of regulations are among the obstacles you face as an installer. To survive in today's market, you must be able to identify those challenges that are most critical to your success, and then learn how to overcome them. Below are some of the main concerns you should be aware of.
In recent years there have been many new vinyl-based siding options introduced into the market at lower price points than ever before. This has directly affected pricing of other types of siding such as wood and fiber cement siding. There is also an increased availability in not only stock items but a greater selection and number of custom colors for vinyl siding than ever before.
What is the net result of these trends? As a siding installer, you must compete with these new low-cost options on price. As a contractor, you then have to balance that with your profit margin and the fact that you still have to make a living. You may want to choose a more expensive product but it is difficult when customers are telling you they cannot afford to pay more.
The good news is there are still many opportunities available for installers in this market segment, especially as it relates to high-end and premium products. It's no secret that vinyl siding has become less desirable as an upgrade for homeowners.