When it comes to style and design European trends typically lead the way, and in 2008 it appears that is the case in new flooring and railing trends. With flooring, lighter colors that have dominated the European market are now gaining popularity in North America, with more buyers seeking out flooring that has a faded or distressed appearance.
"If you looked around at this year's Surfaces trade show you saw the influence of European design everywhere," said Rob Banks, executive vice-president, sales for BuildDirect. "Across different flooring categories you saw everything fading to lighter colors, and gray-washing and white-washing of all different types of flooring materials."
BuildDirect's new product offerings such as their Siam Teak Toklo laminate flooring reflect the trend and the company expects to launch several more products to meet demand in coming months.
"Something interesting I found out when I spoke with the European flooring manufacturers at Surfaces is that their color choices are often influenced by what's happening in the European luxury car market," explained Banks. "It used to be that anyone buying a new Mercedes or BMW was looking for a dark interior, but they have seen a growing demand in Europe for lighter colored car interiors which is influencing trends in building materials as well."
In addition to colors, buyers are seeking new and nontraditional ways to use flooring. For example, more people are putting bamboo, stone, porcelain and slate flooring tiles onto walls and ceilings to achieve a certain look. "I remember several years ago, when we first started this business, how surprised I was to get a call from a customer asking questions about putting bamboo flooring on her ceiling," said Banks. "These kinds of uses are really starting to hit the mainstream now."
The demand for green building products is still strong and is expected to increase. "In terms of growth in sales this year, we have seen some of our biggest increases so far from cork flooring," said Banks. Cork flooring has a number of unique benefits that customers are starting to pick up on. It's softer under foot than wood flooring and does a great job at retaining warmth. It's also a renewable product that is harvested sustainably.
"I think the other big trends you will see are oil finishes on hardwoods that provide a very unique look, an increase in sales for luxury vinyl tiles that are going to start moving from commercial applications to becoming more popular for residential use, and more use of wood grain porcelain tile that gives some of the advantages of hardwood while being easier to maintain and more durable," added Banks.
Like flooring, a combination of nontraditional offerings coupled with traditional uses is transforming the $5 billion exterior railing business. Low-maintenance outdoor living space is changing backyards and increasing the demand for decks with customized railing systems. Estimated at $5 billion and showing resiliency despite the current building products industry downturn, industry statistics indicate that as many as 70 percent of homes built by 2015 will have a front porch featuring exterior railing.
"Demand for exterior railing in the residential sector is coming from balconies, porches and decks in single and multi-family housing," explains Steve Van Kouteren, a Principal at Principia Partners. "In addition, such trends as the return of popularity of the front porch and the growth in demand for low-maintenance outdoor living products will provide railing manufacturers with greater opportunities."
Homeowners often look to customize railing systems to differentiate their deck from their neighbors. Demand for multi-material railing systems (wood and metal, composites and metal or glass, etc.), unique balusters, top and bottom rails with colors that match exterior trim and cladding, and the use of decorative lighting systems is growing.
"We also see growing demand for powder-coated and vinyl-clad aluminum railing systems in both the residential and commercial market. During the last two years, manufacturers have especially noticed the growth in demand for balcony railing in the commercial market. Many ornamental aluminum fence companies have responded to this growing demand by introducing new railing products, including Digger Specialties, Elite Fence, Evolution Fence, Press Fit Aluminum and Ultra Aluminum," said Mr. Van Kouteren.
To further assess the fast changing exterior railing market, Principia Partners will conduct a new study to support manufacturers and marketers when planning marketing and business initiatives, as well as for new product development purposes. Principia's study will serve as an important baseline analysis for forecasting and strategic planning purposes by existing and new industry participants. Using 2007 as the baseline, the study will analyze the drivers and trends of the exterior railing market by region, distribution channel, market segment and material type, and will provide forecasts covering the next five years. It will also provide insights into current and future products and competitive positioning, and will help companies anticipate unmet customer needs.
"Railing has evolved into highly aesthetic and exceptionally low maintenance products with a dizzying array of choices. As interior d cor styles and aesthetics are being extended to the outdoor living environment, we see more mass customization from suppliers, and better margins compared to decking or fencing product lines," added Mr. Van Kouteren. "These trends are attracting attention from the large building products companies, and as a result, they have begun acquiring railing manufacturers."
[Note: BuildDirect, based in Vancouver, Canada with distribution sites all over the United States, is a leading online manufacturer/wholesaler of building materials and a member of the Canadian Green Building Council and the US Green Building Council. Principia Partners is a leading international strategy consulting firm, and has extensive experience in building products and plastics industries. For more information, visit www.PrincipiaConsulting.com.]