FGIA Releases Latest Industry Review and Forecast
The Fenestration and Glazing Industry Alliance released the FGIA 2022/2023 U.S. Industry Statistical Review and Forecast. This report delivers timely information on window, door and skylight market trends and product relationships. Historic data for 2012 through 2022 and forecast data for 2023 through 2025 are also included in the report. Forecasts are based on projections of construction activity as of March 2023.
“As those in the industry are aware, recent years have been unusual ones for the market due to the pandemic and inflation across the globe,” says Angela Dickson, FGIA marketing and communications director. “This report reflects how those factors continue to affect our industry and their forecasted impacts for the next couple of years. This information will be helpful as companies adapt to an ever-changing environment.”
After 12 consecutive years of growth, total housing starts fell in 2022 by 2.5 percent overall, with a steep decline of 11 percent in single-family starts partially offset by strong growth in multi-family of 15 percent. Going forward, the overall new housing market is expected to continue to fall further in 2023 by 17 percent before returning to growth of 8 percent and 7 percent respectively in 2024 and 2025.
The demand for prime windows was flat in 2022 with marginal growth of 0.5 percent. The demand for windows in new housing increased by 1 percent in 2022 with backlogs, particularly in multi-family housing maintaining shipments, as starts fell. Remodel and replacement demand for windows were flat. An overall decrease of 7 percent is forecasted for 2023 shipments, driven by a 14 percent decline in new construction demand, before rebounding with growth of 5 percent and 4 percent in 2024 and 2025 respectively.
In the residential market, 2022 new construction demand for entry doors grew by 1 percent. Meanwhile, entry door remodeling and replacement demand, which continues to represent a significantly larger share of total demand, declined by 13 percent. The total market declined by 8 percent versus 2021 and is expected to decline in 2023 followed by growth in 2024 and 2025.
The non-residential glazing market decreased by 3 percent in 2022 with decreases across all applications. New construction increased by 1 percent, while renovation demand declined by 11 percent. An increase of 4 percent is forecast for 2023 with flat demand anticipated in 2024 followed by a decline of 3 percent in 2025.
In 2022, non-residential construction demand for entry doors declined by 3 percent. The total volume decreased to 2.0 million units. A recovery is expected in 2023 with minor declines expected in 2024 and 2025.
Residential skylights closed the year with a decline of 8 percent over 2021 volume. New construction skylight activity was up 3 percent while remodeling and replacement skylight activity was down 10 percent compared to 2021.