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What selling challenges do window & doors dealers face in the current market?
Hi there! Thank you for your question on the selling challenges that windows and doors dealers face in the current market. The short version is that, based upon the research, the major challenges facing windows and doors dealers are 1) federal regulations, 2) concerns related to domestic and foreign trade, 3) a shifting focus from consumers purchasing new products to seeking repair and recovery services, 4) keeping in touch with the latest industry marketing trends, and 5) achieving a balance between traditional and online consumer connection and understanding changing consumer behaviors. Of all the resources found, the "2017 Industry Pulse" survey by the website Window & Door offers significant insight into the current concerns of dealers, manufacturers, and suppliers within the industry. I have also included information on the current market and its outlook into 2024. Below is a deep dive into my research and methodology.
METHODOLOGY
To answer your question, I used Wonder's resources database as my primary research tool. Through the database, I found a number of industry-articles that provided insight into the windows and doors market. From the research, most articles focused on challenges related to the cost of regulations, online presence, and meeting the changing needs of consumers in the coming years. I have highlighted the findings from my research on each of the above-mentioned topics.
Other challenges noted included a shift from purchasing new windows and doors to repair and recovery services. Also, of the articles found, the following offered information on the global and US market outlook:
- "Window And Door Market size worth over $137bn by 2024: Global Market Insights Inc." by GlobeNewswire.
INDUSTRY CHALLENGES
In a February 2017 article, "2017 Industry Pulse," the website Window & Door conducted a survey of the windows and doors market, covering the views of suppliers (31% of respondents), dealers (32% of respondents), and manufacturers (37% of respondents). The survey examined the industry's reaction and perceived impact of the 2016 US presidential election, and what challenges the industry faces moving forward. In addition to the survey, Window & Door has published a number of articles that clearly outline the challenges that windows and doors dealers (and others) are now confronting. In this section, I have provided an overview of the challenges noted in these sources.
- Challenge #1: Regulations
Most survey respondents (76%) believe that the new administration will be a benefit to the industry, specifically in terms of reducing regulatory costs that have increased 29% since 2012. They are hopeful that tax code reform, and programs for workforce skills development and job training will be priorities for the new administration.
- Challenge #2: Foreign & Domestic Trade
Survey respondents who believe that the new administration would be harmful to the industry (15% of respondents) focused on the potentially negative impact that the new administration's policies could have on trade (domestic and foreign) as well as on education.
- Challenge #3: New Construction & Replacement Sectors
Another aspect of the survey focused on the areas in which dealers and manufacturers have been focusing. For dealers, most (62%) have been focusing more on the replacement sector, while 44% of manufacturers focus on selling their products for replacement (33% for new construction). This is in reaction to the shift that consumers have been making, and expect to continue making, towards repair.
- Challenge #4: New Business Strategy Awareness
In an October 2016 Window & Door article, it was noted that due to lack of time, industry members are not always able to have the time to participate in industry events, such as trade shows, which limits their knowledge about new techniques that can be employed to improve their businesses.
- Challenge #5: Traditional versus Online Trends
With more consumers using the internet to research and purchase items, the windows and doors industry is having to consider how best to balance meeting the needs of potential customers online and in person. Dealers need to improve their online presence, create websites that are mobile-friendly, and connect with the customers over social media. In addition, dealers need to improve their response times to current and prospective customers.
Another online area of contention is providing price estimates. On one hand, online price estimates offer an expeditious method of meeting a potential customer's needs. However, online estimates may not always present all the necessary or cost-saving information as it is reliant upon human configuration. Industry experts suggest that technology needs to be used in conjunction with traditional approaches.
CURRENT MARKET & OUTLOOK
- US Residential Windows & Doors Market
The US residential windows and doors market is expected to grow annually by 6.0% up to 2020, at which time the market is expected to reach $25.6 billion up from $19.06 billion in 2015. Specifically, the doors market is expected to be worth $14.95 billion by 2020 (growth rate of 6.6%), and the windows market is expected to reach $9.0 billion (growth rate of 5.4%).
Housing construction, rising home values, and increased home sales are the anticipated factors that will drive growth in the market. In terms of materials for windows and doors construction, the distribution of wood, plastic, and metal resembles that of 2005 (although there is expected to be a significant increase in plastic in comparison to its 2005 percentage). For 2020, wood is expected to represent 42% and plastic 32%.
- Global Windows & Doors Market
Globally, the overall windows and doors market has been estimated to reach $137 billion by 2024 at a compound annual growth rate of 5.6%, beginning from 2016. This is an increase of $55 billion from 2015 ($82 billion). Like in the US residential windows and doors market, the use of wood in construction is expected to grow at a rate of 5.7% over the next several years--in 2015, wood constituted 28% of the total revenue.
- Replacement Windows & Doors
Consistency in home sales over 2016 has meant an increase in the positive outlook for the windows and doors market, specifically in replacement. In terms of replacement windows, purchases by both buyers of older homes and non-moving homeowners have remained consistent. On the other hand, there has been an increase in the purchasing replacement doors by non-moving homeowners.
CONCLUSION
To wrap it up, based upon the research, there are 5 major challenges facing windows and doors dealers. These are 1) dealing with industry regulations which has resulted in increasing costs, 2) concerns with domestic and foreign trade policies that might be initiated by the new administration, 3) the changing focus of consumers from new products to repair and recovery, 4) finding the time to learn new industry marketing techniques to increase business, and 5) finding a balance between traditional and online consumer offerings. Overall, the industry has a positive outlook, both in the U.S. and globally--this, however, may be dependent upon the policies enacted by the new administration. Thanks for using Wonder! Please, let us know if we can help with anything else!