Positive Growth For Wood Protection Coatings
The market for wood protective coatings has seen striking positive growth over the past year. This is thought to be a result of the robust housing market, and the good news is expected to keep coming for some time yet.
The housing market experienced a total of ten per cent month-on-month growth throughout 2015, and analysts are positive about the prospects for 2016, expecting growth of between four and six per cent. This rise in residential construction will be mirrored in a demand for wood coatings and preservatives for use in newly constructed houses.
The wood coatings sector is expected to grow an average of 4.5 per cent a year through to 2018, reaching a value of £3.3 billion. Other aspects of residential construction will provide further demand for coatings, including applications such as decking, fencing and furniture.
As is often the case, strong economic growth in one sector leads to corollary effects in other branches of industry. As a result of the demand for wood coatings recruitment of painters and chemical industry specialists is also expected to increase.
Threats Lurking on the Horizon?
However, an increase in instances where materials other than wood are used is producing some strong competitors. Applications such as siding, where wood occupies only a small and shrinking segment of the market, and decking, where wood is dominant but plastic composite is growing in popularity, both represent challenges to future advances in the growth of the wood coatings market.
Of course, there is also the risk that the housing market itself could grow too strongly and become a bubble. If it bursts, this would adversely affect demand for wood coatings (along with every other material used in residential construction). Such things, are very difficult, if not impossible, to predict with any accuracy, however.
Reasons for Optimism
On the whole, as well as positive trends in new-house building, there is also an increase in consumer desire to update and improve their existing homes. Consumer interest in both the exterior and interior finish of the wooden surfaces in their homes will represent a significant part of the forecast growth in the coatings market. There is often a time-lag in this segment compared to new residential construction, as consumers tend to wait one to two years after buying decking before updating the wood finish.
Changes in consumer tastes are also driving growth in wood coatings. Older heirloom décor and furniture often no longer fit the sleekly designed contemporary environments found in most modern homes. To combat the dated feeling from such things, consumers are updating furniture with new finishes and coatings. A recent trend for repurposing and reclaiming furniture amongst younger urban consumers is also a factor.
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