USA: Bright Spots for Wood-Plastic Composites

The growth in overall demand for natural and wood fibre composites has slowed significantly to 5-10% per year, down from previous annual growth rates of 15% or more.

Higher product prices, lower wood prices, and a slowdown in housing construction have contributed to the slower growth. The industry, however, remains optimistic about growth prospects based partly on the development of new lower priced-point composite products to compete with pressure-treated lumber.

In addition, manufacturers including Trex, AERT, TimberTech, and Fiber Composites have either introduced new composite fencing products in 2006 or will in 2007. The fence industry is a relatively untapped new market for composites, and represents considerable potential for industry growth.

This latest information is detailed in Principia Partners’ industry publication, Natural and Wood Fiber Composites Newsletter.

(Cf. news of 2007-01-22 and 2006-10-10.)