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Annual Analysis of the Competitive Market Situation of Windows in Germany
added: 2008-08-11

After a decade lapse, window sales are once more on the rise in Germany. After several years of recession in the construction industry, it appears as though the worst is behind us. In the past year, orders for 11.4 million German window units were placed, which accounts for an increase of 6.4% over the year before.

Through price increases, last year's turnover rate of 3.1 billion euros surpassed the previous year's rate by 7.5%. In the coming years, the growth rate will be weaker, but remain in the positive range. It is expected that 12.3 million window units will be sold by the year 2010.

For the short term, new development projects will be mostly accountable for the up-surge in sales because there were large pre-emptive effects in 2006 caused by the final cancellation of the subsidies provided to homeowners and an increase in sales tax. Through a growth rate of 8.5%, this segment was able to increase its rate from 1% to 46.4%. Nevertheless the renovation segment, which had a growth of 4.6% in 2006, also provided support to the window industry. In the long run, the new development’s numbers will return to the red, and the renovation will be the driving force behind the market.

The most requested framing material continues to be PVC. Due to a quantitative growth rate of 7.9%, this product group was able to increase its rate by 53.5%. The growth rates for this product will also outrank those of other materials in the future, for it is often used during renovation, and with it's low cost, it fits today's mindset of "the cheaper the better." Solely combination window units, even when few are made and sold, have a better chance to increase sales than PVC windows. Despite a quantitative positive of 3.8%, wooden windows are losing their share in the market. "Nevertheless, lumber will continue to have a strong hold in the window market in the long run," says Alexander Bonat, branch expert at Interconnection Consulting, "the future of wooden windows does not lie in cheap construction, but instead with the architecturally demanding segment of customers. Not to be forgotten is also the demand of our growing population of customers who seek natural building materials, which will soon bring an end to the decline in framing materials."

Even if the growth rate in the coming years is not as strong as in 2006, it appears that there has been a decided turnabout. In comparison with other European nations, Germany, with its 14 window units per person per year, is, along with Italy, at the bottom of the list. In light of this fact, and the long-term increase in demand of living space, the window branches in Germany can confidently look towards a positive future.


Source: Business Wire

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