M&M News and Products

June 27th, 2020 by Nathan Hobbs

Markets

Moulding and Trim Demand to Rise through 2022

Anew study shows that demand for wood moulding and trim is projected to increase 3.7 per-cent annually to $5.5 billion in 2022. That’s the slowest growth rate for any material in the segment.

Despite that, wood will still account for more than half of moulding and trim sales in 2022, according to researchers from the Freedonia Group, an industry market research firm based in Cleveland, Ohio.

In 2017, wood was the dominant moulding and trim material, accounting for 53 percent of the market despite declines from 2007 to 2017. Wood lost market share to engineered wood and plastic. Those materials can cost less than natural wood, are more durable and have fewer maintenance requirements. Wood is expected to continue to lose share through 2022, though it will remain popular because of its aesthetic appeal and versatility.

The report says gains will be driven by increases in new housing completions, especially in the South and West. Additionally, a rise in the number of home renovation projects will boost moulding and trim demand.

Demand also will be driven by a strong rise in office, commercial and institutional construction activity. Growth in the commercial improvement and repair (I&R) market will be more restrained, as metal is a popular option for moulding and trim mate-rial because it’s durable and rarely requires replacement.

Engineered wood and plastic moulding and trim are expected to record above-average sales gains through 2022. More consumers will opt for engineered wood over natural wood because of engineered wood’s greater durability and generally lower cost. Growth in the plastic moulding and trim market will be driven by the material’s resistance to damage caused by exposure to elements or by insects.

Company News

AC Summit Invests in Texas-Based MJB Wood Group

AC Summit LLC, a holding company representing members of the Coors family, has invested in Irving, Texas-based MJB Wood Group Inc. Terms were not disclosed.

“We have admired MJB Wood Group and its executive team for years, and our due diligence confirmed that it is an extremely high-quality organization with an outstanding culture,” said Casey Gebhard, CFO of AC Summit LLC. “We intend for MJB Wood Group to continue to operate independently.”

MJB Wood Group Inc. provides panel products, components, millwork and specialty products and supply chain solutions to the door, millwork, cabinet, furniture, fixture/display and RV/transportation segments throughout North America, Asia and Europe.

“This partnership will support future growth with value-added manufacturing and supply chain solutions while continuing to build on our strong reputation of exceptional service to our customers and supply partners,” said Joe Caldwell, president and CEO of MJB Wood Group. “We are excited to work with the AC Summit team, and we believe they are uniquely positioned to provide growth capital and expertise for future expansions in the building products industry.”

Briefly

L&W Supply Corp. has purchased the assets of Wright Brothers Supply, which operates three branches in Northern California, and Ace Supply Inc. of Montgomery, Ala. … Mid-Atlantic Millwork Sales will represent DSI Aluminum and Fiberglass Columns in the Mid-Atlantic, New Jersey and Long Island.

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