Housing Slowdown Challenges Supporting Finish Industries
Charlotte, NC, September 5, 2023-“The market for doors, windows, and hardware has been challenged by the recent housing slowdown,” reports Truist Securities.
“Though the slowdown has negatively affected business for many, Quanex, Assa Abloy, and Masonite have thus far been able to control costs, with the slowdown generally staying within their expectations heading into the year. Companies have been able to absorb softer demand trends in the short term and remain confident in the future direction of the industry. Spiking mortgage rates are causing many homeowners to stay put, and we believe discretionary home sales have substantially contracted. Over the longer term, this could lead homeowners towards a higher focus on home improvement activities. PGTI recently noted that renovation markets have been showing signs of sequential improvements. Additionally, recent signs of resiliency in the residential new construction markets have been a source of optimism for those companies with exposure to new construction.”