A marketing profile of the U.S. structural insulated panel industry

Mark A. Gagnon, Roy D. Adams

Research output: Contribution to journalArticle

5 Scopus citations

Abstract

Structural insulated panels (SIPs) offer improved performance over traditional building methods, but have not gained substantial market share in U.S. construction. To increase this share, the SIP industry proposed an aggressive plan with a marketing focus. This research conducted a survey of manufacturers to provide a reference point of SIP industry information and marketing activities. The survey examined company profiles, competitive strategy, alliances, indices of marketing commitment, and the marketing mix. In 1996, 59 small manufacturers comprised the U.S. SIP industry with estimated sales of $74 million and employment of 750. Residential construction markets made up more than 70 percent of these sales. The most common functional alliance between companies was for building code approval. A common SIP was a 6-inch-thick panel with oriented Strandboard and an expanded polystyrene foam core. Sixty percent of the companies perceived traditional wood framing as their greatest competitive threat. More than half the companies used the unique features and value of SIPs in their competitive strategy to differentiate their product from others. The survey also showed a lack of marketing commitment in the industry, i.e., the majority of SIP companies did not have a marketing plan, did not employ a marketing specialist, and spent little on their marketing budgets. Builders, architects, and home/building owners were equally targeted for SIP promotion using brochures, sales calls, and mailings.

Original languageEnglish (US)
Pages (from-to)31-35
Number of pages5
JournalForest Products Journal
Volume49
Issue number7-8
StatePublished - Jul 1 1999

All Science Journal Classification (ASJC) codes

  • Forestry
  • Materials Science(all)
  • Plant Science

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