2025 Industry Pulse | A Balancing Act

Market fluctuation has dominated the fenestration industry so far this decade. The pandemic plunged the market into unknown low territory, followed shortly after by unsustainable demand. Supply chains couldn’t keep up and sent companies scrambling to meet their orders. Now that supply chains have largely normalized, inflation and affordability loom heavily on the industry. Labor continues to be a struggle. 

Despite the ups and downs, one thing has remained consistent: the industry’s determination to persevere and adapt to the ever-changing tides. 

“The fenestration industry has demonstrated remarkable adaptability, shifting focus toward efficiency, innovation, and sustainability,” says Greg Koch, vice president of sales and marketing, Deceuninck North America. “Many companies have streamlined operations, optimized product portfolios, and strengthened customer relationships to weather economic uncertainties. Additionally, there’s been a notable emphasis on technology adoption—such as advanced data analytics and digital tools—to drive efficiency and improve decision-making in a volatile environment.”  

This year’s Industry Pulse survey and report, strengthened with information from the Window & Door Market Survey in partnership with John Burns Research and Consulting, is a barometer of where the industry is, where it’s going, its challenges and its opportunities. Read on for a comprehensive look at sales, materials, products, labor, automation, production and more.  

Editor’s Note: All charts and data points are sourced from Window + Door’s Industry Pulse Survey unless otherwise noted.

Report Sections

• Sales and the Market
• Products
• Labor
• Production, Investments, Technology 
• Materials, Costs and Supply 
• Opportunities and Challenges 

About the Participants 

Sales and Market 

Commentary from this year’s survey indicates a mixed bag of growth, both in 2024 and predicted for 2025. One respondent wrote they are “getting back to increasing activity. It may not happen fast enough to show up in 2025 sales, but 2026 should be a year of growth.”  

Affordability continues to hamper the market, reflected with record numbers of low first-time homebuyers and a rising median age for first-time buyers. Rising interest rates have added 9 years to the median homebuyer age; the first-time buyer age rose 5 years and the age of repeat buyers rose 6 years. Further, homebuying activity is at a 30-year low, according to the National Association of Realtors. There are also more homes for sale as of this writing than at any time in the past four years.  

New homes are also becoming simpler in design in response to affordability. Chris Beard, vice president of building products research, John Burns Research and Consulting, shared in a December webinar that the firm estimates each new single-family home will have three fewer window units in 2027 (18) compared to 2015 (21). 

Despite affordability concerns, household formation and an anticipated remodeling increase may balance it all out. U.S. home equity averages around $400,000 per owner household, fueling large remodeling growth. JBREC’s most recent American Housing Survey reflects that around 10% of doors and windows remodeling is financed with home equity, which the firm views as a boon. 

Plenty of external factors will influence the actual numbers, though. “It depends on interest rates, builder confidence and inflation,” says one manufacturer. “If everything falls into place, we should see a 5-10% growth in 2025.” Other external factors noted by survey respondents include consumer confidence, tariffs and other regulations and inflation. 

“Despite economic challenges, our sales performance in 2024 was solid, with growth driven by our focus on sustainable solutions and customer collaboration. We are planning for continued growth in 2025, especially as demand for energy-efficient and customizable products remains strong,” says Koch. “However, the economy continues to pose challenges, including fluctuating material costs, stubbornly high mortgage interest rates and tighter budgets in construction and remodeling sectors. We’re addressing these challenges by enhancing supply chain resilience, optimizing operations, and offering solutions that provide long-term value to our partners.” 

GED representatives shared that the company continues to achieve year-over-year growth despite industry challenges. “We remain optimistic and anticipate a rebound in 2025 and 2026 as market conditions evolve,” says Joe Shaheen, vice president of sales, GED Integrated Solutions. That said, growth doesn’t happen without evolving alongside market conditions. “Market shifts are prompting industry-wide introspection and a redoubled focus on core values, which for us means an increased commitment to customer-centric strategies,” he continues. 

“With a new administration coming in, we are looking for improvement in the economy,” says Gary Hartman, vice president of sales and marketing, Chelsea Building Products, who anticipates 5 to 10% growth this year. “Demand is there; we just need interest rates and costs to come down to spur consumption.” 

Products 

 Whereas location, location, location is the name of the game in real estate, perhaps in building products it is demand, demand, demand. Companies had across-the-board responses as to what drove products demand—those that accentuate living spaces, impact windows, efficiency, aesthetics—but most came down to the same thing: consumer demand. 

Windows have the ability to define a home and create a welcoming space. Christine Marvin, chief marketing and experience officer at Marvin, speaks to the power of the window: “Windows are the focal points of our homes, which leads to a unique opportunity for homeowners to get creative with the shapes and sizes of their outdoor view,” she says.

“Unique window designs have the power to redefine a home’s architecture, blending aesthetics with functionality. The strategic placement of windows and doors shapes how spaces interact with light and the surrounding environment. Unique window designs not only redefine a home’s architecture but also impact how a space feels, blending aesthetics, functionality and emotional design to create environments that inspire comfort and foster a connection with the environment.” 

Nicole Willits, product strategy and sustainability at Pella Corp., observes three emerging leaders in energy efficiency and smart home integration: climate control, advanced windows and doors, and streamlined window installation for maximum efficiency. For example, some new technology allows for tinting and obscuring glass and can allow for automatic and manual control, all of which helps maintain consistent temperatures and improve home efficiency.  

Willits also notes several consumer preferences in window and door design and functionality. 

• Warming up with soft tones and rich finishes: The dominance of high-contrast color palettes is being lessened by warming blacks with hues of bronze, brown, and charcoal and softening whites with linen and eggshell. Homeowners are choosing richer interior stain options that emphasize woodgrains with natural finishes and darker provincial and walnut tones, continuing the emphasis on warmth through materials. 

• Prioritizing light: When choosing windows and doors, homeowners are prioritizing light and access to outdoor areas. The largest view with the thinnest frame to create the most light-filled areas remains preferred for window and door sizes.  

• Reimagining window halls for modern living: Creative takes on window halls, such as glass enclosures or window-encased bump-outs for offices and playrooms, highlight homeowners' growing desire to fully embrace and enjoy every part of their home. 

• Grilles as a canvas for architectural expression: Grilles continue to be a way to highlight a home’s architectural style or a homeowner’s personality and have moved into more dynamic territory than years past. Simple patterns have given way to more traditional grid layouts, as well as those that are more personalized through decorative, dimensional or finish options. 

• Doors as bold personal statements: From dramatic curves and arches to Dutch doors, doors can make a statement for a home. Many homeowners are selecting doors to showcase their personality, honor their home’s architectural style, or incorporate colors and glass designs that add a personal touch of joy to their spaces. 

Performance and innovation also continually drive product improvement, particularly with Energy Star 7.0 and an emphasis on sustainability. The alphabet soup of sustainability-related terms includes EPDs, LCAs and PCRs (environmental product declarations, lifecycle analysis and product category rules) but are becoming more commonplace in the industry.  

Although most survey respondents indicate they don’t plan to have EPDs, those that do consider them to be important. Benefits include marketing to the sustainability demand, appealing to architects and staying ahead of market requirements. “EPDs are critical because they improve transparency and level the playing field, allowing buyers to easily compare products’ environmental impact,” says YKK AP’s Jensen. 

Sustainability, energy and production efficiency, and product performance drive Deceuninck North America’s R&D efforts, says Koch. “We are advancing material science to enhance durability and recyclability, particularly in the development of circular economy solutions. We’re also investing in smart home integration and modular product designs. These efforts are complemented by investments in operational excellence, such as upgrading our manufacturing technology to enhance efficiency and reliability.”  

Labor 

Note: About half of respondents expect to add staff next year with the other half undecided. 

Labor has reclaimed its No. 1 spot as the most significant business challenge. Companies shared myriad recruitment and retention tactics. Deceuninck, for example, invests in workforce development and creating a supportive workplace culture. “We’ve enhanced our employee training programs to upskill our workforce and provide clear career progression pathways,” says Koch. “Additionally, we’re fostering retention through initiatives that promote engagement, such as recognition programs, competitive benefits, and a strong emphasis on work-life balance. We’re also leveraging automation in key areas to reduce dependency on labor-intensive processes.” 

Capitalizing on automation and technology has dual benefits in today’s workforce. First, it can help reduce dependency on manual labor. Second, its use can help attract and retain a younger workforce who grew up amid technology and expect it in their workplaces. “Manufacturers need to recognize they are recruiting in a competitive environment,” says Don Busiek, general manager, windows, doors and glass solutions, Cyncly. “A good technology experience makes their business a great place to work, so they can recruit and retain talent.” 

Other survey respondents shared the following strategies. 

• Money in the form of pay raises and bonuses. Liberal treatment of employees concerning attendance, coffee and lunch breaks along with a softer management approach showing more empathy for their problems.  

• Competitive wages and benefits along with a wide range of employee-centered cultural and company engagement activities. 

• Ensure the philosophies match and understand employees’ motivations to be at the company. 

• Skill testing up front to determine subsequent training necessary. Regular 'check-ins' to find out how employees are feeling. 

• Employee engagement is the most effective tool to retain. Offering all employees a variety of training opportunities including job training, leadership, DISC training, team building, etc. A combination of hard and soft skills that encourages lifelong learning and improvement. 

Training, work-life balance and money rank as the top retention strategies, as well as other benefits such as providing a truck for company use, expenses, employee ownership options and clear paths for advancement. Recruitment strategies include word of mouth, referrals, working with the state unemployment office and using temp services. 

Companies offer myriad training opportunities in hard and soft skills. These can include product knowledge, safety, better positions, computer skills, installation, structural and thermal performance, team building, technical training on machinery, refresher training, field training, sales training and OSHA training. 

One company has a five-person training department that develops and puts out new training each week that encompasses all aspects of jobs. Another annually allots and funds 40 hours of training to each employee to pursue professional development. 

Production, Investments, Technology 

“The most exciting development in the glass and fenestration industry is the rapid integration of smarter technologies in companies of all sizes. Automation, IoT-enabled devices and advanced software solutions are transforming production and operational efficiency,” according to Dennis Tieg, Clarity COO; Sebastian Dick, manager, Clarity Innovations; and Chris Kammer, sales and marketing coordinator, A+W. “This production and operational evolution not only streamline workflows but also enable manufacturers to meet growing demand for customized, high-performance glass and window products.”  

The A+W team further predicts a steady increase in digitization across the glass and window industries. “For smaller companies, we see they are increasingly transitioning away from spreadsheets to integrated software for the first time, while medium-sized manufacturers are seeking to upgrade their software solutions, replacing older or less capable solutions with more robust systems,” they say. 

“Technological advancement never stops, and it is exciting to see how the industry continues to apply those new technologies to make better products, more efficiently and effectively than ever before. Automated equipment for window and door fabrication continues to elevate the manufacturing process,” say the sales and marketing teams at Quanex. 

Where do you want to enhance production? 

• Fabrication 
• Installation 
• Quality 
• Labor reduction 
• Loading and unloading 
• Throughput 
• Consistency  
• Efficiency 

A forward view 

Several survey respondents spoke of the demand for integrated machinery and software systems. Cyncly’s Busiek notes that while integration with saws and welders has been commonplace for years, integration now goes beyond that into automated insulating lines. Joe Shaheen, vice president of sales, GED Integrated Solutions, agrees. “Demand remains strong for integrated machinery and software systems,” he says. 

Many companies plan to invest in themselves this year and add solutions for their customers. “We are dedicated to advancing technologies that enhance automation and reduce labor, ensuring our customers’ operations are as efficient as possible,” says Tim McGlinchy, executive vice president of engineering and R&D, GED Integrated Solutions. “We’re launching new software solutions designed to enhance the interface between our machines and operational teams, improving both communication and workflow efficiency.”  

“Looking ahead, we are emphasizing predictive maintenance technologies, aiming to equip maintenance teams with advanced tools to optimize equipment performance and reliability,” says Shaheen, who is optimistic about leveraging technological advancements and market strategies in 2025. 

Artificial intelligence 

Although many companies do not yet use AI, those that do note several areas in which it helps, including aggregating and condensing information, creating installation worksheets, dictating meetings, helping with product imagery and refining language for business correspondence. 

Cyncly plans to increasingly incorporate AI and analytics into its products, shares Busiek. Although he says users indicate they’re not ready for AI agents to act autonomously, they do want AI to assist them in understanding trends, creating forecasts and helping teams work faster and smarter. 

At the company’s User Conference in June 2024, top areas of interest to window and door manufacturers included the following:  

1. Material management teams are looking for recommended product lead times based on production’s completion rate. They want the analytics and AI to deliver better information, but not to automatically update those product lead times. 

2. Production management teams want reports that highlight trends in changes to schedule templates. They would use these insights to identify the outlier changes the scheduling manager is making to existing templates, and to recommend adjustments. 

3. Logistics departments are looking to understand changes to shipping route templates. They want to identify the outlier changes the logistics manager is making to existing shipping routes, and to recommend adjustments. 

Ensuring systems and data structure are AI ready is critical before AI is effectively applied, says Laura Phillips, vice president of engineering, Pella Corp. “Being AI-ready takes intentional planning and execution of a robust data architecture,” she says. 

“AI, when applied thoughtfully, is the ‘easy button’ that helps the team succeed in a complex manufacturing environment,” she continues. “We continue to increase investments in AI because of the positive impact the solutions have on our customers and our team members.” AI has impacted Pella’s operations in several ways, including vision systems that can help course correct before a problem occurs, digital twins and AI-powered chatbots to aid team member training and support. 

“AI-powered tools help us deliver more personalized service, from tailored product recommendations to proactive issue resolution. These technologies are not just enhancing efficiency but also enabling us to better understand and anticipate our customers’ needs,” says Deceuninck’s Koch. 

Data analytics 

The power of data cannot be underestimated either. The insights it offers can be a tremendous boon to business. “By harnessing data from various sources—such as production metrics, equipment performance and supply chain logistics—we can enhance efficiency, help to maintain our costs and improve product quality. By effectively analyzing customer data, we can gain valuable insights that inform strategic decisions and foster stronger relationships with our customers,” says the sales and marketing team at Quanex. 

Koch shares that the company uses data-driven insights to “optimize supply chain management, forecast demand more accurately, and improve operational efficiency.” 

Leveraging technology also helps retain knowledge from the aging workforce and level the playing field. “It gives you a chance to capture and standardize tribal knowledge so it stays in your business, is applied consistently and can be used for automation wherever possible,” says Busiek. “With better processes and insight, you can stay closer to your customers and meet their needs. This lets smaller companies punch above their weight against competitors, even as global competition rises.” 

Automation 

Pella considers the four Ds when considering automation, says Phillips. “We look at work that is difficult, dangerous, dirty or dull.  Automating these jobs helps the team be more successful in serving our customers and improves employee safety and satisfaction. A few key principles we use to guide decision-making on automation include not automating bad processes and making sure the opportunity or problem to solve is clear. We try to avoid using automation as a hammer searching for a nail; rather, we focus on identifying clear problems to solve then apply holistic strategies on how to solve them that include the use of technology where it makes sense.”  

“Manufacturers are investing in more advanced machines, robotic materials handling, and autonomous logistics,” says Busiek. “These machines and robots need to be orchestrated, raising the need for data integration across the full organization.” 

Because consumers expect products that meet their exact needs and information to be available at any time, manufacturers are tasked with customizing at scale and providing detailed communication throughout processes. “At the most mature, ‘track and trace’ enables manufacturers to track every order from the moment it’s placed, through production, until it’s shipped, installed, and beyond, and they can use this information to maintain an ongoing relationship with the consumer,” says Busiek. “We see this spreading in the flat glass market already. There’s opportunity for window and door manufacturers to follow suit.”

Materials, Costs and Supply 

Inflation and increasing material prices are causing some manufacturers to notice “value engineering” among their customers. Survey respondents noted it affects their businesses in several ways. Several note they are selling less expensive products in high-end homes, most notably using vinyl in homes where they’d typically use wood windows.  

Some, however, note that part of the job is to give customers an option of the best value and it simply is part of working in this industry.  

“Value engineering is about enhancing the product in a way that will also reduce the cost for today's builders and homeowners. For example, rather than outsourcing materials, producing those materials in-house to be able to reduce cost while also improving the quality of the product,” says Josh Jensen, YKK AP president, residential. 

Persistently high mortgage and interest rates deter people from moving into new homes, especially those who locked in historically low rates several years ago. Most commentary in this year’s survey note that these high rates cause homeowners to defer, but not cancel, their window and door replacement or home building plans.  

Other companies have redirected some of their work to focus more on replacement versus new construction, commercial construction and multifamily housing, which one notes makes up the difference of the slow single-family business.  

“We aren’t seeing an issue in our markets across the Southeast,” says Jensen. “While the rates haven't had a dramatic effect, what we do continue to see is high inventory on new construction and low inventory on existing homes.” 

Nationally, homebuilders think they can grow 2025 single-family starts by 15% (1.1 million single-family starts) before hitting supply disruptions, according to data from JBREC. Conversely, building materials dealers are still concerned about potential supply chain disruptions this year if single-family starts grow by more than 10%. 

The sales and marketing team at Quanex shares some of their top tips for material procurement in a sometimes challenging landscape. “We maintain good relationships with our key suppliers, which helps us get essential materials reliably. However, global supply chain issues, including geopolitical tensions and lingering COVID-19 disruptions, can create problems for any company. Some materials can take longer to arrive, and others have fluctuating prices. We continue to keep a close eye on our inventory and are always looking for ways to reduce the risk of shortages. So, while we face challenges, we are taking steps to keep our material procurement process efficient and effective.” 

Opportunities and Challenges 

Mergers & Acquisitions: Industry Perspectives 

2024 was another busy year for mergers and acquisitions in the fenestration industry. Companies that have noticed business changes share some insights.  

What challenges have arisen from the industry’s M&A activity? 

• It’s very challenging to have new reps that do not know the product line. 
• There’s more business in fewer hands, but opportunities have arisen for key suppliers. 
• It will become increasingly more difficult for small, independent manufacturers to compete in a market controlled by very large competitors. 
• With mergers in our industry, we get more products to offer, which has been a benefit. 
• Mergers seem to be increasing prices. 
• Fighting larger competition is a challenge.  
• Consolidation creates a lack of competition and raises prices. 
• It has shrunk the available manufacturer options for products. Inconsistent lead times are consistent. 
• There is less competition and higher prices. 
• Supplier reduction results in cost disadvantages and offerings. 
• There are more strategic partnerships. 
• Smaller fabricators will find it increasingly difficult to compete with consolidated industry giants. 
• Every merger is a challenge and an opportunity. Getting people on a single team to work together efficiently is a challenge. Getting two companies to work together is a little bigger challenge. 
• Long-term relationships are coming into question. 
• There are opportunities to standardize and update. But there is the loss of some very good friends in the industry. 

“Recent M&A activity has reshaped the fenestration landscape, creating both challenges and opportunities. On one hand, increased consolidation has intensified competition, as larger players gain access to broader resources and capabilities. On the other hand, it has created opportunities for differentiation through innovation and customer-centric strategies.” –Greg Koch 

“As industry professionals migrate to new companies, our ongoing relationships often lead to continued or new business opportunities, underscoring the value of our enduring customer connections.” –Joe Shaheen 

“Mergers and acquisitions are reshaping the competitive landscape within our industry, driving the need for seamless integration of diverse operations across multiple production sites. The challenge for these merged companies is seamlessly integrating different cultures, product mixes, and software solutions. Additionally, consolidation creates opportunities for innovation and shared best practices.” –A+W team 

Company Culture 

Company culture repeatedly appeared in survey responses as important to employers and employees alike. Some of their most important company initiatives are: 

• Recycling 
• Community involvement 
• Corporate stewardship 
• Support of local charities 
• DEI 
• Pay transparency 
• Corporate foundation 
• Veterans program support 

“We recycle all waste, including foam, plastic, cardboard and metal. We focus heavily on community involvement through things like food drives, blood drive adoption of an entire elementary school of underprivileged children for Christmas.” –Industry Pulse respondent 
 

“More than ever, we are finding that customers care about who they are doing business with and are more engaged throughout the entire sales process. They value long-term partnerships and look for their suppliers to be solutions providers.” –Quanex  
 

“YKK AP’s beliefs in a shared community for the better are deep and vast. It regularly provides support to children, education, environment and community needs. Management empowers employees to give back to the community. Sustainability is another value that is infused into every aspect of YKK AP’s business. YKK AP was recently recognized for its sustainability efforts by being named to the Georgia Water Coalition’s Clean 13 Report. In addition to developing products designed to block heat, provide insulation and improve ventilation in the built environment, YKK AP manufactures its products sustainably.” –Josh Jensen, YKK AP