End users, commercial businesses and public institutions helped the U.S. sunshade industry soar to new heights last year. The Corona pandemic served as a catalyst, driving demand for outdoor living products such as awnings and canopies. The outlook for the future is also positive.
For sun protection manufacturers and converters in the USA, the past year went better than initially indicated due to the pandemic. This is reported by Jeff Moravec in the February issue of Specialty Fabrics Review, the association magazine of Industrial Fabrics Association International (IFAI). According to industry representatives he interviewed, it was the pandemic that provided a boost to investment. Newly established outdoor lounges demanded sun protection. In addition to the catering industry, many other businesses as well as schools and public institutions also demanded appropriate solutions.
Increased demand due to home office
In addition, people were spending more time indoors, not least due to home offices. There was an increased need to invest in outdoor space and corresponding outdoor recreation opportunities. Money for this was available, among other things, through fancy vacations. “I think with people stuck at home, and the economy still pretty good, families had extra money from not going on vacation, not going out to eat, not driving the car much,” Moravec quotes Tim Kellogg, President of Capital City Awning in Columbus, Ohio.
As Kellogg continues, people were looking not only for shading solutions for the warm months, but also for ways to extend their time outdoors beyond the summer season. “People needing to stay home figured out they didn’t want to just withdraw into the interior recesses of their homes, especially as the days got shorter,“ Kellogg says in the article. “They enjoy the outside space so much they want to try to continue to use it through the winter. Otherwise, there’s just too much cabin fever.”
Utilization rate remains high
This mix of factors boosted demand for outdoor living solutions in 2020. For 2021, the industry representatives surveyed by Moravec expected continued high investment activity. It is therefore quite possible that market growth will exceed earlier forecasts. For example, market researchers at Grand View Research projected that awning sales in North America would increase to $3.64 billion between 2016 and 2024, with annual growth of 4.4 percent. The U.S. market would be responsible for well over 80 percent of sales.
Awnings popular in housing
According to the market study, retractable and extendable patio awnings are by far the most sought-after awning products in the United States. These are used primarily in residential construction. At the time of publication in 2016, the analysts already saw the growing desire of end consumers to use the outdoors as the driving force behind the rising demand. A desire that has intensified in the context of the pandemic. Product innovations and features such as motorization, remote control, and wind and sun sensors for automation are also positively influencing demand, according to the market researchers. Fixed, immovable awning canopies are particularly in demand in the commercial sector, for example for use on hotels, restaurants or retail outlets.
Canopies as an alternative product
The fact that the demand for awnings is not growing unceasingly is due to the alternative products that compete with the awning in the outdoor living sector, both residential and commercial. For example, canopies of various types (free-standing, wall-mounted; fabric, glass, metal, wood, various plastics). In this regard, Grand View Research has published a study in 2019. The authors expect the market for canopies in the USA to grow significantly by 2025, as such solutions are increasingly used in residential construction to provide shade. According to the analysts, demand is also likely to be driven by rising installation of car canopies for recreational shade protection and outdoor car storage to maximize housing storage capacity.
The general background to the increasing demand for roofing, as with awnings, is the desire of end customers to spend more time outdoors and to extend their living space to the outside. In this context, roofing solutions that are closed all around with side elements, such as glass patio roofs, are particularly suitable for using the outdoor area regardless of the season and weather.
Inquired: Peer Cornelssen, Manager International Sales at Markilux
R+T markets: Mr. Cornelßen, how important is the US sun protection market for Markilux?
Cornelßen: In principle, of course, the market offers great potential simply because of its size and purchasing power. However, as in European foreign markets, Markilux focuses on clearly defined market segments and sales areas. Here, we are pursuing our sales channel via a qualified network of specialist dealers for sustainable growth. The quality and design of Markilux products made in Germany are of course in the foreground.
R+T markets: What are the product advantages of Markilux in the USA?
Cornelßen: High-quality products made in Germany have a very positive image in the USA. This positive image is reinforced by the design standards and the high degree of Home Automization. With our product range, we are very strongly positioned in these areas and can offer clear differentiators from the established products of US manufacturers.
R+T markets: How is the market development carried out? Who belongs to your target group?
Cornelßen: In the USA, we focus on a narrowly defined segment in the top income brackets. This is naturally also reflected in the marketing channels and content, which are selected and formulated accordingly. Our target groups – in both B2B and B2C – are in the upper to luxury segments, are design-savvy, and appreciate durable products with special technical features.
R+T markets: Who distributes and assembles the products in the USA?
Cornelßen: Since the entire sales and installation service as well as the after-sales service must be set at the same high level as the products, Markilux also sells the product range in the USA exclusively through qualified stationary specialist dealers. These in turn are professionally supported by the Markilux USA team with its headquarters in New York City.