A characterization of the nonresidential fenestration market

TLDR: In this paper, the authors characterize the nonresidential fenestration market in order to better understand market barriers to, and opportunities for, energy-efficient FENestration products.

Abstract: The purpose of this report is to characterize the nonresidential fenestration market in order to better understand market barriers to, and opportunities for, energy-efficient fenestration products. In particular, the goal is to: (1) Better understand how glazing products flow between industry groups. (2) Identify major decision makers directing the product flow. (3) Understand industry trends for certain technologies or products. (4) Characterize the role of energy codes and standards in influencing industry trends. (5) Assess the impact of product testing and certification programs on the industry. The U.S. glass industry is a $27 billion enterprise with both large producers and small firms playing pivotal roles in the industry. While most sectors of the glass industry have restructured and consolidated in the past 20 years, the industry still employs 150,000 workers. Nonresidential glazing accounts for approximately 18% of overall U.S. glass production. In 1999, nonresidential glazing was supplied to approximately 2.2 billion ft{sup 2} of new construction and additions. That same year, nonresidential glazing was also supplied to approximately 1.1 billion ft{sup 2} of remodeling construction. With an industry this large and complex, it is to be expected that many market participants can influence fenestration selection. If market barriers to the selection of high performance fenestration products are better understood, then the U. S. Department of Energy (USDOE), the Northwest Energy Efficiency Alliance (NEEA), and others can develop programs and policies that promote greater energy efficiency in commercial glazing products.

Figures

Figure 2 – ASHRAE 90.1-

Figure 3 –

Figure 1 – Supply-

Figure 5 – Heating and Cooling Loads Imposed by Nonresidential Glazing29

Figure 1 – Supply-

Figure 6 – Pacific Northwest Supply-Side Market Flow.................................................... 66

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Nonresidential Fenestration Market Research
July 25, 2002
Prepared for
Lawrence Berkeley National Laboratory (LBNL)
Northwest Energy Efficiency Alliance (NEEA)
142 Minna Street
San Francisco, California 94105
(415) 957 1977 Voice
(415) 957 1381 Fax
www.eley.com

A Characterization of the Nonresidential Fenestration Market Final Report
Eley Associates, May 19, 2003 Page i
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Eley Associates prepared this report under contract to the Lawrence Berkeley National
Laboratory (LBNL. The Northwest Energy Efficiency Alliance (NEEA) also provided
financial support to Eley Associates for the completion of this project.
The authours would like to thank and acknowledge the contributions of their colleagues.
Kimberly Got (Eley Associates) was the copy editor and also assisted with the graphics
production. Joe Eto (LBNL), John Jennings (NEEA), and Jeff Harris (NEEA) also
reviewed the document and provided valuable comments.
An outside review group contributed significantly to the development of this document
through their review and feedback. This group included Carl Wagus (American
Architectural Manufacturers Association), Jim Benney (National Fenestration Rating
Council), and John Hogan (City of Seattle). Finally, special acknowledgement must be
given to the many industry representatives interviewed who volunteered their time to
provide valuable insight into the fenestration industry contained in this report.
This work was supported by the Assistant Secretary for Energy Efficiency and
Renewable Energy, Building Technologies Program, of the U.S. Department of Energy
under Contract No. DE-AC03-76SF00098.

A Characterization of the Nonresidential Fenestration Market Final Report
Eley Associates, May 19, 2003 Page ii
Acknowledgements..................................................................................................................i
Executive Summary.................................................................................................................2
Introduction..............................................................................................................................6
Methodology.............................................................................................................................7
The Supply Side of the Market .............................................................................................10
Primary Glass Manufacturers .......................................................................................15
Coaters .........................................................................................................................15
Fabricators ....................................................................................................................16
Specialty Equipment Suppliers.....................................................................................17
Glazing Contractors ......................................................................................................18
Framing Suppliers.........................................................................................................19
Window Manufacturers .................................................................................................20
The Demand Side of the Market...........................................................................................21
Architects ......................................................................................................................21
Owners/Developers ......................................................................................................22
Mechanical Engineers...................................................................................................23
Electrical Engineers ......................................................................................................23
Glazing Contractors ......................................................................................................23
Industry Trends......................................................................................................................25
Transparent Glass ........................................................................................................26
Greater Use of Punched Opening Windows.................................................................27
Low-e Coatings.............................................................................................................27
Post-Temperable Coatings...........................................................................................29
Thermally Broken and Thermally Improved Frames ....................................................30
Vinyl Frames.................................................................................................................32
IG Units .........................................................................................................................32
Triple Pane Fenestrations.............................................................................................32
Spacers.........................................................................................................................33
Argon Fill.......................................................................................................................34
Tinted Glass..................................................................................................................35
Reflective coatings........................................................................................................35
Laminated Glass...........................................................................................................36
Energy Efficiency Codes...............................................................................................37
ASHRAE/IESNA Standard 90.1....................................................................................39
Product Certification and NFRC ...................................................................................41
Other Trends.................................................................................................................44
Barriers ...................................................................................................................................45
Custom Fabricators.......................................................................................................45
Owner Incentive............................................................................................................45
Initial Cost .....................................................................................................................45
Reliability Concerns ......................................................................................................46
Traditional Bid Process.................................................................................................46
Performance Options in Energy Codes ........................................................................47
Downsizing is a Hard Sell.............................................................................................47
Vague Specifications ....................................................................................................47
Improper Design ...........................................................................................................47
Historic Buildings ..........................................................................................................48
Opportunities .........................................................................................................................49
Reduce the Use of Monolithic Glass.............................................................................49
Analysis Tools...............................................................................................................49
Help Owners Understand the Benefits .........................................................................50
Education......................................................................................................................51

A Characterization of the Nonresidential Fenestration Market Final Report
Eley Associates, May 19, 2003 Page iii
The Replacement Market .............................................................................................52
Glazing Films ................................................................................................................52
Energy Efficiency Programs .........................................................................................53
Better Communication Among the Design Team .........................................................53
Promote High Performance Tints .................................................................................54
Provide Showcase Buildings ........................................................................................54
Address Energy Efficiency at the Planning Stage ........................................................54
Energy Savings Potential......................................................................................................55
Glossary of Terms .................................................................................................................57
Bibliography...........................................................................................................................60
Appendices.............................................................................................................................61
Appendix A –NFRC Rating and Certification Procedures for Site-Built Fenestration ..61
Appendix B – Fenestration Product Flows in the Pacific Northwest.............................65
Appendix C –Survey Instruments .................................................................................69
Glass Manufacturers and Coaters............................................................................69
A&E Firms.................................................................................................................70
Glazing Contractors..................................................................................................72
Frame Manufacturers ...............................................................................................74
Shop-Built Window Manufactures ............................................................................75
Laminate and Applied Film Manufactures................................................................77
Figures
Figure 1 – Supply-Side Market Flow.................................................................................12
Figure 2 – ASHRAE 90.1-1999 Fenestration U-factor Requirements ..............................40
Figure 3 – ASHRAE 90.1-1999 Fenestration SHGC Requirements (0.2-0.3 WWR)........40
Figure 4 – Current Use of ASHRAE Standard by State....................................................41
Figure 5 – Heating and Cooling Loads Imposed by Nonresidential Glazing ....................55
Figure 6 – Pacific Northwest Supply-Side Market Flow....................................................66
Tables
Table 1 – Total Annual Flat Glass Production ..................................................................13
Table 2 – PGM Output of Nonresidential Fenestration (millions of ft
2
).............................13
Table 3 – Nonresidential Fenestration Input to Glazing Contractors (millions of ft
2
) ........14
Table 4 – Total Nonresidential Fenestration (millions of ft
2
) .............................................14
Table 5 – Projected Costs for NFRC Testing and Labeling of Glazed Wall Systems ......64
Table 6 – PGM Output of Nonresidential Fenestration (millions of ft
2
).............................67
Table 7 – Nonresidential Fenestration Input to Glazing Contractors (millions of ft
2
) ........67
Table 8 –Total Nonresidential Fenestration (millions of ft
2
) ..............................................68

A Characterization of the Nonresidential Fenestration Market Final Report
Eley Associates, May 19, 2003 Page 2
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The U.S. glass industry is a $27 billion enterprise
1
with both large producers and small
firms playing pivotal roles in the industry. While most sectors of the glass industry have
restructured and consolidated in the past 20 years, the industry still employs 150,000
workers.
2
Nonresidential glazing accounts for approximately 18% of overall U.S. glass
production.
3
In 1999, nonresidential glazing was supplied to approximately 2.2 billion ft²
of new construction and additions.
4
That same year, nonresidential glazing was also
supplied to approximately 1.1 billion ft² of remodeling construction.
5
The nonresidential fenestration industry begins with the primary glass manufacturers
(PGMs), who manufacture flat glass. There are only six PGMs operating nearly 30
manufacturing plants nationally. PGMs are limited in number partly because of the large
investment required to construct a float line and the need for a strong customer base to
buy the product. The flat glass product that leaves the float line can be clear or tinted and
may have a pyrolytic coating applied to one surface of the glass. Flat glass may then go
to a coater, which may be part of the PGMs’ operation or a separate, independent entity.
Coaters use a high technology sputter process to apply a thin (usually multi-layer) coating
to the surface of the glass. Both pyrolytic and sputter coatings can be applied to either
clear or tinted glass. The coatings may have many properties such as a low emittance
(low-e) and/or low transmittance (high reflectance). After glass is coated, it moves to the
fabricator who assembles it into an insulated glass (IG) unit.
6
The IG units then go to
either a window manufacturer (shop-built windows) or to a glazing contractor (site-built
windows).
1
U.S. Department of Energy. “Glass Industry Analysis Brief.”
www.eia.doe.gov/emeu/mecs/iab/glass/index.HTML
, Aug. 2000.
2
Ibid.
3
Industry Statistics.
Glass Magazine
, Aug. 2000. Data for other glazing markets (residential,
automotive, and specialty) are located in Table 1.
4
Ducker Research Company. “The Distribution of Residential Doors and Windows in the 1999
U.S. Market.” April 2000.
5
Ibid.
6
IG unit is an industry term that is generally used to represent double pane windows.