Key Takeaways from NAHB IBS 2020

The NAHB International Builders' Show (IBS) 2020 was a busy and exciting show for LP, including several product introductions, illustrations of new ways of thinking, and engagement among builders and remodelers. 

The following is a list of highlights from the LP booth.

• LP Purpose Statement: At LP, our vision is to be a leading building solutions company and our goal is to deliver top tier shareholder return. In 2020, we're rolling out what drives our 4,500+ employees to do what they do so well - our purpose. At LP, we are "Building a Better World"!
• Launch of LP Structural Solutions: This branded portfolio consists of framing and sheathing products technologically engineered to combat the resiliency demands of different geographical markets. The Structural Solutions portfolio combats key resiliency issues, including moisture management, thermal bridging, radiant barrier, strength and fire resistance/delay.
• Introduction of LP WeatherLogic^® Water Screen: This newest member of LP Structural Solutions is a synthetic polymer-based screen that can be used with OSB and a WRB housewrap or in conjunction with an integrated panel, like LP WeatherLogic^® Air & Water Barrier. It helps to maximize the moisture protection of a home and potentially extend the life of the exterior surfaces by adding increased ventilation and drainage.
• LP^® SmartSide^® ExpertFinish^® Trim & Siding Rollout: The newest member of the LP SmartSide portfolio is available with a new LP^® SmartSide^® ExpertFinish^® Lap to minimize the need for seam caulking, joint molds or pan flashing. With 16 colors and a variety of SKUs and finishes, it complements all style and design needs.
• Higher Heights for LP Elements^® Performance Fencing: After a 2019 launch, the engineered wood fencing product line expanded with the addition of 8-foot pickets.

But IBS is more than just a time for us to share our latest news. It is also a time for us to learn, and the 2020 show proved to be an informative one. Captured below are a few key learnings we gathered from the show.

Four Major Consumer Trends Impacting Housing Decisions

During the Qualified Remodeler 2020 Insights Presentation, representatives from John Burns Real Estate Consulting spoke on "How 4 Massive Consumer Shifts Are Impacting Remodeling and Building." By analyzing trends, forecasts and data, the team is predicting four key consumer shifts in many industries that will be impacting market share in building products.

1. Sustainability. As evident in many CPG sectors, the drive for consumer sustainability is often driven by two major factors—status and/or savings. Supporting the “status” theory, products that showcase a buyer's sustainable choice sell more than those that don't make it as blatant to others. On the other hand, savings are often driven by outside forces, like government regulation. Two examples of increasing government regulation are the solar mandates in California and New York for sustainability letter grades (similar to health scores) for buildings more than 20 000 square feet. To succeed here as a building product brand, it's imperative to use easily digestible terms to educate the end user on both the investment cost as well as environmental and longer-term financial savings.
2. Convenience. Aging populations, dual-income households short on time, and Millennials with less focus on household management are three consumer forces driving greater convenience. Today's buyers are looking for products designed to eliminate “lifehacks” by being the lifehack. Think smart technology and AI. These products should be right-sized, lower maintenance, more durable and easier to take care of. But even before product usage, make sure the product decision is convenient. Limit choice but don't eliminate it. Shift to selling packages that take a lot of the homework and guesswork out of the decision-making process.
3. Value. This doesn't mean paying less. In fact, it can mean paying a little more as long as you get a lot more. Differentiate your product or offering by what matters most to your audience and offer a level of personalization.
4. Healthy Living. Develop wellness-oriented design and then be sure to market it. Turns out, the marketing of healthy living is a big miss for the industry. But remember that consumers are looking for data to help inform and drive their lifestyles. For example, including and marketing air purifiers is not enough. Consumers want to know just how clean their air is. Therefore, air quality monitors are a way to appeal to this data-driven and more critically informed buyer.

Innovation in the Industry

In an industry ripe for innovation, is it really happening? During a recent conversation with Hanley Wood vice president of programming Jennifer Castenson, we discussed how "innovation" is an overly used word. Together, we questioned if "new" always means "innovative." We are aligned that innovation is truly present when you take a "disease-backed" approach rather than a "cure-first" one. We work in an industry riddled with diseases-labor issues, rising land costs, increasing regulations, increasing resiliency needs-but that also means we work in an industry ripe for cures as a result. So, while we can all agree that the need for a cure truly exists, the market is challenged by implementing innovation and bringing it to life.

In closing, IBS 2020 proved to be another valuable week for LP. By approaching the week in a two-fold manner-to connect and share our latest news with others while absorbing the knowledge of our peers within the industry-we have collectively taken one step closer to elevating the industry to a higher-performing state. Because as they say, a rising tide lifts all boats.