Market Entry Strategy

in the US & Canada

Phase I: Desk Research

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2

Table of Contents

3. Potential Customers

3.1 General Contractors & Subcontractors

3.2 General Contractors

3.2.1 U.S. Nationwide

3.2.2 U.S. Customer’s Profile

3.2.3 U.S. Local

3.2.4 Canada Nationwide

3.3 Subcontractors

3.3.1 U.S. Nationwide

3.3.2 U.S. Costumer’s Profile

3.3.3 U.S. Local

3.3.4 Canada Nationwide

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• Competitive Analysis

4.1 General Contractors & Subcontractors

4.2 Competitors

5. Regulation & Safety

5.1 Regulation

5.2 Safety

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1. Introduction

1.1 Executive Summary

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• Market Overview

2.1 Market Demand Drivers

2.2 Market demand Outlook

2.3 U.S. Market

2.3.1 Demand

2.3.2 Overall Estimated Market Size 2020

2.3.3 U.S. Real Estate Industry

2.3.4 Importance of Balcony

2.3.5 Material Type by Region

2.3.6 Historic Data

2.3.7 Estimated Market Size Top 10 Cities

2.3.8 Balcony Trends

2.4 Canadian market

2.4.1 Demand

2.4.2 Overall Estimated Market Size

2.4.3 Estimated Market Size Top 10 Cities

2.4.4 Historic Data

2.4.5 Balcony Trends

2.5 Distribution Channel

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3

1. Introduction

1.1 Executive Summary

2. Market Overview

4

• The growing construction industry across the globe coupled with rising population, rapid urbanization, and industrialization in emerging economies is expected to drive market growth over the next eight years.*
• The demand for balconies”” in the US and Canada is driven by several factors, including the
• macroeconomic environment
• demographics
• residential construction starts
• repair and remodel (R&R) expenditures
• Of the many factors influencing the demand for balconies materials, new residential housing starts and R&R activities are the primary drivers of demand.

5

2. Market Overview

2.1.1 Market Demand Drivers

Source: Grand View Research*.THE FORESTRY CHRONICLE, Census Bureau’s Survey of Construction

6

2. Market Overview

2.1.2 Future & Market Trends

Source: Interviews with customers in 2020 in the US and Canada

The trends that Client potential customers focus on are mostly based on materials, and the result of using specific materials:

An additional trend was based on end-users usage of the balconies. The balconies need to be able to accommodate an Outdoor Kitchen or come with one.

• Environmental Friendly
• Esthetically demanded
• Trendy and increasing demand in Canada and the US
• Durability and strength has been increased through the use of special glues

• Faster to produce
• Cheap
• Can be fastened to a building during any phase of construction

In order to estimate balcony market size we have chosen to look at balconies for multifamily home (apartments), specifically multifamily homes to be constructed.

Millennials will continue to move into homeownership and multifamily demand will remain sufficient to absorb most The National Multifamily Housing Council and the National Apartment Association estimated that, to meet structural demand, apartment developers would need to add an average of 325,000 new unit completions annually between 2017 and 2030.

On pace to exceed that figure in 2017, 2018, and 2019, developers believe they are still releasing pent-up demand from the Great Recession years between 2009 and 2014, when production plummeted well below historical average starts of 344,000 units annually.

7

2.2 Market Demand Outlook

Source: *RealPage, Inc. **Apartments listed on Zillow (3/9/20)

2. Market Overview

8

21%

Of the homes in U.S. apartments

67.35%

Apartments have balconies

2.3 U.S. Market

American Housing Survey (AHS) conducted a market survey where they found out that 67.35% of multifamily (apartments) complexes with 5 or more units have balconies.

2. Market Overview

Source: Principa Consulting, Us Census, American Housing Survey

2.3.1 Demand

Projected New Apartment units.

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9

Source: *CBRE Multifamily.

280,000*

188,580

Units with Balconies, 67.35%.

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£942,900,000

Market Size 2020.

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£5,000

Average unit price

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2. Market Overview

2.3.2 Overall Estimated Market Size 2020

2.3 U.S. Market

Forecasted to grow 6.5% by volume and 6.25% by value.

10

2.3 U.S. Real Market

Source: PWC, Plastic News

$3.1 billion

2018 market value at the net manufacturer level

$3.7 billion

Market value at the net manufacturer level by 2021

The industry that says it needs more than 4 million new units of rental apartments between now and 2030

2. Market Overview

2.3.3 U.S. Real Estate Industry

11

Source: Statista

2.3 U.S. Market

2. Market Overview

2.3.4 Importance of Balcony

Statista shows the results of a survey conducted in the United States in 2017 on the importance of a nice balcony.

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The result indicates that balcony is either very important or somewhat important

Wood and wood alternative deck have a major market share in the Deck Market, which means that aluminum balconies market share within the deck market is marginal.

12

Source: Principa Consulting

2. Market Overview

Wood Alternative

Wood

Other

2.3.5 Material Type Demand by Region

2.3 U.S. Market

13

Source: CBRE Research (2020 forecast), CBRE Econometric Advisors (history, 2019 estimate),

2.3 U.S. Market

2. Market Overview

2.3.6 Historic Data

The 2020 U.S. Real Estate Market Outlook notes that permits and starts are likely to dip this year due to lower demand

​

240,000 units this year versus 300,000 last year and that there are so many properties under construction that completions are on target to come in at 280,000 new units, just 1,000 less than in 2019.

​

This growth is expected to continue the next years.

Market size in Top 10 cities with the most apartment units to complete in 2020.

14

Source: *RealPage, Inc.

2. Market Overview

2.3.7 Estimated Market Size in Top 10 Cities

2.3 U.S. Market

• Growing construction industry across the globe coupled with rising population, rapid urbanization, and industrialization in emerging economies is expected to drive market growth over the next eight years.*
• A bolt-on balcony system increases safety for occupants and fire fighters, nearly eliminates replacement costs, and greatly reduces install time.
• Installation of a bolt-on balcony is about 30% faster compared to a wood installation. This aluminum system is also about 110% longer lasting than a wood balcony
• It appears to that practically all condominium buildings, whether converted from commercial structures or upgrades of existing condos, have patios or balconies.
• A sustainable awareness is trending, which includes green balconies. To own a balcony for green gardening is now increasing in popularity among Urban citizens.

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15

Source: Grand View Research. Brick Underground, Midwest Stairs & Iron, Chicago Tribune, North American Deck and Railing Association

2. Market Overview

2.3.8 Balcony Trends

2.3 U.S. Market

16

50.8%

Apartments have balconies

2.4 Canadian Market

City of Vancouver launched a Laneway Housing Survey and found out that 50.8% have balcony. From the standpoint of forecasting future demand nationwide, it provides a certain minimal level of satisfaction. How-ever, we can use related data from the Abstract to develop guidelines to direct future demand.

2. Market Overview

Source: City of Vancouver

2.4.1 Demand

17

2.4 Canadian Market

Source: Canada Mortgage and Housing Corporation (CMHC)

59,766

£ 298,830,000

£5,000

2. Market Overview

2.4.2 Overall Estimated Market Size

117,651*

Projected new apartment units in 2019

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Units with balconies, 51%

Market Size 2020

​

​

Average unit price

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18

Source: CMHC, Nova Scotia, Renx, Ottawa Business journal, CTV News, Montreal Gazette, Winniepeg Free Press, Rental.ca, Altus Group

2. Market Overview

2.4.3 Estimated Market Size Top 10 Cities

2.4 Canadian Market

Market size in Top 10 cities with the most apartment units to complete in 2020.

19

Source: CBRE Research (2020 forecast), CBRE Econometric Advisors (history, 2019 estimate),

2.3 Canadian Market

2. Market Overview

2.4.4 Historic Data

New construction of apartments have experienced a steady grow the last 5 years. The grow is expected to continue.

• The trend in housing starts was 210,915 units in January 2020, compared to 212,212 units in December 2019. This trend measure is a six-month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts.
• The standalone monthly SAAR(Seasonally Adjusted Annual Rate) of housing starts for all areas in Canada was 210,069 units in February, a decrease of 1.9% from 214,031 units in January.
• The SAAR of urban starts also decreased by 1.9% in February to 199,304 units. Multiple urban starts decreased by 6.1% to 146,072 units in February while single-detached urban starts increased by 11.9% to 53,232 units.
• The national trend in housing starts declined in February, driven by lower-trending multi-unit starts.
• Single and multi-unit starts in Toronto both trended lower, while activity in Montréal declined due to lower-trending multi-unit starts. This offset a slight up-tick in Vancouver, which follows four consecutive declines in that CMA(Comparative Market Analysis).

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Source: Canada Mortgage and Housing Corporation

2. Market Overview

2.4.5 Balcony Trends

2.4 Canadian Market

The distribution channel depends on what the product is. Balconies are often pre-fabricated and attached during the construction.

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Large contractors may get the balconies directly from the manufacturer (one-step distribution) or

• Through a distributor (two-step)
• Through a distributor and a trade contractor (two-and-a-half step)

Smaller contractors are ordering through a distributor and a local pro supply retailer (three-step).

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2.6 Distribution Channel

Source: Metal Construction News.

2. Market Overview

3. Potential Customers

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23

Facade Contractors

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Subcontractor

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A subcontractor is a company whom a general contractor hires to perform a specific task as part of an overall project. Façade Contractors work in architecture for exterior wall of a building, usually one with doors or windows. Often the word refers to a structure's front wall with an entrance.

Multifamily General Contractors

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General Contractors

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A Multifamily General Contractor is a company that is responsible for the physical construction of a new multifamily (defined as five or more units) rental development, (including student housing, independent living and age-restricted housing).

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3. Potential Customers

3.1 General Contractors & Subcontractor

General Contractors

3.2

Top 10 Nationwide Multifamily General Contractors in United States in 2019.

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3.2 General Contractors

3. Potential Customers

#1 Jacksonville, Florida

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#2 Phoenix, Arizona

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#3 Atlanta, Georgia

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#4 Rosemont, Illinois

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#5 Dallas, Texas

#6 Cleveland, Ohio

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#7 Boston, Massachusetts

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#8 Arlington, Virginia

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#9 Irving, Texas

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#10 Charleston, South Carolina

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3.2.1 U.S. Nationwide

Source: National Multi Family Housing

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3.2 General Contractors

Source: National Multi Family Housing

Historical Data

Regions of Operation

#1

2019 Ranking

National Multifamily General Contractor

Jacksonville, Florida

Headquarter

Summit Contracting Group is a leading National Multifamily General Contractor, with more than 350 multifamily projects completed. Molded by industry experience. Summit’s projects represent over 100,000 completed multifamily units. An experienced management team combined with strong subcontractor relationships has given Summit the ability to provide their clients with successful projects throughout the nation.

3.2.2 U.S. Customer’s Profile

3. Potential Customers

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Historical Data

Regions of Operation

#2

2019 Ranking

Multifamily Contractor

Investment, Property Management

Phoenix, Arizona

Headquarter

Source: National Multi Family Housing

Since the company’s inception, a powerful combination of the best architecture firms and an expanding roster of equity and debt partners have been involved in the development of more than 79,000 homes with a combined value of more than $14.1 billion.

3. Potential Customers

3.2 General Contractors

3.2.2 U.S. Customer’s Profile

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Historical Data

Regions of Operation

#3

2019 Ranking

Atlanta, Georgia

Headquarter

Multifamily Contractor

Acquisitions, Property Management

Since the company’s inception, a powerful combination of the best architecture firms and an expanding roster of equity and debt partners have been involved in the development of more than 79,000 homes with a combined value of more than $14.1 billion.

Source: National Multi Family Housing

3. Potential Customers

3.2 General Contractors

3.2.2 U.S. Customer’s Profile

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Historical Data

Regions of Operation

#4

2019 Ranking

Rosemont, Illinois

Headquarter

McShane Construction Company is a leading national industrial, commercial and multi-family construction firm – but we are so much more. Our buildings are more than just bricks and mortar – they are our clients’ visions turned into a reality.

National Contractor

Pre-Construction, Design/Build

Source: National Multi Family Housing

3. Potential Customers

3.2 General Contractors

3.2.2 U.S. Customer’s Profile

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Historical Data

Regions of Operation

#5

2019 Ranking

National Contractor

Acquire. Manage

Dallas, Texas

Headquarter

Mill Creek Residential develops, builds, acquires and operates high-quality apartment communities in desirable locations, coast to coast.

Source: National Multi Family Housing

3. Potential Customers

3.2 General Contractors

3.2.2 U.S. Customer’s Profile

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#6

2019 Ranking

National Contractor

Property Management

Historical Data

Regions of Operation

Cleveland, Ohio

Headquarter

The NRP Group is a vertically integrated developer, owner, builder, and manager of best-in-class multifamily housing

Source: National Multi Family Housing

3. Potential Customers

3.2 General Contractors

3.2.2 U.S. Customer’s Profile

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Historical Data

Regions of Operation

#7

2019 Ranking

National Contractor

Manager, Development

Boston, Massachusetts

Headquarter

Managing some of the most complex and exciting building construction projects in the country. Suffolk is also contracted for work in the aviation, commercial, education, healthcare, gaming and government secto

Source: National Multi Family Housing

3. Potential Customers

3.2 General Contractors

3.2.2 U.S. Customer’s Profile

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Historical Data

Regions of Operation

#8

2019 Ranking

National Contractor

Design/Build, Sustainable Design, Public/Private Partnerships

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Arlington, Virginia

Headquarter

Regardless of project type, CBG can provide professional services from concept through design, development, preconstruction, and construction for new and renovation projects. The CBG team's portfolio features more than 80,000 residential units and over 300 projects across the country.

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Source: National Multi Family Housing

3. Potential Customers

3.2 General Contractors

3.2.2 U.S. Customer’s Profile

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Historical Data

Regions of Operation

#9

2019 Ranking

National Contractor

Investement Management

Irving, Texas

Headquarter

JPI stands as one of the most active privately held real estate companies in America. For over 30 years, they have been committed to both the development and investment management of Class A multifamily assets. They have depth of industry-specific experience that includes garden-style communities, mid- to high-density wrap and podium projects, student housing, and mixed-use high-rise developments.

Source: National Multi Family Housing

3. Potential Customers

3.2 General Contractors

3.2.2 U.S. Customer’s Profile

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Historical Data

Regions of Operation

#8

2019 Ranking

National Contractor

Real Estate

Charleston, South Carolina

Headquarter

Greystar research opportunities to target the appropriate product type, unit mix, and architectural design. They are in-house general contractors to construct high-quality communities that meet consumer demand. They drill down on the critical underwriting variables, and continually refine the investment model to ensure that their projects are properly planned and capitalized.

Source: National Multi Family Housing

3. Potential Customers

3.2 General Contractors

3.2.2 U.S. Customer’s Profile

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U.S. Contractors 2020 in Top 10 Cities

Source: ENR.com

3. Potential Customers

3.2 General Contractors

3.2.3 U.S. Local General Contractors

In 2020, the U.S. is expected to see more apartment deliveries than at any point in the last three decades. Among the nation’s 50 largest apartment markets, all but six will see more units complete this year than last. To understand the local market we have looked at 10 cities with the most drastic supply hike is expected in 2020.

Top 10 Nationwide General Contractors 2019 in Canada.

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Source: ENR.com

3. Potential Customers

3.2 General Contractors

3.2.4 Canada Nationwide

Subcontractors

3.3

Top 10 U.S. Facade Contractors Nationwide in 2019

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3.3 Subcontractors

3. Potential Customers

A strong economy, expected growth in business, along with new technologies and innovations, were all listed as positives by this ranking of the nation’s top Façade contractor.

Source: USGlass, Metal & Glazing

3.3.1 U.S. Nationwide

#1 Jacksonville, Florida

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#2 Phoenix, Arizona

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#3 Atlanta, Georgia

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#4 Rosemont, Illinois

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#5 Dallas, Texas

#1 Jacksonville, Florida

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#2 Phoenix, Arizona

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#3 Atlanta, Georgia

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#4 Rosemont, Illinois

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#5 Dallas, Texas

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#1

2019 Ranking

1600

Number of Employees

Italy & Windsor, Connecticut

Headquarter

Permasteelisa Group is a worldwide leading Contractor in engineering, project management, manufacturing, and installation of architectural envelopes and interior systems. Headquartered in Italy with presence in many countries including North America.

3.3.2 Customer’s Profile

3. Potential Customers

19

Years in Business

7

Number of Location

$460 Million

2018 Annual Sales

Source: USGlass, Metal & Glazing,

3.3 Subcontractors

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#2

2019 Ranking

650

Number of Employees

Eagan, Minnesota

Headquarter

Enclos’ offers in any building program including innovative content in the form of advanced design, materials, systems or installation methods, and in programs incorporating BIM and LEED. Comprehensive design-assist and design-build services for high-performance building envelopes. Expert in the design, engineering, fabrication, assembly and erection of custom facade systems – dates to the very advent of curtainwall as building form. 

73

Years in Business

15

Number of Location

$333 Million

2018 Annual Sales

Source: USGlass, Metal & Glazing

3. Potential Customers

3.3.2 Customer’s Profile

3.3 Subcontractors

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#3

2019 Ranking

700

Number of Employees

Bloomington, Minnesota

Headquarter

Harmon, Inc. is a curtain wall contractor that provides design and installation of facades for commercial buildings. They are a trusted partner in the country to manage building façade projects. They have earned this reputation by infusing national capabilities into talent-packed, local offices. We form partnerships with our clients and subcontractors – with over 90% becoming repeat customers.

63

Years in Business

18

Number of Location

$290 Million

20178Annual Sales

Source: USGlass, Metal & Glazing

3. Potential Customers

3.3.2 Customer’s Profile

3.3 Subcontractors

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#4

2019 Ranking

330

Number of Employees

Fremont, California

Headquarter

41

Years in Business

3

Number of Location

$270 Million

2018 Annual Sales

Walters & Wolf is a West-Coast leader in premier cladding services including Curtain wall systems Glass, metal panels. They employ dedicated, consummate craftsmen, by producing impeccable work, by adopting innovative technologies, and by developing close relationships with our clients. They take direct responsibility for every phase of a project, from concept to completion

Source: USGlass, Metal & Glazing

3. Potential Customers

3.3.2 Customer’s Profile

3.3 Subcontractors

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#5

2019 Ranking

800

Number of Employees

Portland, Oregon

Headquarter

Benson Industries is a world leader in the design, engineering, fabrication and installation of custom curtainwall and façade systems. Benson Industries is committed to providing the global market unparalleled quality, design, engineering, supply, and installation of custom exterior cladding systems with professionalism and respect for colleagues and partners.

93

Years in Business

10

Number of Location

$225 Million

2018 Annual Sales

Source: USGlass, Metal & Glazing

3. Potential Customers

3.3.2 Customer’s Profile

3.3 Subcontractors

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#6

2019 Ranking

180

Number of Employees

Naunet, N.Y.

Headquarter

W&W Glass, LLC is the New York metropolitan area's largest architectural glass and metal contractor, specializing in Curtainwalls, Storefronts, Entrances, Ornamental Metal, Skylights, and Pilkington Planar structural glass systems. They the largest supplier of structural glass in North America.

40

Years in Business

1

Number of Location

$150 Million

2018 Annual Sales

Source: USGlass, Metal & Glazing

3. Potential Customers

3.3.2 Customer’s Profile

3.3 Subcontractors

46

#7

2019 Ranking

827

Number of Employees

Memphis, Tennessee

Headquarter

With over 66 locations in 15 states, Binswanger is the largest full-service designer, retailer, and installer of architectural glass and aluminum products within the construction, residential, and automotive markets in the United States

147

Years in Business

66

Number of Location

$165 Million

2018 Annual Sales

Source: USGlass, Metal & Glazing

3. Potential Customers

3.3.2 Customer’s Profile

3.3 Subcontractors

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#8

2019 Ranking

N/A

Number of Employees

Miami, Florida

Headquarter

Giovanni Monti & Partners (GMP)has over 15 years of experience in the design and installation of various building enclosure systems, such as curtain and window walls. They specialize in innovative architecture and challenging building projects throughout the United States. They work with architects, general contractors and developers to design and install industry leading glass enclosures.

35

Years in Business

2

Number of Location

$145 Million

2018 Annual Sales

Source: USGlass, Metal & Glazing

3. Potential Customers

3.3.2 Customer’s Profile

3.3 Subcontractors

48

#9

2019 Ranking

N/A

Number of Employees

Gary, Indiana

Headquarter

Crown Corr Inc. is an industry-leading subcontractor specializing in glass and aluminum curtain wall, metal panels and custom metal roofing building enclosure systems. Crown Corr is capable of designing and install all custom metal enclosure systems: Metal Wall Panels, Composites, Metal Roofing, Metal Plate, Louvers, and Sunshades

59

Years in Business

N/A

Number of Location

$130 Million

2018 Annual Sales

Source: USGlass, Metal & Glazing

3. Potential Customers

3.3.2 Customer’s Profile

3.3 Subcontractors

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#10

2019 Ranking

475

Number of Employees

Chandler, Arizona

Headquarter

Kovach is one of the nation’s largest integrated designers, manufacturers, and installers of products for the commercial building envelope, with our footprint expanding across the country. Building upon our longstanding history in the southwest, the Kovach team continues to provide innovation and excellence from coast to coast.

50

Years in Business

5

Number of Location

$105 Million

2017 Annual Sales

Source: USGlass, Metal & Glazing

3. Potential Customers

3.3.2 Customer’s Profile

3.3 Subcontractors

Top Facade Contractors In Top 10 Cities In United States

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Source: ENR.com

3. Potential Customers

3.3.3 U.S. Local

3.3 Subcontractors

51

3.3 Subcontractors

3. Potential Customers

Source: Company Homepage

3.3.4 Canada Nationwide

Toronto, Ontario

Montreal, Quebec

Toronto, Ontario

Toronto, Ontario

Toronto, Ontario

Port Coquitlam,

British Columbia

Surrey, British Columbia 

Windsor, Ontario

Port Coquitlam,

British Columbia

Whistler, British Columbia

4. Competitive Analysis

52

4. Competitive Analysis

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4.1 Overview Of The Competitive Landscape – Balcony Suppliers Market

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�

Source: SIS representation

• High initial capital investment.
• Proprietary technology is required to be successful
• Customers are not loyal; the lowest bid usually wins.
• Strong government regulations

• Customers have a few firms to choose from, and therefore, do not have much control over prices
• The quality of the products is important to the buyers. This means that the buyers in the industry are less price sensitive.

• With Aluminum being a commodity, Client can enjoy relatively high bargaining power as prices are determined on demand and supply.
• The product that these suppliers provide are fairly standardized and less differentiated

Threat of

New Entrance

Low

Bargaining power of

Customers

Low

Bargaining power of

Supplier

Low

Competitive

Rivalry

Low

• The number of competitors in the industry are very few. Most of these are also large companies.
• A positive Industry growth means that competitors are less likely to engage in completive actions because they do not need to capture market share from each other.

Threat of

Substitute

Medium - High

• New and emerging innovative methods and processes within construction industry.
• There are various substitutes for Bolt-On Balconies.
• The main substitutes
• Rooftops
• Common Backyard
• Other outdoor space

4. Competitive Analysis

54

Source: SIS representation

Features

Deciron

Midwest Stairs & Iron

Schock

Trex Company, Inc

Wahoo Decks 

Services

Locations

Headquarter

• Balconies
• Deck Railings
• Faux Balconies

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• Alumunium Bolt-on Balconies
• Steel Stairs
• Metal Railing Systems
• Miscellaneous Metals

• Balcony
• Canopy & Beam
• Parapet & Rooftop
• Slab Edge Products
• Reinforcement
• Wall

• Composite Dekcing
• Deck Railing
• Deck Framing & Drainage
• Cladding

• Prefabricated Balcony System
• Aluminium Railing System
• Alumunium Decking
• Waterproof Deck System

• United States

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​

Charlotte, North Carolina

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• United States
• Canada
• Germany

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​

• United States
• Canada

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​

• United States
• Canada
• Mexico

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Source: Company Websites,

• United States

​

​

Milwaukee, Wisconsin

Princeton, New Jersey

Ottawa, Ontario

Winchester, Virginia

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Dahlonega, Georgia

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4.2 Competitors

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5. Regulation & Safety

55

• Specific codes and regulations apply to balcony construction. Live loads and defection play a part in safety and design.
• Any building with more than two residential units must be inspected*
• If the users of the structure are uncomfortable with a bouncing defecting floor, the structure has “failed” from a serviceability standpoint. Tough the balcony structure may be considered safe, ideally, safety shouldn’t be a question.
• A thicker aluminum choice versus wood can also serve to eliminate most balcony defections, as well as increase live load amounts. Any balcony rails built beyond the standard 200 lb. lateral load will feel sturdier.**

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56

5. Regulations & Safety

5.1.1 Regulations

Source: Partner Engineering & Science Inc. Dudka Criterium Engineers

• The first inspection of exiting apartment building in California must be completed before January 1, 2025, and subsequent inspections are required every 6 years after January 1, 2025, or by or before January 1, 2031.
• Today, there must be no more than a 4-inch gap where previously, 6 inches was allowed.
• Annually, check the attachment of the railing.  Grab the railing at the top and shake it vigorously.  If there is any looseness, the railing should be more solidly attached for your safety.
• The height of the railing is recommended to be at least 36 to 42 inches.  Lower than that does not provide a safe enclosure for adults or children.

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57

5. Regulations & Safety

5.1.2 Regulations (2)

Source: California Deck Inspection , . Dudka Criterium Engineers, Artmetal

• Deck and balcony accidents are generally caused because of a problem with construction that compromises the structure and causes it to collapse.** 
• From 2001-2016, a study by Woeste and Bruce A. Barker showed that there were 239 major deck or balcony collapses reported through the news.
• Falls from heights comprised 4.8% of injuries treated at our trauma center during the eight-year study period with 98.5% admitted.

- Of patients admitted because of falls, 10.3% (55/532) were from a balcony.

- Most of this group of patients was male and 19–29 years old (67%). 

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5.2 Safety

Source: Structure Magazine, Mary Alexander Law, Grand Forks Heralds, Springer Link

5. Regulations & Safety

59

5.3 Importance of Regulation to Customers

Source: Interviews with customers in 2020 in the US & Canada, as well as information from the usgbc website.

5. Regulations & Safety

When it comes to sustainability the only certification is LEED 🡪 Leadership in Energy and Environmental Design

In the case of Client, the LEED certification is BD+C, may be necessary for the customer to purchase your products if they want to keep their own LEED certification on the project.

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More details can be found here: https://www.usgbc.org/credentials/certificates

6. Process & Key Decision Makers �

60

61

6.1 Process for a new construction project with balconies

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6. Process & Key Decision Makers

1. The process begins with the client who expresses what their vision for the balcony is.

2. The architect comes up with a design for the balcony.

• The architect is the one proposing the balcony based on the municipality's regulations.
• He establishes the budget, type of material, type of steel, type of concrete that needs to be purchased.

3. The general contractor comes up with a submittal and the shop drawings, communicates them to the client and the architect for approval.

• Comes up with the subcontractors for the construction of the balcony.
• Reaches out to subcontractors and gets at least 3 quotes.

5.The general contractor hires several vendors for: railing, fascia, concrete, steel the door system, etc.

5. The general contractor hires a pre-fabricated balcony manufacturer. This option is not popular in North America.

4. The general contractor is going to get quotes based on the design of the architect either from several subcontractors for each part of the balcony or from a prefabricated balcony manufacturer.

6. The last step is the installation of the balcony.

Source: Customer interviews conducted in 2020 in the US and Canada

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6.2 Key Decision Makers on Balcony Systems/Materials

6. Process & Key Decision Makers

Source: Customer interviews conducted in 2020 in the US and Canada

The Main Contractor

1st Tier

Most mentioned Key Decision Makers by customers

Other Key Decision Makers

2nd Tier

Second most mentioned Key Decision Makers by customers

3rd Tier

Third most mentioned Key Decision Makers by customers

Architect / Client

The Developer

The Property Management

The Asset Management

The Installers

The Municipality

The Structural Engineer

The Zoning Experts

The Architect has the highest influence on balcony systems as he is the one who develops the design specification and parameters for engineering based on the client vison.

7. Information & Relationship

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7.1.1 Customers’ Search – Information and Point of Contact

Source: Customer interviews conducted in 2020 in the US and Canada

7. Information & Relationship

1st Tier

Most mentioned and preferred by customers

2nd Tier

Most mentioned and preferred by customers

Other mentions

Magazines

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7.1.2 Customers’ Search – Key Tradeshows, Associations & Magazines

Source: Customer interviews conducted in 2020 in the US and Canada & SIS Research

7. Information & Relationship

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7.2 Customer relationship management

Source: Customer interviews conducted in 2020 in the US and Canada & SIS Research

7. Information & Relationship

Most important criteria for customer relationship management of the balcony provider are:

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• Warranties
• Specification Support
• Dedicated Contact Person

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Visibility of Service Schedules and Maintenance contracts are rates as least important criteria

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*Scale 1-5, with 5 being most important

8. Purchase Criteria

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8.1 A Price Sensitive Market

Source: Customer interviews conducted in 2020 in the US and Canada

8. Purchase Criteria

1

st

Price was mentioned by nearly all customers as the number on criteria in their decision-making

Service was often another key criteria into deciding of a supplier. Responsiveness, timing and being helpful were ranked very high by customers.

Reputation was considered as the 2^nd factor after cost. In particular if it came in the form of a referral from a Peer or architect. The second aspect of reputation was the track record.

After price only 2 real criteria impacted the decision of picking a supplier

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8.2 Product Specific Criteria

Source: Customer interviews conducted in 2020 in the US and Canada

8. Purchase Criteria

While Sustainability, ‘Green’ Materials, Certification, Quality, Sound Absorption & Origin of Product fell under the average score.

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Durability, Price, Overall Materials & Warranties score way above the average score.

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🡪 This is in line with the criteria customers use to evaluate the supplier as well

‘Green’ Materials

Sound Absorption

Quality

Sustainability

Origin of Product

Certification

Ease of installation

Durability

Price

Material

Warranties

*Scale 1-5, with 5 being most important

9. Paint Points, Improvements & Advices

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9.1 Biggest pain points on construction of balconies

Source: Customer interviews conducted in 2020 in the US and Canada & SIS Research

9. Paint Points, Improvements & Advices

Pain Points

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9.2 Improvements when constructing balconies

Source: Customer interviews conducted in 2020 in the US and Canada & SIS Research

9. Paint Points, Improvements & Advices

• Increase in quality goes a long way in terms of ease to sell, on a warranty you've a better product, thicker materials and more weatherproof - Cleber
• Improvement in the drainage and the railing systems - Daniel
• The supplier needs to know the local building code depending on where they're building - David
• It will be great to have a solution that is waterproofed and adapt to our weather. Specifically talking about Florida, we are in a very hot and humid weather - Eduardo
• Prefabricated balconies are something that I welcome. And obviously a price that's affordable. If I can save on labour and speed of installation and have a higher long-term quality, then that combination would be very attractive - Michael
• Improvements in the connection of the balcony to the building would be of interest - Mike

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9.3 Advices for a balcony manufacturer

Source: Customer interviews conducted in 2020 in the US and Canada & SIS Research

9. Paint Points, Improvements & Advices

• For places like Quebec with a lot of snow, the materials should be durable – Amitra
• Get out in front of the contractors more. There are no company advertises. If you would ask a general public person who makes balconies, they have no idea - Chris
• Do a decent catalogue. Do nice pictures printed properly - Cleber
• Be responsive and find the architects and the designers and to try to work with them. Visibility into the decision-making process – Daniel
• Price is very critical. Sustainability in green certificates in US is not as important as in Europe. Coming with something that is aesthetically pleasant and affordable. The aesthetic appeal is really important to get a new product accepted by this industry - Eduardo
• Education, you have to educate the potential customers about the product, that’s key – Idan
• We would say to any manufacturer, please call. It works – Jay
• Building up a local reputation is very important. Working out relationships with new home builders and local contractors and determining the selling features.- Katelynn
• Have details that they can help the architect incorporate into a set of drawings, especially if it's a manufacturing system – Leonardo
• Try to get as early as possible in front of the architect - Michael

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10. SIS Advice & Recommendations

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10. SIS Advice & Recommendations

11.Respondent Profiles

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11. Respondent Profiles

To gather consumer/expert insights in North America regarding the construction process of balconies. 25 experts knowledgeable with construction industry have been invited in the research study.

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The geographic scope of work:

Approach:

Requirements for respondents:

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• Must be involved in the construction and/or renovation of buildings
• Must be involved in the procurement or installation of balconies
• Must be involved with residential construction

Thank you

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PREPARED BY SIS INTERNATIONAL

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CONSULTING TEAM

Simon Margot – Head of Consulting & Strategy

Elvis Xhebexhia – Manager of Operations, Europe

Bao Ton-That– Strategy Associate

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Appendix