Productivity Index | LNS Research

Building Envelope Systems: Spec-Driven, Replacement-Led, and Materials-Intensive

Key traits that make this industry distinctive:

Building-envelope performance is core: insulation, roofing, and panels drive energy codes and compliance.
Replacement-led demand cushions cycles; reroof and retrofit are large, recurring profit pools.
System selling standard: bundled assemblies with single-source warranties beat parts.
Indirect channels dominate: specified by architects/consultants, sold through distributors, and installed by contractors.
Scale manufacturing and materials science IP matter; plants are regional to cut freight on bulky goods.
Input-cost exposure (resins, bitumen, glass fiber, minerals) with price/volume management as a key lever.
Sustainability is a table stake: thermal performance, embodied carbon, and circularity claims drive spec wins.
The industry consolidates steadily across manufacturers, installers, and distributors to gain market share, coverage, and warranty control.

The majority of companies in this peer group have experienced a decline in productivity since 2019.

Productivity declined by 13.3% for this peer group since 2019 (-2.8% CAGR). The peer group performed significantly worse than the average of the LNS Materials Industry.
In 2021, we observed a distinct convergence in productivity between companies that focused on commercial building envelopes (Carlisle and Kingspan) and those with a larger residential and retail channel, which surged due to stay-at-home remodeling and housing starts.
Most companies, with the exception of Carlisle and Kingspan, experienced declining productivity in 2024.
2024 Productivity declined by an average of 1.0% across these companies.
Owens-Corning Inc., a global manufacturer of insulation, roofing, and fiberglass-reinforced composite systems, earned its position within the LNS 2025 World’s Most Productive Companies by reducing productivity by only 1.9% in a challenging market, where the overall peer group was down 13.3%.