2026 Industry Pulse | A Solutions Industry 

Illustration above by Cory Thacker

The fenestration industry is a resilient one. It’s an industry that’s navigated years of economic highs and lows, a global pandemic, supply chain disruptions, feast and famine in demand and more. Through all of this, one thing is abundantly clear: it is an industry focused on solutions. No matter what challenges hit it, fenestration always responds with solutions. This year’s Industry Pulse report further exemplifies the solutions-based mindset at which the fenestration industry is so adept. 

Key industry challenges come as no surprise: labor, rising costs and the national housing shortage. Those challenges also create tremendous opportunity. “One of the largest opportunities is tied directly to the national housing shortage,” says Greg Koch, vice president of sales and marketing, Deceuninck North America. “The new construction market is constrained by labor availability, land limitations and rising building costs. These pressures slow down housing starts at a time when demand continues to grow, which creates an urgent need for solutions that help builders work faster, more efficiently and more affordably. 

“As the industry works to address the broader housing crisis, scalable, efficient and easy to fabricate systems will be an important part of closing the gap between housing supply and housing need,” he says. 

Meet the Respondents

Sales and the Market

Last year was a tough one for sales, with the majority of survey respondents noting sales did not reach projections and profit margins also were down. 

Order values, however, increased for nearly half of respondents, with another quarter indicating values stayed the same. This could be representative of a trend toward larger projects. The Farnsworth Group’s 2025 Q3 tracker revealed seasonal upticks but structural strains. “Some pressure may stem from busy-season activity. Data suggest a deeper capacity issue as homeowners pursue larger projects,” their analysis reports. 

Despite a rocky 2025, companies exude optimism for the coming year with most expecting an increase or sales consistent with 2025.  

Companies also note regional market trends in terms of product demand. Michelle Nissen, VP Product Management and Engineering, Quanex, shares the following observations about how regional differences influence product offerings: 

• Northeast - Thermal efficiency, multi-pane glass, hung window vs. casements for traditional look/restoration 
• Southwest - Solar heat gain control, cost-effective value lines, large format doors, bringing the outside in 
• Coastal markets - Corrosion resistance, structural ratings, impact glass, robust hardware, impact windows and doors, large format doors bringing the outside in 
• Inland markets - Aesthetics plus fast lead times often outweigh premium performance 

Koch says regional needs shape how Deceuninck engineers and supports its product platforms. “We design those platforms with enough interchangeability to adapt to different exterior finish styles. This allows us to serve distinctive regional demands without creating unnecessary system complexity,” he says. 

Coastal markets, for example, require impact resistance while western areas have strong demand for modern colors, dark finishes and products that perform in dusty environments. Florida requires high DP ratings and structural performance while northern climates prioritize energy efficiency and thermal performance. “These regional differences guide our engineering and product planning, and our interchangeable platforms help fabricators serve their markets effectively while keeping production streamlined,” says Koch. 
 

Materials and Supply

Material prices continue to rise, with most experiencing higher costs in 2025 and three-quarters expecting further increases in 2026. 

Survey respondents indicate aluminum, hardware and glass are the most difficult materials to acquire, which is largely consistent with last year and significantly improved from the 2024 Industry Pulse, when 35% of respondents had trouble acquiring hardware and components and 28% struggled to find glass. 

Supply chain issues have created opportunities for creative solutions and industry advancement. “Constraints forced us to rethink sourcing, reduce SKU complexity, leverage our broader operations footprint and work more strategically with suppliers,” says Quanex’s Nissen. “Unexpectedly, these pressures helped us test alternative materials we may not have considered otherwise and strengthen communication and forecasting with key customers.” 

Material science advancement also influences how windows and doors are manufactured. Deceuninck’s Koch references the company’s Innergy thermal reinforcements, which he says have “fundamentally changed how we approach both structural performance and thermal efficiency in PVC window and door systems.” 

Traditional reinforcement involved metal inserts that while strong, he says, penalized thermal efficiency. This new fiberglass-composite material enables comparable rigidity and stability while offering superior energy performance, he explains. “Beyond efficiency, the material science behind Innergy has opened the door for more creative and flexible system engineering. It allows us to design slimmer profiles, support wider spans, and provide customers with modern aesthetics that don’t compromise performance,” he says.  

Nissen believes glass technology will become a “strategic differentiator,” she says. “Advances in coatings, dynamic glass, multi-layer configurations and longer-lasting gas fills will allow for higher-performance window packages that meet evolving energy codes; tiered product strategies that let customers choose performance levels with clear ROI; and more regional customization based on climate zones.” 

Carlos Amin, VP of Sales, ES, says glass technology offers tremendous opportunity for improvement through low-E coatings, warm-edge spacer systems, gas-fill retention and more. Manufacturers such as ES continue to monitor and research next-gen coatings and high-performing configurations to remain competitive in a high-efficiency market. 
 

Product Trends

Large-format units continue to influence what products are specified and how they’re made. “The most influential design trend we’re seeing is the growing demand for large-format units with modern, minimal sightlines,” says Koch. “Architects, builders and homeowners are expecting expansive views and clean aesthetics, and that has reshaped how we design and engineer our systems. These larger openings require profiles that deliver strength, stability, and thermal performance without adding visual bulk, which has driven significant innovation in both profile geometry and reinforcement strategies.” 

Amin has noted a shift toward cleaner sightlines, larger glass areas and slimmer profiles. ES has responded by expanding its modern design offerings in aluminum and PVC lines. 

“These designs require adjustments in manufacturing — including tighter tolerances, updated tooling, and in some cases new reinforcement strategies — to maintain structural performance while achieving the slimmer, more modern look,” he says. 

Certain product categories are poised for strength in 2026. Nissen notes the following as having great opportunity: 

• Mid-tier performance products – between builder-grade and premium. 
• Labor-saving installation innovations. 
• Products aligned with aging-in-place and accessibility trends. 

She notes that “customers are looking for value, not just low cost” and also speaks about the importance of education-based selling and helping customers understand why performance matters. 

Almost a quarter of survey respondents expect premium and high-end products to be most profitable for their businesses, a finding reflective with the Q3 2025 Window & Door Market Survey, a partnership with John Burns Research and Consulting and Window + Door. 

Chris Beard, VP, Building Products Research at JBREC, shared at GlassBuild 2025 that the luxury and affluent consumer segment is a strong and growing segment in the industry. He notes the affluent segment is less sensitive to higher mortgage rates and often benefit from the “wealth effect” of high property values and a strong stock market. Additionally, custom remodelers and building material dealers report strong demand in the luxury and custom home categories.  
 

Sustainability and Performance

Where companies will prioritize product development varies. Whereas last energy efficiency was a top priority, this year that fell to third position behind functionality and aesthetics. 

Although performance may not be the top area of development, it’s still a critical part of the industry, both in manufacturing and in communicating performance benefits to homeowners. “We educate customers by simplifying complex performance metrics into clear comparisons: U-value improvements, energy savings, noise reduction, durability, and design differences,” shares ES’ Amin. “We use visual aids, side-by-side displays, and real-world examples to help them understand how tier upgrades translate into long-term value.” 

The U.S. centers most conversations around U-values and meeting tighter state and local and energy codes, observes Amin. ES positions its double- and triple-pane options depending on climate and customer priorities. “Double-pane remains cost-effective and suitable for milder regions, while triple-pane is positioned as a premium solution for customers seeking superior comfort, lower U-values, and long-term energy savings,” explains Amin. 
 

Recyclability

Companies also continue to explore and invest in recycling. ES’s products incorporate recyclable materials like aluminum, PVC and glass, says Amin. “We follow environmental best practices and maintain ISO 14000 compliance with a focus on responsible material selection and waste reduction.”  

Circularity is a conversation point in the sustainability algorithm. Koch shares Deceuninck prioritizes strengthening the long-term sustainability, performance and scalability of the product portfolio, with a particular focus on the sustainability side of the business. “We are actively expanding our ability to consume internal scrap and customer end cuts, and we continue to invest in facility improvements that support greater circularity in our material stream,” he says. 

Amin notes ES continuously evaluates the circular-economy models as they become more practical in the U.S. market. 

Sustainability is increasingly a standard part of design rather than a separate though. “We treat sustainability as a design element versus an afterthought,” says Quanex’s Nissen. “Our aim is to develop solutions that enable improved for ‘practical sustainability’—choices that deliver performance and environmental value without price shocks to the customer.” 

Amin says his company tracks the carbon footprint of its products and has Environmental Product Declarations (EPDs) in place. Shareholder priorities, market expectations and requirements from architects, builders and government programs drive those EPDs. “As sustainability scoring becomes more embedded in project specifications, having EPDs is increasingly a competitive necessity,” he says. 
 

Customization

Customization is paramount in fenestration and something companies need to balance with meeting production demands. “Balancing customization with high volume efficiency is something we manage every day,” says Deceuninck’s Koch. “We support customers who need custom solutions, while also producing large volumes of standardized products, and our approach is to blend both rather than prioritize one at the expense of the other. 

“We continually evaluate our product mix to eliminate low demand items and transition those customers into larger volume platforms that offer better efficiency, stronger performance, and improved availability,” he continues. “This allows us to simplify production while still giving customers the design options they need. It is a process that honors the strength of our original engineering work and the flexibility that has always been part of our product strategy.” 
 

Automation and Investments

Slightly less than half of survey respondents added production capacity last year, and nearly half plan to add production capacity this year. Recent industry expansions include Cornerstone Building Brands’ $4.9 million manufacturing campus expansion in Virginia, Thompson Creek Window Company’s market expansion into the Delmarva Peninsula, United Window & Door’s 40,000-square-foot expansion in New Jersey, Marvin’s new manufacturing facility in Kansas City, Kansas, and more. (See more expansion news on windowanddoor.com/news/expansions-partnerships.) 
 

Automation

Quanex’s Nissen says the biggest automation opportunities exist in IGU assembly and sealing, frame fabrication and material handling and quality checks using vision systems.  

Powerful though automation is, human expertise remains essential. Nissen notes areas that require human expertise include: final QC and craftsmanship on specialty/custom products, problem-solving on complex solutions and customer collaboration and design development. “Automation will handle repetition,” she says. “People will handle innovation.” 

“Human expertise remains essential in complex engineering, product design, quality checks, and custom/specialty builds where judgment and experience make a measurable difference,” Amin says. “AI-assisted design tools will support engineers, but not replace them.” 

Companies invest in automation for myriad reasons, including a tight labor market, consistent throughput and overall efficiency. Finding what automation is right for what company isn’t straightforward, though. “When we go in and we speak with a customer, it's not only about what their overall production is, but also their product mix, what their challenges are with their labor force, and then looking at what makes the most sense for how they make their product,” explains Mike Biffl, Sturtz Machinery. “Everybody has a different operating procedure when they get out on their plant floor, and so the goals that they have are different. It has to be a consultative approach. You can't just walk in and say, 'Oh, you make this window. This is what you need.' It's important to do a lot more listening than talking.” 

Joseph Machine’s CEO, Anthony Pigliacampo, agrees. “What we often find is what customers reach out to us wanting and what they end up actually purchasing are two completely different things,” he says. “The complexity of their specific window systems and how they make it, and even the sizes that they make, can often make certain types of automation work well or be terrible fits. One of our jobs with our team is to help them understand that and identify the areas where automation can achieve their goals.” 

Listen to experts from Erdman Automation, GED Integrated Solutions, Joseph Machine and Sturtz Machinery discuss automation, technology and machinery. 

Software

John Staiano, COO – North America, A+W Software, identifies pain points in fenestration software, including complex configuration and quoting, a disconnected sales-to-production process, inefficient scheduling and visibility, and manual paperwork and miscommunication, all of which his company aims to address in their software solutions. 

“Dealers and end-customers now expect instant quotes, faster lead times and real-time order updates,” he says. “This has increased the demand for precise configuration, fewer manual steps, integrated document management, and digital workflows across the entire organization.” 

Although many of A+W’s customers are replacing older, custom-built or heavily manual systems, a growing segment are first-time adopters, says Staiano. “Legacy replacements need migration, cleanup and process standardization while first-time adopters need training, templates and help establishing consistent workflows,” he says. 

Staiano views the fenestration industry as being “middle of the pack” digitally. “Many market leaders are pushing hard into digital sales tools, integrated BOM systems and dynamic pricing,” he observes. “Smaller manufacturers and dealers often lag due to resource constraints, though they’re rapidly catching up as customer expectations change.” 

Labor has also created a sense of urgency to adopt software solutions. “Companies are more motivated than ever to digitize sales, order entry and documentation because they can no longer rely on growing admin teams,” says Staiano.  

Generational shifts also affect adoption. Staiano says young leaders are more inclined to adopt digital tools. Long-time leaders, meanwhile, focus more on risk mitigation but are increasingly supportive because of labor and competition. “The most progressive companies blend experience with a willingness to adopt new technology,” he says. 

Ultimately, software and technology should provide data and analytics to answer business questions. Staianos distills what companies want from an A+W Cantor perspective: 

• Quote-to-order conversion insights  
• Product mix analytics  
• Lead-time accuracy and capacity views  
• Costing and margin visibility tied to actual BOM structures. 
• Scheduling and fulfillment visibility  

In short, says, Staiano, “They want clear answers to questions like what is slowing them down, what dealers/products are most profitable and where they are losing time or money.”   
 

Labor and Training

Veka North America keeps workforce development at the forefront of its company goals. Joe Peilert, CEO and president of Veka North America, says that “every employee should expect us to develop them.” That’s a mission the company takes seriously. Peilert says Veka uses the German apprenticeship model and even has a “signing day” for onboarding apprentices. 

The company’s Evolve Leadership Program is a one-year program with a strong mentoring element. Participating employees spend time in various departments learning all the roles involved with Veka’s business and understanding the complexities involved with making their products. “People rally around making something,” says Peilert. 

Industry Pulse survey participants cite workforce solutions such as flexible hours, training programs, apprenticeship programs, automation and working with recruiters. “Hiring a higher level/skilled person and having deeper background checks has been our strategy in hiring new team members,” shares one respondents. “We believe adding team members of a higher level even though they cost more up-front results in a better return on investment.” 

Potential solutions to help ease labor pool challenges, according to this year’s survey, include: immigration reform, more trade schools, apprenticeship programs, increased pay, more training and vocational classes in high school. 

Apprenticeship programs are an area ripe for growth. In the National Glass Association’s December Thirsty Thursday webinar, national workforce leader Joshua Johnson said studies show companies get a $1.47 return for every dollar invested in registered apprenticeship programs. Apprenticeship programs also reduce turnover. Whereas individuals who complete training programs often leave the company after they receive a credential, 94% of individuals who complete an apprenticeship program stay with the company.  

“That’s because of the training, the competencies and the skills they went through throughout that process with the company,” Johnson explains. “It’s also the company’s investment in them. People are looking for that investment and once that investment is made they’re not willing to cross the street for a quarter.” 

Other apprenticeship benefits Johnson notes include the ability of a company to train employees to their exact company and product specifications and increased safety. “We know properly trained workers equals fewer accidents,” he says. 
 

Onward

Innovation is a point of pride in this industry. Although it’s an area where manufacturers, suppliers and dealers excel, the simultaneous need to manage costs, lower them and meet volume can hamper it. “A major challenge in the industry is the constant drive toward lower costs,” says Koch. “The pressure to reduce prices often limits meaningful product innovation, because it pushes manufacturers to focus on what is ‘good enough’ rather than what is truly better. When the market prioritizes short-term savings over long-term performance, it becomes harder to introduce new ideas, advanced materials, or upgraded system designs that could benefit fabricators, builders, and homeowners. 

“Greater emphasis on value, performance, and lifecycle benefits would open the door to stronger innovation across the industry,” he continues. “When product development is encouraged rather than constrained by cost pressures, the entire supply chain has the chance to move forward in a more competitive and sustainable way.” 

Collaboration and focuses on installer friendliness and homeowner intuitiveness are other areas for improvement. “The U.S. fenestration industry often focuses heavily on chasing the next incremental efficiency gain while sometimes overlooking user experience, installation friendliness, and long-term serviceability,” says Amin. “There is room for improvement in designing products that are easier to install, easier to maintain, and more intuitive for homeowners. Additionally, the industry could improve collaboration across suppliers, fabricators, and installers to ensure that performance achieved in the lab is consistently achieved in the field.” 

Nissen agrees in the need to reduce complexity. “As an industry, we need to look at ways to reduce complexity in our offerings yet allow space for innovation,” she says. “Simplifying products will reduce complexity in labor-challenged markets.” She also notes the importance of communicating performance benefits, including comfort, energy savings and maintenance, in customer-friendly terms.