05/28/2009

Gig Harbor, WA – Despite a multi-year housing slump, structural insulated panels (SIPs) experienced a significant gain in market share in 2008, according to an annual survey conducted by the Structural Insulated Panel Association (SIPA).  SIPs are a panelized building system used for wall and roof construction in energy-efficient and green buildings.  They are composed of insulating foam sandwiched between two structural facings, typically made of oriented strand board (OSB), although metal and other materials are also used.

With 53.3 million sq. ft. of SIPs produced in 2008, SIPs now command slightly over 1 percent of the U.S. single-family housing market, doubling their market share from the height of the housing bubble in 2005.  These gains came amidst an overall 8.8 percent decrease in OSB-faced SIP production, the first recorded decrease since the survey was initiated in 2003.  

 “With the U.S. economic recession and three straight years of falling housing starts, industry contraction is somewhat inevitable,” said Bill Wachtler, Executive Director of SIPA.  “However, the SIP industry has experienced only a moderate decline in comparison to the overall housing market and other building products.”

Wachtler attributes much of the industry’s relative success to the growing popularity of green building.  Homeowners are demanding green homes that use less energy, are constructed using fewer natural resources, and provide a healthy indoor environment.   Building with SIPs helps homeowners meet these goals, as well as the requirements of green building rating systems such as the U.S. Green Building Council’s LEED for Homes program and the National Green Building Standard.

In addition to the residential market, the survey estimates that more than 1,500 nonresidential buildings were constructed with SIPs in 2008.  Nonresidential construction accounted for 32 percent of SIP production, compared to 40 percent for residential construction.  Non-building applications such as industrial refrigeration facilities accounted for the remaining 28 percent.

Several different combinations of materials are used to construct SIPs, but the basic concept remains the same.  The most popular facing materials are OSB and metal.  Plywood and other materials such as fiber cement board accounted for only 7 percent of SIPs used in building applications.  

According to Wachtler, SIPA analysts have refined their reporting mechanisms to more accurately account for non-building applications and nonstructural metal-faced products.  Using these improved methods, industry growth for 2007 has been revised to a more modest 3 percent.  This growth came despite a nearly 30 percent decrease in single-family housing starts in 2007.  In 2008, total SIP production fell 11 percent to just over 53 million sq. ft., staying well above the pace of single-family housing starts, which dropped 40 percent.

“Like all industries we are affected by the recession and the drop in new construction,” said Wachtler.  “But the strong market share gains we’ve experienced in the last two years indicate that the SIP industry is likely to see a significant increase in production as the economy recovers.”

The survey also polled SIP manufacturers regarding their geographic distribution.  The top ranking regions for SIP use were the Mountain, Pacific, South Atlantic, and West North Central regions.  Shipments to the South Atlantic region (Florida through Virginia) experienced a significant increase in 2008.

For more information on structural insulated panels, visit www.sips.org.

 10/13/08

Efforts of SIPA, CPI, PIMA and APA result in adoption of polyurethane core panels into the International Residential Code

September 21, 2008 – The International Code Council voted to adopt structural insulated panels (SIPs) with polyurethane cores into the 2009 International Residential Code (IRC) at their Final Action Hearings in Minneapolis, MN.  Inclusion in the building code will allow builders using polyurethane core SIPs to build homes without the approval of a licensed engineer if the homes fall within the applicability limits of the code. 

In May of 2007, SIPs with two other types of foam core materials, expanded polystyrene and extruded polystyrene, were added to IRC’s 2007 Supplement.  The recent code change adds polyurethane as an accepted core material to the current prescriptive provisions for SIPs in the IRC.  As a result, all three foam types will be included in the 2009 IRC. 

In order to qualify under the prescriptive requirements of the IRC, the polyurethane foam used in SIPs must meet certain minimum material properties that are described in the new code language.  These properties were developed through a collaborative effort between the Structural Insulated Panel Association (SIPA), the Center for the Polyurethanes Industry (CPI), the Polyisocyanurate Insulation Manufacturers Association (PIMA), and APA.

SIPA’s Executive Director Bill Wachtler called the acceptance an “important step” in SIPA’s code advocacy efforts and thanked SIPA’s partners in the endeavor.

“This code change was the result of lots of time and effort put forth by the associations involved and also by SIPA members that donated time and materials,” Wachtler said.  “SIPA has made another important step forward in building code acceptance and we plan to continue to push for broader acceptance for SIPs.”

CPI submitted the proposal with support from PIMA, SIPA’s Technical Committee and APA, who conducted the testing at their Research Center in Tacoma, WA.

Lorraine Ross, Intech Consulting Inc, a code consultant to both CPI and PIMA, stated, “The inclusion of SIPs in the 2009 International Residential Code is a significant win for the SIP industry, a win that only occurred because all industry associations worked together for a common goal.  IRC recognition of polyurethane and polyiso insulation cores also provides a great deal of flexibility for SIP manufacturers.”
Many SIPA members also contributed to the development of the code change proposal, including BASF Corporation, Dow Chemical Company, Ainsworth Lumber Company, Better Building Products, Murus Company, and Winter Panel.

Several other minor code change proposals amending the SIP requirements currently in the IRC were submitted by APA for SIPA’s Technical Committee.  All the proposals were accepted.

“The four additional successful SIPs code changes add clarification to the original package adopted in the 20007 supplement,” said Ed Keith, APA’s Codes and Engineering Manager.  “A number of roadblocks have been removed that permit the use of taller SIP walls and the attachment of gypsum wall board directly to the inside facing.  All in all, Section R614 of the IRC has been strengthened and made easier to use.” 

All proposals approved during the Final Action Hearings will be included in the 2009 IRC, scheduled to be published in March of 2009.  The IRC is currently in use at the state or local level in 46 states plus Washington DC.  However, local jurisdictions will determine when new versions of the IRC will be put in effect.  For more information on the IRC and other building codes, visit the International Code Council’s website at www.iccsafe.org.