We are a leading global designer, manufacturer and distributor of interior
and exterior doors for the new construction and repair, renovation and remodeling
sectors of the residential and non-residential building construction markets.
Since 1925, we have provided our customers with innovative products and superior
service at compelling values. In order to better serve our customers and create
sustainable competitive advantages, we focus on developing innovative products,
advanced manufacturing capabilities and technology-driven sales and service
solutions. Today, we believe we hold either the number one or two market positions
in the seven product categories we target in North America: interior molded
residential doors; interior stile and rail residential doors; exterior fiberglass
residential doors; exterior steel residential doors; interior architectural
wood doors; wood veneers and molded door facings; and door core.
Over the past several years, we have invested in advanced technologies to increase
the automation of our manufacturing processes, increase quality and shorten
lead times and introduced targeted e-commerce and other marketing initiatives
to improve our sales and marketing efforts and customer experience. In addition,
we implemented a disciplined acquisition strategy that solidified our presence
in both the North American residential molded and stile and rail interior door
markets and created leadership positions in the attractive North American commercial
and architectural interior wood door, door core and wood veneer markets.
We operate 64 manufacturing and distribution facilities in 9 countries in North
America, Europe, South America, Asia and Africa, which are strategically located
to serve our customers. We are one of the few vertically integrated door manufacturers
in the world and one of only two in the North American residential door industry
as well as the only vertically integrated door manufacturer in the North American
architectural interior wood door industry. Our vertical integration extends
to all steps of the production process from initial design, development and
production of steel press plates to produce interior molded and exterior fiberglass
door facings to the manufacturing of door components, such as door cores, wood
veneers and molded facings, to door slab assembly. We also offer incremental
value by pre-machining doors for hardware, hanging doors in frames with glass
and hardware and pre-finishing doors with paint or stain. We believe that our
vertical integration and automation enhance our ability to develop new and proprietary
products, provide greater value and improved customer service and create high
barriers to entry. We also believe vertical integration enhances our ability
to cut costs, although our cost structure is subject to certain factors beyond
our control, such as global commodity shocks.
We believe the following competitive strengths differentiate us from other building
product companies and position us for significant growth as part of a multi-year,
multi stage recovery in our end markets.
Leading Market Positions in Targeted End Markets
Within the North American door market, we believe we hold either the number
one or two market position in the seven product categories we target. We are
one of the largest manufacturers of doors and door components in the world,
selling approximately 33 million residential and architectural interior and
exterior doors in 2015; approximately 21 million of which were sold in the United
States, our largest market. We believe our scale and leadership positions support
our commitment to invest in advanced manufacturing and e-commerce initiatives
and develop innovative new products, to effectively service regional and national
customers and to offer broad product lines across our markets, while reducing
our materials and unit production costs.
Extensive Portfolio with Strong Brand Recognition
Our broad portfolio of brands is among the most recognized in the door industry
and is associated with
superior design, innovation, reliability and quality. Builder Magazine recognized
the Masonite® brand as one of the
leading interior door brands in the United States in 2015 in the following categories:
Brand Used in Past Two Years,
Brand Used the Most.
Long-Term Customer Relationships and Well-Established Multi-Channel Distribution
As a result of our longstanding commitment to customer service and product innovation,
we have well-established relationships within the wholesale and retail channels.
All of our top 20 customers have purchased doors from us for at least 10 years,
although we generally do not enter into long-term contracts with our customers
and they generally do not have an obligation to purchase our products. In addition,
our manufacturing and distribution facilities are strategically located to best
serve our customers. We believe that our long-term relationships with leading
wholesale distributors, major homebuilders, contractors and architects will
enable us to continue to increase our market penetration in the residential
and architectural construction markets.
Leading Technological Innovation Within the Door Industry
We believe we are a leader in technological innovation in the design of doors
and door components and in the complex processes required to manufacture high
quality products quickly and consistently. We intend to continue developing
new and innovative products at our 145 thousand square foot innovation center
in West Chicago, Illinois, while improving critical processes in the manufacturing
and selling of our products. Our future success will depend on our ability to
develop and introduce new or improved products, to continue to improve our manufacturing
and product service processes, and to protect our rights to the technologies
used in our products. We have also created proprietary web-based sales and marketing
tools, including MAX Masonite Xpress ConfiguratorSM for our residential and
DoorbuilderTM for our architectural customer networks, to improve selection
and order processes, reduce order entry errors, create more accurate quotes,
improve communication and facilitate a better customer experience.