Trex CEO Bryan Fairbanks told CNBC on Friday that sales for the company’s wood-alternative products have increased during the Covid-19 pandemic as consumers take on more home-improvement projects.
In addition to the increased demand for composite decks among homeowners, the manufacturer has boosted capacity and reduced its prices to make its products more affordable, Fairbanks said in a “Mad Money” appearance.
“People are beginning to really understand what the long-term cost of owning a wood deck is going to be,” he told CNBC’s Jim Cramer. “Another thing that we’re seeing significant traction on is people wanting to make the green decision.”
The home goods and remodeling markets have benefited during the pandemic from increasing interest in do-it-yourself and outdoor living projects as residents find new ways to stay busy amid lockdowns and travel restrictions over the past year.
In the final quarter of 2020 — which is usually a slower period for the company due to a drop-off in construction activity —Trex’s sales of residential products grew by 40% on a year-over-year basis.
Fairbanks noted that many customers find their way to Trex as they search for more sustainable materials to carry out their DIY projects. He added the company’s decks are made with 95% recycled material, as opposed to the environmental impact of pressure-treated lumber that contains high levels of chemicals.
While Trex competes with Azek in the alternative wood space, the company is focused on…