Window-makers and sellers in Northwest North Carolina could reap big benefits from the energy tax credits contained in the stimulus plan.
Atrium Cos., which has its flagship Atrium Windows and Doors plant in Welcome, is modifying one of its most popular double-hung series of windows to meet requirements for the tax credits, and expects to take orders next month.
Atrium, a manufacturer of vinyl and aluminum windows, employs 1,000 people in Welcome. The company sells replacement windows to home centers, distributors and lumber yards.
Chris Reilly, the director of marketing for Atrium Windows and Doors, expects the tax breaks to motivate homeowners who have been sitting on the fence, waiting to do home improvements. In turn, that will boost the replacement-window industry.
"Fifteen hundred dollars is a lot of money to put somebody over the fence," he said. "We are very happy with it and think it's a true stimulator."
PGT Industries, a vinyl- andaluminum-window manufacturer with a plant in Salisbury, also expects the money to stimulate business.
Doug Cross, the vice president of vinyl product stream for PGT Industries, said the stimulus money gives people an incentive to replace windows when they may have been hesitating.
"Obviously, in this economy, people are concerned about spending money on anything, and we certainly have seen that in the building-products world," he said.
PGT Industries is based in Venice, Fla., and employs about 350 people at the Salisbury plant.
The company has started gearing up for an increase in business. It will introduce a window product line called PGT SpectraGuard this week.
"It is a replacement window that meets the tax-credit requirements," Cross said.
PGT expects to hire more people, but the number depends on demand for its products, Cross said.
Contractors and suppliers to the replacement-window industry could also benefit.
Custom Window Products LLC in Thomasville makes architectural windows for vinyl-window manufacturers. The company is a division of Custom Glass Products Inc. in Salisbury.
Atrium Windows and Doors in Welcome and PGT Industries account for as much as 25 percent of Custom Window's business, said Scott Cristina, the company's general manager.
An increase in sales for any of Custom Window's customers could mean an increase in its sales. This could offset a 25 percent decline in sales so far this year compared with the same period in 2008, he said.
Retailers such as Window World Inc., based in North Wilkesboro, and Lowe's Inc. also are preparing for business from the stimulus money.
Lowe's is working with its vendors to identify products that will qualify for the tax breaks.
Chris Ahearn, a company spokeswoman, said that as Lowe's gets more information, it will educate its store employees about products that they can point out to consumers who want to take advantage of the tax credits.
Window World Inc. sells and installs replacement windows. The company has 212 stores in 46 states that are locally owned and operated by licensees. More than 3,000 people work for Window World and its affiliates.
"For our segment of the business, this is basically the government supplying almost a 30 percent off sale for energy efficiency," said Blair Ingle, the chief financial officer for Window World.
Darren Kennelly owns four Window World stores, including one in Winston-Salem and one in Greensboro. Sales are down 12 percent from a year ago at these two stores.
Kennelly said that half the customers who call or come into his stores are aware of the tax credits, but he's ready to spread the word to other customers with print and broadcast ads, in-store displays and information.
Kennelly's only criticism of the stimulus package is that not all EnergyStar products qualify for a tax credit.
"There are a lot of products that you can't go in and retool to make them compliant," he said.
■ Fran Daniel can be reached at 727-7366 or at fdaniel@wsjournal.com.
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