Pellet Fuels Institute Membership Meeting

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Pellet Fuels Institute Membership Meeting

• Wednesday, February 27, 2008
• Don Johnson, HPBA Director of Market Research

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Agenda

• Set the stage detail current status of the
  pellet industry
• Hearth appliance shipment statistics
• Pellet appliance shipment trends
• Select HPBA Manufacturer Rep survey results
• Questions??

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Top of the Line Hearth Industry Statistics
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U.S. Hearth Appliance Shipments in 2007

• Cordwood 361,492
• Gas 1,513,346
• Electric (N.A.) 445,000
• Pellet 54,032
• TOTAL 2,373,888

Includes Gas Log Estimated Data (718,000)
Note Gas Log and Electric Data Estimated and
Vetted
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Hearth Appliance Shipments by Type of Fuel -- 2007
Includes Gas Log Data
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Between 2006 and 2007 . . .

• Cordwood appliance shipments decreased 30
• From 518,439 to 361,492
• Gas appliance shipments decreased 12
• From 1,727,723 to 1,513,364
• Electric appliance shipments decreased 2
• From 456,000 to 445,000
• Pellet appliance shipments decreased 59
• From 133,105 to 54,032

Overall, industry decreased 16 between 2006 and
2007
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Since 1998 . . .
Overall, industry increased 1 between 1998 and
2007

• Cordwood appliance shipments decreased 45
• From 652,500 to 361,492
• Gas appliance shipments decreased 6
• From 1,611,750 to 1,513,364
• Electric appliance shipments increased 790
• From 50,000 to 445,000
• Pellet appliance shipments increased 59
• From 34,000 to 54,032

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Total U.S. HearthAppliance Shipments1998--2007
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Hearth Appliance Shipments1998--2007
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Freestanding Stove Appliance Shipments by Type of
Fuel -- 2005
Pellet Stoves Account for 51 of Net Stove Sales
vs. 34 in 2004
200423
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Freestanding Stove Appliance Shipments by Type of
Fuel -- 2006
vs. 23 in 2004 and 37 in 2005
Pellet Stoves Account for 54 of Net Stove Sales
vs. 34 in 2004 and 51 in 2005
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Freestanding Stove Appliance Shipments by Type of
Fuel -- 2007
vs. 23 in 2004 and 37 in 2005 and 42 in 2006
Pellet Stoves Account for 39 of Net Stove Sales
vs. 34 in 2004 and 51 in 2005 and 54 in 2006
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Those are The Official HPBA numbers

• But HPBA has been producing pellet stove shipment
  estimates since 1992

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Pellet Appliance Shipments1992--2007
Early Estimates Somewhat Overstated?
6 out of the Last 8 Years Have Seen Increases
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Pellet Appliance Shipments1992--2007
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HPBA Manufacturers Rep Survey

• Conducted quarterly since June 2000 (31 quarters)
• FAXED to approximately 100-110 HPBA Manufacturing
  Reps
• Response rates range from 28 to 50
• Leading indicator for industry

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Sales of Pellet Appliances Compared to a Year Ago
100 Believed Pellet Appliance Sales were Up
Compared to a Year Earlier
January 2006
Of those respondents who rep pellet appliances
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Sales of Pellet Appliances Compared to a Year Ago
Only 18 Believed Pellet Appliance Sales were Up
Compared to a Year Earlier
January 2007
Of those respondents who rep cordwood appliances
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Sales of Pellet Appliances Compared to a Year Ago
Only 8 Believe Pellet Appliance Sales are Up
Compared to a Year Ago
January 2008
Of those respondents who rep cordwood appliances
20
of Reps Who Feel Pellet Appliance Sales are Up
Compared to a Year AgoQuarterly--June 2000
through January 2008
Measurement Scale Changed April 2006
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Questions?
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Pellet Fuels Institute Membership Meeting

• Wednesday, February 27, 2008
• Don Johnson, HPBA Director of Market Research
• Don Kaiser, PFI Executive Director