Wall systems that incorporate insulation with the exterior cladding were invented in Europe after 1947. German engineers formulated a variety of materials utilizing polymer chemistry around the same time. These modernmaterials were based on plastics technology and were soon brought together to form what is known as an EIFS wall system.

Use of the product became very popular due to its physical, aesthetic and economical characteristics. The rebuilding of Europe after the Second World War spawned widespread usage of these systems that worked well with construction standards at that time. Typical construction of residential dwellings in Europe consisted of a masonry structure and then the application of an EIFS wall system.

The first project in the United States was in Rhode Island in 1969. The introduction stage lasted up until about 1976. During this time, one company manufactured and marketed the product. Application was primarily in the commercial market.

From 1976 to 1990, substantial growth occurred in this industry. Additional competition entered the marketplace and projects were completed which received national attention from industry press. The manufacture and installation of EIFS wall systems started to become known as an industry and there was significant development as a result of increased competition.

During the last nine years, promotion of EIFS extended in to the residential construction market, especially the high-end sector. The residential marketplace was unexplored territory with significant profit potential. Several problems occurred in a short period of time. Since architects are not commonly used to design most homes, no plans or specifications were followed during the construction of EIFS clad homes. Contractors and homebuilders were and still are not familiar with the product and it's proper installation. In many instances, actual stucco applicators are not even hired to install the system. The result, as many of us have come to find out the hard way, is improper system installation, moisture entry into the sub structure, extensively damaged homes and expensive litigation.