Demand for Fencing to Reach $6.6 Billion by 2009

Demand for fencing products in the United States is forecasted to expand 3.6 percent per year through 2009 to $6.6 billion (measured at the manufacturer’s level), with total unit demand reaching 910 million linear feet. Gains will be bolstered by an acceleration in nonresidential building construction spending, particularly in the key office, commercial and industrial segments. In the residential market, which accounts for approximately 60 percent of total fencing demand, growth will be supported primarily by the repair and improvement segment. An expected decline in single-family housing completions will restrain opportunities for new fencing installations. These and other trends are presented in Fencing, a new study from The Freedonia Group, a Cleveland, Ohio-based industrial market research firm.

Plastic and concrete types are projected to post the fastest growth through 2009. Gains for plastic fencing will come primarily at the expense of wood. Plastic materials can offer similar aesthetics to wood with advantages in reduced maintenance costs.

Vinyl will continue to account for the largest share of plastic fencing demand, with wood-plastic composites and high-density polyethylene representing much smaller segments.

Concrete fencing is available in styles that imitate wood, stone or brick. Precast concrete panels will provide the best opportunities for growth in this segment because of ease of installation and the ability to mold, shape and color them to meet end-user preferences. Concrete fencing provides a formidable barrier to intruders and helps reduce noise transmission, characteristics that will continue to support gains.

Demand for metal fencing, the largest segment, is forecast to increase at a slightly above-average pace. An acceleration in nonresidential construction spending will drive advances through 2009, as metal is the primary material used in office, commercial and industrial fencing installations. Additionally, ongoing concerns about security will support prospects. However, price increases for raw materials are expected to moderate somewhat going forward, limiting value gains. Competition from plastic fencing, particularly in ornamental installations, will also hamper growth in the metal fencing segment. Wood fencing, the second leading material used in 2004, will see sluggish growth because of weak new housing markets and competition from alternative materials.

Fencing (published 03/2005, 206 pages) is available for $4,100 from The Freedonia Group, 767 Beta Drive, Cleveland, Ohio, 44143-2326. For further details, please contact Corinne Gangloff by phone 440/684.9600, fax 440/646.0484 or e-mail pr@freedoniagroup.com. Information may also be obtained through www.freedoniagroup.com.