SOURCE: Freedonia Group, Inc.

January 16, 2007 10:47 ET

U.S. Fencing Demand to Reach 975 Million Linear Feet in 2010

CLEVELAND, OH -- (MARKET WIRE) -- January 16, 2007 -- Fencing demand in the U.S. is expected to rise 2.2 percent per year through 2010 to 975 million linear feet. A strong outlook for nonresidential building and non-building construction spending will drive demand. Repair and maintenance activity is expected to continue to support demand for fencing in the agricultural market. In the large residential market, fortunes will be mixed; improvement and repair applications will provide better growth opportunities than new through 2010 because of a sharp drop in single-family housing completions. These and other trends are presented in "Fencing," a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Among the major types of fence products, plastic and concrete fencing are projected to post the fastest growth through 2010. Gains for plastic and wood-plastic composite fencing will be primarily at the expense of wood and ornamental metal fencing. Plastic materials can offer similar aesthetics to wood and metal with advantages in reduced maintenance costs. Vinyl will continue to account for the largest share of plastic fencing demand, with wood-plastic composites representing a much smaller, but quickly growing segment. 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, benefiting demand.

Metal fencing, the largest segment in unit terms, is forecast to increase at a pace in line with the industry average through 2010. A recovery in nonresidential and non-building construction spending will fuel advances, as metal is the primary material used in these installations. Ongoing security concerns will also support growth opportunities in these markets. However, increasing competition from plastic fencing, particularly in ornamental and wire fencing installations, will hamper growth in metal fencing. Wood fencing is the second leading material used and is expected to see a drop in market share through 2010, as the new single-family housing market cools from highs in 2005 and alternative materials increase their market penetration.

Contact Information