U.S. fencing demand to grow 2.9% per year through 2014, to 850 million linear ft., finds Freedonia; wood fencing will grow 2.6% per year, but plastic and composite fencing will see most rapid growth in demand
September 27, 2010
– Demand for fencing in the US is forecast to expand 2.9 percent per year through 2014 to 850 million linear feet. A rebound in housing completions will spur demand for fencing, reversing recent declines and pushing demand marginally above its level ten years earlier. Despite the resurgence in demand in terms of linear feet, the value of fencing demand is expected to rise only slightly faster than it did in the 2004-2009 period, reaching $8.3 billion in 2014. These and other trends are presented in Fencing, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
Residential buildings are the largest fencing market, so the recovery in residential construction will boost fencing demand over the forecast period. Indeed, the residential market will account for about three-fifths of the approximately $1.1 billion increase in fencing demand through 2014. The new housing segment is expected to post the most rapid advances. Growth will also be supported by the large residential replacement segment, as improvement and repair spending rebounds from a low 2009 base.
Among fencing materials, plastic and composite fencing is forecast to see the most rapid growth in demand through 2014. Plastic and composite fencing closely resemble natural wood, but require less maintenance and are also seen as environmentally friendly materials. Wood fencing will advance at the rate of 2.6 percent per year through 2014. Wood fencing is the most popular material choice in the residential market and will be helped by the rebound in housing completions, but wood will lose some share of the residential market to plastic and composite fencing.
In 2009, metal fencing accounted for the largest share of the fencing market in both dollar value and linear feet. Chain link fencing is often used to mark boundaries and secure properties, while ornamental metal fencing is used to beautify houses and businesses. Through 2014, US demand for metal fencing in linear feet is expected to advance 2.0 percent annually. Below-average growth in the nonresidential market, where metal fencing dominates, will restrict gains. Metal fencing pricing is forecast to rise just over one percent per year through 2014 because of the projected minimal growth in metal prices.