US Fencing Demand to Reach 935 Million Linear Feet in 2012

US demand for fencing is forecast to expand approximately two percent per annum to 935 million linear feet in 2012.  Although this pace represents an improvement from the 2002-2007 period in terms of linear feet, a more moderate outlook for raw material prices will restrain value growth.  A recovery in the residential fencing market, which accounts for over one-half of demand, will spark an acceleration in overall growth.  The residential market had contracted as housing construction declined sharply in 2006 and 2007, but is projected to improve based on a more favorable outlook for residential construction in 2012. These and other trends, including market share and product segmentation, are presented in US Fencing, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

Among fencing materials, demand for plastic and composite fencing is forecast to grow fastest, as these products continue to penetrate the large residential fencing market at the expense of wood products.  Although wood remains the most popular residential fencing type, competition from plastic and composite fencing is quickly eroding its market share.  Plastic materials can offer similar aesthetics to wood products, while significantly reducing maintenance costs.  While vinyl fencing products continue to account for the largest share of plastic fencing demand, more aesthetically-pleasing composite products are expected to grow faster.

Metal fencing accounts for two-thirds of the fencing market in value terms (its share is somewhat smaller in terms of linear feet).  Metal fencing’s prominence stems from its popularity in the nonresidential building and nonbuilding markets, where metal fencing (particularly chain link) is commonly used to secure property.  Although chain link fencing is the most frequently installed metal product, ornamental metal fencing generates the majority of the segment’s market value.  Going forward, demand for metal fencing is expected to grow in line with the market as a whole. 

The nonresidential fencing market is projected to provide some of the best opportunities for growth, accounting for one-third of the forecast increases.  Installations at institutional buildings will spur growth in this market, as demographic trends drive the construction of new health care and educational facilities.  Overall, nonresidential fencing demand is expected to improve in new applications relative to the 2002-2007 period, while demand in improvement and repair applications remains firm. 

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.