Fencing industry forecasts to 2010

Released on = April 21, 2007, 2:02 am

Press Release Author = Bharat Book Bureau

Industry = Marketing

Press Release Summary = US fencing demand to top $6.5 billion in 2010

Fencing demand (measured at the manufacturers' level) in the US is expected to rise
more than two percent per year through 2010 to 970 million linear feet, with total
value exceeding $6.5 billion.


Press Release Body = Fencing industry forecasts to 2010

US fencing demand to top $6.5 billion in 2010

Fencing demand (measured at the manufacturers' level) in the US is expected to rise
more than two percent per year through 2010 to 970 million linear feet, with total
value exceeding $6.5 billion. A strong outlook for nonresidential building and
nonbuilding construction spending will drive demand for fencing. A brighter economic
outlook will buoy gains in agriculture applications. In the large residential
market, fortunes will be mixed. However, improvement and repair applications will
provide better growth opportunities through 2010.

Plastic, concrete fencing to grow the fastest

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 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 growth
opportunities 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 benefit demand.

Metal fencing to benefit from nonresidential and nonbuilding construction

Metal fencing, the largest segment in area terms, is forecast to increase at an
aboveaverage pace through 2010. A recovery in nonresidential and nonbuilding
construction spending will fuel advances, as metal is the primary material used in
these installations. Additionally, ongoing security concerns will support
opportunities in these markets. However, increasing competition from plastic
fencing, particularly in ornamental installations, will hamper growth in metal
fencing. Wood fencing is the second leading material used and will see minimal
growth through 2010, as the new housing market cools from highs in 2005 and from
competition with alternative materials that mimic the look of wood without the
maintenance.

West, South to show most rapid gains by US region

The South was the largest regional market for fencing in 2005. Through the forecast
period, advances in fencing demand are projected to be the fastest in the West and
South because of more favorable outlooks for construction spending, economic growth
and population gains.

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