The U.S. Market for Fence, Deck and Rail Products

By: Steven Zhao
Submitted: 2008-11-06 18:00:39
Print this article | Tell a friend | For publisher | Social Bookmarking
Rating:
 
These are uncertain times in the housing and home improvement industry, especially for arenas that may be considered non-essential to consumers, such as fence, deck & rail (FDR) products. This all-new SBI report covers the market for residential FDR products made from wood, metal, vinyl, plastic and concrete. While many market studies strive to analyze market sizes and dynamics from the "sell side" perspective by attempting to measure the revenues earned by product and service vendors of materials, this study also focuses strongly on the "buy side" of the market by looking at indicators of demand among builders and consumers. This is key, as the FDR market is so closely tied to residential housing and economic issues affecting buyers.

SBI estimates that the residential FDR market reached a record $11.9 billion in 2006; however, 2007 proved to be a tough year for the industry as homeowners reigned in spending and homebuilders pared back on construction. While there are some factors that may help lessen the blow felt by the housing and economic slump, such as lower interest rates and an unending consumer desire to spend on home improvements and outdoor living, they are not strong enough drivers to cause a turnaround in the near term. The market of fence such as temporary fence,wire mesh,fence manufacturers,steel fence post,wire fence,portable fence is likely to continue to correct downward into 2008, but should begin to pick back up thereafter.

The report further explores economic, housing, consumer and product trends, as well as consumer home improvement activity, distribution channels and the competitive environment affecting domestic, residential FDR product demands. The report also profiles major marketers, along with manufacturer strategies to maximize growth and profitability.

Data were obtained from government sources, trade associations and publications, business journals, company literature, investment reports and interviews with industry stakeholders. In most cases, historical data are provided for 1998 through 2007, with forecast data from 2008 to 2012. Market size statistics are derived from U.S. Department of Commerce and other data sources, and are augmented by SBI estimates. Simmons Market Research Bureau's spring 2007 survey, based on a sample of 24,136 respondents, provides the primary research data on consumer remodeling habits and home improvement expenditures.

After a 16% decrease in sales, 2007 proved to be a tough year for the residential FDR market, which settled at $10.1 billion. Nonetheless, a new report from SBI, The U.S.Market for Fence, Deck & Rail Products, forecasts that the market will resume its upward trend and reach $11.8 billion by 2012. A four percent growth rate is predicted in 2009, with seven to nine percent continued growth through 2012.
 
Commodity prices play an especially important role in the FDR industry.Increasing oil prices have impacted the cost of running a business and the cost of goods sold.Lumber prices are at the mercy of the U.S. economy, as is the health of the housing market, which also plays a large part in the FDR industry.
The industry will likely get a boost from an increased interest in home remodeling, which is projected to grow by 62% from 2006 to 2016. Much of the demand for outdoor remodeling work will be driven by affluent households with incomes of $75,000 or more. In addition, there is a higher demand for outdoor living products among "upscale" homeowners.
 
"As the housing and construction market continue to struggle, green building products have been a bright spot," comments Cathy Minkler, Associate Editor of SBI. "The booming green building market will continue its rapid expansion over the next four years and is expected to double in revenue. The FDR industry has the potential to be on the cutting edge of the green transformation, especially through the use of composite, vinyl and other wood-alternative products that are engineered with added environmental benefits."

David ZHENG is the CEO of http://www.china-fence.com. A company specialized in selling all kinds of fence products such as temporary fence,wire mesh,fence manufacturers,steel fence post,wire fence,portable fence etc.

Article source: Expert Articles

Most Recent Articles in Current Affairs category

  • Energy Independence or Death - By: James O. Armstrong
    To paraphrase a quotation from Patrick Henry, who of course was one of our founding fathers in America, "give me energy independence or death."
  • The U.S. Market for Fence, Deck and Rail Products - By: Steven Zhao
    These are uncertain times in the housing and home improvement industry, especially for arenas that may be considered non-essential to consumers, such as fence, deck & rail (FDR) products.
  • New Math: Subtracting 10 Years from Your Age - By: Elizabeth Schultz
    The thirties are the new twenties, at least that's the chatter among the cultural gurus. If the thirties are the new twenties, then the forties are the new thirties; the fifties are the new forties; and so on. Thinking of ourselves as 10 years younger is one trendy development that we can support.
  • Storage New York: Relive the Tension of Storing Goods While Relocating! - By: Claudia White
    Storage New York services help you in relocating from one place to another with ease and convenience.
  • Corporate Relocation Services - Make the Transit Easier - By: Claudia White
    Corporate relocation services are a boon for all those who don't want to get into the mess of the relocation process.
  • Give human trafficking the red light - By: Paul McIndoe
    Illegal the world over, human trafficking is a damaging trade which remains rife in the 21st century. Those ensnared by the traffickers need practical advice and treatment in order to deal with their pasts and build new futures.
  • To Reuse or To Recycle? That is the Question - By: George Perry
    Recycling comes with hidden costs. Sometimes those costs are higher than you think.
  • A Powerful Strategy To Bring Down The Crude Oil Prices - By: Sudhir Goyal
    All of us are hit hard by high and rising Crude Oil prices. Since the grains are being used to produce bio-fuels, food prices too has risen sharply. Due to rise in both food and fuel prices the inflation is scaling new heights across the globe. I have a two point action plan to bring down Oil prices which in turn will lower the food prices, and we will have reduced inflation.
  • If Crops are Sick - By: Angulo Fu
    Human falls in sick, medicine is needed, the same, when crops are sick, pesticide is needed.
  • Finding an Event Planner - By: Synapse India
    Event planning has never been an easy task but it can be made easier with the help of an Event Planner. An event planner may handle all types of tasks related to an event from budgeting, selecting site, catering, entertainment, gifts, transportation to supervising your event.