Fencing Demand Growin g 7.1olo Per Year

Demand for fencing in the U.S. is forecast to grow 7.lqo annually to $8.3 billion in2O16, totaling 835 million linear ft., according to a new study by Freedonia Group.

Growth will be driven by an expected rebound in building construction from a depressed 2011 base. In addition, advances will be supported by rising use of high-value fencing materials, such as ornamental metal and plastic and composite lumber. Consumers will opt for these materials because of their favorable aesthetic qualities and performance properties.

The residential market accounted for the largest share of fencing demand in 2011 and will remain the market leader in 20 16. Demand for fencing in residential building construction applications is forecast to increase at an above-average pace through 2016, fueled by a rebound in housing completions.

Further growth will be supported by the large residential replacement segment, which will benefit from a recovery in improvement and repair spending.

Nonresidential fencing demand will see strong gains through 2016. Increasing nonresidential building construction-particularly in the office and commercial segment-will stimulate demand. Fences are often installed around nonresidential structures to provide security barriers and to demarcate property lines.

Fencing demand in the nonbuilding and agricultural markets will rise modestly through 2016. Gains will be moderated by the prevalence of lowcost materials, such as wood and metal wire, in these markets.

Among fencing materials, plastic and composite lumber is expected to see the most rapid growth in demand through 2016. Plastic and composite materials often resemble natural wood, but have minimal maintenance needs and longer lifespans than wood fencing. Plastic and composite lumber is also promoted as being "green" because it is often made from recycled materials, such as reclaimed plastics and wood scraps.

In 2011, metal fencing accounted for the largest share of the fencing market in both dollar value and linear ft. Chain link fencing is often used to mark boundaries and secure properties, while ornamental metal fencing is erected around houses and businesses to form an aesthetically pleasing barrier. Demand for metal fencing will increase in line with the industry average through 2016, with ornamental fencing fortifying gains.

In addition to the rebound in housing activity, some business owners will opt for ornamental fencing to serve as an aesthetically pleasing alternative to chain link and wire fencing.

Wood fencing demand will advance at a below-average pace through 2016. Wood is most often utilized in the residential market because of its low cost and favorable aesthetics. However, demand for wood fencing will be checked by competition from plastic and composite fencing.

Concrete and other fencing materials will see solid gains through 2016. Demand for concrete fences will be supported by strong interest in concrete and other materials for use in privacy fences. Moreover, concrete fencing offers a high degree of protection from damages caused by impacts and explosives.

By fames Olsen