Fencing Demand Growin g 7.1o/o Per Year

Demand for fencing in the U.S. is forecast to grow 7.17o annually to $8.3 billion in 2O16, 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 201 I 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 2016. 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 through2016. 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 ofprotection from damages caused by impacts and explosives.

Barr Down to Last Yard

Barr Lumber, San Bernardino, Ca., has closed its stores in West Covina and Yucca Valley, Ca., reducing the chain to a single yard in Twentynine Palms, Ca.

Kyle Nicholson, a professional liquidator who helped empty the Yucca Valley store at the end of August, said the Twentynine Palms branch benefits from being close to a Marine Corps base, but far from big box competition. "Being isolated is sometimes a good thing," Nicholson said. "We're in the process of keeping the Barr name going and the one store going."

Barr purchased the West Covina yard from Pick's Building Materials in 2008.

Depot Closes Oldest Store in West, Readies Replacement

In Fullerton, Ca., Home Depot closed the oldest store in its western division, liquidated all the old merchandise, and will open in a new building, with new merchandise, just down the street.

Mike Astorino, district manager for Home Depot, said the goal was to give Fullerton a brand new store-the old one was 27 years old.

At 150.000 sq. ft.. the new store is about 20,000 sq. ft. smaller than the old store, but will have a larger lawn and garden section, plus an expanded appliance showroom with a wider selection of merchandise.

"We are always looking for ways to improve the shopping experience for customers," said Craig Menear, executive vice president for merchandising for Home Depot.

The ofd store closed Aug. 22; the new one is to open Oct.23.

Earlier this year, Depot opened its first western region superstore in Anaheim Hills, Ca., its 205900 sq. ft. packed with wider selection in all cat- egories, more "lifestyle vignettes" to illustrate design and decorating ideas, and upgraded customer service areas for both consumers and home improvement professionals.

Siding, Trim to Post Big Gains

Demand for residential siding and trim will reach $9.1 billion by 2Ol4 from $7.2 billion in 2011, according to a new study by Principia.

Siding demand will increase 77o from 58 million squares valued at $5.8 billion in 2011 to 71.6 million squares with a factory gate value of $7.2 billion in 2014, based on project- ed unit shipments.

Exterior trim will increase l07o from 1.7 million linear ft. in 2011 to 2.3 million linear ft. in2014.

"The residential siding and trim market is expected to see steady growth over the next few years due to the increasing need for re-siding and repair along with increased activity in new construction." said Ken Jacobson, partner at Principia. "Manufacturers are improving existing products so that they are more cost effective, easier to install, and align with existing and upcoming codes and standards."