| These are uncertain times in the housing and | | | | cases, historical data are provided for 1998 |
| home improvement industry, especially for arenas | | | | through 2007, with forecast data from 2008 to |
| that may be considered non-essential to | | | | 2012. Market size statistics are derived from U.S. |
| consumers, such as fence, deck & rail (FDR) | | | | Department of Commerce and other data |
| products. This all-new SBI report covers the | | | | sources, and are augmented by SBI estimates. |
| market for residential FDR products made from | | | | Simmons Market Research Bureau's spring 2007 |
| wood, metal, vinyl, plastic and concrete. While | | | | survey, based on a sample of 24,136 |
| many market studies strive to analyze market | | | | respondents, provides the primary research data |
| sizes and dynamics from the "sell side" | | | | on consumer remodeling habits and home |
| perspective by attempting to measure the | | | | improvement expenditures |
| revenues earned by product and service vendors | | | | After a 16% decrease in sales, 2007 proved to |
| of materials, this study also focuses strongly on | | | | be a tough year for the residential FDR market, |
| the "buy side" of the market by looking at | | | | which settled at $10.1 billion. Nonetheless, a new |
| indicators of demand among builders and | | | | report from SBI, The U.S.Market for Fence, Deck |
| consumers. This is key, as the FDR market is so | | | | & Rail Products, forecasts that the market |
| closely tied to residential housing and economic | | | | will resume its upward trend and reach $11.8 billion |
| issues affecting buyers. | | | | by 2012. A four percent growth rate is predicted |
| SBI estimates that the residential FDR market | | | | in 2009, with seven to nine percent continued |
| reached a record $11.9 billion in 2006; however, | | | | growth through 2012. |
| 2007 proved to be a tough year for the industry | | | | Commodity prices play an especially important |
| as homeowners reigned in spending and | | | | role in the FDR industry.Increasing oil prices have |
| homebuilders pared back on construction. While | | | | impacted the cost of running a business and the |
| there are some factors that may help lessen the | | | | cost of goods sold.Lumber prices are at the |
| blow felt by the housing and economic slump, | | | | mercy of the U.S. economy, as is the health of |
| such as lower interest rates and an unending | | | | the housing market, which also plays a large part |
| consumer desire to spend on home | | | | in the FDR industry. |
| improvements and outdoor living, they are not | | | | The industry will likely get a boost from an |
| strong enough drivers to cause a turnaround in | | | | increased interest in home remodeling, which is |
| the near term. The market of fence such as | | | | projected to grow by 62% from 2006 to 2016. |
| temporary fence,wire mesh,fence | | | | Much of the demand for outdoor remodeling work |
| manufacturers,steel fence post,wire | | | | will be driven by affluent households with incomes |
| fence,portable fence is likely to continue to | | | | of $75,000 or more. In addition, there is a higher |
| correct downward into 2008, but should begin to | | | | demand for outdoor living products among |
| pick back up thereafter. | | | | "upscale" homeowners. |
| The report further explores economic, housing, | | | | "As the housing and construction market continue |
| consumer and product trends, as well as | | | | to struggle, green building products have been a |
| consumer home improvement activity, distribution | | | | bright spot," comments Cathy Minkler, Associate |
| channels and the competitive environment | | | | Editor of SBI. "The booming green building |
| affecting domestic, residential FDR product | | | | market will continue its rapid expansion over the |
| demands. The report also profiles major | | | | next four years and is expected to double in |
| marketers, along with manufacturer strategies to | | | | revenue. The FDR industry has the potential to be |
| maximize growth and profitability. | | | | on the cutting edge of the green transformation, |
| Data were obtained from government sources, | | | | especially through the use of composite, vinyl and |
| trade associations and publications, business | | | | other wood-alternative products that are |
| journals, company literature, investment reports | | | | engineered with added environmental benefits. |
| and interviews with industry stakeholders. In most | | | | |