U.S. Fencing Market - Growing Safely!

Renowned American poet Robert Frost’s spectacularly calming & self-assuring poem of 1914, known as ‘Mending Wall’, states very aptly that, “Good Fences Make Good Neighbors”. Ithighlights the importance that fences, boundaries and compounds have in society and how they play a vital role in enabling peaceful cohabitation.

Fences and walls have been of significant importance right from the days of yore, all over the world. Be it The Great Wall Of China, which was built over centuries, mostly under the reign of Ming Dynasty, to keep out raiding parties of nomadic tribes, such as the Mongol, Turic and Xiongnu, from modern-day Mongolia and Manchuria.; or the Barbed Wire fence, which was invented in 1873 at the De Kalb County Fair in Illinois, by an innovative farmer, to keep his land safe from encroachment. Even after all these days, fences are as significant as houses in society, especially in the modern developed countries like, The United States of America.

The U.S. has been witnessing the results of a steady economy in the recent years and is expected to remain so in the coming years. The growing infrastructure industry and the rising number of real estate projects in the country are acting as conducive factors for the increasing investments in the fencing market. Fencing has proliferated in US on a large scale, due to the ever-growing rise in demand in the market. In 2019, the U.S. Fencing Market was valued at USD 8.3 billion and is anticipated to register a CAGR of 4.9% from 2020 to 2027, according to a report of Grand View Research, Inc.

Skimming Through The Market Determinants

The fencing demand is driven by numerous different kinds of developments, such as the residential projects, government infrastructure investments, commercial projects, and even the agricultural fencing applications in the countryside. As a result, the fencing industry is expected to gain substantial gains from the present conditions and is predicted to maintain its upward growth.

• Rise in construction projects in residential areas along with industrial and commercial areas in the country has been a major growth driver for the market. Also, the demand to improve the aesthetic value of the properties has proved to add on to the demand in construction sector.

• Rising disposable income with the people, due to improvement in economic activities, is expected to drive the demand in the fencing market. Along with this, the growing trend and liking for the home décor in the country is going to add on to the effects.

• The security and demarcation of boundaries for improving safety is also one of the most important factors which drives the growth in this market, as the security breach incidents are on the rise.

•  Availability of number of types and customizable fences gives the consumers a wide range to choose from. For example, the agricultural segment has a high demand for wooden fences whereas the metal fences have a higher demand in the residential segment, owing to their affordability and aesthetic malleability. This factor, along with the growing tendency to renovate the residences is set to keep the market brimming with growth.

• Local and federal government’s increasing investment in the development and restoration of parks and gardens, is set to boost the demand in the fencing market.

• Volatile raw materials cost and High energy costs drive up the cost of producing fences leading to reduction in the profit margin. Furthermore, metal fences require metal as a raw material, which is expensive. These factors are proving to be a hindrance for the growth of the market.

Weighing the growth factors and the hindrances on an unbiased scale tells us that, growth factors are much more prominent than the hindrances and the market is set to keep up the growth work!

Market Segmentation

To understand the market better, it is of immense importance to take a look at the market segmentations, based on multiple parameters.

• Based on Application - It is divided into three segments, namely, residential, agricultural and industrial segments, based on application. Residential segment plays the first fiddle. It dominates the market, due to the continuous growth in investment in construction along with the rising concerns of safety. It was valued at USD 5.3 billion in 2019 and is estimated to witness remarkable growth over the upcoming years.

• Based on Installation - Installation of fences are done by two methods - DIY (Do it yourself) or by the Contractors. A work of an expert can be identified even from a long distance. Therefore, it is preferred by the customers that expert contractors install the fences, as it improves the aesthetic value and makes the fences long-lasting and durable. This makes the contractor segment much bigger than the DIY segment in the market.

• Based on Material - Materials used for producing fences are metal, wood, plastic and composite, & concrete. Among these material-based fences, metal fences are much ahead from others. Reasons being the high demand from the residential sector, government organization as well as for public places, associations, and businesses. It is highly effective when it comes to the safety and security, high durability and negligible maintenance.

• Based on Distribution channel - Basically, distribution bifurcates the market into two segments - Online and retailers. Retailers have emerged as the prominent segment in 2019, however, benefits provided by the online segment is catching up steadily to retail segment. Retail segment keeps the maximum market because suppliers choose retail distributers over the online ones. And the secret of the online success, is the amount of benefits provided by the platforms to gain market share.

Market Competition

The U.S. fencing industry is quite developed and, hence, susceptible to redundant product and solutions portfolio. As the industry is also marked by a large number of players including both, large international players and small regional firms, this industry problem is further aggravated. As a consequence, the industry players are investing in research and development activities either to create new products or add additional capabilities to the existing product lines. This ongoing trend is followed not only by large companies but also medium and small firms operating in the industry that are trying to offer a customized range of products. As the industry moves toward maturity, the efforts to differentiate their individual products and develop a product line that stands out from the rest are anticipated to remain intact in the market.

Key market players in the market are Allied Tube & Conduit; Gregory Industries, Inc.; Jerith Manufacturing Company Inc.; and Long Fence Company, Inc.

Recent Developments

• Nebraska Plastics, Inc, a vinyl fence manufacturer will invest more than $1 million into a manufacturing facility in Edenton, Chowan county, North Carolina. This will help the company improve its customer service in the country while reducing freight costs.

•  ASSA ABLOY has acquired Jerith Aluminum Fence, a leading supplier of aluminum fencing for residential, commercial and industrial applications in the US.

  In-depth report on U.S. fencing market by Grand View Research:

http://www.grandviewresearch.com/industry-analysis/us-fencing-market