NEW YORK -- After a 16% decrease in sales, 2007 proved to be a tough year for the residential fence, deck & rail (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."
This all-new SBI report, The U.S. Market for Fence, Deck & Rail Products covers the market for residential FDR products made from wood, metal, vinyl, plastic and concrete. The report further explores economic, housing, consumer and product trends, as well as consumer home improvement activity and distribution channels. The report is available from SBI by visiting: www.sbireports.com/Fence-Deck-Rail-1692517
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