SCOPE AND METHODOLOGY

The Catalina Report on Fencing and Decking is a guide to the sales and profit-oriented opportunities in this growing sector of the U.S. construction materials industry. This comprehensive database covers U.S. fence product shipments, imports and exports, fence installation spending, fence contractors, deck product market trends, factors affecting U.S. demand, the cost structure of steel wire fencing plants, and the competitive environment. In addition, leading U.S. manufacturers and marketers are profiled to review major competitor strengths and growth strategies.

The U.S. fence product supply was calculated from Department of Commerce statistics by collecting data on domestic plant shipments and adding imports (Section 1). Data on shipments and imports were collected by material, including wire fencing, barbed wire, nonwire ornamental metal fences, and wood fence products. PVC fence shipments were estimated by Catalina Research. Price trends were tracked for metal and wood fences from the Bureau of Labor Statistics Producer Price Index. Shipments are for all domestic manufacturers, whether plants are owned by U.S.- or foreign-based companies and whether or not plants specialize (50% or more of total facility revenues) in fence products. Deck product factory sales were estimated and forecasted based on Trex Co. data.

U.S. fence product shipments, imports, and exports are segmented further in their own separate sections. Wire fencing shipments are provided for chain link fencing, woven and welded wire fence, gates and posts, and ornamental lawn fence (Section 2). Shipment statistics are derived from the Census of Manufacturers, Annual Survey of Manufacturers, and Current Industrial Report surveys and estimated and forecasted by Catalina Research. Import competition is analyzed for wire and wood fence products by type and by major country of origin (Section 4). U.S. import data are derived from U.S. Customs records. Export shipments are provided by product sector and major country of destination. A look at the Canadian trade situation is included as well. This latter data is compiled from Statistics Canada publications.

Fence installation spending is also analyzed (Section 5). Catalina segments residential, nonresidential, and agricultural markets. In addition, the fence contractor business is investigated (Section 6). Contractor data are based on U.S. Department of Commerce and American Fence Association (AFA), Glen Ellyn, Illinois, surveys. The AFA’s data is compiled from their Cost of Doing Business Report.

U.S. deck product market trends were analyzed and estimated from Trex Co. financial report data (Section 7). Deck product sales were segmented by residential and commercial markets and by wood, composite, and 100% plastic material. This section includes data on new single-family homes completed with a patio, porch, and deck, and homeowner spending on adding or altering one of these outdoor structures. The deck product market section also includes U.S. shipments of wood preservation products and concrete pavers. The cost structure of wood preservation product plants and wood preservation price trends are included as well.

Catalina also evaluated factors affecting U.S. fence and deck product demand (Section 8). Data tables cover U.S. construction activity by market, the U.S. housing market, residential remodeling spending, remodeler demographics, and personal and farm income trends. In addition, Catalina studied U.S. crime rates and the prison construction situation.

As part of this in-depth analysis, Catalina supplied data on the cost structure and profitability of U.S. steel wire fencing plants (Section 3). Government data cover all U.S. plants specializing (50% or more of total plant revenues) in this product sector. The competitive environment, however, is reviewed for all industry sectors (Section 9). Government data are supplemented with major competitor sales estimates and company profiles (Section 10). Annual reports, databases, and trade journals were searched for new products, capital projects, acquisitions, and growth strategies.

Action-oriented executives are urged to use this comprehensive statistical database and competitor information to uncover growing product lines, end-use markets, and profitable operating strategies. Executives are urged to compute their own company’s market share and compare their company’s operating ratios to the industry averages as part of this process.