The U.S. Market for Fence, Deck & Rail Products

Table of Contents

Chapter 1 Executive Summary

• Scope of the Report
• Methodology
• Residential Fence, Deck & Rail Market
  • Fence, Deck & Rail Suffers Drop to $10 Billion in 2007
  • Figure 1-1 U.S. Residential Fence, Deck & Rail Market: Total and Fence vs. Deck & Rail, 1998-2007 (in billion $)
  • U.S. Fence, Deck & Rail Market to Reach $11.8 Billion by 2012
  • Figure 1-1 Forecasted U.S. Residential Fence, Deck & Rail Market: Total and Fence vs. Deck & Rail, 2007-2012 (in billion $)
• Economic Growth Factors
  • 2008 Real GDP Growth Forecasted at a Meager 0.9%
  • Figure 1-3 Percentage Changes in U.S. Current-Dollar GDP, Real GDP and the GDP Price Index, 2002-2008 (%)
  • Commodities
• Housing Market Trends
  • Residential Markets Head South
  • Home Maintenance and Improvements Lose Some Steam
  • Figure 1-4 U.S. Quarterly Expenditures for Home Maintenance/Repairs and Improvements, 2004-2007 (in billion $)
  • Outdoor Living Projects May Propel Remodeling Growth
  • Outside Residential Additions and Alterations
  • Figure 1-4 Deck or Porch Additions to Occupied Residential Structures, 1997-2005 (in thousands of projects)
  • Deck, Porch DIYers Declining Faster Than Outside Contractors
  • Unattached Additions, Alterations on the Rise
  • Fencing, Wall Projects Show Slower Growth
• Product and Consumer Trends
  • Can Green Boost Fence, Deck & Rail?
  • Composite Sources Go Beyond Plastics
  • Composite Benefits and Obstacles
  • Nanotechnology: The Next Wave
  • Cellular PVC Alternative
  • Design Me!
  • The Outdoor Lifestyle
  • Outdoor Living Affects Fencing
  • DIY Home Improvement
  • Women Doing It for Themselves
  • Baby Boomers
  • American Mobility Shifts to Warmer West and South
  • Weather Anomalies Pose Threats and Opportunities
  • Remodeling Hangs Tough
• Distribution Trends
  • Overview: Highly Diverse and Fragmented Marketplace
  • Competitive Distribution Landscape
  • Manufacturer Distribution Points Mostly Intermediary
  • Dealer and Builder Programs
  • Retailing
  • Direct Sales
• Promotion Trends
  • Magazines and Websites
  • Event and Contest Sponsorships
  • Trade Shows
  • Word of Mouth
  • Product Placement Works in Reality
  • The Internet Shifts Outreach
  • Core Company Values Important
  • Direct Mail Lists Still an Opportunity
• Consumer Home Improvement
  • Demographic Characteristics of Recent Remodelers
  • Demographic Characteristics of Future Remodelers
  • Home Improvement Expenditures
  • Decking Accounts for 3% of Improvement Activity
  • Demographic Characteristics of Outdoor Deck Buyers
  • DIY vs. Service-Supplied Decks and Porches/Patios

Chapter 2 Market Size and Growth

• Scope of the Report
• Methodology
• Differences Between Chapter 2 and Chapter 3
• Residential Improvement Market
  • Over $200 Billion in Residential Improvement Expenditures
  • Figure 2-1 U.S. Residential Improvement Expenditures: Total and Owner-Occupied vs. Rental Properties, 1998-2007 (in billion $)
  • Table 2-1 Total U.S. Residential Improvement Expenditures and Year-over-Year Gain, 1998-2007 (in billion $)
  • Figure 2-2 Estimated Share of U.S. Residential Improvement Market by Property Type, 2007 (%)
  • Owner-Occupied Expenditures Drop 9%
  • Rental Expenditures Yo-Yo
  • Table 2-2 U.S. Residential Improvement Expenditures: Owner-Occupied vs. Rental Properties, 1998-2007 (in billion $)
  • Figure 2-3 Share of U.S. Residential Improvement Market by Property Type, 1998-2007 (%)
• Residential Fence, Deck & Rail Market
  • Housing Bubble Put Fence, Deck & Rail into Overdrive
  • Fence, Deck & Rail Suffers Drop to $10 Billion in 2007
  • Figure 2-4 U.S. Residential Fence, Deck & Rail Market: Total and Fence vs. Deck & Rail, 1998-2007 (in billion $)
  • Table 2-3 U.S. Residential Fence, Deck & Rail Market and Year-over-Year Gain, 1998-2007 (in million $)
  • Figure 2-5 Estimated Fence vs. Deck & Rail Share of U.S. Residential FDR Market, 2007 (%)
  • Deck & Rail Market Declines 15% in 2007
  • Fence Market Declines 17% in 2007
  • Table 2-4 U.S. Residential Fence, Deck & Rail Market 1998-2007 (in billion $)
  • Figure 2-6 Fence vs. Deck & Rail Share of U.S. Residential FDR Market, 1998-2007 (%)
• Market Forecast
  • U.S. Fence, Deck & Rail Market to Reach $11.8 Billion by 2012
  • Consumer Driven Trends Not Much Help
  • WPC Potential Thwarted Somewhat
  • Figure 2-7 Forecasted U.S. Residential Fence, Deck & Rail Market: Total and Fence vs. Deck & Rail, 2007-2012 (in billion $)

Chapter 3 Category Focus

• Overview
• Metal & Wood Fence
• Wood & Wood-Plastic Composite Deck & Rail
• Vinyl Building Products
• Table 3-1 U.S. Shipments of Building & Construction Fabricated Plastics and Other Building & Construction Plastics, 1997-2007 (in million $)
• Metal & Wood Fence Products
  • Banner Years Over as Metal & Wood Fence Market Stalls
  • Figure 3-1 U.S. Metal & Wood Fence Products Market: Total and Metal vs. Wood, 1998-2007 (in billion $)
  • Table 3-2 Total U.S. Metal & Wood Fence Products Market and Year-over-Year Gain, 1998-2007 (in million $)
  • Metal' s Larger Share Staved Off Further Losses in 2007
  • Figure 3-2 Estimated Share of U.S. Metal & Wood Fence Products Market by Material, 2007 (%)
  • Figure 3-3 Share of U.S. Metal & Wood Fence Products Market by Material, 1998-2007 (%)
  • Aluminum Fence Shines, Wood Disintegrates
  • Table 3-3 U.S. Metal & Wood Fence Products Market by Material, 1998-2007 (in million $)
  • Metal & Wood Fence Shipments, Imports and Exports
  • Table 3-4 U.S. Shipments, Imports and Exports of Metal & Wood Fence Products, 1998-2007 (in million $)
  • Domestic vs. Foreign Production as a Share of U.S. Market
  • Figure 3-4 U.S. Net Shipments of Metal & Wood Fence Products and Share of Market, 1998-2007 (in billion $)
  • Table 3-5 U.S. Net Shipments of Metal & Wood Fence Products and Year-over-Year Gain, 1998-2007 (in million $)
  • Figure 3-5 U.S. Imports of Metal & Wood Fence Products and Share of Market, 1998-2007 (in million $)
  • Table 3-6 U.S. Imports of Metal & Wood Fence Products and Year-over-Year Gain, 1998-2007 (in million $)
  • U.S. Manufacturers Exporting a Greater Share of Shipments
  • Figure 3-6 U.S. Exports of Metal & Wood Fence Products and Share of U.S. Shipments, 1998-2007 (in million $)
  • Table 3-7 U.S. Exports of Metal & Wood Fence Products and Year-over-Year Gain, 1998-2007 (in million $)
  • Metal & Wood Fence Product Imports by Country
  • Table 3-8 U.S. Imports of Metal & Wood Fence Products by Country of Origin, 1998 and 2003-2007 (in million $)
  • Figure 3-7 Share of U.S. Metal & Wood Fence Product Imports by Country of Origin, 2007 (%)
  • Metal & Wood Fence Product Exports by Country
  • Table 3-9 U.S. Exports of Metal & Wood Fence Products by Country of Destination, 1998-2007 (in million $)
  • Figure 3-8 Share of U.S. Metal & Wood Fence Product Exports by Country of Destination, 2007 (%)
• Wood & Wood-Plastic Composite Deck & Rail Products
  • WPC Outlasts Wood
  • Figure 3-9 Estimated U.S. Wood & WPC Deck & Rail Products Market: Total and Wood vs. WPC, 1998-2007 (in million $)
  • Table 3-10 Estimated Total U.S. Wood & WPC Deck & Rail Products Market and Year-over-Year Gain, 1998-2007 (in million $)
  • Table 3-11 Estimated U.S. Wood & WPC Products Manufacturing Market by Material, 1998-2007 (in million $)
  • WPC Grabs Market Share
  • Figure 3-10 Estimated Share of Wood & WPC Deck & Rail Products Market by Material, 2007 (%)
  • Figure 3-11 Estimated Share of Wood and & WPC Deck & Rail Products Market by Material, 1998-2007 (%)

Chapter 4 Competitor Profiles

• Overview
• About Selected Profiles
• Shuffling of the Boards, Consolidation Strong
• M&A to Continue in Softer Market
• Changing Market Shuts Down Facilities
• Advanced Environmental Recycling Technologies, Inc. (AERT)
  • Overview
  • Performance
  • Figure 4-1 Total Net Sales of AERT Fence, Deck & Rail Products, 2003-2007 (in million $)
  • Figure 4-2 Estimated Brand Share of Net Sales for AERT Fence, Deck & Rail Products, 2007 (%)
  • Product Portfolio
  • Table 4-1 Selected AERT Product Lines
  • Significant Events
• CertainTeed
  • Overview
  • Performance
  • Figure 4-3 Total Net Sales of CertainTeed, 2003-2007 (in billion $)
  • Product Portfolio
  • Table 4-2 Selected CertainTeed Product Lines
  • Significant Events
• Fiber Composites, LLC
  • Overview
  • Performance
  • Figure 4-4 Estimated Total Net Sales of Louisiana Pacific Composite Deck & Rail Products, 2003-2007 (in million $)
  • Product Portfolio
  • Table 4-3 Selected Fiber Composite Product Lines
  • Significant Events
• MMI Products, Inc. (CRH Plc)
  • Overview
  • Performance
  • Figure 4-5 Total Net Sales of MMI Fence, Deck & Rail Products, 2003-2007 (in million $)
  • Product Portfolio
• Ply Gem Industries, Inc.
  • Overview
  • Performance
  • Figure 4-6 Total Net Sales of Ply Gem Siding, Fence, Deck & Rail Products, 2003-2007 (in million $)
  • Product Portfolio
  • Table 4-7 Ply Gem Fencing & Decking Product Portfolio
  • Significant Events
• Trex Company, Inc.
  • Overview
  • Performance
  • Figure 4-7 Total Net Sales of Trex Fence, Deck & Rail Products, 2003-2007 (in million $)
  • Product Portfolio
  • Table 4-5 Trex Fence, Deck & Rail Product Portfolio
  • Significant Events
• Universal Forest Products, Inc.
  • Overview
  • Performance
  • Figure 4-8 Total Net Sales of Universal Forest Products, 2003-2007 (in billion $)
  • Figure 4-9 Share of UFPI Net Sales by Customer Type, 2007 (%)
  • Figure 4-10 Total Net Sales of UFPI Fence, Deck & Rail Products, 2003-2007 (in million $)
  • Figure 4-11 Total Net Sales of UFPI Preservative-Treated Lumber, 2003-2007 (in million $)
  • Product Portfolio
  • Table 4-6 UFPI Fencing & Decking Product Portfolio
  • Significant Events

Chapter 5 Economic and Housing Market Trends

• Overview
• Economic Factors
  • 2008 Real GDP Growth Forecasted at a Meager 0.9%
  • Figure 5-1 U.S. Current-Dollar GDP vs. Real GDP, 2002-2008 (in trillion $)
  • Figure 5-2 Percentage Changes in U.S. Current-Dollar GDP, Real GDP and the GDP Price Index, 2002-2008 (%)
  • Commodities
  • Fence Stock Prices
  • Figure 5-3 Fence Stock Monthly Price Index, 2007
  • Steel Wire Prices
  • Figure 5-4 Steel Wire Average Price Index, 1998-2007
  • Other Plastic Construction Product Prices
  • Figure 5-5 Other Plastic Construction Products Average Price Index, 1998-2007
  • Soft Lumber, Cut Stock Prices
  • Figure 5-6 Soft Lumber, Cut Stock Average Price Index, 1998-2007
  • Composite Framing Lumber Prices
  • Figure 5-7 Composite Framing Lumber Average Prices per 1,000 Boardfeet, 1998-2007
• Housing Market Trends
  • Residential Markets Head South
  • New Home Sales
  • Figure 5-8 Annualized U.S. New Single-Family Home Sales by Region, January 1997-July 2007 (in thousands of units)
  • Figure 5-9 Annual U.S. Existing Home Sales by Region, 1963-2007 (in thousands of units)
  • Existing Home Sales
  • Pending Home Sales
  • Figure 5-10 Annual U.S. Existing Home Sales by Region, 1997-2007 (in thousands of units)
  • Figure 5-11 U.S. Pending Home Sales Index by Region, 2004-2006, January-December 2007
  • Building Permits
  • Figure 5-12 U.S. New Housing Units Authorized by Building Permits, January 1997-December 2007 (in thousands of units)
  • Outdoor Features in New One-Family Houses
  • Decks
  • Porches
  • Patios
  • Figure 5-14 Presence of a Patio, Porch or Deck in New One-Family Houses Completed, 1997-2007 (in thousands of units)
  • Home Maintenance and Improvements Lose Some Steam
  • Figure 5-13 U.S. Quarterly Expenditures for Home Maintenance/Repairs and Improvements, 2004-2007 (in billion $)
  • Outdoor Living Projects May Propel Remodeling Growth
  • Outside Residential Additions and Alterations
  • Figure 5-15 Deck or Porch Additions to Occupied Residential Structures, 1997-2005 (in thousands of projects)
  • Deck, Porch DIYers Declining Faster Than Outside Contractors
  • Figure 5-16 Additions to Occupied Residential Structures, Work Done by Household, 1997-2005 (in thousands of projects)
  • Figure 5-17 Additions to Occupied Residential Structures, Work Not Done by Household, 1997-2005 (in thousands of projects)
  • Unattached Additions, Alterations on the Rise
  • Figure 5-18 Patio, Terrace and Detached Deck Additions and Alterations: Work Done by Household vs. Not Done by Household, 1997-2005 (in thousands of projects)
  • Fencing, Wall Projects Show Slower Growth
  • Figure 5-19 Fencing and Wall Additions and Alterations: Work Done by Household vs. Not Done by Household, 1997-2005 (in thousands of projects)

Chapter 6 Product and Consumer Trends

• Can Green Boost Fence, Deck & Rail?
• Composite Sources Go Beyond Plastics
• Plastics to Composites and Back Again
• Non-Wood Composites
• Science and the Art of Recycling
• Composite Benefits and Obstacles
• Nanotechnology: The Next Wave
• Ban on CCA Treated Wood
• Cellular PVC Alternative
• Design Me!
• The Outdoor Lifestyle
• Cocooning Outdoors: "Outdoor Rooms" on the Rise
• FDR Central to the Outdoor Room
• The Deck Is Only One Component
• Outdoor Living Affects Fencing
• Enabling Design Technology
• Exurbia Needs to Relax Too
• Aesthetic Focus on Natural, Reusable and Sustainable
• DIY Home Improvement
• Women Doing It for Themselves
• Baby Boomers
• Boomers Prefer Staying Put, Investing in Home
• Privacy and Style More Meaningful Than Safety?
• American Mobility Shifts to Warmer West and South
• Weather Anomalies Pose Threats and Opportunities
• Remodeling Hangs Tough
• A Tick Down Market?

Chapter 7 Distribution and Promotion Trends

• Overview: Highly Diverse and Fragmented Marketplace
• Distribution
  • Competitive Distribution Landscape
  • Manufacturer Distribution Points Mostly Intermediary
  • Dealer and Builder Programs
  • Retailing
  • Direct Sales
• Marketing and Promotion
  • Magazines and Websites
  • Event and Contest Sponsorships
  • Trade Shows
  • Word of Mouth
  • Product Placement Works in Reality
  • The Internet Shifts Outreach
  • Warranties
  • Do the Green Thing
  • Core Company Values Important
  • Direct Mail Lists Still an Opportunity

Chapter 8 Home Improvement Activity

• Note on Simmons Market Research Bureau Consumer Data
• Homeowner Remodeling Activity and Intent
• Table 8-1 Percentage of Homeowners Who Did or Plan to Do Remodeling, 2007 vs. 2004
• Demographic Characteristics of Recent Remodelers
• Table 8-2 Demographic Indicators for Homeowners Who Have Remodeled in the Last 12 Months, 2007
• Demographic Characteristics of Future Remodelers
• Table 8-3 Demographic Indicators for Homeowners Who Plan to Remodel in the Next 12 Months, 2007
• Table 8-3 [Cont.] Demographic Indicators for Homeowners Who Plan to Remodel in the Next 12 Months, 2007
• Home Improvement Expenditures
• Table 8-4 Percentage of Homeowners Spending on Home Improvements in Last 12 Months, by Spending Range, 2007 vs. 2004
• Demographic Characteristics of Those Who Spent $251-$999
• Table 8-5 Demographic Indicators for Homeowners Spending $251-$999 on Home Improvements, 2007
• Demographic Characteristics of Those Who Spent $1,000-$1,999
• Table 8-6 Demographic Indicators for Homeowners Spending $1,000-$1,999 on Home Improvements, 2007
• Selected Home Improvement Characteristics
• Table 8-8 Percentage of Homeowners Who Bought Selected Outdoor Home Improvements in Last 12 Months, 2007 vs. 2004
• Demographic Characteristics of Outdoor Deck Buyers
• Table 8-9 Demographic Indicators for Homeowners Who Bought an Outdoor Deck in the Last 12 Months, 2007
• Demographic Characteristics of Outdoor Porch/Patio Buyers
• Table 8-10 Demographic Indicators for Homeowners Who Bought an Outdoor Porch/Patio in the Last 12 Months, 2007
• Homeowner Expenditures on Outdoor Decks and Porches/Patios
• Table 8-11 Percentage of Homeowners Spending on Outdoor Decks and Porches/Patios in Last 12 Months, by Spending Range, 2007
• DIY vs. Service-Supplied Decks and Porches/Patios
• Table 8-12 Percentage of DIY vs. Service-Supplied Outdoor Deck and Porch/Patio Home Improvements in Last 12 Months, 2007

Appendix: Selected Addresses