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Fence & Scaffolding Manufacturing in the US Industry Market Research Report Now Available from IBISWorld
  • USA - English


News provided by

IBISWorld

Dec 07, 2014, 10:00 ET

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New York, NY (PRWEB) December 07, 2014 -- The Fence and Scaffolding Manufacturing industry primarily sells its products to specialty contractors across residential, commercial and industrial construction markets. The substantial US construction slump of recent years and the subsequent recovery of these markets caused demand for industry products to remain relatively unchanged, with Fence and Scaffolding Manufacturing industry revenue estimated to grow at an average annual rate of 0.1% over the five years to 2014, totaling $2.4 billion in 2014 and growing 4.2% over the year.

As residential construction spending began increasing at an annualized rate of 5.0% over the five years to 2014, contractors started to resume their purchases of scaffolding and metal fencing products. However, renewed demand did not immediately result in realized gains and many industry operators struggled to maintain healthy sales levels. Scaffolding equipment sales were most adversely affected by limited demand for industry products and equivalent foreign substitutes. Fencing tends to be less volatile as it is used in a range of settings across many markets. Increasing disposable income can serve as a proxy for recovering consumer spending; thus, more robust growth in disposable income has corresponded with solid industry revenue growth.

In the five years to 2014, many operators that struggled to maintain profitability in 2009 and 2010 experienced widening margins in recent years as revenue streams recovered and input prices stabilized in the second half of the five-year period. Thus, despite many companies shutting down manufacturing plants in 2010, recovering profit encouraged new entrants, resulting in enterprise growth, which mitigated many of these exits. Similarly, employment levels and establishment figures have experienced later growth, which has helped mitigated early losses over the period.

Continued economic recovery and an increase in construction activity, primarily for repairs and renovations, allowed the industry to turn the corner in 2011. In the five years to 2019, recovering home valuations, employment and per capita disposable income will likely continue to drive revenue growth for the industry as consumers demand better quality of fencing products and will be encouraged to upgrade existing fences. Increased construction spending across all markets will drive growth of scaffolding product manufacturing.

For more information, visit IBISWorld’s Fence and Scaffolding Manufacturing in the US industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

The Fence and Scaffolding Manufacturing industry manufactures metal fencing, gates and scaffolding. The industry includes products made from purchased metal as well as fencing and gates made at plants that draw wire.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]

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