Summary
• The trend for ‘staycations’ has helped sales of lower-end fencing.
• There has been stronger demand from the agriculture and landscaping sectors.
• Stocks are generally low.
• Demand for pallets remains subdued.
As summer draws to a close, the fencing sector appears to have had a reasonably buoyant season, with the recession-induced “holiday at home” trend, among other factors boosting sales of lower-end products especially. However, the seasonal nature of the sector means demand is now expected to flatten out until after the new year.
“Sawn fencing in retail – panels, posts, trellis – has been firm for most of the year, “ said one supplier. “One area of very high demand has been agriculture and landscaping sectors. Here we’ve seen demand exceed supply. This could be due to an increase in livestock production after foot and mouth, but whatever the reason, it’s been a remarkably strong year for fencing.”
Potential shortages
A particularly strong late surge in demand could lead to fencing shortages, he added, but the industry still remains wary of being stuck with a lot of stock. This is evident in the low levels of forward ordering, with most merchants working on a day-to day-basis.
It has also been a strong year for UK round timber suppliers to fencing. “A much better year than anyone had hoped,” TTJ was told.
This is partly due to log shortages in the Baltics, which have provided an opportunity for UK-grown timber mills to step in. However, the overseas shortages have also led to suppliers raising raw material prices.
Having had a reasonable peak season, and notably for lower to mid-market product, sources say they’re now anticipating a quieter late summer/autumn period.
“People holidaying at home may have helped make August better than expected,” said one contact. “But overall it’s now a a bit flat, and the higher end of the market, for example continental panels, are not fairing well. In fact, anything above a common panel has not done well all season.”
