Industry Analysis & Industry Trends
Mending fences
The industry's performance was adversely affected by the recession, as demand for fences and scaffolding fell in line with the decline in construction projects. Many firms also struggled to maintain profitability, as volatile input prices of steel and aluminum challenged the industry. Nevertheless, demand will pick up in the next five years, because of the economic recovery and a slight increase in construction activity, primarily for repairs and renovations. Also, increased construction spending across all markets will drive growth of scaffolding products.... purchase to read more
Industry Report - Industry Investment Chapter
The Fence and Scaffolding Manufacturing industry is characterized by low capital intensity, with manufacturers requiring $0.08 of capitol for every $1.00 of labor invested. While the industry relies on capital equipment for its production processes, the machinery and equipment itself has a long useful life and requires few upgrades, helping keep depreciation low. New capital spending is typically for the purchase of machinery, while a much smaller portion is allocated toward buildings and other structures. In addition, the purchase of computers, data and processing equipment is rising, particularly as large producers seek to better manage inventories and orders... purchase to read more