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Category: Business and Industry

Date Submitted: 09/11/2012 05:31 PM

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Industry Analysis

Future Outlook and Trends – environmental analysis

Residential fencing will represent the primary market for [Superior Fencing]. Demand for residential fencing falls into three categories: (1) new home construction, (2) replacement and repair of existing fences, and (3) first time construction on existing homes. According to the American Housing Survey, new homes are regularly constructed in the US, with the total number of homes increasing from 124 million to 130 million from 2005 to 2009. Existing fences are most commonly pine or cedar fences which require periodic maintenance and replacement. This consumable nature of fences creates a continuous demand as their lifetime expires. Finally, although the number of homes without fences is low, there is a steady trend amongst Americans towards a higher level of privacy and security. This trend is evident in the disproportional increase in homes located in secured communities with controlled access. The American Housing Survey shows that the number of homes in the US increased by 4.6% from 2005 to 2009 while the number of homes located within secured communities increased by 55.4%. Further, data from the Bureau of Economic Analysis shows positive increases in disposable personal income by 3.6% in 2010, 3.7% in 2011, and 3.3% the first quarter of 2012, indicating that the economy is improving enough that consumers are increasingly able to upgrade to amenities such as a new fence.

Analysis of Competitors

Using the search parameters “fence builder”, “fence installation”, and “fence repair” on yellowpages.com and google.com, a total of 13 competitors were identified. Seven of these competitors were found using Sugarland as the search location and eight found using Missouri City as the search location, with two competitors serving both cities. Ten were found only on yellowpages.com and three were found on google.com. Five competitors have websites, but only three provide enough information...