Wood composites in the decking industry are fairly well known: Trex, TimberTech, and AERT are a few of the more familiar names, plus many more. But in fact, composite fencing is fairly new. Trex introduced their Seclusions® line a couple years ago and are adding more and more dealers all the time.
The general sense I got from the vendors and the participants at the conference are that they are all looking to the fencing industry for their future growth. Many were there to better understand the fence industry and to get a sense as to what they may be getting themselves into.
I attended the conference on Tuesday. The morning session largely covered the raw materials side: how composites are made and how much material is available. As I understand it, the raw material issues are not a big concern.
The afternoon session strictly dealt with composites and the fence industry. The general purpose was to introduce the composite makers to the fence industry, and to provide background as to how and why the fence industry is the way it is.
The afternoon session led off with Rose Lee from CertainTeed. Rose is Vice President and General Manager of the Pipe and Plastics Division, which includes the fence, rail and deck divisions.
Rose gave an overview of the fence distribution channel. She explained that the fence industry is different than most building supply industries. Unlike most building materials industries that are dominated by 2 or 3 large companies, the fence industry distribution is much more varied.
Another great presentation came from Rick Ashcraft of CFC Fences and Decks in Utah. Rick was one of the first dealers of the Trex Seclusions® fence and he worked with Trex during the development of the Seclusions product. He described how popular the product is in Utah --so popular that he has a crew that does nothing but the Trex fencing! Rick explained some of the attributes of the Utah market, for example, cultural elements that make privacy and low maintenance important. While there are some unique characteristics about Utah, in reality many of those elements are not that different from the rest of the country, so it seems logical that the successes could be repeated in other areas.
Rick explained that vinyl in the early 90’s also had tremendous growth in the Utah area. But as with any growth, many players entered the market without installation expertise and with inferior products. When the Utah market became saturated and vinyl fencing was considered a "commodity item", it made it all the more difficult for Rick to make a decent profit in the vinyl industry. He then explained that one thing that distinguishes the Trex product from others and contributes to its popularity is that it really is different in its class. The Trex product makes it difficult for people that are trying to “Keep up with the Joneses” as the bar has been raised so high, and offers people that are really hungry for a low maintenance product that is new a good alternative option. Finally, Rick warned manufactures against the commoditization of the composite industry.
Next to address the group was Jim Lucci from Management Motivational Associates and World Fence News. Jim gave a talk to the group on dealing with the installers. Jim, as always, has been a great advocate for the contractors. Jim wanted to make sure that the concerns of the contractors will not be ignored. Appropriate education and support from the manufacturers is crucial.
There was another discussion from Harold Hudson from Summer Classics. Harold talked about the outdoor furniture market and how this can be another new opportunity to the composite maker. Continuing on in this vein, I wonder if this isn’t also an opportunity for the fence and deck contractor too? The whole movement seems to be not just selling a fence or a deck, but rather a backyard environment. I know a lot of fence contractors have showrooms. If the backyard is the selling point and there is more to sell than just fences, then couldn't the fence contractor's showroom be a good place to see more than just the fencing? Why not show customers their many varied offerings?
The session ended with a panel discussion of fence experts. Dean Ervin of Southern Vinyl Manufacturing, Glen Peacock of Mid-Atlantic Deck and Fence, Larry Boyts from Digger Specialties, Charles Skulsky of Perfection Fence, and Sal Militello from Wayside Fence were the panelists.
The general sense I got from the vendors and the participants at the conference are that they are all looking to the fencing industry for their future growth. Many were there to better understand the fence industry and to get a sense as to what they may be getting themselves into.
I attended the conference on Tuesday. The morning session largely covered the raw materials side: how composites are made and how much material is available. As I understand it, the raw material issues are not a big concern.
The afternoon session strictly dealt with composites and the fence industry. The general purpose was to introduce the composite makers to the fence industry, and to provide background as to how and why the fence industry is the way it is.
The afternoon session led off with Rose Lee from CertainTeed. Rose is Vice President and General Manager of the Pipe and Plastics Division, which includes the fence, rail and deck divisions.
Rose gave an overview of the fence distribution channel. She explained that the fence industry is different than most building supply industries. Unlike most building materials industries that are dominated by 2 or 3 large companies, the fence industry distribution is much more varied.
Another great presentation came from Rick Ashcraft of CFC Fences and Decks in Utah. Rick was one of the first dealers of the Trex Seclusions® fence and he worked with Trex during the development of the Seclusions product. He described how popular the product is in Utah --so popular that he has a crew that does nothing but the Trex fencing! Rick explained some of the attributes of the Utah market, for example, cultural elements that make privacy and low maintenance important. While there are some unique characteristics about Utah, in reality many of those elements are not that different from the rest of the country, so it seems logical that the successes could be repeated in other areas.
Rick explained that vinyl in the early 90’s also had tremendous growth in the Utah area. But as with any growth, many players entered the market without installation expertise and with inferior products. When the Utah market became saturated and vinyl fencing was considered a "commodity item", it made it all the more difficult for Rick to make a decent profit in the vinyl industry. He then explained that one thing that distinguishes the Trex product from others and contributes to its popularity is that it really is different in its class. The Trex product makes it difficult for people that are trying to “Keep up with the Joneses” as the bar has been raised so high, and offers people that are really hungry for a low maintenance product that is new a good alternative option. Finally, Rick warned manufactures against the commoditization of the composite industry.
Next to address the group was Jim Lucci from Management Motivational Associates and World Fence News. Jim gave a talk to the group on dealing with the installers. Jim, as always, has been a great advocate for the contractors. Jim wanted to make sure that the concerns of the contractors will not be ignored. Appropriate education and support from the manufacturers is crucial.
There was another discussion from Harold Hudson from Summer Classics. Harold talked about the outdoor furniture market and how this can be another new opportunity to the composite maker. Continuing on in this vein, I wonder if this isn’t also an opportunity for the fence and deck contractor too? The whole movement seems to be not just selling a fence or a deck, but rather a backyard environment. I know a lot of fence contractors have showrooms. If the backyard is the selling point and there is more to sell than just fences, then couldn't the fence contractor's showroom be a good place to see more than just the fencing? Why not show customers their many varied offerings?
The session ended with a panel discussion of fence experts. Dean Ervin of Southern Vinyl Manufacturing, Glen Peacock of Mid-Atlantic Deck and Fence, Larry Boyts from Digger Specialties, Charles Skulsky of Perfection Fence, and Sal Militello from Wayside Fence were the panelists.
The discussion provided a good sampling of what the industry is currently thinking about composite fencing and its future. Everybody seems cautious, but for the many people I spoke with, they all seem to think this is definitely the wave of the future.
Some of their concerns are color, quality, gates, and other related areas. Of the five panelist, a couple seemed to be testing the composite fencing waters in their areas. They’re getting in cautiously and slowly. Others were taking a more of a wait-and-see attitude: they were not convinced that the quality and durability were quite there yet.
Talking to the vendors and the participants that were there, I reached the general feeling that composites are on the brink of making a huge impact, and many vendors and participants are experiencing a sort of déjà vu: today it feels a lot like it did in the early nineties when vinyl fencing was introduced.
So, what do YOU think of the composites? Have you given them a try? Will it dominate the industry in another five years? Will there be pressure to make cheaper versions of composites, and if so, what kind of problems might be caused? What do you see as some of the problems? Please share your views in this blog.
