The Fence Industry Brief

Week of October 5, 2026

Brought to you by OzFence.store⁠

The bottom line: Private construction spending improved in August, led by a confirmed increase in nonresidential work. At the same time, manufacturers reported faster material cost inflation across wood, plastics, primary metals and fabricated metal products. Construction employment continued growing, but the gains were concentrated in nonresidential work while residential specialty trades lost jobs.

1. Construction spending improved, but the market remains divided

Status: Confirmed nonresidential growth with an emerging residential signal

What changed: Total construction spending increased 0.9 percent in August, although the change was within the report’s margin of error. Private construction spending rose a confirmed 1.1 percent.

Private nonresidential spending increased a confirmed 1 percent. Private residential spending also increased 1.1 percent, but that change was within the margin of error and should not yet be treated as a confirmed rebound.

Despite the monthly improvement, total construction spending remained 1.7 percent below August 2025. 

Why it matters: Fence demand is not moving uniformly. Commercial and institutional opportunities may be strengthening while residential improvement remains less certain. A single company wide lead or backlog number can hide meaningful differences between customer groups.

What to do: Separate homeowner, builder, commercial and public work when reviewing leads, close rates, backlog and margins. Contractors pursuing nonresidential work should focus on actual projects and decision makers rather than assuming that national growth will reach every local market.

Act now: Yes on pipeline analysis and focused prospecting. Continue monitoring residential demand before expanding inventory or capacity.

2. Material cost pressure accelerated again

Status: Confirmed broad cost signal

What changed: The Institute for Supply Management’s Prices Index increased from 71.1 in August to 77.9 in September. Raw material prices have now increased for 24 consecutive months.

Wood products, primary metals, fabricated metal products and plastics and rubber products were among the industries reporting higher prices. No manufacturing industry reported lower raw material prices in September.

Supplier deliveries also remained slower for primary metals, fabricated metal products and plastics and rubber products. Wood product manufacturers reported faster deliveries, but also reported higher prices and lower new orders. 

Why it matters: The signal reaches wood, vinyl, chain link, ornamental products, gates, fittings and imported components. Faster delivery in one category does not necessarily mean lower replacement costs, and current supplier pricing may not reflect the next replenishment cycle.

What to do: Reconfirm prices and lead times before extending older estimates. Review margins by fence category and keep material specific expiration language in proposals. Ask suppliers how long current pricing is expected to remain valid.

Act now: Verify immediately. Do not make one blanket adjustment across every product category based solely on a national survey.

3. Construction hiring shifted further toward nonresidential work

Status: Confirmed development

What changed: Construction employers added 11,000 jobs in September. Nonresidential specialty trade contractors added approximately 12,300 positions, while residential specialty trade contractors lost approximately 7,900.

The unemployment rate among people with recent construction experience declined from 3.8 percent one year ago to 3.5 percent. The number of unemployed people with construction experience fell from 404,000 to 359,000. 

Why it matters: Residential softness is not producing a large pool of available installers. Nonresidential contractors are adding employees and may compete more aggressively for workers with construction experience.

What to do: Review field compensation, scheduling, crew leadership and advancement together. Document installation methods and create a defined path from helper to installer and lead installer. Contractors planning to pursue more commercial work should identify the labor and supervision required before adding that work to the backlog.

Act now: Yes. Retention and internal training remain more dependable than waiting for experienced applicants to appear.

What’s Worth Acting On

1. Separate residential, builder, commercial and public work when reviewing the sales pipeline.
2. Identify actual nonresidential projects and buyers within the service area.
3. Reconfirm wood, vinyl, metal, hardware and freight assumptions before extending older estimates.
4. Keep material specific pricing expiration language in proposals.
5. Review installer retention, training and advancement before the next hiring push.

What material, market or contractor challenge should we track in a future brief?

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