The Fence Industry Brief

Week of September 7, 2026

Brought to you by OzFence.store

The bottom line: Fence businesses are operating in a divided market. Residential construction is losing ground while portions of the nonresidential market continue expanding. At the same time, manufacturers are reporting persistent price pressure across wood, plastics and metals, and competition for construction labor remains intense.

1. Residential and nonresidential construction are moving in different directions

What changed: Total U.S. construction spending in July was 3.8% below July 2025. Private construction spending declined 0.5% from June, including a 1.3% decline in residential spending. Private nonresidential construction moved the opposite direction, increasing 0.4% for the month. U.S. Census Bureau, September 1⁠

The monthly residential change was at the edge of the report’s margin of error, but the broader year-over-year decline in total construction spending was statistically significant.

Why it matters: Contractors heavily dependent on residential work may face more competition for fewer projects. Meanwhile, commercial, industrial, institutional and infrastructure-related opportunities may remain more resilient, depending on the local market.

What to do: Compare residential and commercial lead volume, close rates and backlog separately. Contractors capable of serving both markets should strengthen relationships with general contractors, facility managers, developers and public-sector buyers instead of treating all construction demand as one category.

Act now: Yes. Evaluate the actual mix of the backlog and sales pipeline.

2. Wood, plastics and metals remain under price pressure

What changed: The Institute for Supply Management reported that raw-material prices increased for a 23rd consecutive month in August. Wood products, plastics and rubber products, primary metals and fabricated metal products were all among the manufacturing industries reporting higher input prices.

Steel, aluminum, steel products, wire, plastic-based products and resins were among the commodities reported as increasing in price. Manufacturers also reported slower supplier deliveries across wood products, plastics and rubber, primary metals and fabricated metal products. ISM Manufacturing Report, September 1⁠

This is a manufacturing survey, not a fence-material price index or a newly announced tariff. No new tariff specifically targeting common fence materials was confirmed during the week.

Why it matters: The signal reaches nearly every major fence category, including wood, vinyl, chain link, ornamental products, gates and imported hardware. Even when a contractor’s current price sheet has not changed, supplier replacement costs and lead times may already be moving.

What to do: Recheck vendor pricing and lead times before relying on older estimates. Keep material-specific expiration language in proposals and monitor margins by fence type rather than applying one adjustment across every category.

Act now: Verify. Do not raise prices solely because of a national survey, but do not assume current supplier pricing will hold.

3. Construction’s labor market is getting tighter

What changed: Construction employers added 22,000 jobs in August, including approximately 8,000 positions among nonresidential specialty trade contractors. Construction employment increased by 120,000, or 1.5%, over the past year, compared with 0.4% growth across total nonfarm payroll employment. U.S. Bureau of Labor Statistics, September 4⁠

The unemployment rate among workers with recent construction experience fell to 3.1%, the lowest monthly level in the 26-year history of the series. An AGC and NCCER survey also found that 88% of responding contractors experienced as much or more difficulty filling hourly craft positions than one year ago. Construction craft compensation increased faster than private-sector compensation overall. Associated General Contractors, September 4⁠

Why it matters: Contractors may be competing for installers not only against other fence companies, but also against growing nonresidential specialty trades, infrastructure projects, manufacturing facilities and data-center construction.

What to do: Review pay, scheduling, field leadership and advancement opportunities together. Create a defined path from entry-level helper to lead installer, document training milestones and measure employee retention as carefully as recruiting activity.

Act now: Yes. Waiting for a larger pool of experienced applicants is unlikely to solve the problem.

What’s Worth Acting On

1. Separate residential and commercial performance when reviewing backlog and lead flow.
2. Identify commercial or institutional customer segments that fit existing capabilities.
3. Reconfirm pricing and lead times for wood, vinyl, metal and hardware.
4. Keep material-specific expiration and escalation language in proposals.
5. Review field compensation, 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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