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Bay Area Fence Co.

Just a fence to you… A reputation to us!

Fence Material Cost Increases

A year-and-a-half into the COVID-19 pandemic, and we're still having to make personal choices on how much risk we're willing to assume when it comes to the potential of contracting the virus. But there are also many ways the pandemic is impacting life outside of public health and safety. For example, supply chains around the globe have been impacted by COVID.

Surely by now you've seen news about the global chip shortage, which is causing automotive plants to slow production of their respective vehicles. Lumber is another material that's also been impacted by supply chain issues since March 2020, and while many people think of lumber for building homes and structures, it's a common byproduct in a variety of other applications, like fences.

Other common fence-building materials, such as iron, chain link and vinyl have also increased in price throughout the course of the pandemic. While these material costs will eventually stabilize, we thought it would be fitting to take a look at just why the increases are what they are right now. Here's a closer look:

Why the Increase in Fence Material Costs?

There are a few reasons why material prices for fences have shot up since March 2020:

  1. Supply limits: The biggest reason for the price increase is due to mill and plant closures that occurred during the early days of the pandemic. In order to protect workers and limit the spread, many of the sawmills throughout the country were temporarily closed. As a result, their production output was significantly reduced. Being that wood is one of the most popular building materials, demand remained high - but there was limited supply to meet the demand. A price hike resulted. The good news is that wood prices are showing signs of stabilizing as production begins to meet demand once again.

  2. Increased demand: As Americans stayed home and collected stimulus checks, they identified improvement projects they wanted to take on around their home. And as workers fled the office to home working environments, companies also took advantage of the opportunity to carry out various projects while nobody was working in these facilities. So, while demand was high, supply was low. A price increase in said materials was imminent.

  3. Uncertainty: Aside from economic uncertainty, the building market has also had to endure trade uncertainty. Amid the pandemic, there was a presidential election and a new administration. Globally, this created a lot of uncertainty and helped lead to cost increases. Though the economic picture is now much clearer nearly 2 years into the pandemic, many are still taking a more cautious approach to material costs.

The good news is that we've already seen some material prices begin to stabilize and all material prices will eventually follow suit. The other good news is that if you're in the market for a fence project, we're still able to procure the necessary materials to carry it out.

Contact Bay Area Fence Today

It's important to note that while material prices may be higher, the quality of the fence that you'll receive when you work with Bay Area Fence doesn't change. As a company that specializes in installing commercial and residential fences, the quality of our work is unmatched - regardless of the supply chain. For more information and for an estimate on your next fence project, contact us today.