Tuesday, November 09, 2010

Market for Decks and Fences Fall 2010

The Market for Decks and Fences in North America 2010

We have had people asking how things are going in the deck and fence business of late. Some have said they closed their deck and fence business, sort of dipping their toe into the water to test the temps. As I told him it really depends where you are.

If you are based in Ontario or BC you have certainly seen things screech to a halt after they brought in an 8% tax on everything, part of the HST blending. It's not just decks and fences, but renovations, lawyers, accountants, architects and any trade. It takes a disabled government to introduce a tax grab like that in the middle of an economic downturn. That said our people have stayed busy throughout and as far as I know are all out finishing jobs from this season.

What it has done is drive low end work, (which we don't do much of), under the table. Lumber yards are telling me that most of the pressure treated jobs are being done half cash. It sure makes it rough on legitimate business to be competing with that. I expect our people will be fine though--we are in a different market.

The States, California and Florida are making a comeback-- we are seeing considerable uptick in the number of leads.

We have a new builder starting in South Florida and another in New York.. so stay tuned. New York has stayed strong throughout the economic downturn, so we know he will do well.

It looks like the US is pulling out of this economic funk... once jobs start getting created things will be back to normal in no time. It is a good time to start up if you are anywhere in the Southern States or Alberta.

You need to look at your local market before deciding to pull the trigger on a new business. So long as you have a source of high end homes locally and people are secure in their jobs--that is a good place to start up. If you are thinking to compete for low end work using flyers and the lettering on your truck for marketing--you might want to hold off for a while.

Exclusive work always has a market--someone is always making money in every area.



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