Is importing fencing supplies wholesale from China still profitable?

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Is importing fencing supplies wholesale from China still profitable?

According to sources, the global fencing supplies market size was valued at USD 24.22 billion in 2015. Metal fence obviously holds more than 25% of the market share, followed by wood, then plastic and composite fencing. Although the increase in plastic and composite fencing impacts the share of wood fences, the latter remains a favorite among fencing supplies wholesale.

The plastic and composite fencing segment is expected to register the most rapid rate of growth in both value and length through 2020, driven by the popularity of these materials. Plastics and composites have longer lifespans, are less susceptible to damage caused by the elements, and offer long-term color consistency.

Although the trend indicates a steady market growth, the current context favors heightened competition and pricing war. European and American markets keep a stronghold of local manufacturers working tirelessly on marketing and new cosmetics for their wholesale fencing products. Meanwhile, Chinese fence manufacturers are experiencing difficult times due to new domestic regulations and the tariff war with the U.S.

Thus the following question: is importing fencing supplies wholesale from China still cost-effective? Today, we will address this topic and do our best to give our clients, importers and brands alike keys to reach an answer.

A large and more efficient Fence manufacturers pool

China still counts thousands of fencing factories, workshops and wholesalers. Whether they manufacture metal fencing supplies wholesale, wood plastic composite fence planks, or else. But the recent and drastic enforcement of the Blue Sky policy in China have hurt a part of the supplier pool. Chinese Central government, has repeatedly ordered manufacturers to halt all activities for days on end. Thus forcing more than one fence manufacturer to improvise and move its production time at night when the probability of a surprise audit is low.

Now that everything is mostly back to normal, clients have had time to consider to relocate their production to other areas in China, less prone to untimely action from the Chinese government. Or they even have shifted their interest to other sourcing destinations.

Nonetheless, Chinese fencing supplies factories have shown determination and flexibility. This pays off as the context betters again and manufacturing can resume its intensive rhythm.
The upside of this couple of political and economic downturns is that wholesale fencing suppliers are now more than even turning their heads to better efficiency. We count now a rising number of factories complying with manufacturing practices.

fencing manufacturing compliance

Fencing supplies wholesale are taking a greener turn

The “environmental-friendly” trend has been hitting the western consumer markets since more than a decade now. But only some fence manufacturer were aware of the marketing strategy of the fencing wholesalers abroad. Now that China is stepping up the game on the domestic level, it is boosting the emergence of greener product ranges such as wood plastic composite fencing.

The other, and even more important drive that forces fence factories and fence workshops in China to update their fencing suppliers machinery and management is Xi Jinping lastest agenda: the Blue Sky policy. Fortunately for importers and brands alike, the Blue Sky policy pushes the manufacturers to let go of the “handcraft” or “workshop” production and adopt a modern approach.
The inherent gains such as a more stable product quality, shortened manufacturing lead times and heightened awareness as regards purchasing of raw materials are all very positive to foreign fencing supplies wholesale buyers and importers.

wholesale fencing supplies modern machinery

More modern and greener wholesale fencing, but to what cost?

Most of our readers already know that the last years have been trying for fence manufacturers. Energy, transportation and workforce force keep rising, putting extra pressure on an industry with transparent pricing practices. In order to counter the inflating costs, manufacturers partner with wholesalers to boost their sales and manage more intensive marketing campaigns. Fortunately, the gap between manufacturers and buyers has never been so little.

wholesale fence supplies market affected by trade relations

The tariff war with the United States is something else entirely, that many of us in the industry did not see coming that early. The impact of these new policies and never-ending retaliation between China and the United States are driving serious wedges in the dealings of well-established businesses here and abroad. But while bigger players or U.S centric business may experience difficulties, smaller or more diverse businesses are experiencing an increase in incoming fencing supplies wholesale RFQs.

In a nutshell, the Chinese fence manufacturer landscape is evolving towards a modernized industry, always keen on servicing its clients with flexible and good value for money fencing supplies. Although the wholesale fencing market may be experiencing contractions in specific regions, Chinese factories keep showing great promise with modernized manufacturing and more acute understanding of foreign product regulations and requirements.