How Aluminum Tariffs Affect The Aluminum Fence Industry
Since the first round of tariffs went into effect from the Trump administration, we have seen prices go up from several aluminum fence brands. Fence brands are struggling to find a newer less expensive supplier of aluminum for their fence lines. Jerith is one of the top aluminum fence brands in the USA and has been in business for 50 plus years. Jerith was recently purchased by the company Assa Abloy which is a Swedish lock manufacturer, and is the world’s largest lock manufacturer by sales volume. Since the purchase of Jerith and the tariffs of aluminum went into effect, Jerith has raised their prices twice in the past several months. Prices have gone up by 10 percent and shipping times have increased from 2 weeks to 5 to 6 weeks on average.
Onguard fence systems that produces their fence overseas, has recently added a surcharge on all orders to make up for the increased cost of aluminum. What this means for FenceTown is we are reducing the 10 percent discount we’ve advertised for years, down to 5 percent. Onguard said they are adding a surcharge and not increasing overall prices so they can remove the surcharge if the tariffs change. The fence brand Specrail has yet to raise their prices. We have received news about other fence manufacturers and suppliers raising their prices as well. The cost of the tariffs is being passed down to the consumer which is being labeled as increased taxes.
Alcoa Chief Executive Roy Harvey explained “More importantly, even if all U.S.-curtailed capacity was back online and producing metal, the U.S. would still need to import the vast majority of its required primary aluminum, with approximately 60% from Canada, which is key to the North American supply chain,” Harvey said. “Canada is an important source of metal for U.S. aluminum producers.” Companies that relied on getting their supply of aluminum from China, are now looking for other sources like Canada, India, and Vietnam.
In the current situation, prices are going up and lead times on products are increasing from some fence manufactures. Hopefully the trade disputes will be resolved before spring when buyers start looking for aluminum pool fence. People effected by the recent hurricanes on the east coast are going to find replacing their aluminum fences more costly this time around.