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Atkore International has announced that it subsidiary, Allied Tube & Conduit will cease manufacturing of steel fence framework effective October 5, 2015.
For anyone that has been in the fence industry for any length of time this is big new. Allied Tube has been a foundational part of the fence industry since before 1960. We had been purchasing from them since the early 70’s and they have always had a quality product that we were confident would meet those difficult DOT specifications. We want to wish our friends, past and present, at Allied all the best.
What does this mean for the industry. We have been notified by two steel fence framework manufacturers that they are raising their prices 4% to 6%, citing increasing raw material prices (steel just went down $20.00 per ton) and increased transportation costs (freight is at it’s lowest point of the year). I would feel better if they would have said, Allied is out so we think we can raise our prices.
There is actually plenty of fence framework capacity in the market and more coming on line in the near future. I also believe that Allied’s manufacturing facilities will be bought by another company (soon) and manufacturing will continue under the Allied name. There may be some moderate price increases but I do not believe this is going to cause any major problems in the fence industry.