Abstract: An apparatus for assembly of fence panels from a plurality of longitudinal backing rails and a plurality of transverse pickets includes a conveyor for supporting and moving the rails in a direction along their length with the rails at spaced transversely positions across the conveyor and a plurality of rail dispensing hoppers, each for receiving a stack of the backing rails and arranged to dispense the rails one at a time onto the conveyor in parallel spaced relation along the conveyor. A picket dispensing hopper dispenses pickets one at a time onto the aligned rails so that the pickets are positioned at right angles to the rails and side by side. Ends of the pickets are aligned on the rails. The pickets are compressed in a direction at right angles to the rails onto the rails and parallel to the rails and at right angles to the pickets so as to squeeze the pickets edge to edge. A nailing assembly applies nails to connect the pickets to the rails.