I have always made the fender welting with canvas and rubber cord. A welting foot on the sewing machine lets you get the cord sewn in nice and tight. Then I spray the whole thing with asphalt undercoating from a can. I do the same with cotton webbing I use for fuel tank brackets. Without the asphalt, the webbing just soaks up the water and ensures, combines with any rubbing action of the area, rust.
You will want to make sure the fenders are painted with a tough and waterproof coating like POR-15. I have seen many otherwise perfect fenders with pinhole rust through and severe pitting where the antisqueek welting was. That said, done right, it will likely outlive you.
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