World Fence News

January 2013

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14 ��� JANUARY 2013 ��� WORLD FENCE NEWS We recently spoke with Gary Cole of Sunnydale Fencing in Wellesville, N.Y., who told us that this past season was not that much changed over the year before. The company���s business mix is 50% commercial and 50% residential. On the residential side, the company does a lot of 4��� chain link, not much wood and no vinyl or aluminum. The company���s service area is within a 50 mile radius. On the commercial side, the company does 6��� chain link, around primarily gas companies, schools and sewer treatment plants. Gary has been in the business over 40 years, but suffers from a health issue, which creates restrictions on his ability to operate at maximum level. We then asked Gary to consider the following: Going back to the start of the recession (probably 2008), how has the economic downturn affected the company in the long term? What operational or structural changes have been made? Gary responded that because his health problems have become a major issue over this time span, he doesn���t do any more serious paperwork and he has downsized because of his health FENCER���S FIELD REPORT A monthly column of industry bits & pieces Compiled by contributing editor Jim Lucci and the staff of World Fence News issues. We then asked if the company���s approach to advertising has changed. And, have you reduced or discontinued yellow page ads, and if so, with what have you replaced them? Gary responded that he doesn���t advertise at all. After being in business some 42 years, he relies exclusively on word of mouth. We then asked him how the economy was doing in the area, and he told us that it was slow and getting slower, but not quite a dead area. There are lots of foreclosures, we were told, and there are a lot of businesses closing down as well. Gary also shared with us that the commercial market is really quiet at this time. The big work that usually comes from the city is simply not that forthcoming. He noted that there are people who are relocating to Ohio, Florida and Arizona. Young people leave and never come back. Gary further told us that there is a French company in the area that fixes railroad cars and trains that is creating some employment. We were also told that Corning Glass Works is laying off personnel. Further, Carrier Air Conditioning has moved out as well. We then asked about his company strategy for 2013 and Gary told us that he is trying to make a decision as to whether to continue in the business or not due to his health. We spoke with Henry Kim of Summit Steel Fabricators in Houston, who told us that this past year was good and much better since 2007. He said that ���things are up and coming; actually robust.��� The way that Henry put it is that the company is actually turning down jobs. Henry confided that he has learned from his mistakes. After 2008, they had virtually no work; they started taking small jobs without much margin, but then jobs started picking up and the price picked up as well. Then the transition started to change from an atmosphere of being a buyer���s market to one of being a seller���s market; sales became the driving force, which led to a new understanding of capacity and limitation, which resulted in creating more work as well as more happy customers. Henry also mentioned that there is a migration going on; many people are coming to Texas from throughout the country. Those who are fortunate enough to sell their homes are coming from all over. He continued that there are relatively low taxes compared with other areas, reasonable prices for cost of living, with a robust job market. There are a lot of Asians who are migrating as well, he said. He mentioned that 10 years ago, the population in Houston���s Chinatown was 70,000, and now it is 200,000. Henry told us that Hong Kong and mainland China money is coming in and is being used for investment in Texas, which is most attractive. Further, we were told that Houston has become the number three city in the U.S., behind New York and Los Angeles. At this point, Henry shared continued on page 16 DIG IN to all your earth drilling projects with power applications and rugged terrain, productivity to tackle large jobs or reliability you need on every project ��� Little Beaver has it all. DIG IN safely, cleanly and ef���ciently with Little Beaver. Stop by booth #2333 at FENCETECH. 80 0 -227-7515 Towable Hydraulic Earth Drills Mechanical Earth Drills UN-Towable Hydraulic Earth Drills Hydraulic Earth Drills

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