Issue link: https://read.dmtmag.com/i/123858
18 • MAY 2013 • WORLD FENCE NEWS CoverSports windscreens & FenceMate® Windscreens and Privacy Screens ® For quotes and specials visit www.CoverSports.com/WFN We make covers for all athletic surfaces. A monthly column of industry bits & pieces Compiled by contributing editor Jim Lucci and the staff of World Fence News TuffPrintTM SafeFoam®, our exclusive protection padding for FENCER'S FIELD REPORT corrugated We recently had the opportunity to speak with Jake Var of T&T Fencing in Waycross, Georgia, who told us that the company has been established for some 45 years, and that the company has a business mix of 75% commercial and 25% residential. On the commercial side, the company does a good deal of work for the military as well as for schools and agencies. On the residential side, while the company carries a full product line, they sell chain link more than anything else, but also do vinyl, wood and aluminum. Jake told us that his service area is a 100 mile radius. He also pointed out that the housing market is starting to heat up. We then asked Jake, going back to the start of the recession (probably 2008), how has the economic downturn affected the company? Jake replied – "substantially." While the company makes a profit every year, sales have dwindled down some 35 to 40%. He also told us that they have paid down their debt, while also buying some new equipment because of tax changes that potentially could affect those kinds of purchases. Further, we were told that they now have a smaller backlog on the commercial side. We then asked Jake how has their advertising changed and he told us that it has changed a little bit: He is running a TV commercial for the first time. Yellow Pages ads in southeast Georgia continue to have a presence, but not as much as before. We then asked how the labor situation was in the area and Jake told us that he can get as much labor as needed, however, it is very difficult to find crew chiefs. We then asked about what the competitive situation was in their area and we were told that in addition to six to eight usual bidders on commercial projects, there are some new people who are pretty bad bidders. There are some whose bids are out of line some 15% to 20%, and when there are problems, "then we get to clean up the mess that they created," Jake commented. He pointed out that recently the company was working on a job replacing fence; they had replaced about half of what was needed, and then summarily lost the second half to a much lower bid. However, Jake said he is confident that more will be forthcoming. We then asked what he thought the outlook for the housing market is like for 2013, and Jake told us that, while it is slow (at the time we spoke), it is moving forward and he is hopeful it will be getting better. He noted that foreclosures are still high, and they are working off inventory. However, in Macon, Georgia, or Jacksonville, things are much improved, he said. We then asked about the outlook for the economy in the area, and Jake replied, "Not good." The company is bidding a number of jobs, but it is not as solid as he would like, but he is hopeful it will improve. On the residential side, it is slow to dead. The company is getting three jobs a week instead of 10. Vinyl and aluminum are accounting for 50% of sales and they are in the high-end market. We then asked what the company strategy is for 2013 and were told that the company is looking to add new product lines. They are increasing emphasis on access control and are looking for niche market development and better margins. We also spoke briefly with Bob Podlaski of Star Fence in Dearborn, Michigan, who told us that last season didn't end up all that great and, while he is hopeful, he really doesn't expect this year to be all that much better. The company business mix, we were told, is 90% residential and 10% commercial. Vinyl is the biggest mover in his market. In addition to vinyl, the company does galvanized chain link, color coated chain link, temporary fence, wrought iron, ornamental, custom gates, and custom wood. The firm serves Wayne County and Oakland County, primarily. As we have with many others, we then asked Bob the following question: Going back to the recession (probably 2008), how has the economic downturn affected the company, and he replied that it was "like starting a new business." He said that they had to downsize and operate very lean. We asked how has his approach to advertising changed, and Bob told us that it is really not different. He said that he still advertises in the Yellow Pages but not on the internet. We asked how the labor situation was in the area, and Bob told us that he pretty much uses only family members. We asked him about the housing continued on page 22