World Fence News

September 2013

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18 • SEPTEMBER 2013 • WORLD FENCE NEWS We had the opportunity to speak with Jared Sachs of Sachs Fence Co. in Farmington, South Dakota. Jared told us that the company has been in business since 1997. We were told that the season was quite delayed in getting started this year due to terrible weather. It really didn't get started completely until late spring with any real steadiness. The company does 99% commercial work, and has a primary radius of service of 200 miles. But they will travel up to 600 miles for projects they can make their margins on. Typical projects include ball fields, refineries, and work for FedEx, as well as commercial chain link set ups. Jared told us that the company really believes they control their growth. They are currently in the position of purchasing a few more pieces of equipment that they feel will make them more efficient and help save them money. He also indicated that he has an unusual situation when it comes to bidding, which is that the competitive bidding process doesn't really apply to his company. He noted that he has developed relationships with companies whose projects are presented to him on FENCER'S FIELD REPORT A monthly column of industry bits & pieces Compiled by contributing editor Jim Lucci and the staff of World Fence News a negotiated basis. In other words, the said projects are pretty much closed to the normal competitive bidding process. If that is the good news, Jared did note on the downside that it is really tough finding good skilled workers. We then asked how the economy was in the area, and were told that it is improving. People are still watching their dollars, but things are not at a standstill like in 2008-2009. Last year was the company's best year ever, he reported, and 2013 is on track to be even better, despite the late start. There is a lot of commercial work going on, both new and in renovations, we were told. Residential is picking up, and more new residential construction is occurring. As for foreclosures, it depends on what area we are discussing. However, it is certainly not horrendous. Sachs Fence installs a lot of gates in a number of different applications, and does quite a bit of repair work. Jared told us of a situation that plays out when there's a heavy snow. When it snows a lot, it doesn't get shoveled, but must be plowed. Generally this really creates havoc with gates, which get broken regularly and need repair. Sachs Fence also sells and installs cedar dumpster enclosures. We then asked about the company strategy for 2013. Jared told us that he does a lot of suburban contract work every day. He likes jobs that he can get in and get out of and get done. There are some projects, Jared says, that companies bid but fail to read the accompanying project manual, which can be some 500 pages long. This creates a problem, as you might imagine. He pointed out that there are times when he has been asked to come in and straighten things out when a company that has been awarded a job as low bidder backs out, or fails to perform adequately. We had the opportunity to speak briefly with Duane Ohm of Precision Fence in Fargo, North Dakota. At the time we spoke, the season was just getting off the ground due to a very long and harsh spring season. The company business mix was approximately 70% commercial and 30% residential. On the commercial side the company does a lot of temporary fence and chain link. On the residential side, wood (Western Red Cedar) is the biggest mover, although the company is trying to do more PVC. The company's service area is a 100 mile radius. We then asked Duane, going back to the start of the recession, probably 2008, how has the economic downturn affected the company over the long term. Duane responded, "not a bit." The company never experienced a slowdown. The only problem has been a labor shortage. We then asked how has his approach to advertising changed. Again, the response was that it hasn't really changed. We then asked how the labor situation was in his area, and he reiterated that good help is very hard to find. Duane noted that housing is going continued on page 22

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