World Fence News

June 2014

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FENCER'S FIELD REPORT A monthly column of industry bits & pieces Compiled by contributing editor Jim Lucci and the staff of World Fence News strategy for 2014. Tom told us that they were continuing to follow the same strategy as last year, focusing on the residential and light commercial markets. We had the chance to speak with Mary Bradley of Upright Fence Company in Deming, Washington. Mary told us that last year ended pretty well, and that they are able to work year round. The company has a business mix of 95% residential and 5% commer- cial. Mary said that the company's biggest product is custom wood fenc- ing. She told us that their practice is to talk to the client, look at the property, and design a fence that is right for the customer, both physically and finan- cially. Further we were told that the com- pany works with iron, chain link, metal and vinyl fencing, as well as gates and gate operators. The company also works as a general contractor and has a shop to create custom cabinets. Mary shared with us that the com- pany was founded in 1996 (although their fence experience was gathered over a significant period of time before that) and that in 2006 the business ex- panded to include general contracting. The company services three coun- ties: The two northernmost counties in Washington, as well as Island County on the coast. They are located 105 miles north of Seattle and south of Vancouver. We then asked Mary what are some of the major changes or trends that they have seen in the fence busi- ness in their area. Mary told us that people would re- ally like good substitutes for wood. One such substitute that the company created was a fence constructed out of corrugated roofing for an ultra modern home. The fence was mounted on steel posts. We then asked Mary if the changes have been better or worse for them. Mary responded that they have been better. Work is picking up – they write four to five quotes a day, which is excellent, she added. We then asked about the labor sit- uation in the area. We were told that it's very difficult. They couldn't get people, for instance, to work at the price they can afford. People were not willing to work for 20 dollars per hour plus room and board that was being of- fered on a job site in Island County. Mary told us at the time we spoke We had the opportunity to speak with Thomas Hochstetler of Univer- sal Fence in Wooster, Ohio. Tom told us that this season started out pretty well with requests for lots of estimates once the weather broke, and they have been building ever since. The company has a business mix of 60% residential and 40% commer- cial, with an effective service radius of some 40 miles. On the residential side the company does a lot of fences and runs for dog owners, as well as some aluminum, vinyl, and wood. On the commercial side the company does projects such as water towers, facto- ries, etc. We asked Tom what are some of the major trends or changes that the company has seen in the fence busi- ness in the area. He told us that he has seen more demand for aluminum, but has also seen more people going back to chain link. Vinyl appears to be get- ting less play. We asked if this change has been better or worse. We were told that he thinks, on balance, that these trends are better. He likes aluminum and vinyl but is comfortable with the in- crease in chain link as well. We asked the labor situation in the area and whether good help was easy to find when needed. Tom replied that the labor situation wasn't bad, per se. However, while there are plenty of people looking for work, there is a problem finding skilled labor. That seems to be the trend nowadays. We then asked what the competi- tive situation is in the area. Tom told us that there were clearly more people bidding than ever before. Part of the reason, he offered, is that the area is offering tax abatements as part of a 10- year incentive program to attract com- mercial development, and therefore there are more jobs to bid. We then asked Tom about the economy in the area, and were told it is pretty good and stable. On the residential side, construc- tion is occurring in the form of new housing, with some renovations. Homes under foreclosure are being refurbished and fixed up and coming on stream as rentals. On the commercial side, a couple of factories are being expanded, such as LuK Automotive Systems. Both au- tomotive and commercial trucking are increasing capacity. Daisy Brand dairy products is coming in to compete with Smith Dairy. We then asked about the company

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