Issue link: https://read.dmtmag.com/i/32232
14 • JUNE 2011 • WORLD FENCE NEWS FENCER’S FIELD REPORT A monthly column of industry bits & pieces Compiled by contributing editor Jim Lucci and the staff of World Fence News We recently spoke with Ivan King of New Holland Chain Link LLC in New Holland, Pennsylvania, who told us that he is having a pretty good year, doing 100% commercial work. He pointed out that competition in the bidding process is very tough. When asked if he thought that there was a wave of new contractors to the bidding process, Ivan replied that there are numerous commercial con- tractors who are bidding but that there is responsible bidding going on. Further, we were told that the company is doing selective bidding and is getting their share of jobs. We then asked Ivan if he thought that rising material costs affected the way he bid, or affected business in general, and he said that it absolutely had an effect on his bidding process. He says he is constantly calling up suppliers to check prices. As Ivan points out, the days of the escalation price clause are a thing of the past. We also asked if there are any sig- nificant changes in his fence market, and he replied there are no significant changes other than people putting out bids with the lowest possible prices. Further, we were told that the con- struction industry is seemingly under pressure not to give an inch on any- thing. Any extra item that develops on the job that would require a change order or additional work is turned down because there is no money avail- able to pay for it, and therefore it isn’t done. At Western Tube & Conduit customer satisfaction and quality are the first order of business. Our Fencepost and Fencerail production is ISO-9001:2008 certified - and our products are manufactured to meet all the applicable state, federal, industrial and regulatory specifications and requirements. While we regularly stock standardized products and sizes, we are happy to provide custom dimensions as well. All our Fence products are galvanized with high purity zinc. We use high frequency welding (ERW) to turn the highest quality strip steel into tubing, and then a continuous hot-galvanizing process to zinc-coat the products smoothly and evenly. A zinc-rich interior organic coating, a chromate conversion coating, and a clear exterior organic coating provide the complete finish package that gives them superior protection against the elements and long life as a result. Gal-Z serves customers looking for shaped Fence tubing as well as corrosion-protected mechanical tubing. It can be purchased in squares and in rectangles, and it provides excellent environmental durability while also fulfilling the need for strength and weldability. Ivan also pointed out that getting access to plans for bidding is different today, as well. Now, Ivan said, it is all done electronically over the internet as opposed to going to a location or a plan room to physically get a set of plans or do a takeoff. We asked what the overall outlook for his fence market was in 2011 and Ivan responded that he thought it was going to be good. He said there are a lot of jobs to be bid, even though there are more people bidding. We continued by asking what the status was of the labor market in the area regarding availability of quality workers. Ivan said that it was “excel- lent,” and there are top workers avail- able if you need or want them in order to grow your business. The key, however, is that you have to pay them well. We then asked Ivan about the economy in the area, and he said that it could be a lot worse. The middle of 2010 saw the economy starting to turn and it got worse by year’s end. GCs in the area were looking for work and there were more GCs than work avail- able. However, Ivan pointed out that, about three years ago, he noticed a change from “loyalty” to “dollar being king.” Finally for our discussion, we asked what strategy is being imple- mented for 2011 and we were told that the company does not want to lower their prices for the sake of creating volume. The focus on their commer- cial work is to provide decent prices continued on page 16