Issue link: https://read.dmtmag.com/i/37044
56 • AUGUST 2011 • WORLD FENCE NEWS Last month, we presented a wide- ranging interview conducted by WFN contributor Tom Luby with Ray Hohe of Complete Northern Illinois Fence Company, which has branches in West Chicago and DeKalb, Illinois. Ray has been involved in the fencing industry for more than 30 years as of this sum- mer, and will be joined in the business by his son, Kevin. This month Tom con- tinues his discussion with Ray and gleans some valuable – and pointed – suggestions on how the fence industry supply chain could be improved, among other things. Listening to the voice of experience, part 2 A veteran contractor’s take on the state of the industry BY TOM LUBY, PROFIT BUILDERS INTERNATIONAL Tom Luby: Thank you, Ray, for sharing some of the things that at- tracted you to the fence business that we covered last month. OK, with that being said, what advice would you have for anyone getting (or not get- ting) into the business? And I hope Kevin is listening! 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SKIDRIL PO Box 8041 Greensboro, NC 27419 Tel: 800-843-3745 www.skidril.com skidril@bellsouth.net G30 Driver Breaker P600 Post Puller P1600 Post Puller HD20 Rock Drill HB16 Breaker your area gets to sell Carrier furnaces. Why is our industry not like that? Sup- pliers climb all over themselves for every sliver of business they can get no matter how bad it damages the indus- try in the long run. TL: I agree completely, Ray. In fact, I have written several articles over the past 10 years on the subject of “supply chain management” and the supply chain economy, and how it af- fects the fencing industry. Your example is also very much to the point. If the fencing industry does not have a clear and unobstructed sup- ply chain where everyone honors their place in the chain, the market becomes fragmented and corrupted; you have distributors selling to the general pub- lic, even manufacturers selling to unli- censed contractors and private individuals. This will eventually destroy the entire industry and leave the big box stores as the only fence supply and in- stallation outlet available. I have heard the term “Wal-Marti- zation” coined to define market domi- nation by one player, and that is only good for the dominator. Even the gen- eral public eventually pays the price of a fragmented supply chain and the eventual monopolization of a market. Ray, where do you see the indus- try going in the future? You must see hope or you wouldn’t get your son in- volved, correct? RH: The industry has many mar- kets, residential, private commercial, municipal works, park districts, high- way work. Every segment has its good years and weak years. Unfortunately, all segments have suffered during the past three years or so. It can only get better from here; recessions weed out the weak and usually leave fewer com- panies. But like the airlines, that’s not happening around here. TL: Ray, how have recent events affected your business, and what ad- vice would you offer to others in the fence industry to survive? RH: I spoke a lot about this in some of my other answers. It seems the housing market comes and goes at times, just like (the) stock market does over time. In (the) long run, everything usually points up. TL: OK, so in the long run you think things will work out? Me too! Ray, after all is said and done, are you glad you chose this profession, and why? RH: I have no regrets; fencing has been very good to me. It’s never been easy and it’s always hard work. You most times get out of it what you put into it. Hopefully, there will be better days, as my days are about over in this business and it’s time for my 21-year- continued on page 58 Pictured along with the staff of Com- plete Nor left to right, t a g er K u t K r hern Illinois Fence Co. ouse and Ra e Cr vin Hohe , g (Photo b eneral man- o are , y Hohe . y T m Lub y) VISA