Issue link: https://read.dmtmag.com/i/498244
26 • MAY 2015 • WORLD FENCE NEWS FENCER'S FIELD REPORT A monthly column of industry bits & pieces Compiled by WFN contributing editor Jim Lucci We had the opportunity to speak with Rick Stanley of Rick's Cus- tom Fencing in his winter residence in Scottsdale, Arizona. Rick told us that last year ended up as one of the best years the company has ever had. The company business mix is overall 98% residential. We were told that the business breakout is as follows: 10% chain link, 20% vinyl, 20% cedar and 50% in decking (composite decking and hardwood decking). Rick shared with us that the busi- ness was founded in 1980 by his wife, Marlene, and he. Since then the com- pany has grown to be one of the larg- est retailers offering decking to the Pacific Northwest. The company has five locations: Hillsborough, Oregon, founded in 1980; Gresham, Oregon, founded in 1986; Vancouver, Washington, found- ed in 1995; Salem, Oregon, founded in 1998; and TriCities, Washington, founded in 2008. Also on the retail level, the com- pany does accessory business that includes gazebos, pergolas, gates, ar- bors, materials, etc. The service radius for each location is a 50-mile radius. We then asked what the compa- ny's biggest challenge was this past season. Rick told us that it clearly was hiring and maintaining crews. The company usually has any- where from 60-75 two-man crews at any given time. The real problem centered around wage issues. He told us that their payroll schedule wasn't keeping up with current going wag- es. He found out there was a disparity between locations; some above going rate and others below. Working to ad- just and straighten everything out tru- ly was a challenge, he said. We then asked what the biggest surprise was. Rick told us that he was surprised that the growth "just kept coming." Where there usually would be a slowdown in September, the company just kept getting business to the point that January was the best ever (up 240%) followed by February, which was up some 67%. The busi- ness portion included some 25% with repeat business. We then asked what the economy was like in the area. We were told that "homeowners are spending money." Companies like Bowing, Nike, and Intel have added employees and resi- dential is picking up from a year ago. It's heading back to times like in 2005, 2006, and 2007. On the commercial side, there are some big buildings being put up along with office buildings, manufacturing buildings, and some big malls. Infrastructure has not kept up with demand. Roads are maintained but planning is lagging behind traffic demand. Where there are four lanes for traffic in each direction, according to Rick, the reality is that they need eight lanes. We then asked what the strate- gy would be for 2015. We were told that they are raising prices to be able to attract better crews. The compa- ny is going to embark on more of a controlled growth plan that will slow growth to approximately five percent actual growth, while continuing to do quality workmanship. We then asked Rick what he thought the outlook for the fence in- dustry in his area would be. He told us that it should be pretty good long term. The areas are pretty stable. As far as he's concerned, the company plans at this point to include a new location for Seattle in 2017 and two current stores are going to move to larger quarters in 2017 as well. We then caught up with Jim Wright of Wright Fence Compa- ny, Kalamazoo, Michigan. Jim told us that last year was a little bit better than the year before, despite having had such a late start into April. This year despite some weather issues, 2015 is ahead of last year YTD. Jim told us that the company is family owned and that he's been in business over 28 years. The business mix for the company, basically, is 40% residential, 40% farm-ag, and 20% commercial. On the residential side, although the company does vinyl, seasonal chain link, and ornamental metal, the biggest mover is wood privacy fence. Most of the company business is gen- erated over a 50-mile radius. However, when it comes to farm- ag fencing, the company has done work in seven states. In addition to the aforementioned types of fencing, the company also does commercial chain link, ornamental aluminum, and Sim- Tek Fence. On the ag-fence side, the com- pany does woven wire, electrobraid, high-tensile vinyl and board fence, as well as temp fence, snow fence, and pool fencing. We then asked Jim what the big- gest challenge was this past season. He told us it was getting started after such a tough winter. 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