Issue link: https://read.dmtmag.com/i/543917
30 • august 2015 • world fence news A view from the supply side – Part 1 of a series Major suppliers discuss industry trends, issues at work in today's market by tom luby, president, profit builders international This month I will begin a series of articles based on interviews with some of the leading suppliers to the fence industry, in order to ascertain and identify some of the important trends and issues at play in today's market. At the same time, the people I in- terviewed were able to provide insight on the forces that have shaped the sup- ply side over the past several years, and I think you will find this insight interesting. My first interview was with Ben Wallace, CEO of Jamieson Fence Supply, a long-time, full service wholesale fence and access control distributor. Jamieson Fence Supply is headquartered in Dallas, and has 23 wholesale branches and manufactur- ing locations. Now, on to the interview. These are questions that interest me person- ally, and are not arranged in any par- ticular order of importance or priority. Tom Luby: Mr. Wallace, you have worked in the fence industry for many years now. In your opinion, what is the biggest challenge facing the fence industry from the manufacturers' and distributors' point of view? Ben Wallace: The biggest chal- lenge facing the fence industry at this time is excess capacity. In 2009, home building virtually came to a standstill and commercial construction was put on hold. It has taken longer to come out of the recession than ever before. TL: Our readers are, for the most part, fencing contractors in North America. However, we also reach all of the major industry suppliers. That being said, in your opinion, from the supply side of the equation, what is the biggest challenge suppliers face in serving the contractor market, and how do you see things improving? BW: As manufacturers and dis- tributers, our mission is to efficiently and economically deliver our goods to the fence contractor. The recession has affected all in this industry, and mostly in a negative manner. A lot of fence contractors had to leave the industry and make a living at other things. Finances were strained. As the economy improves, and contractors rebuild, it is incum- bent upon suppliers to help their cus- tomers by having what they need and when they need it and avoid over-sell- ing. With the ever increasing cost of transportation and the shortage of CDL drivers, it is challenging. TL: What are some of the big- gest challenges you faced during the course of your business' history? Any big crises then or now, and how did you overcome them? BW: There have been many chal- lenges through the years; weather, ma- terial shortages, the economy, strikes, and governmental actions that impact the trade, but the biggest challenge I have seen has come in the recession of the last six-and-one-half years. Never has any one event so im- pacted our industry so suddenly. Housing starts, the engine that drives this economy, fell from over 2 million per year to 450,000. The knee jerk reaction of the banks was to tighten lending to all, particularly if you were construction related. Excess capacity created such fierce competition that margins disappeared. We are still try- ing to recover. TL: Have you seen any changes in the industry in your area as far as viable new product types and/or new service offerings that your custom- ers have responded well to? In other words, what's the hottest new thing in fencing in your area? BW: I have not seen anything new in product or service that is rev- olutionary. We do see a tremendous change in wood fencing. We see more of our customers, responding to their homeowner customers, asking for ei- ther pre-stained cedar or adding value to their service by staining new or ex- isting fences. TL: Has the relationship between contractor and customer and/or the relationship between contractor and supplier changed over the years, and if so, how? BW: I don't think the relationship between contractor and customer has changed much in residential sales. The commercial contractor is being asked to do more and more complex things for customers. With inflation, the cost of projects has increased dramatically. Pieces of