Issue link: https://read.dmtmag.com/i/588129
22 • NOVEMBER 2015 • WORLD FENCE NEWS FENCER'S FIELD REPORT A monthly column of industry bits & pieces and interviews Compiled by contributing editor Jim Lucci and the staff of World Fence News We had the opportunity recently to speak with Lex Herbert of AAA Fencing and Welding in Victor, Montana. At the time we spoke, Lex told us that business was picking up. He said that the company busi- ness mix is 50% commercial and 50% residential, generated basically in a 50-mile radius. We were also told that the com- pany has served the Bitterroot Valley and the surrounding area since 1972, and is family owned and operated. On the residential side, the com- pany handles chain link, wood priva- cy, some vinyl, and railings. On the commercial side, the com- pany does chain link, enclosures for mini-self storage, and other similar items. They do a limited amount of ag fencing as well. We then asked what the biggest challenge has been for the company this season, and were told it is fi nding good employees. We then asked what the biggest surprise has been this year, and Lex succinctly said there wasn't any that he was aware of. We then asked what the economy was like in the area, and were told that it is slow, and hasn't really bounced back from the previous recession. On the residential side, there is construction going on, including du- plexes and fourplexes, but not many spec houses. We were further told that home prices have gone up. On the commercial side, the Na- tional Institute of Health's state-of- the-art biomedical research facility Rocky Mountain Laboratories is de- veloping in Hamilton, Montana, south of Missoula. We asked what the company strat- egy for 2015 was, and Lex told us that the company has been "rolling with the punches" and operating basically lean and mean, while expanding the mini-storage business. We then spoke briefl y with Scott Hutchings of AAA Fence in Santa Clara, California. Scott told us that this past season was pretty good. For all intents and purposes, the company does 100% commercial work, mostly in the area of public works and generated within a service area of about a 90 mile radius. We asked Scott what the biggest challenge was for the season. He told us that getting materials in a timely manner to fi nish jobs and meet com- pletion schedules was it. We then asked what the biggest surprise was. Scott very succinctly suggested that there were no surprises – it was a typical year – due in part to them being selective on the kinds of work they chose to go after. We then asked about the econo- my in the area. We were told that it was pretty good, not like three or four years ago. On the residential side, condos and apartments are going up. Home prices have picked up as well. On the commercial side, there are some new buildings under construction. We asked about his company strategy for 2015, and were told that the company was a little more selec- tive in picking work, as mentioned previously. We then spoke with Randy Campbell of C&M Fence in Bar- stow, California. At the time we spoke, Randy told us that the compa- ny was experiencing a slowdown. He also said he feels that the past couple of months were part of an up and down cycle that they experience periodically. The company has been estab- lished since 1965, and during the time he's been involved with C&M, these cycles have always been a part of the business. The company focuses primari- ly on the residential side, dealing in retail and wholesale material sales, more wholesale than retail. The company radius for doing business is generally 120 miles. Ad- ditionally, Randy told us that as far as residential fencing was concerned, the company did a lot of privacy slats (pre-inserted) along with ornamental aluminum and steel (30% of the busi- ness), as well as chain link and other mixed items. We asked Randy what the biggest challenge was this past season, and he told us that scheduling and smoothly integrating new jobs into the system is sometimes a problem. We then asked what the biggest surprise has been this year, and he re- ported it is increased competition due to the number of new companies that have cropped up in the fence industry in his area. We then asked about the econ- omy in the area, and Randy told us that he has seen home sales starting to increase; however, at the same time there are businesses closing down, in- cluding at least one mini-storage fa- cility. Further, he feels that economic growth in the area has "stopped." 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