New Markets Equal New Opportunities for the Fence Industry by Mark Levin

by Mark Levin, CAE, CSP

Executive Vice President, Chain Link Fence Manufacturers Institute 2022 Inductee, American Fence Association Hall of Fame

New Markets Equal New Opportunities for the Fence Industry

At the summer meeting of the Chain Link Fence Manufacturers Institute (CLFMI), the main presentations were from representatives of two of the biggest markets for fencing in North America. The first presentation came from a representative from ARTBA, the American Road and Transportation Builders Association.

Gus Madrigal, president of Alcorn Fence in Riverside, California, gave the attendees an update on the Build Back Better Infrastructure Bill that was passed by Congress last year. He also talked about new projects, new innovations, and new research that was being done in the highway construction field, and how there are incentives for manufacturers and contractors who work to develop even more efficient and effective perimeter security systems.

One of the things Madrigal pointed out was the fact that a lot of the money that goes into roads, bridges, and other infrastructure projects is rolled out over a several year period. The upside of this is that the funding is already authorized, so the project is going to get completed. The downside is that the fencing portions of the projects are typically the last ones to be constructed so it may be a long while until the fencing industry benefits from the project.

Another downside, according to Madrigal, is that “by the time the perimeter fencing is installed, the project could already be over budget and/or behind schedule. This adds pressure to the job because we are the first ones to be faced with helping the owner or general contractor make sure they come in on time and under budget. It is difficult to make changes at that point other than to do cutbacks so they can keep the project close to budget. It would help if fence planning was seen to be as important as the other components of the project.”

A second program at the CLFMI summer meeting focused on one of the important growth markets for perimeter security over the next few years, the solar energy industry. Although California and the sunbelt states still comprise the largest portion of the solar energy market, there are, in fact, major opportunities in this market across the United States and Canada. Despite the current gasoline crunch, both countries have committed to becoming less reliant on fossil fuels as they turn to more alternative, renewable fuels such as solar. (Note: during her annual report to the CLFMI members this past winter, CLFMI’s Chief Economist Dr. Lynn Reaser, repeatedly pointed to solar energy, wind energy, and other renewable fuels as a growing market for diverse types of fencing/perimeter protection.)

Representatives from the Solar Energy Industry Association (SEIA) described in detail the anticipated growth of solar energy and the accompanying need for many larger scale solar farms in the next few years. They also talked about the fact that, like infrastructure projects, much of the spending for specific solar projects is left to the state and local jurisdictions. This can lead to the typical red-tape delays and expenses that arise due to the randomness of rules and guidelines. For example, state law in Ohio might require fencing around solar farms to be “wildlife friendly”, while neighboring Indiana may have no such provision, because they do require a higher ratio of land and additional permits. These vagaries can cause owners and developers to lose interest in projects.

The outcome of discussing these two markets, and asking specific questions of the speakers, was the understanding of the need to stimulate the efforts of the major stakeholders in fence industry: the manufacturers and the contractors. The manufacturers need to market the value of their respective products more effectively, and the contractors need to promote their role as analytical problem-solvers.

The best way to take advantage of these two growth markets, and other markets, is to become immersed in the challenges that developers and agencies face in their unique environments. Understanding those challenges will enable fence industry professionals to be viewed as an integral part of the success of the projects.

That is just what we want our image to be.

For more information about Chain Link Fence Manufactures Institute visit our website, www.chainlinkinfo.org.