The Devil is in the Details by Mark Levin

The Devil is in the Details

by Mark Levin, CAE, CSP

Executive Vice President, Chain Link Fence Manufacturers Institute

I was going to address some other issues in the industry this time, but the “bipartisan” infrastructure bill just sent its most recent draft to the Senate. I mentioned in the last issue that the industry had to get ahead of this issue by making key contacts and establishing key relationships.

Now the hope is that something final will be passed in a couple of weeks. I hesitated to make comments on the program because things can change so fast, but it looks as though the final bill will at least have most of the same components as this most recent draft, so I dare to venture some observations.

For the fence industry, the $1 trillion amount being touted by the bill’s supporters is a mirage.

To be sure, there are several areas of the bill where fencing will have opportunities, but not at the tune of $1 trillion. For example, the draft only designates about 1/10th ($110 billion) to traditional infrastructure projects such as roads, bridges, walkways, bike paths, etc. Many of these projects will, of course, contain fencing of various types, but remember that permanent fencing is usually among the last in-ground aspect of these projects. That means it may be years before some projects “pay off” for fencing contractors, suppliers and manufacturers.

Another thing about the $1 trillion ballyhoo: according to the American Society of Civil Engineers, making a massive dent in the overall improvement of traditional infrastructure in the United States would require more than 75 percent of that trillion dollars, not barely 10 percent. This gap between the need and the funding grows bigger every year.

There are opportunities for the fence industry in other parts of the proposed legislation.

Upgrading, updating and protecting the North American electrical grid is still a high priority for the Biden Administration. While a lot of this money is targeted at new, greener energy technologies, the need for the physical protection of the entire energy grid will give the fence industry plenty to work with. The industry made some strides over the past three to four years by raising its profile among the key decision-makers in the electrical energy field. For example, the Chain Link Fence Manufacturers Institute (CLFMI) worked closely with the electrical industry’s NERC 2020 program participants to be sure the minimum standards for physical protection under the mandated program included fencing that met appropriate ASTM and other industry guidelines. Those efforts may pay off under this portion of the infrastructure bill.

Even the portion of the bill that addresses the desire for universal broadband access has some potential for the fence industry. Some of the physical infrastructure needed to provide this access will need perimeter security and multi-purpose platforms to expand into rural and other underserved areas.

The fence industry needs to be creative and aggressive in order to be considered a valued partner in this massive undertaking.

Contractors, suppliers, and manufacturers should already be creating teams to be able to present solutions and options to public works officials, state and local governments, and other decision-makers. The final use of a good portion of the infrastructure funds will be made at the state and local levels. These decision-makers actually do have a certain amount of discretion on how the money will be spent in their jurisdiction. Fencing companies need to be prepared to understand the outcomes desired on each project, not just the budgets available. Get ahead of that final decision-making step (the bidding process) by showing clients that the right fencing system might be able to save them some money that can be reassigned to other projects.

Infrastructure used to be a win-win program for Congress. The need is always so great that elected officials from both major parties can use it as the one sure thing the public wanted addressed. However, political priorities and party politics have meant it has taken more than four years to get something like this even close to being passed. Let’s hope the wait will have been worthwhile, and that the fence industry is ready to deliver.