The World Famous "Fence Wizard": 2008

Tuesday, August 5, 2008

US races to erect controversial steel fence on Mexican border

www.Breitbart.com
Aug 5 09:27 AM US/Eastern



Just west of El Paso, near where Spanish conquistador Juan de Onate crossed the Rio Grande from Mexico in 1598, construction crews have completed a steel fence authorities say is a new model for border security.

The five-meter (18-foot) tall fence has a mesh woven so tightly that feet and fingers cannot grab hold, but it still allows people to see through. Steel pylons are set close enough to stop a truck from bursting through, and two meters of reinforced concrete underground deters any tunneling.

The structure is designed to push would-be illegal immigrants and drug smugglers out into the desert where they are more easily caught, said Border Patrol Agent Martin Hernandez.

"Will it completely stop them from coming across? Of course not," Hernandez said. "Rest assured, there will eventually be holes in parts of the wall made by people trying to get in. But it buys us valuable time."

The US Department of Homeland Security is racing to meet a December 31 deadline to raise 670 miles of steel fences and vehicle barriers along the 3,200 kilometer (2,000 mile) long southern border. About half has been completed, including this six kilometer (four mile) segment at New Mexico's Santa Teresa Port of Entry..... (Click here for the rest of the article)

Thursday, July 24, 2008

Challenges still ahead for the back half of 2008

Starting with the good news:

Steel, Oil, Coal and other commodities have fallen off their highs. This is the first substantial sign of price deterioration in months. Gas could return to $3.50 a gallon if trends continue and steel products may begin to cheapen in the coming weeks.



Challenges ahead:
It is unclear if commercial credit will survive the scourge of the residential mortgage market and loans have been tightened for corporate borrowers. There will be no additional interest rate cuts by the Federal Reserve as monetary policy sits squarely between the battle of raising liquidity and controlling inflation with a stronger dollar.

Listen carefully: The housing market is not about to recover just yet; trends are still getting worse and Freddie Mac's mortgage survey just revealed that bets are now being made on a Fed interest rate hike in the near future....

Mortgage rates spiked this week on inflation fears, with the benchmark 30-year, fixed-rate loan soaring more than a quarter percentage point to a national average 6.63%, its highest level in nearly a year. (Click here for more)

For each set of good news it appears we can find an equally bad set of negative news. But this seems to be better than the onslaught of all bad news that we identified months prior.

Capitalism and certainly the construction market are built upon private property and credit. Both have been badly compromised in the short term and both will return to those who can survive the current period.

Thursday, February 21, 2008

More pressure added to iron ore prices...

The astounding 65% price hikes reported Tuesday here at the Fence Wizard Blog for new iron ore contracts may not be the last of the short term increase. This signals that 2008 will be the sixth straight year for record high iron ore prices. The key problem for any price relief is that just 3 companies control 75% of the worlds iron ore production and emerging markets continue to pressure supply even as U.S. demand slows. Two of those companies may combine as BHP Billiton has been attempting to takeover Rio Tinto for months.
Q> What does this hike mean for final products such as rolled steel or chain link for final buyers such as fence companies?
A> Most likely a 10% or so bump in finished product costs; some good news is that zinc is about 50% lower than the highs reached in Dec2006-Jan2007.

More:
Rio Tinto, BHP want more than 65% increase for iron ore.
Rio Tinto (RTP) has indicated it is not satisfied with the 65% iron ore price increase negotiated by Vale (RIO) and Posco (PKX). If it doesn't back down, this may be the beginning of the end for iron ore's benchmark system, under which global iron ore prices follow prices set by Vale, Rio Tinto and BHP Billiton (BHP), who together produce almost 3/4 of the world's iron ore. Rio contends Asian steel mills are saving money due to its proximity to them, and wants a piece of their savings. There are rumors BHP will also hold out for more.
Rolled Steel Price Chart
Kitco Zinc Chart

Tuesday, February 19, 2008

Outlook worsens for 2008 U.S. Construction Recovery

It may have seemed like a slow news day with a couple Presidential Primaries, the Dow Jones Industrial Average down just 10.99, and no updates to be found about Britney Spears. Unfortunately, some frightening data came forward today that will add pressure to Fence Installers and other construction services around the country.

Bad News #1:
Crude oil closes above $100.00 per barrel for the first time ever. Look for more pressure on vinyl pricing and lots more bad news at the pump for the near future
Bad News #2:
US Steel reported today that it has accomplished an astounding 65% price hike in steel settlements. UBS followed the news with an immediate upgrade on the companies stock price. In this case the good news for US Steel is terrible news for those of us who buy it and install it. The paradigm trapping the construction economy is continuing: Extremely high raw material prices combined with consumer credit issues has crippled the residential construction economy and is now threatening commercial building and credit. www.Kitco.com's Base Metal Index shows that material prices are rising quickly and may challenge some all time highs in the coming months should trends hold. Here is the 30 day trend chart (click to enlarge):
Bad News #3:
Barack Obama is now completely in control of DNC primary and a 78 to 21 favorite to beat Hillary Clinton for the Nomination according to the best political projector of the moment: www.intrade.com. Obama now also holds 55.4 to 34.2 lead over John McCain on Intrade's Presidential Election odds page (As of 11PM EST). A President Obama would effect your small business in the following ways:
1. Bush tax cuts will not become permanent and will expire.
2. Capital Gains taxes will rise from the current 15% to 28% or beyond on your investments.
3. Death Tax Law will likely become increasingly confiscatory with the current allowance of 3.5 million most likely reduced. Currently, 22,0000 families are penalized each year - many are family businesses. Large Corporations are not affected and will only gain the additional advantage of buying more small business at give away prices. (More on Obama's tax plan)

All in all Feb 19th, 2008 - A Day to forget - if you can.

Monday, February 18, 2008

How to spend about $400,000.00 in March.

Want to be at the center of the online Fence Universe?
"www.fence.com" goes up for auction on ebay on March 26th, 2008. The reserve is a mere $225,000.00 so make sure your accounts receivables are in order.

If you are more of a bargain shopper you may want to check out "www.decking.com" that will also auction on Ebay 2 days after Fence.com. The reserve for this site is just $95,000.00 (just pocket change really). If you were curious "www.deck.com" already exists; as always just click on the blue words to magically travel to all Fence Wizard Links.

Here is a tip that may save you a fortune: "www.cantaffordawebsite.com" still seems to be available. Supply limited to one of course.

Saturday, January 12, 2008

Franchise Opportunities in the Fence Industry

Even if you have no interest in expanding your operation - you better know what the competition could be up to. Here is a comprehensive list of Franchise Opportunities in the Fence Industry that you need to know about - Truth be told there is no single full service fence installation franchise in North America:

1. Babygate Pool Fence - Total Investment to Start: $17,000 - $40,000. Find out more.
2. Garden Structure Decking - Total Investment to Start: not listed. Find out more.
3. Guardian Pool Fence - Total Investment to Start: $10,000. Find out more.
4. Deckare Fence and Deck maintenance - Total Investment: not listed. Find out more.
5. Alco Fence Painters - Total Investment: not listed. Find out more.
6. Jim's Fencing (Australia) - Total Investment to Start: not listed. Find out more.
7. AKJ Fencing (Australia)- Total Investment to Start: $25,000. Find out more.
8. Warner Fence (New Zealand) - Total Investment: not listed. Find out more.

Thursday, January 10, 2008

The Fence Economy on Google Finance

The Fence Wizard recently posted an article "Fence Industry Outlook - What Can the Stock Market Tell Us". The trouble of course continues to be that very little information is available regarding the Fence Industry because the vast majority of Companies in the Industry are Private and therefore need not report profits, estimates, or any other data to the public. The past two weeks on Wall Street have sent a strong signal - Ben Bernanke has to cut rates aggressively to avoid what may be an inevitable recession here in the States - Fed Reserve Comments today suggest that the message is getting through and Cash is on the way.

The Fence Industry has been struggling through a soft residential market with mixed opportunity in the Industrial Arena for 18 months or more in some markets. Google Finance does offer some helpful coverage for large private firms (127 companies to be exact) that are related in some way to the fence industry. Here are a few of the most relevant links from that list - click through to pick up some recent news and company info.

Allied Tube and Conduit
Master Halco

Kroy Building Products
Deacero
Merchants Metals Holding Company
Oklahoma Steel and Wire Company
Wheatland Tube Company
Certain Teed Corporation.......... (CertainTeed to cut 125 employees by May)

Saturday, January 5, 2008

How to Improve Your Fence Companies Online Presence

With all signs pointing toward a difficult year ahead it has never been more important to get the most marketing for the least amount of money. How about key marketing for free? Here is the World Famous Fence Wizard link list to free online advertising and marketing for your fence company. Remember, the more links coming back to your website and the higher it will rank in search engine results from Google, Yahoo, and MSN. Here is what we recommend:

Fence Industry Sites that you can participate with for free:
1. www.usfenceguide.com will give you a free listing and send you free traffic through their national fence company database. You are invited to create an advanced account with them but it is not required.
2. DMOZ - An open Directory Project Website. Basically just a Super List of fence company links that you can submit your company to.

Basic Free Advertising Through Company Directories (Find your base add and improve it for free; most of all make sure you are listed)
1. www.Local.com
2. www.Citysearch.com
3. www.Switchboard.com
4. www.Yellowpages.com
5. www.Listcorp.com
6. www.Superpages.com
7. www.Thomasnet.com

Post a free advertisement concerning any service you are offering at:
www.craigslist.com (also - try using it when you need to find a new employee; its free)

Networking Options:
1. Start a Myspace page and throw some pics on - you can do it in about an hour. Here is one company that did just that: Champi Fence
2. Join Facebook - Be an online member of your local community - Network! Network! Network! Join the United Fencers Association Here
3. Go to "Linked" and simply add your personal professional information, company name, and website link. It will take 15 minutes. When someone types your name into Google or Yahoo - your "Linked" information will come up every time.

Fence Discussion Sites that you can participate with, comment on, and leave a link:
1. The World Famous Fence Wizard - leave a comment on any article and link back to your website - Don't forget to sign our guestbook!
2. "Fence Resource" Discussion Page - Become a member for free and dive in!

Help with your website:
Track your traffic and see exactly where your hits come from, with Google Analytics
Find out exactly who is linking back to your website with: Who Links to Me?
Review the First Fence Industry Website Traffic Comparison:"The Wizard 50"

Rainy day reading advice:
Check your company record at The Better Business Bureau (even if you are not a member your company will be listed - you need to know what your customers are reading about you).
How do Google Searches work (how can you rank higher than your competitor who does not read the Fence Wizard Page)???? Click here and take a read!

This free marketing guide has been brought to you by: "Smart Business for Contractors: A Guide to Money and the Law (For Pros, By Pros)" - A Fence Wizard approved resource that you can buy for just $4.48.

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