The World Famous "Fence Wizard"

Tuesday, November 6, 2007

Update: Golden State Fence, Guilty or an unfair poster child?

As promised the Fence Wizard responds to Golden State Fence founder and CEO Mel Kay's rebuttal regarding his company, for full context the Wizard recommends reading Mel’s comments, click: The World Famous "Fence Wizard": Mel Kay defends Golden State Fence reputation and history....

Here is the Wizardly Response:
Mel States: “First of all, there has never been any attempt to sidestep the law to undersell our competition”

The Wizard finds that sidestepping the law is exactly what your company pled guilty to. Golden State Fence was not just found guilty of hiring illegals; it was the conspiratorial aspect that Golden State Attorneys could not shake the prosecutors from. Those “10 employees (who didn't make one iota’s difference to our bottom line)” were found in prior government audits to be illegally employed. When they were later found at other Golden State locations still employed - it was clear that Golden State had not made a satisfactory effort to change its ways. So why was Golden State made an example of when so many companies have been caught hiring illegals? The Associated Press offered the following: “You have to show a kind of criminal conspiracy,” said Steven Camarota, research director of the Center for Immigration Studies in Washington, a group that advocates tighter immigration controls. “The mere hiring of illegals is not enough.”

Prosecutors agreed and brought charges against Golden State Fence for the repeated non-compliance. Its hard to ignore that the Federal Government notified your company in writing in July 1999 that at least 15 of its employees at its Oceanside office were discovered to be illegal aliens following a visit by agents. “At that time, Golden State executives said they were terminating the illegal workers, but in September 2004, U.S. Immigration and Customs Enforcement (ICE) agents found that 49 Golden State employees at the Oceanside office were illegal aliens”. http://search.washtimes.com/national/20070330-124512-2035r.htm

This is not a record of attempted compliance – after being warned at just one of eight locations (Oceanside) your company increased the amount of undocumented labor by 310% at that location alone.

Mel States: “We lead the nation in our industry regarding the wages we pay our employees from the yard personnel to installation to office”

How can you possibly know this? Have you surveyed every fence company in the nation? Certainly any company that regularly wins government contracts must pay prevailing wage rates (either state or federal) to it’s workers. Those rates are typically between $35-$60 per hour depending on the project and classifications assigned for the project. Non-Union workers earning those rates can make over 100K per year; certainly a wonderful thing – but these rates are not established by Golden State – they are required rates. This makes the undocumented labor violations all the more egregious. By knowingly hiring illegals, as you pled guilty to – you took excellent jobs away from US citizens. Lets be direct on this – the growth and success of Golden State Fence Company came at the expense of some US citizens and to the great expense of companies who did not hire suspected illegal immigrants. Although Judge Moskowitz agreed that Golden State had paid good wages and benefits; the advantage of hiring undocumented workers cannot be discounted. With low unemployment rates, as seen over the past several years, there are only so many workers available in the labor pool – companies that did not hire suspected illegals were at a great disadvantage to Golden State and any other company that did not constrict themselves to the law. This is why it is remarkable that after years upon years of increasing its market share, Golden State Fence has the audacity to ask other companies to forgo the practice that gave it such market advantages and profits while taking away so much work from any company that held the line regarding employment law.

This begs the question – How does Golden State Fence or Fence Corporation, or whatever other name you like, get away with continuing to bid government projects despite being caught for hiring illegals? Maybe the attorneys at Golden State have figured out how to duck the law on this as well – I think we are all curious as to how its possible. Are we to believe that Golden State made sure to only allow its illegal workers to work for the residential portion of the company? Would this not prove without any doubt that you knew exactly which workers were illegal and which ones were legal? If not, how can you explain the continued bidding on public works projects with Fence Corp? Is Fence Corp not part of the Golden State Family that paid about $5 million in fines for the violations described, thus making it in-eligible to bid public works?

Mel states: “We also provide two-three week vacations, holiday, sick pay..”

The Wizard is very impressed with this, although it seems nearly impossible to give workers 6 weeks off per year plus sick pay. This equates to over 15% of the year paid without work – hard to believe but we will take you at your word.

Mel states: “Illegal Immigration - We hired 1942 employees from September 1999 thru November 2005.” ……… “The majority of our installers have been with our company 15-25 years”

The Wizard Cannot ignore these two conflicting statements. If “most” workers have been with the company for 15 years or longer how can you explain the turnover you cite with hiring over 1942 workers over a 6 year span while maintaining a workforce of about 500-700 according to quoted sources.

To make these figures fly we would have to assume the following:

Most workers= at minimum 251 (a tiny majority of 500). This leaves 249 others (the minority). 1942 workers hired /249 slots available = 7.8 workers hired per slot. Using that data over a period of approximately 6 years:

6years/ 7.8 hired per slot = .77 years worked per employee hired during the 1999-2005 span.

This basic math tells us that roughly half of the employees hired during that period would not have ever become eligible for the vacation pay and probably other benefits that arise from working at least a full year. Perhaps this explains some of the savings that comes from hiring and firing (or simply losing) such huge numbers of workers. Certainly this amount of turnover is not common in the industry – not to that degree. In fact it reminds me of a scheme that many US resorts use during peak season; ski resorts for example will hire large percentages of young foreign workers to work the season. Most of the benefits offered to them require a full years work, however most of them did not understand the benefits package and never intended to work more than the peak season and do not have legal visas to stay that long. Its a great deal for the resorts; very misleading to the foreign students on the work visas.

In short, the Fence Wizard wishes to bring attention to your new programs that are targeted at fixing the system that we all have to deal with. If the Wizard can be of service - we would be happy to share and help provide such information to others in the fence industry and beyond. Certainly no person wishes any other business to suffer as yours surely has from workers who bring false ID and false SSN’s to a job interview.

Finally, while the Wizard will not waiver regarding the law, we can certainly move forward to insure that others comply with the law. The terrible misfortune for all of us is that the Federal Governments is has been unable to seal the border and to provide a reasonable guest worker system that is accountable to the American Voter and the American Taxpayer. Had these ends been met – no company would ever have the burden that Golden State Fence Co. has faced.

The following publications were utilized:
http://www.msnbc.msn.com/id/16211320/ ; http://search.washtimes.com/national/20070330-124512-2035r.htm http://query.nytimes.com/gst/fullpage.html?res=9B0CEEDC1231F936A25751C1A9609C8B63
San Diego Tribune
Relevant Links about this discussion:
Golden State Employment Link
Golden State Fence Official Website
Mel Kay Autobiography

1st annual web design awards for fence companies

This guide should serve a model for up and coming companies to view and emulate the best websites in the fencing industry. If you see a category that we have missed or a company website that trumps our choice -LET US KNOW! Its a big internet out there.

Category #1: Best product (manufacturer website)
..........www.fenceonline.com
Lots of ideas, options, and pictures. Clearly the online fence info winner and its from a company with a long history of quality distribution.

Category #2: Best new product website.............. www.simtekfence.com
This must be the fastest growing fence product in America with dealerships now expanded throughout the country. The growth is so promising that Simtek spun off from the parent company "Mity Lite" into a stand alone company.

Category #3: Best local fence company website............www.champifence.com
Found this one from Central California - gives viewers important company information and background and then hits you with recent project pictures and key links right on the homepage; very professional. Nick Champi Enterprises Inc.

Category #4: Most travelled Fence Website..............www.hooverfence.com
According to alexa.com and wholinkstome.com the winner for this category is Hoover Fence - they have been online retailing for longer then anyone and getting more hits than anyone else.

Category #5: Earth friendly Fence product that makes sense.... www.calibamboo.com
Cali Bamboo is worth a visit even if you have no current fence needs; check out the multitude of project pictures and ideas for inside and out of your home. For you Greenies - check out their regular newsletter and total commitment to renewable resources; the Wizard is impressed the companies 1% giveback program .

Category #6: Best online tool for Fence Companies...........www.fencebids.com
A good source of projects coming up for bid and vast array of industry news; Gene Kalb has been a well known member of the fence industry for many years, thank Gene. Just remember, he is no Fence Wizard - but then again, who is?

Monday, November 5, 2007

Golden State Fence changes name to "Fence Works" in attempt to rebuild reputaion....

For many years Golden State Fence sidestepped the law in a successful attempt to undersell its competition. Golden State Fence attacked competitors from every angle - Cheaper labor, cheaper materials, and even targeted price dumping in order to put some competition completely out of business. Approximately 225 workers at Golden State Fence were found to be illegal aliens - some of them had already been outed 6 years prior by an immigration audit and Golden State simply shuffled them around. The following legal drama resulted in millions of dollars of fines and a house arrest for owner Mel Kay, the company has now floated several new names. The first attempt was "Fence Specialties" however when looking at the website and the name "www.fencespecialties.com" one may have thought that they were selling special "ties". The name was skirted and according to the latest available news the new name will be "Fence Works". Other indications are that the industrial side of the company will operate under the name "Fence Corp". Whatever the name - Golden State Fence is a proven cheater of the worst kind. For years they cheated the law in order to beat down any competition that dared to abide by the basic labor laws. Now "Fence Works" has the audacity to beg other companies to implement a special citizenry check; here is what they write on their web page:

"Fenceworks encourages other companies in the fencing business to also participate in these government programs as this creates a level playing field in the industry and is the best way to reassure our customers that we are providing dependable service with legally documented workers."

Lets leave it at this - The World Famous Fence Wizard has a good memory, whatever the name, a cheater is a cheater.

Saturday, November 3, 2007

Mel Kay defends Golden State Fence reputation and history....

As visible below, Mel Kay has commented directly on the Fence Wizard article "Golden State Fence changes name to "Fence Works" in attempt to rebuild reputation...."
Because this is an open forum we are posting Mel's response as an original article in order to provide him with a fair opportunity to have his comments read by all.

Dear Fence Wizard:

I was shocked at all the inaccuracies after reading your column in regards to Fenceworks. Please allow us the same space to address these outrageous accusations.

First of all, there has never been any attempt to sidestep the law to undersell our competition. Our success rate from bid to sell is not much different that anyone else. We just bid more projects.

Cheaper labor? We lead the nation in our industry regarding the wages we pay our employees from the yard personnel to installation to office. Our installers averaged $59M a year for 2004-2006. Some earned as high as $105M. We also provide two-three week vacations, holiday, sick pay plus health insurance along with a life insurance policy and it doesn’t matter what color their skin is or where they were born. The majority of our installers have been with our company 15-25 years. That must say something for our company.

Cheaper materials? Oh my goodness – we’re the ones that led the way starting in 1992 changing the standard practice of setting raw steel posts for wrought iron fencing to using all galvanized posts and we are still one of the few contractors doing this.

We’re the ones who developed and changed the installation method of welding to bolt-on attachments to avoid field welding which penetrates all the coats of paint and promotes rust.

We’re the ones who led the industry in selling only pre-galvanized wrought iron or aluminum and today, we’re one of the few shops adhering 100% to this policy – all at an additional cost to us.

We’re the ones who set the standards for implementing the use of only hi-grade fence board and rails. If it doesn’t meet the grade standard of the West Coast Lumberman’s Inspection Board (WCLIB) Paragraph 117A, we leave it alone and let others buy it. Please visit any of our jobsites over the last 12-15 years and see the proof.

We’re the ones that were instrumental in getting some of the major vinyl fence manufacturers to increase the thickness of their product to improve stability.

Price dumping? Where in the world did this come from? Because we pay our bills on time, work our butts off, and put our company first allowing us to buy direct from the source such as sawmills, steel mills, vinyl manufacturers, etc., we’re accused of price dumping? Nothing is further from the truth. We just eliminate the middleman.

Illegal Immigration - We hired 1942 employees from September 1999 thru November 2005. Ten of those employees were rehired under different names at different locations – not 235. For this we paid a steep, steep price – a lifetime of retirement savings and investments, and irreparable damage to an impeccable record of 40+ years in the fence business. As Harry Truman once said, “The buck stops here” and along with my VP & GM, Mr. Michael McLaughlin, we stepped up to the plate and accepted full responsibility for the 10 employees (who didn’t make one iota’s difference to our bottom line). If anything, we were guilty of too much compassion!

Name Change? Since our incorporation in 1998, we’ve always been Fenceworks, Incorporated DBA Golden State Fence Company and this was only because we found there was another Golden State Fence that had incorporated that name in Sacramento before us. As work has slowed due to the horrific construction slump, we’ve been pushing out further and further to try and get work. In doing so, we’re now operating in the Sacramento area – the same city the other Golden State Fence operates out of so therefore it was necessary to switch to Fenceworks Inc. to avoid confusion. Nothing devious about this.

Fence Specialties – We have a wholesale operation that sells only materials and we operate it as a separate division. Nothing devious about this.

Fencecorp – Yes, it’s our public works shop, same as some of our other competition does with different shops. These jobs pay extremely high wages and are much different than the private contractor-type fencing we provide through Fenceworks/Golden State Fence and it helps to keep it separated. Nothing devious about this.

You say we have the audacity to beg other companies to implement a citizenry check. You bet we do. I will do whatever I can to warn others in my trade (or any other) to avoid what happened to Golden State Fence, Mike McLaughlin, and me personally. I wouldn’t wish that on anyone.

We’ve become very proactive. We’ve paid our attorneys to speak before builders conventions. We’ve done the same at subcontractor meetings. Many of our competitors have visited our office for further guidance and information which we gladly provided. I am personally speaking before the American Immigration Lawyers Association Convention on 11/30/07 in Scottsdale, AZ. We are signatory to the E-Verify Federal Voluntary Program and every Fenceworks employee has been run through it. We’ve adopted a new Code of Ethics and Conduct that the government helped us prepare and we’ve shared this with numerous competitors. So yes, I am guilty of the above. Please keep in mind, more fence companies than not currently employ “illegals”.

In closing, I am hoping you will be fair and let this also be publicized. I would also like to extend my personal invitation (all expenses paid by us) for you to visit our facility so you are able to meet those that make our organization work. I believe once you see first hand how Fenceworks really operates, you will realize how unfair it was in accusing us of being cheaters. I look forward to meeting you. I feel between what you have to offer along with ourselves, this may be an opportunity to help a lot of other companies from falling into the same situation we experienced.

Sincerely,
Mel Kay
President/CEO

Wednesday, October 17, 2007

Technorati invites Fence Wizard Blog to domain.....

Google Analytics reports that the Fence Wizard has quickly become one of the most travelled sites in Fence related industries, hits have been collected from over 60 countries with an average of 250 unique visitors daily. Thanks to all of you that are sending in email questions, we respond as quickly as possible.
Click: Technorati Profile

Tuesday, October 2, 2007

Unique and Unusual Fence Gifts and Apparel

You were kind of hoping that this stuff did not exist..........Well - it does. Consider this the complete list of ridiculous gifts for the Fence Man or Fence Woman that has everything.



To reach the official main page of The World Famous Fence Wizard, Just click here.

Friday, September 21, 2007

Fence Industry Wildcard: "DOGS".

As implied in previous articles by the Fence Wizard the residential fence installation market is enduring a complete recession in "most" American markets and will likely get worse in the short term. One bright spot - new dog owners. Americans have a love affair with dogs. Chances are if a homeowner has no dog; they will get one soon. In addition, new laws such as the no chain law in California are basically forcing some Dog Owners to repair, replace, or add a new fence to comply. It is vital to focus on any trend that could make your company more competitive. The facts are clear, more Americans are getting pets and they are spending more money on pets every year.
Here is some relevant data from the APPMA (American Pet Products Manufacturers Association):

Total U.S. Pet Industry Expenditures

Year............... Spending (in billions)

2007............... $40.8 Est.
2006
............... $38.5
2005
............... $36.3

2004............... $34.4

2003............... $32.4

2002............... $29.5

2001............... $28.5

1998............... $23

1996............... $21

1994............... $17

Now, we know we have demand for anything relevant to pet owners and specifically dog owners. Lets address a big problem: "ELECTRONIC DOG FENCING" or "INVISIBLE FENCE". I have linked our readers to these products on the sidebar under "Fence Builders Enemy". Indeed it is exactly that and for a couple hundred bucks homeowners can avoid a $ 5 -10,000 perimeter fence installation. So lets review your sales technique if you think your customer might go to the dark side......
Invisible fence will NOT:
1. Keep out other animals
2. Protect your animals from attack by other animals
3. Keep out thieves
4. Keep out vandals
5. Keep out Jehovah's Witness's
6. Most importantly - it will not guarantee a pet from escape
7. It Can and Will effectively lock your dog out if they get excited and breach the perimeter then they may be too scared to return and suffer another shock.

Get your sales pitch straight, it only takes 2 minutes to explain why you would personally avoid the lure of a cheap invisible fence for your own animals. Be a good member of the community and stop by the local SPCA and even pet shops to leave your card. Develop relationships with others in the animal care industry including your local veterinarians. Use this bright spot in the market to your advantage - the growth in this area will not stop anytime soon.

Thursday, September 13, 2007

Principia announces results of Fence Market Study...

Unfortunate for us, Principia does not believe in the free lunch philosophy that guides the Fence Wizard Blog. The major results of the survey are described HERE.
However, for the full report you will have to pony up some money. Here are the points that I wish to pass on to Fence Wizard readers:

1. Demand for residential fence is estimated to be nearly $3 billion of the total fence market value in 2006. Steve Van Kouteren, a Principal at Principia Partners explains, The residential fence market consists of five major fence styles including privacy, post and rail, chain link, ornamental, and post and wire/wire mesh. The market can also be segmented by the four distinct material segments including wood, metal, plastic and mineral-based or masonry materials. Wood and metal are the dominant materials used, accounting for over 70% of the total value.

2.
In addition to vinyl fence, polystyrene, wood-plastic composites (WPC), and polyethylene are the other plastic-based fence materials. Mr. Van Kouteren says that the recent study estimates demand for plastic fence materials in the North American residential market to be over $600 million or nearly 25% of the total market in 2006.

3. Plastic fence will continue to grow its market share over the next five years. Most demand growth will be for vinyl and for new wood-plastic composite privacy fence. Both materials will be replacing wood. Plastic fence manufacturers have developed new privacy fence products with embossed wood grain and earth tone colors as well as low gloss to mimic wood. The new WPC fence products have an edge over vinyl in regards to availability of a wide range of darker colors. Both vinyl and WPC suppliers are looking to take advantage of the growing consumer demand for low maintenance, non-shiny, white plastic fence by tapping into the huge portion of the wood privacy market that will not consider white vinyl as an option.

Compared to vinyl post-and-rail fence, which has successfully penetrated and displaced as much as 50% of wood in many regional markets, vinyl only has about a 16% share of the North American privacy fence market. The large wood privacy market is also a target for the foamed polystyrene and 100% polyethylene-based fence products.

Again, thank you to Principia for this 2006 Fence market review.

Sunday, September 9, 2007

CBS attempts to put fence installers out of business...


"Home improvement correspondent Danny Lipford shows Harry Smith how to build a good fence".
Good luck to those hoping to build a fence based on this short video. The Fence Wizard is frankly tired of the constant attempt from big media to minimize construction work and quality workmanship with short and pathetic do it yourself videos. Harry Smith actually takes time to make fun Danny for actually digging holes, thank you Harry Smith for the remarkably unabashed arrogance to all of us in the construction industry. You have earned the coveted "Wizard Finger" of the week award. To view this silly CBS video and low quality garbage fence they want you to buy click here.
To learn, understand, and plan for a fence project: Tune into THE FENCE WIZARD. ( 24 hours a day)

Thursday, September 6, 2007

Opinion piece: What fence is for.

Longtime Fence Wizard readers know that there is no such thing as opinion; it either is or it is not. The Fence Wizard will make such determinations on his schedule and with complete infallibility. So here is a short list for some newcomers about the pure essence of fence and what it is truly for.

Fence is for the demarcation of private private; private property being the cornerstone of a capitalist system which sits squarely upon the concept of private ownership, the ability to obtain credit, and the accumulation of wealth. The wizard determines these truths to be positive concepts that combine the fabric of an exceptional nation not unlike a perfect splice of chain link.

Fence is not for the unnecessary wholesale destruction of limited forest resources (i.e. cheap wood fencing)

Fence is for the protection of property enhancement, personal safety, and national security.

Fencing for private property should always compliment the prime features: house, pool, landscape. It should not dominate and seek attention; if it does - your priorities are backwards. (The Wizard does allow for individual liberty to do otherwise; just know that you are wrong).

Here is a great example of "Fence is not":


A non wizard described the above failure as:
"The Playground Fence by Tejo Remy is a translation of what is normally a mundane object - by manipulating the fence he reprograms it, creating seats and play areas. What is normally built as a barrier or a separator becomes an area for connecting and hanging out. Beautiful idea!"

Wrong. The fence is a clear trip hazard guaranteed to create liability for whatever public entity paid for its installation (meaning tax payers on the hook as always). It begs for children to climb it and play on it - the opposite of what a fence should be. Fencing by rule should improve safety for the property owner and be glamorous only in its ability to blend inconspicuously with the landscape. A Wizard Eye also catches the failure to match picket height from the modified "art" fence to the existing fence. Enough said.

Monday, August 20, 2007

ASTM Fence Spec and Standards BOOKS.

Here are three key books that define ASTM Fence Specifications and Standards. Just Click on the Title to Find Additional Information and Sourcing.

"Selected ASTM Standards for Fence Materials and Products"
"Handbook Of Comparative World Steel Standards" (Astm Data Series Publication, Ds 67b.)
"Coated Steel Products" (Annual Book of ASTM Standards Volume 0106)


Get Connected to the Complete Fence Industry Link and Tool Page - Industry News and Articles Posted Regularly.


For additional Books on any subject - Find the lowest price and fastest shipping from Amazon:




Monday, July 30, 2007

Fencing Calculators and Conversion Tools

Just Click on the appropriate description to find the calculator that you need. Courtesy of the World Famous Fence Wizard Blogsite. Visit us at the mainpage for breaking news, tools, and links. Keep on Fencing!

Calculators:

Fast Chain Link Parts Calculator
Concrete Yardage for Wall, Column, and Pad
Concrete Yardage and Bags for Post Holes
Wood Fence Material Estimator
Picket Fence and Split Rail
Master Halco's Project Estimators
More Calculators for ....(everything)

Conversion Calculators:
Area, Length, Volume, Weight, Temp etc.

Other Tools:
Privacy Fence Wind Load Chart (Page4)
OK Brand Ag Wire Tools and Charts

Fence Manufacturers and Associations - LINK LIST

Friday, July 27, 2007

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