When the economy tanked a couple of years ago, many service contractors hunkered down. Many shelved plans for expansion and instead concentrated on business fundamentals like reducing costs, streamlining operations for efficiency, selling unnecessary equipment and right-sizing their teams.
But now, with the glimmer of rebound on the horizon, business owners are slowly switching to a different mode. Some are investing in new equipment to boost productivity and efficiency as business picks up.
Others are getting employees trained and certified so they can assure customers of good value for the money they spend. Still others plan to boost marketing budgets to get their name in front of the customers who once did business with competitors that didn’t survive. Here’s what a few cleaners are doing to prepare for better times.
“We’re looking at making investments in technologies in preparation for the rebound,” says Brandon Smith, director of operations at Lewis Environmental in Royersford, Pa. “I think we’re there. In our industry, things are starting to come around. We’re busy – our guys are working, and people are starting to make decisions on projects. We’re getting more calls. Industrial maintenance is leading the charge – tank cleaning and the like.
“Better technology equals more efficiency, which in turn equals cost savings we can pass along to our customers. That’s what everyone is looking for right now. Customers are looking at the bottom line. You have to stay ahead of the technology curve. We’ve seen a number of competitors in our region drop off and we’re trying to stay ahead.
“We’ve also started a think-tank committee that involves all employees who want to participate on an on-going basis to come up with new ideas – for better service lines, more technology, how we can use the equipment we have to grow our lines of business. We strive for their feedback. Without our employees, we wouldn’t be where we’re at.”
“The biggest thing we’re focusing on is getting guys trained,” says Bob Abernathy, supervisor of the construction and tanker division of Roto-Rooter Plumbers in Kamloops, B.C. “We now have 11 of what we call Red Seal certified plumbers on staff, up from six or seven before.
“We’re doing that because when a customer spends a large amount of money, we can’t forget that there’s a reason they’ve called us. If they’re going to trade off the cost of a vacation because they need a sewer line replaced, you have to honor that and be sure you’re providing the best service possible. We want to be sure that if customers call us to provide a service, they know they’re getting the best value for their money, and the Red Seal assures them of that.
“Because we’ve had more time during the slowdown, we also had a chance not only to do more training, but to clean out some deadwood and pick up some people that can better serve our organization.
“We also recently bought a trailer-mounted jetter (4,000 psi/18 gpm). We’ve already booked it out for a month and a half, cleaning catch basins and drainage lines along highways. It paid for itself within one month.
“The jetter will help us break into new markets and open up new territories. In the past, we would have contracted out that work. We saw the jetter as a better option to position us for the rebound because it’s not as expensive as a vacuum truck, but you can charge almost as much. So your return on net assets is a lot better.”
“Honestly, the downturn had a small affect on us,” notes Henry Peacock, owner of Henry E. Peacock & Associates in Forest City, Ark. “In our area, if the economy is good, customers want you to replace things. And when economy is bad, they want you to fix them. So we’ve been blessed. In our niche, it’s been all right.
“Still, we’re looking to add some camera equipment, upgrade a jetter and possibly buy a new vacuum truck. We’re getting geared up because I feel as though things are going to turn around. The camera definitely is something we need. We have to be able to show the customers what’s wrong, rather than just tell them. That would give us a competitive edge over competition.
“A trailer-mounted jetter would give us more firepower than our 20-year-old unit. We’re looking at an 18 gpm/3,000 psi unit, which would get us more into 8- to 10-inch sewer mains. Now we can handle only 2- to 8-inch lines. A more powerful unit would give us a little more commercial and municipal presence.
“We’re in a rural area, so we have to be pretty diverse to keep our heads above water. What’s helped us through downturn is our diversity. You’ve got to be diverse and competitive. We also plan to advertise more and offer discounts for drain cleaning.”
