Cost controls and an aggressive focus on operating margins in a down economy, helped building services provider ABM Industries Inc. to a 30 percent profit increase in the fourth quarter, though sales were down by $38 million.

The company reports a fourth quarter profit of $15 million, or 29 cents a share, on revenues of $868 million, compared to a profit of $11.6 million, or 21 cents a share, on $905.8 million in last year’s fourth quarter.

“Despite a challenging business environment, operating profit from our four divisions improved year-over-year for the quarter by $1.9 million, driven by continued cost controls and an aggressive focus on operating margins,” said Henrik Slipsager, president and CEO of ABM Industries.

“The company delivered outstanding results for the quarter and the full year, particularly in light of what was an exceptionally challenging economy through the course of the 2009 fiscal year.

Our consistent focus on job profitability and expense management clearly contributed to our successful performance. Adjusted income from continuing operations increased 22 percent for the fiscal year. These solid financial results, combined with the revenue trends we are seeing, strongly position the company for a rebound in the U.S. economy and an improved outlook for fiscal year 2010.”

The company also finished the fiscal year with record net cash from operations of more than $140 million. Cash flow enabled the company to reduce the debt on its line of credit by more than $57 million and pay out nearly $27 million in dividends.”

For the fiscal year that ended Oct. 31, 2009, the company reported a profit of $54.3 million, or $1.05, on sales of $3.5 billion, compared to a profit of $45.4 million, or 88 cents, on $3.6 billion.

The company has assets of $1.52 billion, and liabilities of $834 million.

Cleaning Co. Intends to Franchise

America’s Cleaning Co., a division of Vanity Events Holding, Inc., has said it intends to establish itself as a national franchise.

Using its licensed trademark of America’s Cleaning Company, Vanity has seized the opportunity to brand itself as a premier provider of residential and commercial cleaning in the New York area and plans to expand on that success nationally.

Using its own brand-named, proprietary, innovative “green” products, the company is becoming a choice for consumers looking for cleaning services and looking to separate itself from its competitors with its superior products, competitive pricing, and a strong brand and advertising presence.

In an effort to establish franchisees by the summer of 2010, the company has recently signed on with several established firms that specialize in setting up and managing franchising opportunities. They have served as the company’s prime advisors in determining how best to establish its functional prototype, which will then be used as the basis to create and sell franchises on a national level.

Waterstreet, a Vancouver-based technology company, is developing specialized, web-based business management software for the company. This software will be used to estimate and schedule jobs, track inventory, run reports on revenue and costs, and will be used by every franchise.

Technology in a Box, a Detroit-based company, is developing customized Quickbooks-based software including a standard set of accounting guidelines to be used by each franchise that can be monitored by the company as well. By integrating and utilizing these two technologies, the company plans on closely tracking and analyzing the practices of its franchisees and quickly assisting the franchisees by promoting best practices and showing where improvement can be made.

The company has also started using the Tulsa-based Intellevue, a mapping software company, to establish territories for potential franchisees based on carefully examined demographic information.

“We are excited about the opportunity to establish America’s Cleaning Company as a national franchise and I am pleased with the tremendous progress we have made in setting it up,” said Vanity CEO Steve Moskowitz. “The growth of the Company’s premier cleaning service business in New York area has given us every reason to feel confident that franchisees across the country will also see similar success.”

New OSHA Head: Ensure Green Jobs are Safe

In his first speech as the new assistant secretary of Labor for Occupational Safety and Health, David Michaels, PhD, said his priority will be to ensure that green jobs are also safe jobs.

In December, Michaels told attendees of NIOSH’s Going Green Workshop, “Labor Secretary Hilda L. Solis has provided the Dept. of Labor with a vision of ‘Good jobs for everyone.’ And everyone at this conference understands all too well that green jobs cannot be good jobs unless they are safe jobs.

This goes for sustainable jobs as well. They, too, must also be safe jobs. “We must use our knowledge and skills to identify potential hazards as they emerge. We can’t wait years for hazards to be completely characterized, to let industries shift their responsibility or defer workplace protections by producing “doubt” instead of actively practicing prevention.

“It is vital, now, that we integrate worker safety and health concerns into green manufacturing, green construction and green energy. Most importantly: We must push worker health and safety as a critical, necessary, and recognized element of green design, green lifecycle analysis and green contracts.

Michaels said it’s not a matter of choosing either a green future or safe jobs. It’s both.

“Here is where we start: Most people instinctively see green jobs as safe. But at OSHA, when we hear ‘weatherization and renovation,’ we see exposure to lead and asbestos. When we hear insulation, we think isocyanate exposure. When we hear rooftop solar power, we see fall hazards. When we hear wind energy, we see lockout hazards.”

Brits Cut Back on Office Cleaning

Two of every five United Kingdom organizations surveyed by the British Cleaning Council have had to cut back on cleaning their offices because of the recession.

A survey of 1,000 workers has revealed a culture of dangerously poor hygiene in workplaces across the UK, which can lead to the spread of bacteria and add to the costly and damaging problem of absenteeism through ill-health.

Half of all employees who took part in the research said they were embarrassed about clients or customers visiting their work premises because of a lack of cleanliness.

Meanwhile, 10 percent of those polled described their office toilets as “filthy,” a quarter claimed that their colleagues did not clean up after themselves, and over a third complained that poor hygiene was making their working environment unsafe.

“These results show how staff are reacting against measures by their employers which negatively impact their health and decrease the quality of their workplace environment,” said Steve Wright, chairman of the British Cleaning Council. “Legally, employers have a basic responsibility to provide their staff with a safe workplace and too many firms are falling short of this. We need to see businesses match the importance their workers clearly place on cleaning and hygiene."

Andrew Large, chief executive of the Cleaning and Support Services Association, said: “The downturn has been tough on all industries, but this is no excuse to cut corners on hygiene. Not only can such practices have serious repercussions on people’s health, but they are extremely counter-productive: sub-standard cleaning increases the cost of absence through sickness and harms the image of a business at precisely the time when they should be doing everything to attract new customers”.

Established in 1967, the Cleaning and Support Services Association is the UK trade association for private sector employers in the contract cleaning sector.

The British Cleaning Council was established in 1982 to coordinate the affairs of the industry and to be responsible at home and abroad on industry matters.

3M Expands in Brazil

To establish its Home Care Division in Brazil, 3M is acquiring a Brazilian manufacturer of floor care products.

Based in Rio Grande do Sul, Brazil, Incavas Industria de Cabos e Vassouras Ltda. is an important manufacturer of household floor cleaning tools in Brazil. The company’s line of floor cleaning products includes squeegees, brushes, dustpans and brooms.

For more than 40 years, 3M has helped consumers clean with Scotch-Brite and O-Cel-O brand cleaning products. Complementary acquisitions such as this support 3M’s core business.

“The Incavas brand will complement 3M’s line of household cleaning tools and help establish the Home Care Division as a strong player in Brazil,” said Michael Vale, managing director, 3M Brazil. “We see strong technical, sales and manufacturing synergies with the combination of Incavas and 3M.”

A family-owned business since 1973, Incavas employs approximately 150 people. Though details of the transaction were not released, it is expected to close in the first quarter of 2010, subject to customary closing conditions. With $25 billion in sales, 3M employs 75,000 people worldwide and has operations in more than 60 countries.

Green Seal Works With LA Businesses

The Los Angeles City Council has approved moving forward with the Los Angeles Certified Green Business Program, and more than 70 businesses have taken a “Green Pledge.”

The Los Angeles Community College District (LACCD) was announced as the leader for the new city program, and will be joined by Green Seal Inc., the L.A. Area Chamber of Commerce, Green Globe, Dine LA/LA Inc. and The Los Angeles Convention and Visitors Bureau.

Known as the Los Angeles Green Business Certification Program, the LA Environmental Affairs Dept. reports that many businesses in Los Angeles have already expressed their enthusiasm for green certification. Over 70 businesses have taken the “Green Pledge” because “being green is good for the earth and good for business’ bottom line.”

Green Seal will use its restaurant standard GS-46 to certify restaurants, develop checklist criteria for retail-offices and auto body shops, and coordinate with the District on the Los Angeles Green Lodging Program GS-33 (run by Green Seal and LA Inc. in cooperation with the City).

The leadership standard for lodging properties, GS-33 requires hotels to demonstrate sustainable business practices in the areas of waste minimization and reduction, recycling, energy efficiency, water conservation, indoor air quality and environmentally sensitive purchasing.

“Green Seal has broad consumer and industry recognition”, said Dr. Arthur Weissman, Green Seal’s president and CEO. “For 20 years our standards and certification have helped green the lodging industry, a range of product industries and now restaurants/ foodservices.”

On November 19, The Radisson Los Angeles Airport Hotel achieved Green Seal certification, giving the Radisson LAX the distinction of being the first hotel within the Radisson brand to achieve Green Seal certification. Earlier, the City recognized LA’s largest hotel - Westin Bonaventure - as the first hotel to receive Green Seal certification. The Bonaventure expects to save $225,000 in the first year by going green.

Councilman Richard Alarcón has spearheaded the City’s effort to create the Green Business Certification Program since March 2007.

“In today’s economy, businesses are looking at ways to save money and draw in more business, and the Green Business Certification Program will do just that,” Alarcón said.

“Today’s vote by the City Council means that after years of a collaborative effort, we will have a new incentive program for businesses that are working to reduce their impact on our environment.”

New Standard Raises the Bar for Slip and Fall Safety

The National Floor Safety Institute (NFSI) has published its new national safety standard for testing hard surface flooring, the ANSI/NFSI B101.1, an advancement that has been highly anticipated by the risk management and loss prevention industries.

“We have been anticipating the publication of this standard for some time now.” said Dr. Howard Harris, president of Traction Auditing, LLC. “Traction Auditing has fully incorporated the newly published ANSI/NFSI B101.1 Test Method for Measuring Wet SCOF of Common Hard-Surface Floor Materials standard throughout its Safe Surface System floor testing protocols.”

In 2007, the Centers for Disease Control (CDC) estimated that 2.2 million Americans sought emergency room treatment for an accidental fall, making falls the leading cause of emergency room visits in America.

The ANSI B101.1 standard provides property owners, facility managers and risk professionals with an important tool by which they can measure the risk of a slip and fall, and, in-turn, prevents such accidents from occurring. Demonstrating compliance with this new national floor safety standard will be critical for companies looking to reduce the risks and costs associated with slip and fall claims.

Slip and fall accidents are so prevalent, the CDC has declared elderly falls a national epidemic and estimates the annual cost to the nation’s economy to be over $40 billion per year.

Under the new ANSI B101.1 standard, walkway slip resistance can be measured and categorized into one of three “Traction” ranges: High, Moderate, or Low Traction. Floors categorized as High Traction present a low risk of a slip and fall while Moderate Traction and Low Traction floors present an elevated risk.

By using the Traction Auditing Safe Surface System, companies can reduce the risk of slip and fall claims and litigation while demonstrating compliance with this new industry standard.

“Business owners are encouraged to have their floors tested to determine into which Traction range their floors fall,” said Russ Kendzior, founder of the NFSI. “The NFSI recommends that ANSI B101.1 compliance testing be performed by an NFSI Certified Walkway Auditor.”

The Safe Surface System is a simple, yet comprehensive approach to slip and fall prevention that combines NFSI certified walkway auditors with the most advanced walkway auditing protocols available and NFSI Certified high traction floor cleaning products.

By using an independent walkway auditing company like Traction Auditing, companies can ensure maximum safety for its employees and customers. Traction Auditing’s Safe Surface System, based around the ANSI B101.1 standard, helps companies large and small protect themselves from unwarranted litigation and claims from slips and falls.

Brent Johnson, Chief Auditor for Traction Auditing stated, “Our clients can be assured that they will get the maximum protection by testing performed to the highest industry standard, the ANSI B101.1 standard.”

Cost & Quality Critical to Facility Maintenance Managers

FacilitySource, a Columbus, OH-based facility maintenance and management services provider, has found that cost and quality are critical in managing facilities, as part of its first Facility Maintenance Leadership Council (FMLC) report that was released recently.

The survey was conducted during the company’s third annual Leadership Council where it brings together customers and vendors to discuss challenges facing the facility maintenance industry as well as solutions to overcome those challenges.

More than 350 vendors and 30 customers from the retail and restaurant industry participated in the survey. Individuals including facility maintenance managers, vice presidents of strategic sourcing and store planning as well as construction coordinators provided feedback, which included these findings:

Facility maintenance spend. The majority of all respondents said their repair maintenance budget either stayed the same (37.5 percent) or increased (16.7 percent) in 2009.

Capital budget varied greatly. While customer respondents from retailers and restaurants were in agreement on maintenance budgets, there was no common ground regarding their capital budgets. Thirty percent said their capital budgets stayed the same, and 39 percent said it decreased 10 percent. However, only 9 percent saw an increase. In an industry where facility maintenance spend is a must, this confirms what many in the retail and restaurant industry are witnessing: companies will maintain, but most are not expanding or building additional locations.

Looking ahead to 2010. Thirty-four percent of customer respondents believe their 2010 repair maintenance budget will increase zero to 5 percent. The reason for this response may be two-fold, either we’re seeing companies slowly begin to spend more as the economy recovers or the budgets were cut in 2009 only to do the bare minimum and now businesses need to increase their repair budget in order to focus on some possible neglected items.

HVAC and Refrigeration has everyone’s attention. When customers and vendors were asked to prioritize various trades, HVAC and refrigeration was listed as a top priority given reduced maintenance budgets for both groups.

Preventative maintenance is key, but not everyone is on board. According to the vendors surveyed, 44 percent believe investing in planned or preventative maintenance is key to improving the maintenance of facilities. However, 67 percent of vendors also agreed the most significant cause of a poorly-maintained real estate asset is that maintenance is a low priority for some companies – proving balancing costs and quality is crucial to a well maintained facility.

The FMLC is a group of approximately 50 influential facility maintenance managers, vice presidents, chief financial officers and IT professionals founded by FacilitySource in 2009. The group meets annually to collaboratively discuss the most relevant issues affecting the facility maintenance industry specifically as it relates to retailers and restaurants. The group’s membership comprises of executives with a wide variety of facilities management expertise from an assortment of companies.