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Industry News

Diversey Sales Top $3.1B in 09

With the economic recession adversely affecting numerous end-users of its products, Diversey Inc., formerly JohnsonDiversey, has reported a loss of nearly $50 million in 2009, $10 million less than the year before. Though hotels, restaurants, food and beverage processors and others that are sensitive to business and leisure travel reduced their purchase volume, Diversey said it did not experience a material loss in customers.

In its annual 10-K filing with the SEC, the privately held company said its net loss decreased by $10.9 million to $48.6 million, on sales of $3.1 billion in 2009. Excluding the negative impact of foreign currency exchange of $10.7 million, net loss decreased by $21.6 million.

In 2009, the company, which differentiates itself by its dosing, dispensing and concentrating formulas, saw 53.7 percent of its sales come from Europe, and 20.4 percent were from North America.

The European segment, which consists of operating units across Western Europe, Central and Eastern Europe, Africa and the Middle East, had $1.670 billion of net sales for the year.

The North American segment had sales of $636.1 million, while Japan, its thirdlargest segment, had $306.4 million in sales, representing approximately 9.8 percent of total net sales during that period.

Latin American had $252.4 million in sales, and the Asia Pacific segment had $235.8 million. This segment consists of operating units across North Asia, South Asia, Australia and New Zealand, with China and Australia being the largest operations in the region.

The company has assets of $3.5 billion, and liabilities of $3.025 billion.

Bravo Earns CRI Seal of Approval

Committing to a high standard of service and customer satisfaction, Bravo! Group Services of Piscataway, NJ has been recognized as a Seal of Approval Service Provider by the Carpet and Rug Institute.

The CRI Seal of Approval program tests and certifies superior performing carpet-cleaning solutions, vacuums, extractors and other deep cleaning systems.

Companies certified as Seal of Approval Service Providers agree to use only Seal of Approval products and equipment and comply with a customer- focused “code of conduct.”

“Customers can feel confident about doing business with companies that have earned the Seal of Approval,” said Werner Braun, CRI president. “CRI is proud to recognize Bravo! for using superior products and recognizing the need for quality service.”

Braun noted that independent testing has shown that not all carpetcleaning products clean equally well and that some even harm carpet fibers or result in faster resoiling of cleaned areas.

“The Seal of Approval Service Provider status is a signal to our customers and employees that we are fully dedicated to utilizing only the best cleaning products and equipment. Matching the right cleaning method with the right product helps retain the life and beauty of a carpet,” said Frank Wardzinski, executive VP for Bravo. “It continues our long standing commitment to investing in the latest green technology, equipment and solutions that increase the overall indoor air quality for more than 42,000,000 square feet of commercial, educational and medical facilities.”

Devon FM CIMS Certified

Devon Facility Management, a janitorial and manufacturing facility services provider, has received Cleaning Industry Management Standard certification from the ISSA.

DFM becomes the first minority-owned business and only the third facility services provider in the state of Michigan to become CIMS compliant.

Designed to help cleaning organizations create customer-centered, quality organizations and to guide them in efficiently managing their businesses, CIMS is the first consensus-based management standard for the cleaning industry.

In becoming CIMS compliant, DFM has met strict standards for quality; delivery; personnel and training; health, safety and environmental stewardship; and management commitment – all of which were evaluated on site by an independent third-party assessor.

“By implementing the CIMS, Devon Facility Management is positioned to better serve our customers and become more operationally efficient,” said DFM President David Burnley, “The result is cost savings for us and, more importantly, the people we serve.”

DFM established a central web-accessible database for compiling and organizing all processes and procedures in accordance with CIMS requirements. The consistency and organization of information helped the audit process to proceed faster than usual.

“I think we saw how strong our processes really are. CIMS certification has helped us further organize, improve and understand how our janitorial procedures interrelate,” said DFM Program Manager Randy Martin.

During the audit process, facility management team members realized the company already met many of the qualifications to apply for additional certifications. DFM is now in preparation to meet ISSA CIMS Green Building certification.

The Green Building component is used to implement a framework for delivery of environmentally preferable cleaning services. The Green Building assessment is set to take place mid-summer 2010.

Established in 2007, Devon Facility Management, LLC, is a wholly owned subsidiary of Devon Industrial Group – a minority owned enterprise that was formed as a partnership between Devon Contracting and Walbridge.

Ashkin Allies With AICS

The Ashkin Group, a green cleaning advocate, has joined a new collaboration with the American Institute of Cleaning Sciences, which works to improve commercial cleaning industry standards.

AICS is an independent, evaluation and accreditation organization that is partnered with ISSA in its Cleaning Industry Management Standard program (CIMS) and the recently released CIMS Green Building criteria (CIMS-GB).

The CIMS program outlines the essential characteristics of a successful, quality cleaning organization.

“We have agreed to work together on several projects and be supportive of each others’ activities,” said Steve Ashkin, principal of the Asking Group. “I am impressed with the CIMS program, and we’re working to have it included in the new LEED-EB certification criteria now being developed. I am also promoting it to [the] state governments we are working with.”

In return, AICS’s David Frank and Jim Peduto will help promote Ashkin’s Green Cleaning University and several other green-related programs The Ashkin Group is undertaking.

“Dave Frank and Jim Peduto are two of the industry’s leading consultants,” said Ashkin. “We are delighted to have the opportunity to work with them on shared mutual interests that benefit our industry.”

Ecolab Increases Profits 66 Percent, Takes $5M Charge for Obamacare

Though its sales increased by only 6 percent in the first quarter, Ecolab Inc., maker of cleaning, sanitizing, food safety and infection prevention products, saw its profits rise by 66 percent, despite taking a $5 million charge related to the recently passed healthcare reform bill.

The company said its results were led by strong growth in its Kay, Asia Pacific, Canada and Latin America segments, and that costs were favorable as a result of savings actions and lower delivered product costs.

The company reports a profit of $96 million, or 40 cents a share, on sales of $1.4 billion in the first quarter of 2010, compared to a profit of $57 million, or 24 cents a share, on sales of $1.35 billion in last year’s fist quarter.

First quarter sales for the U.S. Cleaning & Sanitizing operations rose 2 percent to $632 million. Kay led sales results with a strong gain, while Healthcare sales were off slightly primarily due to the rebalancing of H1N1- related product trade inventories. Ecolab’s U.S. Cleaning & Sanitizing operating income increased 11 percent to $113 million. U.S. Other Services sales declined 2 percent to $105 million in the first quarter. Operating income increased 11 percent to $15 million.

The reported income tax rate for the first quarter 2010 was 31.1 percent, compared with the reported rate of 29.4 percent for the first quarter 2009. The decrease in the first quarter adjusted effective tax rate was due primarily to increased benefits from the domestic manufacturing deduction in the U.S. The discrete tax items for 2010 included a $5 million charge due to the passage of the U.S. Patient Protection and Affordable Care Law which changes the tax deductibility related to federal subsidies and resulted in a reduction of the value of the company’s deferred tax assets related to the subsidies. This charge was offset by a $6 million tax benefit from the settlement of an international tax audit.

The company has assets of $4.7 billion, and liabilities of $2.9 billion.

Emerson, ProTeam Recognized for Environmental Efforts

Emerson, the global manufacturing and technology company that acquired Pro- Team in September 2009, recently earned two high-profile industry recognitions for environmental responsibility.

Emerson’s state-of-the-art Global Data Center on its St. Louis headquarters campus received LEED Gold certification from the U.S. Green Building Council and a 2009 Beyond Green High-Performance Building Award from the Sustainable Buildings Industry Council.

For the LEED (Leadership in Energy and Environmental Design) certification, Emerson earned 40 out of a possible 51 points to receive LEED Gold.

The Beyond Green honor recognizes initiatives that shape, inform and catalyze the high-performance building market, as well as the real-world application of highperformance design and construction practices. Meanwhile, all of ProTeam’s high-performance vacuums qualify for LEED credit under the U.S. Green Building Council’s program. Additionally, in 2010, seven ProTeam vacuums earned the Gold Seal of Approval/Green Label from the Carpet and Rug Institute (CRI) for meeting the highest standards in carpet cleaning effectiveness and indoor air quality.

“For years we’ve been putting our efforts behind technology and real world applications that benefit the environment and the health of those who live in it,” said Matt Wood, ProTeam president and CEO. “Now, we have a parent company with the same drive for innovation when it comes to environmental responsibility.”

BSCAI Exploring Its Future

At its most recent meeting, the board of directors of the Building Service Contractors Association International approved a new long-term strategy entitled Exploring Our Future, a plan that will focus on six major initiatives.

Components of the plan include profitable growth, membership and new member growth, education, professionalism, leadership and networking.

Each of the pillars has specific objectives and measurable outcomes for both the leadership and the headquarters team to evaluate, change, delete or improvise.

“This is a living document for BSCAI,” said J Michael Horgan, BSCAI’s newly installed president and President of the Hurley Corp. “It defines who we are and where we want to be for everyone in the building service contracting industry. The strategy includes fostering relationships with other industry organizations that meet our specific goals and provides multiple levels of opportunities for members to become involved in their association. We’ll be rolling out the specifics in the next few months and invite comments and suggestions.”

BSCAI created this plan in order to “capitalize on its strengths and to drive greater value for its more than 1800 members.”

Earlier, the association revised and updated its two-certification programs to better meet the needs of its members and the BSC industry.

The Certified Building Service Executive (CBSE) program and exam has undergone a complete revision with new information, a completely restructured exam and updated materials to reflect the changing nature of the cleaning industry and the building service contractor professions.

The Registered Building Service Manager (RBSM) has also been updated and reflects the newest in management and cleaning topics.

Both exams will be offered in Spanish and English.

“This project was a major undertaking for our small certification committee and professional staff,” stated Taylor Bruce, chair of BSCAI’s Certification Committee. “We’re especially pleased with the new, easier format of our exams which have undergone numerous reviews to ensure both the accuracy and completeness of the responsibilities desired in successful managers and executives.”

ServiceMaster Clean Names Battier Scholarship Winner

Cleaning franchiser ServiceMaster Clean has awarded Lyn Stanfield one of the company’s distinguished Shane Battier Franchise Scholarships. Selected from hundreds of applicants, Stanfield completed a 1,500- word essay detailing how she would utilize ServiceMaster corporate objectives in her business. She is the 12th recipient of the minority franchise award since the program’s inception in 2007.

“The company’s corporate objectives drew me in immediately — to honor God in all we do, to excel with customers, to help people develop and to grow profitably,” said Stanfield. “They serve as a blueprint for all ServiceMaster employees to follow. These commitments require us to do the right thing by all of our stakeholders.”

The purpose of the Shane Battier Franchise Scholarship is to expand the ServiceMaster Clean franchise ownership base among women and minorities throughout the United States. Championed by professional basketball player and former Duke star, Shane Battier, the program was designed to help individuals overcome some of the obstacles of starting and running their own business by being a part of a franchise organization.

The Shane Battier Franchise Scholarship allows individuals interested in starting their own business an opportunity to be awarded their own commercial cleaning franchise license – a $31,900 value.

“We recognize that, beyond being good for our business, reaching out to expand ownership opportunities for minorities and for women is a very meaningful way for us to live our faith-based corporate mission. That is why we have committed to diversity in our franchise network,” said Michael Isakson, president and chief operating officer, ServiceMaster Clean.

ServiceMaster Clean has committed $1.3 million over four years in direct grants and private financing to its Shane Battier Franchise Scholarship initiative, as part of its continuing pledge to diversity, business development and community outreach across the United States.

The Tallahassee native is a former member of the executive board for the Tallahassee Chamber of Commerce and is currently involved in various Chamber programs including Leadership Tallahassee and My Region Tomorrow. Stanfield’s prior work experience includes two state jobs with the Florida Department of Corrections and the Department of Education, as well as a position as strategic relations director with Apple Computer.

She earned a bachelor of science in communications from Florida State University in 1994, as well as a master’s degree in public policy from FSU in 1996.

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