For years, many U.S. distributors have been reticent to cross the Atlantic Ocean and invest their business resources in what Amsterdam, the host city for ISSA/Interclean-Amsterdam RAI, calls “the greatest cleaning show on earth.”

Lanny Schuster, president of Baltimore-based United Sanitary, was one such distributor — until this year.

“A lot of distributors wonder if it’s really going to be worth it,” he says. “They wonder if there will be enough new business to justify the cost of traveling there.”

This year, a record 27,460 people traveled to Amsterdam — up 1,000 from the last show in 2002 — to try out the newest and most innovative cleaning solutions from all over Europe, Asia and the Middle East. First-time participants, like Schuster, said they wished they had come years before.

“I have been in this industry for 35 years, and very little has impressed me like the style of Interclean,” says Schuster.

But it wasn’t just the style of the country or the charm of its citizens that impressed him. The professionalism and efficiency — and of course the new business — on the trade-show floor were the most significant attractions.

“The layout was so efficient that I never encountered a clot of people,” says Schuster. “And each booth invited me in with an Old World style that enhanced their high-tech products. Not only was the technology more advanced than I anticipated, but the style of the equipment was impressive.”

One manufacturer presented his cleaning components in clear candy wrappers on silver platters. Another — a manufacturer of vacuum accessories — displayed colorful nozzles, wands and brushes in jewelry cases. Dispenser manufacturers competed for potential customers by offering luxuriant booths with complimentary chocolates, cheeses and wines.

Nearly 60 percent of all the visitors came from abroad (approximately 120 countries) to the show, held May 11 to 14. Exhibitors contributed to the international flair of the event as well, representing 32 nationalities.

U.S. distributors were exposed to foreign approaches to the ideology of the cleaning profession, in addition to foreign products. “I was especially impressed with how the Polish companies view cleaning as a truly honorable profession,” says Schuster. “The Polish Cleaning Association sponsors a nationwide cleaning day that the entire country gets enthusiastic about. Their pride really comes across in the way they do business at the show.”

For those distributors who are still using the language barrier as an excuse to avoid the trade show, every booth is equipped to handle almost any language, and participants can get around Amsterdam easily by speaking English, German or French.

“Many of the booths had small flags for several different countries,” says Schuster. “You just walk up to your flag and push a button, and you get a product description in your language.”

NEWS MAKERS

OSHA Endorses IICRC Mold Standards
The Occupational Safety & Health Administration (OSHA) recently included the Institute of Inspection, Cleaning & Restoration Certification’s (IICRC) mold standard on the Administration’s list of Indoor Air Quality (IAQ) resources.

The mold standard, S520: Standard Reference Guide for Professional Mold Remediation, was recently released by IICRC, and industry analysts are carefully watching to see if it will be accepted by government and private agencies.

New Partnership: Dial and Technical Concepts
The Dial Corp., Scottsdale, Ariz., recently announced a partnership with Technical Concepts, a jan/san manufacturer of soap dispensers and hand-care solutions.

In April, Dial announced that it started production of a liquid soap refill to fit Technical Concepts dispensers.

NCL Acquires Philly Distribution Center
National Chemical Laboratories, Philadelphia, recently announced the acquisition of a 50,000-foot distribution center, also in Philadelphia. NCL representatives stated that the center is scheduled to be operational in July and will employ 10 delivery trucks to increase the cleaning chemical manufacturer’s customer service and efficiencies.

Terminator Takes Out Two-Ply Tissue
The New York Times recently reported that California Governor Arnold Schwarzenegger is saving the state thousands of dollars by switching to single-ply toilet tissue for all government buildings. “It’s not anymore the two-ply,” Schwarzenegger told The Times in late June. “Because you know what? We’re trimming. We’re living within our means.”

MERGERS & ACQUISITIONS

Nichols Paper & Supply, Muskegon, Mich., a 68-year-old sanitary supply distributor, recently announced the acquisition of the sanitary supply division for Airgas Great Lakes. Airgas specializes in the distribution of sanitary and packaging supplies and equipment. The two largest Airgas branches in Traverse City and Jackson, Mich., will operate under new ownership.

This is the second acquisition by Nichols in 2004. SM reported in May that the company also bought distributor Priority Services LLC.

REGULATORY NEWS

The Texas Department of Health recently released final regulations regarding mold remediation within the state. The Department was required by House Bill 329 to develop specific rules to ensure the safe and efficient practice of all mold-related activities. Specifically, the new regulations require licensing and registration for those who perform mold assessments and remediation. The regulations also include specific requirements for mold-training providers as well as minimum work standards for mold assessment and remediation. Finally, the Department issued a mold code of ethics and penalties for mold remediators who do not comply with the new regulations. Use this link for a copy of the official Texas Mold Assessment and Remediation Rules.

The U.S. Senate recently voted to block the new Department of Labor (DOL) rules that define what employees are exempt from the overtime pay requirements of the Fair Labor Standards Act. The May issue of Sanitary Maintenance reported that the DOL introduced regulations on overtime pay that would clarify out-dated codes that no longer fit with modern workforces. For example, the regulations would have guaranteed overtime-pay eligibility for employees earning less than $23,660 annually (a salary that no longer is worth what it once was).

Split along party lines, 52-47, the Senate voted to establish an amendment to stop the adoption of the new overtime regulations. This amendment still needs to pass the House of Representatives and be signed by President Bush in order to block the DOL’s regulations for overtime pay.

The Department of Transportation (DOT) issued a corrected ruling of regulations for hazmat incident reporting on June 22. The new ruling incorporates appeals by several government agencies, as well as new international standards for shipping hazardous materials internationally. Click here for details of the final rule.

Pennsylvania General Services
Saves Taxpayers Money on Cleaning Supplies

Don Cunningham, the General Services Secretary for the state of Pennsylvania, recently announced that four new contracts have been awarded to sanitary supply companies that will save the state’s taxpayers $3.5 million annually.

A three-year contract for dilution control products (54 percent savings for the state) was awarded to Ecolab Professional Products, St. Paul, Minn. Xpedx, a national chain of jan/san distributors, was awarded separate two-year contracts for janitorial supplies (an 11 percent savings) and paper products (34 percent savings). In addition, Sanolite Corp. won a three-year dishwashing contract at 50 percent savings for the state.

The new contracts represent a 32-percent savings for the state on overall jan/san supplies, according to Cunningham. He also claimed that the new contracts would significantly decrease administrative costs by eliminating the need for state workers to search catalogs and resources for the best suppliers.

In order to keep with Governor Edward Rendell’s push for the use of more minority- and female-owned jan/san distributors, 32 percent of the contracts will be sold through such companies. Quality Assured Merchandise of New Kensington, a certified female-owned distributor, and 503 Corp., a certified minority-owned distributor, will partner with vendors.

“This contract award continues the reduction of costs for the taxpayers of Pennsylvania in the purchasing of goods and services to supply Commonwealth workers,” said Cunningham. “It also continues to increase opportunity for small, disadvantaged businesses to participate in state government contracts.”

Pembroke Identifies ’04 Distributor Trends

Pembroke Consulting, Philadelphia, and the National Association of Wholesaler-Distributors (NAW), Washington, recently released their annual distributor study: Facing the Forces of Change: The Road to Opportunity.

In the study, four major distribution trends are identified: fee-based services, customer self-service, strategic sourcing and core business competition.The following offers a summary of each trend:

  • Fee-based services: The study states that more than 80 percent of wholesale-distributors plan to begin charging for value-added services.

  • Customer self-service: Many end user customers are starting to take advantage of product resources online. With new access to shipping and logistics information, those customers can now bear part of the brunt for receiving those products, either financially or in helping make deliveries smooth.

  • Strategic sourcing: Companies are using spending-analysis software to gauge internal spending and cut waste. In the past, many distributors have not accurately reported internal spending, which includes the cost of overhead and “often-overlooked” expenditures. Spending-analysis software is no longer a novel idea for distributors as it becomes more affordable.

  • Core business competition: This final category tackles the way logistics technology intensifies distributor competition. Distributors are no longer striving to make deliveries days ahead of their competition; they’re striving to make deliveries hours — or even minutes — ahead of the competition.




POSTED ON: 7/1/2004