SARS: At Issue Within the Industry

As Toronto tries to mend its battered image following the SARS scare that kept visitors away and caused the Canadian Sanitation Supply Association (CSSA) to postpone its annual trade show, the cleaning industry, by contrast, has grown healthier.

Sales of sanitation supplies, disinfectants, hand sanitizers and other cleaning items spiked after cases of SARS (sudden acute respiratory syndrome) cropped up throughout North America.

“As far as our industry goes, without a doubt the awareness of hygiene, not only in Toronto but throughout North America, is at an all-time high,” said Matt Del Vecchio, president of CSSA.

Toronto was the hardest hit North American city, with 24 SARS-related deaths and, at one time, more than 300 probable and suspected cases. The outbreak prompted the World Health Organization (WHO) to issue a travel advisory for the city on April 23, which was lifted a week later. But it wasn’t soon enough to salvage the CAN CLEAN trade show scheduled for April 30 and May 1. (The show has been rescheduled for November 18-19.)

The show was expected to pull in 3,500 attendees and 125 exhibitors. Del Vecchio said CSSA had taken a number of proactive measures to put visitors’ minds at ease.

Then came the WHO’s advisory: no non-essential travel.

“Within half an hour we had five [exhibitors] cancel and two speakers as well as some seminar registrants,” said Diane Gosling, executive director of CSSA.

“The whole situation was completely blown out of proportion. This was not a communicable disease to the general public.”

Founded or not, the warning got people’s attention, and Toronto’s tourism industry has suffered. But Del Vecchio expects a resurgence — and soon.

“This is a very good thing for our industry,” he said. “The general public has probably never been more aware of the industry in its history.”

Fear of SARS and other communicable illnesses has jolted public awareness of the need for clean and sanitary environments. The Centers for Disease Control (CDC) are advocating frequent hand washing as a preventative measure in the spread of SARS. However, John Walker, president of Managemen, Salt Lake City, and one of CanClean’s slated speakers, believes the cleaning industry needs a bigger voice in the public forum.

“I think the cancellation of CSSA due to the WHO warning on SARS is symbolic of a major problem we have in the cleaning industry — that the cleaning industry is not recognized as being a part of public health,” he said.

“The role of cross-contamination, it seems to me, is greatly minimized, to the detriment of the cleaning industry,” he added.

Still, while the industry might not be getting its due, it has become more visible — and valuable — in the public eye.

Fears over SARS has translated into increased sales opportunities for distributors.

Del Vecchio said he has seen an upsurge in sales of dispensers, mops and HEPA-filter vacuums, as well as disinfectants, hand sanitizers, antimicrobial soaps and cleaning chemicals.

“There’s a chain reaction due to the increased awareness of trying to create a hygienic environment,” Del Vecchio said.

“I believe people will be more conscientious of frequently touched surfaces and the types of diseases you can pick up,” said Patricia Vanko, product manager for hard surface cleaners and disinfectants for JohnsonDiversey, Sturtevant, Wis. Her company has continued to reinforce the label-directed use of disinfectants, as well as frequent hand washing and the use of personal protective equipment. And people appear to be listening.

Even amid severe budget cuts, end users’ desire for cleanliness prevails. Customer focus has shifted from price demands to product availability.

“This is probably going to be a permanent change among purchasers of maintenance products,” Del Vecchio said.

ISSA Considers End-User Membership

Last month, the International Sanitary Supply Association (ISSA) announced a strategic plan that includes a proposed measure to open association membership to end users (in-house professional cleaners and building service contractors). The change would mean, above all, bolstered attendance at the association’s annual trade show, ISSA/INTERCLEAN.

Initial reaction to the proposal has thus far been positive, according to association representatives. ISSA staff has been using a portion of each ISSA District Meeting to detail the plan, explain the reasons behind it, and answer any questions that members have. ISSA is gauging member support with a six-question survey at the end of each meeting.

“The surveys have been generally positive,” said John Garfinkel, executive director of ISSA. “Distributor responses have been four yes to each no, and manufacturer and manufacturer rep responses are 9.5 yes to each no. About 20 percent of the distributor management and 10 percent of the manufacturer management have indicated ‘no opinion.’”

A membership change, however, requires a change to the association bylaws — possible only with a majority vote by association members. Garfinkel doubts such a vote will take place this year.
“The timing will be set by the board [of directors] based on whether the data reflects strong member support,” he said.

A number of factors are driving the association’s support of the bylaw change. Garfinkel believes opening membership to end users will positively affect distributors and the industry in general. First, major associations are struggling financially due to consolidation and the economy. Many have sold to for-profit companies, leaving ISSA/INTERCLEAN as one of only a handful of the remaining independently run distributor trade shows. Potential venues are raising minimum attendee requirements as well, creating a greater need for more attendees.

“Opening the trade show and membership is an association survival strategy,” he said. “A strong association will maintain a voice for the members.”

Exhibitors, who provide two-thirds of the association revenue, are also pushing for higher membership numbers. A direct correlation exists between repeat attendance at a trade show and membership in the organization managing the trade show, according to ISSA.

The association also sees the potential benefits of bringing channel members together to learn from each other.

“Our goal is to do this through alliances with existing organizations and direct membership,” he said.
Research to gauge member support will continue with telephone interviews, Web surveys, focus groups and meetings with industry groups.

A complete list of FAQ’s.

Tax Cuts to Ease Business Burden

Congress recently reached a compromise and gave its final approval for a tax cut intended to stimulate the sagging economy. The $350 million package was signed into law late last month by President George W. Bush, who had been pushing for much larger tax cuts.

Following the lead of the House of Representatives, which approved the Jobs and Growth Tax Relief Reconciliation Act of 2003 (HR 2) by a 231-200 vote May 23, the Senate gave its approval hours later when Vice President Dick Cheney cast the tie-breaking vote, passing the measure 51-50.

The tax cut contains several business tax provisions. It will increase the bonus depreciation rate established by the Job Creation and Worker Assistance Act of 2002 from 30 percent to 50 percent and extend it to December 31, 2004.

The measure also will increase the amount that small businesses can expense every year from $25,000 to $100,000. This provision will change the definition of small business from $200,000 of annual capital purchases to $400,000; above that amount, the tax break doesn’t apply.

Banking Study: Good News for Small Businesses

A recent banking study shows that capital may soon be available to help small businesses across the United States. The study, “An Exploration of a Secondary Market for Small Business Loans,” was authored by Kormendi/Gardner Partners, a financial advisory and investment banking firm in Washington D.C.

The study shows that current trends in the banking sector provide a solid foundation for the emergence of a secondary market for small business loans.

Analysts say that until now there has been little research on the relationship between bank consolidation or banking trends and increased access to capital for small businesses.

May Readers Respond...

The staff of Sanitary Maintenance would like to say thank you to our readers for helping us celebrate our 60th anniversary last month. The following is a sampling of some of the feedback we received:

In my 26-plus years in the biz, I have seen many anniversary issues cross my desk. Never have I seen one as well done as your 60th anniversary issue. I virtually read the whole magazine. I found the historical stuff really interesting. The layout and approach, right from the opening column set the tone.

Just got through reading May’s issue of Sanitary Maintenance. My eyes are still not dry from viewing the photos of a lifetime in this industry.

You have brought back memories and photos that have revealed the true story of dedicated people who made a real contribution to our industry, and the world. 

Your publication has always been the backbone of knowledge, inspiration, and education to those who joined us along the way. And as always, the members of your staff were outstanding.

Just traveled to Chicago and back and on the plane had a chance to read in depth your 60th anniversary issue. I was very impressed with the research and history you folks wrote about! I learned a lot about the history of the industry, association, and Sanitary Maintenance magazine. I believe I met Mr. Apple on one or two occasions and know my dad also spoke so highly of him. The issue was very memorable and enjoyable to read.

NEWS MAKERS

Georgia-Pacific, Atlanta, recently reported a first quarter 2003 net loss of $28 million, compared with a net loss of $484 million in the first quarter of 2002. Weak economic conditions in North America, high energy and fiber costs, severe winter weather in the eastern United States and facility closures were named as contributing factors.

A recent nationwide study conducted by Raymond Family Business Institute and MassMutual revealed that 55 percent of CEOs 61 years or older, who are expected to retire soon, have not chosen a successor. In 1997, the same study found that only 33 percent had not chosen a successor.

The Missouri Senate plans to establish the Small Business Regulatory Fairness Board this summer. If established, it would empower nine business owners to evaluate private-sector complaints about government red tape. State senators say the reason for the proposal is over-regulation of small businesses.

Christie Whitman recently resigned as administrator of the Environmental Protection Agency (EPA). The resignation is effective June 27, 2003.

Weiler Corp., Cresco, Pa., a manufacturer of brooms and brushes, has been awarded ISO 9001:2000 quality certification by Underwriters Laboratories, an accredited ISO registrar.

MERGERS AND ACQUISITIONS

International Paper, Stamford, Conn., recently announced the sale of its Wilmington, N.C., folding carton operation to Pinnacle Packaging Co., Inc., Tulsa, Okla.

Mitch Murch’s Maintenance Management Co. (MMMM), St. Louis, recently acquired Ultimate Maintenance, St. Louis, a facility service provider specializing in carpet maintenance. In addition, MMMM purchased the exclusive rights to SaniGLAZE floor care products sold in the St. Louis metropolitan area.

The United Group, a distributor marketing group in Monroe, La., recently announced that Pride Marketing & Procurement has aligned with the group. Pride Marketing is comprised of 128 distributors of foodservice and restaurant supplies.