The ISSA Show Opens Its Doors Industry-Wide

End users will be invited to attend the trade show each year, rather than every other

The International Sanitary Supply Association (ISSA), Lincolnwood, Ill., has announced it is permanently changing its annual show’s format to, among other things, include end users every year in the interest of appealing to the entire cleaning industry.

The format, which begins with the 2002 show in Las Vegas will be as follows:

• The show name will be ISSA/Interclean every year.
  
• The format and the dates for 2002 are as follows and will remain constant from year to year:
  
• Tuesday, October 15 – the traditional seminar format will be open to distributors and manufacturers only.
  
• Wednesday, October 16 – the trade show will be open only to distributors. A seminar day will be scheduled on that Wednesday for end users. Wednesday’s morning keynote event will be open to all attendees.
  
• Thursday and Friday, October 17-18 – the show will be open to all cleaning professionals.
  

The format for the 2001 show in Orlando, Fla., October 16-19, has not changed.

In 1997, the ISSA board of directors decided to open its annual exhibition to all cleaning professionals to help bring channel partners in the cleaning industry more closely together.

It’s definitely a good thing, says Laurie Sewell, ISSA District 7 director and president of Pacifica Consulting Services Inc., Culver City, Calif.

The jan/san industry’s future depends on an open show, explains Sewell. “A closed show doesn’t make any sense, since end users can go online to find out any product information they want anyway,” Sewell points out.

The 1997 decision included the change to a biennial format: the traditional ISSA show was to be held in even-numbered years; and the ISSA/Interclean event was open to distributors and their customers in odd-numbered years.

However, at a recent meeting the board reviewed attendance and participation surveys from the 1999 ISSA/Interclean event held in Chicago and from the traditional ISSA convention held in Atlanta last year and decided a format change was in order.

Manufacturers and distributors both indicated a preference for a portion of the show to be set aside for private meetings.

In an attempt to maintain a consistent format and to better serve distributors, manufacturers and end users, the changes were agreed upon.

The new format promotes positive relationships between the distributor and end user, says Sewell. End users that might not have a distributor can now go to the show and make distributor contacts.

The change also benefits manufacturers that have concerns about the individual time they are able to spend with distributors. The format affords them the opportunity to meet on an individual basis, notes Sewell.

“From a distributors’ point of view, the format utilizes an opportunity to bring your clients to the show and build better relationships with them,” says Sewell.

— Kari Strobel

Mergers and Acquisitions

Olmsted-Kirk Equipment & Supply, a Dallas-based distributor of janitorial equipment, chemicals and supplies, recently announced an affiliation with Network Services Co., Mount Prospect, Ill. Network is a distribution organization and will allow Olmsted-Kirk to expand product lines and gain national distribution capabilities.

The Procter & Gamble Co., Cincinnati, announced the sale of the Spic and Span and Cinch brands to a new marketing company formed by the Shansby Group, a San Francisco-based equity partnership. The new company will be called the Spic and Span Co.

Microbest Inc., Boca Raton, Fla., has joined the alliance between Encore Management Services, Fort Lauderdale, Fla., and Waxie Sanitary Supply, San Diego, Calif. Encore will supply its clients with Microbest products in a contract with Waxie.

The Dow Chemical Co., Midland, Mich., announced its merger with Union Carbide Corp., Greensburg, Penn. Dow Chemical has received clearance from the U.S. Federal Trade Commission, the European Commission and the Canadian Competition Bureau, along with other jurisdictions around the world.

PRO-LINK, San Antonio, Texas, announced the addition of a new distributor, American Janitor & Paper Supply, a family-owned company located in Scranton, Pa.

Dade Paper & Bag Co., Miami, a wholesale distributor of disposable paper, plastics, foam and chemicals has acquired Empire Paper Co., Atlanta. Dade Paper plans to expand its Atlanta sales and customer base.

United Technologies Corp., Hartford, Conn., has completed its acquisition of the Specialty Equipment Cos., an Aurora, Ill.-based manufacturer of foodservice equipment. Beverage-Air, Carter-Hoffman, Gamko, Taylor, Wells/Bloomfield and World Dryer are now part of Carrier Refrigeration Operations, a global division of Carrier, headquartered in Syracuse, N.Y.

The Clorox Co., Oakland, Calif., has agreed to acquire 50 percent of Detergentes Bombril S.A., a company formed by Clorox and Bombril S.A., a Brazilian household cleaners and utensils company.

SYSCO, Houston, has signed a letter of intent to acquire HRI Supply Ltd., Kelowna, British Columbia, a wholesale foodservice distributor on completion of a negotiated agreement.

News Makers

AFFLINK, formerly Affiliated Paper Cos., Tuscaloosa, Ala., an affiliation of independent sanitation, packaging, food service and paper distributors, has announced AFFEX, its new line of national private brand of towel and tissue products. The line includes a variety of towels, toilet and facial tissue and napkins. AFFLINK distributors offer products from a wide range of national suppliers, as well as a private brand of sanitation chemicals under the name AFFLAB.

Workplace Injuries Drop, DOL Says
The rate of non-fatal occupational injuries in the jan/san industry was 6.1 percent in 1999, slightly lower than the national average of 6.3 percent, according to newly released data from the U.S. Department of Labor’s Bureau of Labor Statistics.

There were about 188,500 non-fatal workplace injuries in the industry in 1999, with about 57.4 percent of those injuries requiring lost workdays and/or restricted work activity. No fatal injuries were reported for 1999.

Overall private industry injuries totaled 5.3 million in 1999, the lowest since the Bureau began reporting such information in the early 1970s.

Data regarding the most common injuries or the average number of workdays lost is expected to be released this summer.

The “wholesale trade nondurable goods” category, the most specific to the jan/san industry includes both the manufacturing and retail wholesaling of paper and paper products and chemicals and allied products.

To compare your own company’s occupational injury and/or illness rate with those of the industry, use the following formula:

NAW Moves to Electronic Exchange
The National Association of Wholesaler-Distributors (NAW), a Washington, D.C.- based trade association, has formed an alliance with Advanced Data Exchange (ADX), Newark, Calif. The partnership is designed to allow wholesalers and distributors to electronically exchange business documents with suppliers and customers.

Wholesalers and distributors should be able to facilitate trading relationships within and across business communities in a low-cost way, according to NAW. Using ADX, small and mid-size businesses can exchange purchase orders, invoices and other documents over the Internet. Larger firms can electronically connect with their smaller trading partners and eliminate paper-based transactions, NAW says.

As an attempt to streamline businesses’ supply chain operations, the alliance is designed to decrease errors, increase process flow, drive down costs and boost profitability.

Small Business Tax Relief Bills Introduced
Two tax relief bills were recently proposed by U.S. Representative Wally Herger (R-Calif.) that would impact small business owners’ accounting methods.

The Small Business Expensing Improvement Act of 2001 would raise the current expensing limit from $24,000 to $35,000. This legislation would allow investments in the business to be deducted the same year and would eliminate depreciation record-keeping — where only a percentage of an investment can be deducted each year.

The Cash Accounting for Small Business Act of 2001 provides clarity for the IRS code to clearly state that businesses owners with gross revenue below $5 million are eligible to use cash accounting methods rather than the less favorable accrual method of accounting.

However, wholesale and retail businesses often prefer to use the accrual method because they buy and sell inventory, and in these cases, this method more accurately reflects their income.

The major difference between the two methods is a timely shift; with cash, deductions are made in the current year and with accrual, deductions are usually made in subsequent years.

Regulatory News

General Chemical Corp. Cited by OSHA
The U.S Labor Department’s Occupational Safety and Health Administration (OSHA) recently cited General Chemical Corp., Delaware Valley Works, a manufacturer of industrial chemicals headquartered in Hampton, N.H., for allegedly allowing employees to be exposed to hazardous chemicals. Proposed penalties total $487,000.

OSHA inspected its north plant, Marcus Hook, Pa., on August 4, 2000, when six employees were hospitalized after an accident where they were exposed to hydrogen fluoride.

The inspection of its south plant, Claymont, Del., located across the street, began on September 14, 2000, as a result of a complaint. The current penalties for the latter incident are $5,000.

According to OSHA, the cases are still open and more or fewer penalties could result.

General Chemical produces soda ash, a material used in making powered detergents, paper, textiles, and other products, as well as calcium chloride.

Worker Productivity Up in 2000
U.S. productivity, which measures the amount of goods and services workers produce per hour, grew at an annual rate of 2.4 percent in the final three months of 2000 for workers outside the farm sector, according to the U.S. Department of Labor’s Bureau of Labor Statistics.

Although considered solid growth, it was weaker than the 6.1 percent rate in the second quarter and the 3 percent gain in the third quarter. This is a result of the overall economy slowing and forcing businesses to cut back on capital spending.

In the manufacturing industry (both durable and nondurable goods), labor productivity grew 4.8 percent for the quarter and rose 7.1 percent for the year — the largest increrase since the beginning of the measure in 1949, according to the Bureau. The manufacturing sector includes about 17 percent of all U.S. business.

When worker productivity is strong, companies can produce more while holding down costs, says the Bureau, which helps to keep inflation low. However, if productivity continues to lessen, employees’ demands for higher wages could force companies to raise prices, thus causing inflation.

Overall, productivity growth for 2000 was very good, up 4.3 percent, the strongest rise since a 4.5 percent increase in 1983.

Growing productivity is helpful for the U.S. economic expansion. When productivity rises, companies produce and sell more, which keeps inflation in check, according to the Bureau.

Pesticide Injuries Up in 1999
The Department of Pesticide Regulation (DPR), part of the California Environmental Protection Agency, recently released a summary of pesticide injury data for 1999.

Pesticides included disinfectants, sanitizers and other chemicals that kill pests, along with insecticides, herbicides and fungicides.

DPR reported a total of 1,201 suspected or confirmed reports of pesticide injury in 1999. This compares to 998 cases reported in 1998. Besides in 1998, the numbers are the lowest since 1986.

Occupational exposures accounted for 67 percent, non-agricultural reports were 54 percent and agricultural exposures were 46 percent. The most frequent factor for injury was pesticide drift exposure incidents.

Donations Lessen Tax Burden for Business
By donating excess inventory this year, business owners can not only clear valuable warehouse space, but earn a sizable tax deduction.

Businesses can donate excess merchandise that was created by production overruns, cancelled orders or model updates, and earn a tax break.

Common depreciated items donated from the jan/san industry often include office supplies, computer accessories, tools and hardware, maintenance supplies, electrical and plumbing fixtures, and paper products.

Charitable contributions can be cash or non-cash items — stocks, property, equipment, vehicles, etc. One rule to follow: if the contribution is $250 or more obtain written documentation for verification.

Regular (C) corporations may deduct the cost of the merchandise donated, plus half the difference between cost and fair market selling price. Deductions may be up to twice cost.

S corporations, partnerships, and sole proprietorships earn a straight cost deduction.

However, deductions are limited to 10 percent of a company’s taxable yearly income. Anything exceeding that amount is applied to the following year’s tax claim.

Donations can be given to “qualified organizations,” including religious, charitable, educational, scientific, or literary organizations or those that prevent cruelty to animals or children.

The charity should be checked out thoroughly before donations are sent. To do this, contact your local Better Business Bureau to make certain the charity is legitimate.

Contributions can also be made to political organizations or to individuals; however, in those cases no tax deduction is given.

The National Association for the Exchange of Industrial Resources (NAEIR), Galesburg, Ill., is one such nonprofit organization that accepts new supplies and equipment from donations made by manufacturers, wholesalers, distributors and retailers.

The donated items are then distributed to approximately 5,500 tax-exempt nonprofit organizations and schools.

The products, printed in catalog for selection, are free. The recipients only pay shipping and handling.

NAEIR does not charge businesses for its service and provides tax documentation within 14 days after inventory is received.

To contact NAEIR call (800) 259-4551.

For additional details talk to your accountant. For specifics, refer to Section 170 (e)(3) and/or publication 526 of the U.S. Internal Revenue Code.

Ergonomic Vacuum Study: Upright vs. Backpack
An ergonomic vacuum cleaner study conducted in 1998 by Ohio State University and Battelle Memorial Institute, a non-profit research and testing organization, Columbus, Ohio, provides data comparing the use of traditional upright vacuum cleaners and backpack vacuum cleaners.

The study compared repetitive motions, musculoskeletal stress and fatigue resulting from the use of both types of vacuums. The study was two-part: a biomechanical assessment focusing on cleaning rates, musculoskeletal stresses, kinetic measurements, workload and fatigue, and repetitive motions; and a metabolic study analyzing metabolic demands, energy exertion and productivity rates.

Data showed that both types of vacuums are safe for extended periods of use.

However, backpack vacuums offer the advantage of alternating between push-pull motion and side-to-side sweeping motion that results in less body stress.
Additional advantages of backpack vacuums over upright vacuums include increased efficiency (a greater area of carpet cleaned while energy/effort didn’t increase), minimized fatigue and awkward back stretching, and reduced repetitive motion, according to the study.

The study reported that backpack vacuums caused less body stress and performed at higher cleaning rates during simulated tasks.

NPTA Changes to Better Meet Business Needs
The New York-based National Paper Trade Association’s (NPTA) restructured organization became effective in January. After the Long Range Planning Committee assessed the association’s direction and values, it determined a restructure was in order.

“As we worked through the results of our membership studies, it became clear that NPTA needed to restructure itself to ensure that it would continue to meet the needs of its members,” explains William H. Frohlich, NPTA president.

The organization will operate through three alliances; one specifically targeted to the jan/san industry.

“The jan/san division of NPTA — consisting of approximately 500 members who are involved in the sale of jan/san type products — provides members with highly focused organization within NPTA,” says Frohlich.

Members in the jan/san division will receive e-mailed newsletters and specialized jan/san reports from NPTA’s performance analysis reports about product changes, performance and compensation data — all industry specific, according to Frohlich.

In addition, new educational sessions will be hosted at the annual convention.

The restructure offers businesses the opportunity to determine their own emphases and needs by customizing their membership by selecting levels — each providing market-specific information — that are important to individual businesses.

NPTA Elects Board of Directors for 2001
The National Paper Trade Association (NPTA), Great Neck N.Y., has announced its recently elected board members.

The board of directors for 2001 consists of R. James Alexy, CEO/ president, Network Services Company, Mt. Prospect, Ill. Alexy has 30 years of experience in the paper and plastics industry.

Mike Kearney, president and chief operating officer of Coast Paper, a Vancouver, British Columbia-based paper distributor, joined the board. Kearney serves as president of the Canadian Paper Trade Association and is the Canadian representative to the NPTA printing paper council.

Another director is Daniel D. King, president and chief operating officer, Fox River Paper Co., Appleton, Wis. King is a member of the board of directors for CTI Paper USA Inc., in addition to belonging to numerous trade affiliations.

Shelley Riha, president of Nogg Chemical & Paper, an AmSan company in Omaha, Neb., and vice president of the upper-Midwest region for AmSan has joined. Riha has 20 years of experience in distribution and public accounting.