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News from the industry

September 19, 2010
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Neal new president/COO of Impact Products
Terry Neal has been promoted to president and chief operating officer of Toledo, OH-based JanSan manufacturer Impact Products LLC.

Neal has been with Impact Products since 1996, as national sales manager, vice president of sales and marketing, and, most recently, vice president of marketing.

ABM promotes JanSan executive
ABM Industries Inc., a national building service contractor headquartered in San Francisco, has promoted Larry Smith to president of wholly-owned subsidiaries American Commercial Security Services and Security Services of America.

Smith had been working as regional vice president for the Southwest for ABM Janitorial Services, the company’s largest operating subsidiary.

Intellibot hires new sales pro
Portland, OR-based Intellibot Robotics LLC, manufacturer of floor cleaning robots, has hired Mike Ellis to head up sales and marketing in the mid-Atlantic region.
Ellis has 25 years of sales experience, primarily in the medical imaging field.

Clorox promotes three to EVP
JanSan manufacturer The Clorox Company of Oakland, CA, has promoted three top executives.

Larry Peiros, a 25-year Clorox veteran, is now executive vice president and chief operating officer of Clorox North America;

Beth Springer is executive vice president of strategy and value growth; and Frank Tataseo is executive vice president of functional operations.

CM/Cleanfax® names Ogburn as publisher
Micah Ogburn, associate publisher of CM B2B Trade Group™, has been named publisher of CM/Cleanfax® magazine, the premier magazine for the carpet cleaning and disaster restoration industries, and sister magazine to CM/Cleaning & Maintenance Management®.

Ogburn, who holds a bachelor’s degree in marketing from Siena College, has been an account executive and associate publisher in his three years at CM B2B Trade Group™.

Consumer Specialty Products adds JanSan execs to board
Several JanSan executives were recently elected to leadership positions on the board of the Washington-based Consumer Specialty Products Association.

William Morden of Reckitt Benckiser Inc. is board chairman and Kelly Semrau of S.C. Johnson & Co. is second vice-chairman.
Elected to the board were William J. Schalitz of Spartan Chemical Company, Richard Theiler of The Dial Corporation, James A. Westerhaus of Ecolab Inc., and Tammy Westerman of State Industrial Products Corp.

Valley Janitor Supply names sales manager
HAMILTON, OH — JanSan distributor Valley Janitor Supply of Hamilton, OH, has promoted Leon Fields to sales manager.
Fields has worked for Valley Janitor Supply for nine years, following a 20-year career in the food service industry.

Make that Sir James Dyson
James Dyson, whose bagless vacuum cleaner has become a rare British innovative and commercial success, was knighted recently as part of the annual New Year honors list.

Dyson said he hoped his knighthood would “encourage other engineers and people who have ideas and inventions to go out and commercialize them and make them international successes.”


House vote approves $7.25/hour minimum wage
The House of Representatives overwhelmingly approved raising the federal minimum wage from $5.15 an hour to $7.25 an hour over the next two years.

The vote was 315-116, with 82 Republicans joining every Democrat.

Senate passage is not assured, as some senators of both parties have indicated that they will not support a minimum wage increase without related business tax breaks.

A $2.10 raise in the minimum wage will affect many building service contractors and in-house service providers, including those who pay more than $7.25 an hour now.

Oreck moves out of hurricane zone
Citing increased insurance costs and a lack of skilled labor, vacuum manufacturer Oreck Corporation plans to move its manufacturing from Long Beach, MS, to Tennessee.

Company President Thomas Oreck said, “Conditions on the Gulf Coast had changed in ways that made doing business here very difficult.”

Oreck had reopened its Gulf Coast factory soon after Hurricane Katrina in August 2005, but now faces commercial insurance premiums that are expected to rise by about 270 percent this year.

Oreck will move its manufacturing and 500 related jobs to a new facility in Cookeville, TN, later this year.

McLane to expand, hire hundreds
Food and JanSan distributor McLane Company Inc. will be building a 400,000-square-foot distribution center in the Valley View Business Park outside Scranton, PA, and will be hiring more than 350 people.

McLane provides food and cleaning supplies to convenience stores, drug stores, fast-food restaurants, movie theaters and other establishments.

Hoover fined for defective vacuums
The U.S. Consumer Products Safety Commission (CPSC) fined vacuum manufacturer Hoover Company $750,000 for failing to promptly report to the CPSC about defective on-off switches that caused vacuum cleaners to catch fire.

The dangerous defect, on Hoover Self-Propelled Upright Vacuum Cleaners made between May 1998 and November 1999, caused 141 fires and one minor burn injury.

Hoover first learned of the problem in 1999, but did not report it to the CPSC until 2004; in 2005, Hoover recalled 650,000 of the defective vacuum cleaners.

Enviro-Solutions, Bullen to cooperate on marketing
Green cleaning products manufacturer Enviro-Solutions, based in Peterborough, Ontario, and The Bullen Companies of Folcroft, PA, a JanSan chemical maker, have agreed on a marketing alliance.

Under the marketing agreement, each firm will be a “master distributor” for each other’s products in the United States.

Aramark borrows billions to effect buyout
Food and JanSan services provider Aramark Corp., through a related firm, RMK Acquisition Corp., will borrow $6.53 billion to implement the leveraged buyout led by Aramark CEO Joseph Neubauer and approved by shareholders.

RMK Acquisition Corp. plans to borrow $3.66 billion in secured loans and $2.27 billion in unsecured notes, as well as setting up a $600 million revolving credit facility.

Once RMK receives the financing, it will be merged into Aramark, which will assume the debt obligations.
The cost of the buyout at $33.80 a share had been reported as $6.3 billion.

SouthEast LINK acquires Gem Chem
Atlanta-based JanSan distributor SouthEast LINK Inc. has acquired North Georgia distributor Gem Chem in a “friendly merger.”

Larry Ott and Al Hudson, co-owners of Gem Chem and longtime JanSan veterans, have joined the SouthEast LINK sales team.

UNICCO new affiliate of SMI consortium
Building service contractor UNICCO Service Company of Newton, MA, has become an affiliate member of Service Management International (SMI).

The SMI consortium gives member BSCs such as UNICCO the flexibility to structure facilities services contracts on a much wider, international scale.
UNICCO also will gain exclusive rights to provide facility services to SMI''s North American customers.

JanSan firms honored as Top 50 franchises
Several JanSan, carpet cleaning and restoration franchises were among the Top 50 franchises in the country, as measured by Entrepreneur magazine in its 2007 Franchise 500.

Franchise companies were compared based on financial strength and stability, growth rate and size of the system, number of years in business and length of time franchising, startup costs, litigation, percentage of terminations and whether the company provides financing.

Cleaning franchises and their rankings in the Top 50 are as follows:
  • Jani-King, 13th
  • Jan-Pro Franchising International, 23rd
  • Servpro Industries, 25th
  • Chem-Dry Carpet, Drapery and Upholstery Cleaning, 27th
  • Bonus Building Care, 31st
  • ServiceMaster Clean, 34th
  • CleanNet USA, 36th
  • The Maids Home Service, 38th
  • Heaven''s Best Carpet and Upholstery Cleaning, 40th
  • Merry Maids, 46th

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