Factory-direct communication with our customers is especially appreciated by those who operate their business in remote locations or where dependable local service is not available.

10-Year Warranty*

Every new Butler System is warrantied for 10 years at no additional cost. There are no limitations on machine hours, and the warranty may be transferred at no charge for up to one year.

Warranty coverage includes all major components: The Shaft Drive System, High Pressure Pump, Detergent Injection System, Vacuum/Blower, Heat Exchanger, Fresh Water Holding Tank, Recovery Tank, Vacuum Hose Reel, Pressure-Hose Reel, Holders, Racks, Trays and Shelving, etc.

Buy-Back Guarantee

The Butler Corporation’s Buy-Back Guarantee is an exclusive program that provides customers the opportunity to trade-in or cash-in their 15-year-old or newer Butler System/van at any time during ownership, including while financed or leased.

Customers can choose this easy, convenient alternative to purchase a new or pre-owned Butler System or to receive all the buy-back value in cash.

The trade-in/cash-in value for a used Butler System/van could be as much as 75 percent (or more) of the original purchase price.

Vehicle Selection and Convenience

Convenience, availability, competitive pricing, and ease of financing are why most customers choose from our extensive vehicle selection.

We inventory as many as a hundred or more new and pre-owned vehicles at any one time, including regular and extended length vans, cube vans, and trucks with a variety of optional equipment.

Select vehicles are under warranty by the manufacturer for up to five years/100,000 miles. Pre-owned vehicles are provided with the remaining balance of the vehicle manufacturers’ warranty or by The Butler Corporation’s exclusive pre-owned vehicle warranty.

*Warranty information available upon request. Exclusions, limitations, and disclaimers apply. Made in the USA.

Contact: 800-535-2025   |  

View all the companies featured in this issue’s Truckmount Profiles.

The post May-June 2021 Truckmount Profiles: The Butler Corporation appeared first on Cleanfax.

Legend Brands’ Truckmount Selector Tool and Selector Videos make it easier for you to choose which truckmount is best for your business—visit TMselector.legendbrandscleaning.com to try it out. Just check off your cleaning setting, type of cleaning, budget, and more, and you’ll see which truckmounts are most recommended for your needs. Videos that clearly show the benefits of each model can also aid you in this important decision.

Here’s How Legend Brands Truckmounts Benefit Your Business

• Nanotech Cerakote® coating lowers exhaust components’ heat levels by 30% or more. This results in lower internal van temperatures and helps to ensure longer life for your truckmount.
• Exclusive, patented, heat-exchange designs for fast warm-up and consistent heat.
• Industry-leading limited warranties: 2–5 years for slide-in truckmounts; 5 years for the Everest 870HP!

Truckmount Line-Up

Everest 870HP: Serious power for serious pros. The perfect combination of industrial-grade components, proven engineering, and unrivaled performance. It provides multi-wand/tool cleaning with up to 2,500 psi heated water, 4-setting thermologic heat control, and advanced chemical-injection system—and a 5-year warranty!

Apex 570: High heat, long life, fast dry times. In addition to its highly reliable, liquid-cooled Kubota cast iron engine, the Apex 570 employs the Gardner Denver HF408 blower—its tri-lobe helical design is quieter and produces less vibration while it maximizes extraction rates and accelerates drying time.

Peak 500: Value-priced, liquid-cooled reliability. Economical powerhouse with quick warm up and plenty of heat, even for a 6-flow wand. The 31-hp, liquid-cooled Kawasaki engine is CARB-compliant in all 50 states and sips fuel at only 1 gallon per hour.

370SS: Cleaners’ #1 favorite. Thousands of cleaners
have proven that the 370 is the best all-around fit for residential and light commercial cleaning and extraction. Its space-saving footprint and the perfect balance of power and low operating costs make it the right truckmount choice for most cleaning and restoration companies.

Legend GT: Legendary reliability, compact and economical. Powered by the highly rated, 23-hp Kohler Command air-cooled engine, the Legend GT has the horsepower and torque to power through challenging jobs. Produces high vacuum and dirt-busting solution temps of up to 220 degrees Fahrenheit!

Rage: Value-priced business builder. This carpet, upholstery, and tile and grout cleaning machine boasts an 18-hp V-Twin Kohler Commander engine.

Contact: 800-932-3030 | |

View all the companies featured in this issue’s Truckmount Profiles.

The post May-June 2021 Truckmount Profiles: Legend Brands appeared first on Cleanfax.

For more than 15 years, Aero Tech has been providing technical support and knowledge to ensure we deliver unmatched cleaning performance with the XT from Aero Tech. We engineer greatness into every XT that leaves our manufacturing facility.

Creative engineering blends well with quality construction and continued innovation to create the most powerful cleaning system available today. XT technology just keeps getting better, giving you the power and control needed to save time, conserve fuel and increase your profits.

The XT’s simple design and ease of maintenance make the unit versatile. Whether for cleaning, restoration, large jobs or small, this system is ready and reliable day in and day out.

With heat-as-you-drive technology, true dual-wand capability, deeper vacuum, customized storage and billboard-sized advertising wherever you go, the Aero Tech XT makes dollars and sense.

In addition to the XT’s power, its versatility is a real game changer; wherever your next job takes you, whether a residential or commercial carpet, tile and/or both, the XT offers extreme heat and true dual-wand capabilities.

Additionally, the dual pressure regulators allow for cleaning at two different pressures simultaneously. Have a third guy on a crew? A third connection can be utilized for pre-spray application.

Aero Tech’s direct approach to the market removes the middle man and provides a level of customer service and response needed for today’s busy professionals.

New Features:

• 5 dB noise reduction
• All new 4-stage heating system produces more heat for high-flow, dual-wand cleaning.

XT’s Standard Equipment:

• Hydraulic activated transmission PTO,
• New Helical Tri-Lobe/Sutorbuilt blower, 660 ICFM @ 16” HG and maximum cleaning speed (engine rpm’s) of 1,550 RPM,
• Water pump, 6 gpm, 1,600 psi max,
• Last step chemical injection system,
• 7 gallon chemical tank,
• 210 gallon fresh water tank: Stainless steel, round design for added strength and durability (heats as you drive),
• New 155 gallon waste tank: Stainless steel, round design for added strength and durability,
• Electric Vacuum Hose Reel: Stainless steel (400-foot capacity of 2-inch hose), furnished with 200 feet of hose,
• Solution hose reel: Stainless steel, (300-foot capacity of 1/4-inch hose), quantity of two furnished, each with 100 feet of hose,
• Lint traps: Stainless steel, two each,
• FRP van body, aluminum flooring,
• Box fluorescent lighting, three each,
• Dual wand hookup, 2.5-inch inlet connection,
• Control panel: Stainless steel, industrial switches, industrial gauges,
• Digital temperature control.

Contact: 866-390-2376 |

View all the companies featured in this issue’s Truckmount Profiles.

The post May-June 2021 Truckmount Profiles: Aero Tech appeared first on Cleanfax.

While most of our annual Cleanfax Restoration Benchmarking Survey consists of multiple-choice questions, we like to leave a few open for comment so we can hear from our readers in their own words. One of those asks the biggest challenges you face. I always like to share them because I think, while seeing that others in the industry have the same problems as you might not actually solve your problems, it always helps to know you’re not alone. You know the expression: “Misery loves company.”

These are the problems reported most frequently as the biggest challenges of doing business in the industry.

1 | Staffing

You knew it would be number one, but it was number one by miles. The majority (about 80%) of survey takers named it one of their two biggest problems.

“Staffing” is a general term. Some reported the main problem was finding qualified employees; others finding ones that worked hard; others finding workers who would stick around.

2| Competition

There was a higher-than-usual number of reports of trouble with untrained/low-ball competitors joining the market, perhaps due to an influx of people in the biohazard sector during the pandemic. Either way, it’s never a report the industry wants to hear.

There were also the usual pains associated with being a small operation trying to compete with franchise systems, as well as general struggles with winning out against competitors.

3 | Insurance companies

The ever-present issues between insurance and restoration topped many top twos. Challenges with preferred vendor programs seem on the rise, and grievances with adjusters lacking needed knowledge continue to grow.

Several people also reported struggling with changing requirements and rules from insurance companies, in addition to the age-old problems with timely and correct payment.

4 | TPAs

Third-party administrators are still a challenge, but the number of complaints was lower than usual. Perhaps this was due to efforts to mediate disagreements by many in the industry, including those of the RIA’s Advocacy and Government Affairs committee.

5 | The pandemic

While many in the industry have benefited financially during the pandemic, scores of others are struggling. The shutdowns, customer fears of allowing techs in homes and offices, and the damage to the economy have all contributed to difficult times across the industry.

Honorable mentions

There were many challenges reported only a few times, but they are still important to point out. Here are a few of the more common ones: trouble finding new customers/growing the business; rising operating expenses; cash flow trouble; pricing models not being updated to match changing costs; keeping up with marketing; succession planning; and federal regulations.

It’s been a difficult time, no doubt, but hopefully reading these and seeing your company isn’t alone in the challenges it faces at least makes it feel less lonely as you face them. Talk to others in online industry forums, chat at industry events (which are making their way back!), and learn from others how they deal with these problems.

There’s a whole network of your peers ready to share their hard-won advice with you.

Amanda Hosey is the managing editor of Cleanfax. She has worked as an editor and writer for more than six years, including four years with Cleanfax. Reach her at amandah@issa.com.

The post Today’s Top 5 Restoration Issues appeared first on Cleanfax.

A construction company had done work in this rental apartment. Obviously, they should have put something on the floor but didn’t, and this is how they left things. We used Simple Green Floor Cleaner with a rotary machine and floor scrubber to get the floors looking like new. I think the results speak for themselves, and the customer was thrilled with the results!

For an opportunity to win a gift card worth $250, send your images and a brief 100-word description on how you obtained your results to Amanda Hosey, managing editor, at amandah@issa.com, or submit via Facebook Messenger at . Contest rules available by request.

[infobox title=’DID YOU KNOW’][/infobox]

Cupping in water-damaged wood floors can often be corrected with patience in the drying process by allowing the moisture content time to equalize. Demolition doesn’t always have to be the answer.

Read more at cleanfax.com/hardwood-patience.

The post Wood Floor Restoration [Photo Contest] appeared first on Cleanfax.

Just accept it—the COVID-19 pandemic has changed the world forever. I am part of the baby boomer generation, and I have worked hard this past year to embrace the fact that many of the ideas I held about the way business should be conducted and what makes an effective leader have been thrown out the door!

Prior to the pandemic, I would have terminated a sales rep who spent more than two hours a week in the office during prime selling hours. It was all about in-person face time. These days, sales reps should spend at least an hour or two in the office each day making phone calls or holding video conferences with those clients who are not working in their office anymore.

Boomers and millennials

I believe that the workplace culture in a company is defined by the leader’s generational traits and characteristics. As of 2021, baby boomers represent those ages 58-75. They are referred to as the “me” generation and for good reason. They place great value on being recognized by their peers and subordinates for their expertise and knowledge. They thrive on holding positions of power and authority that give them perks and recognition. Baby boomers relish long work weeks and define themselves by their professional accomplishments. Since they had to sacrifice to get to where they are in their career, this workaholic generation believes that the younger generations should also have to pay their dues.

Millennials embody the age group 25-40 and make up the largest generation, over 35%, in the American workforce today. They are also the most tech savvy. This group was born with a cell phone in their hand and learned how to read, write, and do arithmetic on a laptop as early as the first grade. They are expected to change jobs up to 20 times in their career, and one of the key determinations they look for in a company is the culture. They want a company that demonstrates its care for the overall wellbeing of their employees and provides work-life balance through flexible work hours and generous paid time off.

Gallup conducted a poll at the end of 2020 and found that over 50% of millennials work remotely compared to less than 20% of boomers. When you consider that over 50% of the Fortune 500 CEOs are baby boomers, there should be no surprise as to why they are struggling to lead in this COVID era. Boomers are wrestling with the work-from-home model since they believe “face time” at the office is crucial to producing quality work. If they are not able to see their employees, then how do they know their employees are actually working?

The typical boomer CEO

The business news channels have been buzzing the past few weeks about David Solomon (59), CEO of Goldman Sachs, and his statement that he desired to see the firm’s offices fill up again. “I do think for a business like ours which is an innovative, collaborative apprenticeship culture, this is not ideal for us. And it’s not a new normal [to be working from home]. It’s an aberration that we’re going to correct as quickly as possible.” Since the beginning of the year, four key Goldman Sachs executives have left the firm. It has been stated in the business papers that the departures were partially caused by Mr. Solomon’s approach to turning the company back into “a more top-down, hierarchical culture in which the institution is bigger than its people.”

The Wall Street Journal recently interviewed the top executives of 25 major U.S. corporations to get their temperature on when they think we will come back to work. It was interesting that those executives who are baby boomers said they wanted people back in the office as soon as possible. Yet the younger CEOs said it could be another year or more and that it would most likely be a hybrid office environment when people did return.

Embracing a changing culture

Yes, I am a baby boomer, but I must agree with the younger generations. I just don’t see us returning to the way things used to be once the pandemic is over. As hard as this might be for some leaders to accept, I’m of the opinion that being prepared for a new normal can only help, not hurt, our business. To get started, here are three leadership characteristics that are worth embracing.

Characteristic 1: Be flexible, not tone deaf

To be an effective leader in the new pandemic era, ask for input from your teams. Then listen to that input and support their ideas. Author and speaker Simon Sinek states, “The leaders who get the most out of their people are the leaders who care most about their people.” Stop digging in your heels and drawing lines in the sand because of your generational thinking. Instead, empower your people to perform their jobs without everyone needing to be present together in the office. Henry Ford said, “If there is any one secret of success, it lies in the ability to get the other person’s point of view and see things from that person’s angle as well as from your own.”

Characteristic 2: Build trust by showing empathy

In his book, The Infinite Game, Simon Sinek presents the idea that businesses play either a finite game with winners and losers or an infinite game where company leadership transforms a group of stressed and overworked employees into a cohesive team of innovative risk takers. Sinek says that for a company to play the infinite game they must build trusting teams. An infinite company hires the best people and trusts each one of them to do their job.

An effective leader in the new normal knows that trust is built from the top down, always doing what is best for the employees and with the success of the company in mind. Teams that have thrived through the pandemic are those managed by leaders who have put their people first and recognized that trust is ultimately about building relationships by showing empathy and vulnerability. The empathetic leader looks at every interaction as an opportunity to connect with their employees. This new leader is authentic, humble, and operates with grace under pressure. They are purposeful in building and managing trust.

Characteristic 3: Your purpose is to create an employee-centric culture

As Nick Craig stated in his book, Leading from Purpose, “Whether in business or in our personal lives, a strong sense of purpose offers firm footing on shifting ground.” The leaders who realized early on that the pandemic was going to throw a new curve ball every week understood that their best defense was to over communicate, be transparent, and create a sense of community. They knew that employees needed to feel safe about the workplace and about their jobs. They needed to have a place where they could express their feelings and emotions without being judged. The great leaders of the pandemic will make it their purpose to continue to develop a culture that encourages employees to communicate with the same transparency as its leaders, without worry of being judged negatively. This culture creates trusting teams where people are not afraid to ask for help or admit they made a mistake.

Recognize that we all desire to work for a company that genuinely cares about us and supports our personal development. As the great leader of a world-class company, make it your purpose to continue what you started and develop your employees by focusing on their emotional balance, intellectual growth, and physical health.

Purpose and beliefs

I say to my fellow boomers, learn from your past but stop living in the past. Open up your mind to learning new ways of running a business. The key to leadership is leading ON purpose with a sound set of beliefs on which you base all your policies and actions.

John Monroe is a Business Development Advisor for Violand Management Associates (VMA), a highly-respected consulting company in the restoration and cleaning industries. Monroe is a leading expert in marketing, sales and sales management for the restoration and cleaning industries with over 30 years of experience in those fields. Through Violand, Monroe works with companies to develop their people and their profits. To reach him, visit  or call 800-360-3513.

The post Three Leadership Characteristics Baby Boomers Need to Embrace appeared first on Cleanfax.

Truckmounts are the most essential piece of equipment for most in the carpet cleaning industry. Yet, despite the high financial investment they require, regular truckmount maintenance often gets lost in the shuffle of a busy schedule. But daily checkups, top-offs, and cleaning—in addition to less frequent maintenance—are key to extending the life of this important technology.

Dennis Bruders, member of the Legend Brands technical support team, likens the need to for daily truckmount maintenance to that of other industries with major equipment: “Heavy equipment operators and commercial truck drivers start every day by visually inspecting their equipment…Just like a carpet cleaner, [they] do not make money when the equipment is not running.”

Preventative maintenance is key to extending the life of any truckmount and avoiding costly downtime. Modern truckmounts are sophisticated pieces of equipment that, if cared for properly, will bring in money for a carpet cleaning company for years and years.

“Nothing stays new forever; however, maintained equipment stays running like new longer,” says Cleanco Truckmounts Sales Representative Miranda Himmelman. “Due diligence pays off in the long run.”

And while, as Bruders points out, we can’t rank truckmount maintenance tasks by importance—since they are all essential to the overall wellbeing of the equipment—what follows is a look at the needed daily truckmount maintenance that is most often neglected—and which will most quickly land your truckmount in a time out if overlooked.

1 | Checking oil

The experts agree that fluid checks and fill-ups are one of, if not the, most important components of truckmount health and longevity. Oils cut down on friction, protect parts from the often-extreme temperatures, and help prevent wear.

“Without power, the rest of your machine cannot work, so our first recommendation for truckmount maintenance is to do daily engine oil checks and periodic engine and oil filter changes,” say Louie Patayon and Dennis Russell of the HydraMaster Technical Support Team. “Be sure that the oil dipstick is at the full mark every day.”

Daily oil checking and refilling should be done at the end of the workday, as well as at the start of the workday before going to a single job. If possible, especially if there is a suspected leak that needs repairing, oil checks during the day are recommended.

Bruders points to Legend Brands’ sample Daily Truckmount Maintenance schedule (see bottom of page) for fluid-check guidance. Each day engine oil, engine coolant, vacuum pump oil, and water pump oil should all be checked and refilled to the necessary levels, and lubrication should be added to the vacuum pump.

Daily oil checks may feel unnecessary, especially if oil levels are fairly consistent, and skipping a day might seem acceptable. But one day often turns into many days, which can ultimately cost a company in downtime and repairs.

“The engine, blower, and pump are the main components that make the truckmount operate and are also the most expensive components to replace, so making sure that the oil is at the correct level daily is very important to keep these components operating smoothly daily,” Patayon and Russell stress. “For example, the smaller air-cooled engine’s oil capacity is only 1 quart, so if you are at half a quart on your dipstick, you are only cooling the engine at 50% efficiency… This can result in overheating the engine and damaging parts to the point of having to replace an expensive component.”

Daily oil checks are not only about maintaining the appropriate levels, but also about catching problems early. Himmelman explains, “Low oil is a sign of a leak, and this is an issue that can be caught early and fixed with daily oil checks.”

Jeremy Wilson, director of truckmount sales for AeroTech Manufacturing Inc., agrees about the importance of daily oil checks for catching larger problems. In addition to checking the fluid levels, he says it is important to also “pay close attention to the color, smell, and viscosity of oil.”

Wilson explains that, in combustible engines, motor oil is generally light colored and transparent, so blackened oil means it is time to change the oil and filter. If it smells like gasoline, the engine, fuel system, or ignition system needs servicing. If the oil appears light brown and milky, it is a sign coolant is leaking into the crankcase. Similarly, if the oil in water pumps or APO pumps with diaphragms appears milky, it is a sign water is entering the crankcase because the seals or diaphragms are worn.

Beyond the daily oil checks, it is, of course, essential to the longevity of a truckmount to change the engine, pump, and blower oil and filter regularly. How often this occurs depends on the engine type, and companies must be committed to following the appropriate schedule per their truckmount’s manufacturer.

2 | Cleaning up

Keeping your truckmount and vehicle clean is a task easily overlooked. How much can unit cleanliness really affect the functioning of the equipment? More than you might think.

Himmelman suggests using the time wiping things down and generally tidying up during the day to look for indications of larger problems. She says, “Seeing something like this at an early stage can be less costly and result in no downtime versus a costly, lengthy repair.”

Some things she suggests looking out for are pooling water, leaked oil, and wearing parts, among other things. Pools of water are especially important to keep an eye out for during clean-up time. Wilson says water leaks are the most-overlooked and most left-unrepaired issue his company sees, and those leaks generally exacerbate rusting and corrosion, leading to extensive, costly repairs that cause downtime and lost revenue.

“The water leaks are generally very obvious and in your face. They occur on the high-pressure water lines and fittings. It’s quite obvious because water will be dripping onto the van floor and puddling up under the vehicle,” Wilson explains. “I don’t think people realize the long-term effect the water leak will have.”

Beyond more general tidying, there are other regular, specific cleaning tasks that are important to the overall health and longevity of your truckmount.

Patayon and Russell stress the importance of daily maintenance on the recovery tank and recommend cleaning out the waste filter basket after every job. They explain, “Keeping your filter clean will allow for maximum airflow and result in ultimate vacuum for extraction.”

Other daily cleaning necessities include inspecting and cleaning out the pre-filter strainer basket, flushing vacuum hoses with clean water, and removing debris from the waste pump’s outlet. There are, of course, other less regular cleaning requirements to keep in mind. One especially important one is flushing the coil, which should be done every three months, according to Himmelman, who considers this one of the most overlooked and important maintenance tasks.

“Water deposits can build up on the heated components of your water system. Over time, even non-heated components will start to collect water or chemical deposits and start to close the gap in the hoses and tubes,” she explains. Improper water flow to the pump can damage pump seals, cause issues with cooling, and result in lower water temperatures and, therefore, a more difficult and inefficient cleaning process.

3 | Blower lubricating

Keeping the vacuum blower lubricated is a quick and simple task. It is also one that, when overlooked, can really hurt a company’s finances.

Himmelman considers blower lubrication the most overlooked aspect of truckmount maintenance. She says this easy daily task consists of simply spraying lubricant into the blower to disperse the water/chemical that builds up on the blower’s lobes.

“Lubricating prevents the blower from locking up and a costly repair to fix this,” Patayon and Russell explain

That “locking up” is a result of the shaft bearings seizing due to lack of lubricant, according to Himmelman. “This can cause damage to many other components of the truckmount and increase the cost of repairs,” she says. “Proper lubing of the PTO shaft will ensure a long life for your unit.”

Some manufacturers recommend lubricating the blower at the end of the workday, while others recommend doing so after each job. It is, therefore, important to check with your truckmount manual for recommendations specific to your equipment.

Himmelman reiterates, “Blower lubrication is something simple and easy to do that can save a lot of money and downtime.”

Bettering truckmount maintenance

All of a company’s technicians should be trained on the maintenance expected of them and held accountable it.

“Companies that require technicians to fill out a form and follow a checklist enjoy the benefits of higher profits due to less downtime,” Bruders explains.

Manufacturer-recommended schedules with information on tasks that should be done each day, as well as less frequently, are included in virtually all truckmount manuals. Use your manufacturer-specific schedule to create (and make sure everyone follows!) your company’s maintenance schedule. Some manufacturers also offer maintenance apps, which can aid in the schedule development and adherence process.

“Breaking the maintenance items up into hourly, daily, weekly, and monthly checklists will help ensure each item is getting done and is a great way to log the maintenance. For multi-truck fleets, I recommend creating a ‘service work at a glance’ maintenance log for each truck on one sheet if possible,” Wilson advises. “This will help bring full visibility of the required maintenance to one sheet, ensuring items and truckmounts aren’t getting skipped.”

Providing employees with visual reminders and ways to track maintenance ensures necessary upkeep is done and allows a company to hold accountable those who neglect it.

“We have always found that the more you make these recommended tasks visible, the more likely technicians are to remember to do them,” Patayon and Russell report. They also recommend taking advantage of any videos on maintenance offered by your truckmount manufacturer for training technicians. “Seeing the necessary actions done is a great way to train new technicians and even refresh your own knowledge if it has been a while.”

Ultimately, upkeep on truckmounts should not be considered separate or additional work for anyone working in the field. It is an essential component of the work and should be considered part of the job.

As Bruders explains, “Equipment maintenance should not be considered a ‘chore.’ Keeping the outside of the vehicle clean, the inside free of debris, and following maintenance schedules is just simply a job requirement for a carpet cleaner.”

[infobox title=’Recovery Tank Maintenance Tips from Louie Patayon and Dennis Russel’]

1. Check and clean your blower flat filter and be sure the filter is properly seated in place. This filter protects debris from entering the blower.
2. Observe the condition of the recovery tank lid gasket and repair if necessary. The lid gasket provides an air-tight vacuum seal. Any tears in your lid gasket can cause a vacuum leak and result in poor vacuum performance. That can cause complaints from your customers about the carpet taking too long to dry.
3. Observe and test the recovery high-level tank shut-off float. To do that, turn the machine on and lift the float switch manually to verify that it shuts the machine off. The high level shut-off float shuts the vacuum off to prevent wastewater from sucking through the blower.
4. Leave the recovery tank lid open when not using the machine. This allows for airflow inside the tank to prevent moisture and condensation wicking into your blower’s cast iron lobes.

[/infobox]

Thinking long term

Truckmounts are a major investment, and just like any other major investment, upkeep is essential to lengthening its lifespan and getting the most out of the money you put into it. A little time put into preventative maintenance every day will save your company a lot of money down the road. Patayon and Russell remind us “maintenance is cheap; repairs are expensive.”

Keeping all employees knowledgeable of the maintenance required of them and why it is important is key to ensuring the work gets done. “Owners should emphasize to employees that this valuable equipment pays their salary, so they should maintain it as if their livelihood depends on it—because it does!” recommends Bruders.

It is important to remember that long-term, regular maintenance affects the company in multiple financial ways:

• Not following the manufacturer-recommended maintenance schedule can void your warranty coverage, meaning you could be on the hook for all repairs resulting from the neglect.
• In addition to money spent on repairs resulting in maintenance neglect, there is also the lost income of losing equipment during repairs, which could be lengthy, depending on the damage.
• Proper upkeep on your equipment will increase the resale value, should you choose to sell your truckmount, according to Wilson.

“Today’s modern truckmount is a highly engineered and refined piece of equipment that if serviced and maintained properly will give you thousands of hours and years of trouble-free operation,” Bruders says.

Know your truckmount manufacturer’s recommended maintenance schedule and make sure everyone is sticking to it. You can find the recommendations online at the manufacturer’s website or contact the manufacturer if the one included in the manual is misplaced. By adhering to the appropriate maintenance schedule for your truckmount, you can extend the life of this sophisticated equipment and make the most of your investment.

Amanda Hosey is the managing editor of Cleanfax. She has worked as an editor and writer for more than 10 years, including six years with Cleanfax. Reach her at amandah@issa.com.

The post 3 Ways to Extend the Life of Your Truckmount appeared first on Cleanfax.

Today’s restoration technicians need to use several as they tackle water losses, from simple to complex in nature. It is important that there is a complete understanding of the drying technology used and its capabilities or limitations.

Let us start by looking at the purpose of a few resources and follow up with some best practices. Most people in the industry have a moisture sensor, various moisture meters, a thermo-hygrometer, and a thermal imaging camera in their toolbox. Each has a necessary function.

Moisture sensors

The moisture sensor is used to simply provide a “yes” or “no” answer to the question, “Is this material wet?” It cannot read quantity, does not give a scale, and is the simplest of instruments we use. Just because it beeps faster or has a light that flashes quicker does not necessarily mean there is more moisture present. Generally, we recognize this as a tool for reading moisture in carpet and pad.

Moisture meters

Moisture meters take some of the basics of the moisture sensor and add the ability to measure the amount of moisture in a material. Two reading options that are common are the Wood Moisture Equivalent (WME) reading, which uses invasive or penetrating pins, and the Relative (REL) reading, which uses non-invasive radio frequencies.

WME

Wood Moisture Equivalent is a reading of a material using wood-calibrated moisture meters on non-wood materials. This should not be read as the moisture content of the material. This reading is taken by inserting the pins of the meter into the surface of the material and documenting the reading. Typically, the scale is 0-100, listed as a percentage WME.

REL

Relative readings are taken by properly holding the meter against the surface of the wet material and documenting a reading from the relative scale of 1-100, 0-300, 0-999, or others. This number should not be converted to percent moisture content and should remain as read. For instance, a reading of 78 on a scale of 0-100 does not become 78% and a reading of 656 on a scale of 0-999 does not become 65.6%.

It is important to know that over the past few years, new non-invasive meters calibrated for wood have been introduced to our industry. Upon calibrating the dial for the type of wood, the meter will then read the percent moisture content for the wood type selected. This number can then be documented as percent moisture content.

A final word on moisture meters involves dry standard and drying goals. It is best, whenever possible, to obtain your dry standard on unaffected like materials in the same building. Do not use “canned” dry standards for materials. Also use the same meters in the same locations each visit. This will eliminate the variability of readings due to differences between meters, even if they are from the same manufacturer.

Thermo-hygrometers

Thermo-hygrometers measure air temperature and relative humidity. From these values, a computer chip in the meter calculates other psychrometric readings like grains per pound (GPP), vapor pressure, and dew point. Typical readings within a structure are affected air, unaffected air, dehumidifier output, the HVAC system, and outdoor air. Each meter has limits on the upper and lower temperatures and relative humidity that it will read, so check the specifications in the owner’s manual.

Thermal imaging cameras

Thermal imaging cameras continue to be more readily available at a lower investment than even five years ago. These cameras detect thousands of temperature points across a surface and provide the user a picture of those temperatures.

It is important to note that the biggest misconception new users have of thermal imaging is they tell what is wet. That is incorrect! Remember they tell us the temperature of the materials, and those that show cooler could indicate evaporation is present and the material is wet.

The best plan for restorers is to obtain knowledge of psychrometrics from the and IICRC certification classes. This will assist restorers in better understanding the relationship between temperature and evaporation. Training on thermal imaging also is a good idea, allowing technicians to expand their ability to properly use this tool.

Better drying with more knowledge

The final step for using all these tools on losses is to develop best practices. Here are a few items to consider when using the technology available:

• Read the manual to understand:
  • The high- and low-temperature and humidity ranges
  • The depth pins or radio frequencies are expected to penetrate material
  • The readings given and what they mean (degrees, REL, WME, etc.)
  • The proper use to obtain accurate readings.
• Train your technicians on proper use when new, as well as annually, at a minimum.
• Understand the opportunities for false readings on each technology type.
• Understand the limitations (depth into material, environment, etc.).
• Change the batteries often or have spare batteries available always.

Understanding the technology in our industry allows the restorer to provide a summary of drying the loss. This will not only provide for a happy customer, but it also will provide protection from liability later and the satisfaction of a job done well.

Dan Mesenburg has been in the cleaning and restoration industry for over 22 years. He is a past IICRC board director, IICRC approved instructor, and WRT technical advisory committee chair. He and his wife own a ServiceMaster Restore franchise, and he serves as the regional training manager for a ServiceMaster distributor in the Midwest.

The post Do You Read Me Now: Correct Drying Technology Usage appeared first on Cleanfax.

In the March-April issue of Cleanfax, I laid out an overview of best practices for the business-buying process. In this article, find a deep dive into drafting the letter of intent (LOI) with an example letter and a point-by-point examination of its components. In upcoming parts of this series, you’ll find information on the due diligence process as well as general tips for a better overall experience.

Read part one.

A former colleague was fond of saying, “Be careful what you wish for because you just might get it.” An acquisition done under the wrong terms can make for a poor investment, even if the target company is fundamentally solid. Much of a deal’s risk is determined early in the process—when the buyer and seller initially settle on price and terms.

Below is an example LOI, which outlines the key terms for a transaction. It was drafted by the buyer, as is customary procedure.

[infobox title=’LETTER OF INTENT’]

John I. Candothis

President, Newco

1 Park Ave.

New York, NY 10016

June 16, 2021

Jane Beachbound

Owner, Target Company

1 California St.

San Francisco, CA 94111

cc: Bob Middleman

Owner, Middleman Business Broker Services

Dear Jane,

Newco, a corporate entity to be formed by John I. Candothis (the “Buyer”), is interested in acquiring the assets of Target Company (“Target”) from Jane Beachbound (the “Seller”). The following letter of intent (the “LOI”) is a non-binding offer that is to remain confidential between Target and Newco and each of its representatives. This LOI is subject to a number of conditions including, but not limited to, full legal and business due diligence, financing, and no material changes in the business or market conditions.

Terms are as follows:

1. Accompanying this LOI, the Buyer shall submit ten thousand dollars ($10,000) of good-faith money to be deposited in a dedicated escrow account (the “Buyer Escrow”) held by Middleman Business Broker Services (the “Business Broker”). The Buyer Escrow shall be immediately refundable at the Buyer’s discretion and upon termination of this LOI.
2. The Buyer shall make a cash payment to the Seller of an additional one hundred ninety thousand dollars ($190,000) (the “Cash Down Payment”) upon closing.
3. The Buyer shall issue to the Seller a note of one hundred thousand dollars ($100,000) (the “Seller’s Note”) to be due three (3) years after closing. The Seller’s Note shall bear an annual interest rate of five percent (5%) with interest paid quarterly. Principal shall be repaid quarterly in equal installments, although no principal installment shall be paid until the end of the sixth (6th) month after closing, at which point, payment for two (2) quarters shall be made. There shall be no penalty for prepayment, and the Seller’s Note shall be senior in preference to all other capital in Newco except a debt facility of up to one hundred thousand dollars ($100,000).
4. At the discretion of the Buyer, existing management shall have the ability to exchange a portion of the Seller’s Note for equity in Newco prior to closing on terms to be determined.
5. Newco shall acquire all assets of Target except any cash balances and accounts receivables existing upon closing.
6. An amount of twenty thousand dollars ($20,000) of the Cash Down Payment will be held in escrow (the “Seller Escrow”) for ninety (90) days after closing in order to cover any adjustments, representations, or warranties. Any decreases in Target’s inventory or fixed assets shall reduce the Seller’s portion of the Seller Escrow on a dollar-for-dollar basis.
7. The Buyer expects the Seller to remain and cooperate for a period of up to twelve (12) weeks to transition Target to the Buyer. A forty (40) hour per week commitment is expected. Beyond this period, the Buyer shall consider an employment agreement with the Seller to remain with Newco after closing under terms of any such arrangement to be determined.
8. The Seller shall enter into a standard multi-year, non-compete confidentiality agreement.

The Buyer is requesting an exclusivity period of forty-five (45) days commencing upon execution of this LOI, during which time Target shall not solicit, encourage nor engage in any discussions for financing other than that which is in the ordinary course of business. This offer is valid for a two (2) week period from the date above, at which point it shall expire.

Within ninety (90) days of the execution of this LOI and subject to the Buyer’s satisfactory completion of due diligence, the Buyer and the Seller shall enter into a definitive purchase and sale agreement.

I am extremely bullish about the prospects of the business and look forward to working together to continue to build significant value in Target. I await your response.

Sincerely,

John I. Candothis

Newco

[/infobox]

Exploring the letter of intent

Let’s now walk through this LOI to see the best practices for building such a letter. The opening paragraph spells out the parties involved (Jane [seller], John [buyer], and Bob [broker]) and that this will be an asset purchase. The decision between a stock acquisition and an asset sale is beyond this article’s scope, and a lawyer should help with this decision. Clearly stated are the conditions that this LOI is not to be shown to others and that the buyer can back out of this transaction for many reasons with no repercussions.

Terms 1-3

These points state that Newco, the company to be formed to make the acquisition, is proposing to acquire Target for a total of $300,000, of which, $200,000 will be paid in cash upon closing. The balance will be paid over a three-year period.

It is common for the seller (and business broker if there is one) to request a small amount of money upon execution of the LOI to show the buyer’s seriousness. Make sure this money is fully refundable and deposited into a dedicated escrow account not accessible by the holder for other purposes.

Note that Term 1 is only included because the buyer was told before submitting this LOI that it was a requirement.

Determining the value of a business is clearly one of the most important exercises a buyer performs. As a general rule, companies under $10 million in value are sold for three to five times the previous year’s cash flow. However, there is a broad range, and the exact price should be adjusted by a number of factors including change in revenue over the past several years: A business growing greater than 20% per year would warrant a higher multiple than one that is experiencing declining sales, high customer concentration, and significant ongoing capital expenditures.

Term 3

The Seller’s Note warrants further discussion. Here are some important points to keep in mind:

• John set the payback schedule of the Note only after carefully projecting the anticipated future financial performance of Target. The cash flow after all expenses, taxes, interest payments, and capital expenditures are expected to be sufficient to meet the requirements of this Seller Note.
• A grace period is helpful because once John takes over the business, there inevitably will be unforeseen road bumps during the transition. Examples range from the loss of a major customer to the need to buy new software, which both lower the amount of available cash. In reality, if an occasional payment is late or the initial payments must be deferred for a short period, most sellers are accommodating. Remember that Jane wants the business to succeed so that her Seller’s Note will ultimately be repaid.
• Prepayment without penalty keeps open the buyer’s options in the event that, at some point during the repayment period, the seller finds an alternative, better financing source that can replace the Seller’s Note. This can take the form of an increased or less expensive facility obtained elsewhere, among other things.
• The “senior in preference” clause is intended to create a balance. On one hand, the seller has the concern that she may not be repaid if the business does not perform well. On the other, the buyer has the hesitation of incurring additional debt, either to help finance the purchase of Target or to grow the business after closing. For businesses without tangible assets, obtaining bank financing may not be realistic, but for some companies it is an option. Here John is proposing to allow $100,000 of additional debt to be incurred without Jane’s permission, but no more.
• Not covered in the LOI is “repayment security.” It is very common for the seller to request a personal guarantee for the money owed her. This pledge from the buyer to make good on the note, regardless of the performance of the business, is customary, in addition to the seller having claim to the value of all the assets of the business, thereby affording her added protection.
• Naturally, a personal guarantee is cause for serious introspection, and the buyer will want to push back on this provision, as it can result in a large personal liability should the business not succeed. That said, more often than not, if the buyer is not able to make good on the Seller’s Note, a manageable financial resolution between the two parties is typically reached as opposed to the seller personally going after the buyer for the full amount outstanding.
• For negotiating, two provisions are included: a 5% interest rate and a quarterly payment timeframe. The interest rate can be raised and the payments made monthly with relatively minimal impact to Newco. If needed, John can make these accommodations during the negotiation process in exchange for obtaining more important concessions from Jane.

Term 4

The seller sometimes requests this addition, but, in this case, the buyer wanted to include it for two reasons:

1. While he would give up some of the ownership, replacing debt with equity capital would lower the cash requirements of servicing the Seller’s Note.
2. The provision is intended to test the seller’s faith in the buyer and the business. If she is interested in investing in the buyer, then it is a signal of her confidence, and the buyer should interpret that as a positive sign; conversely, the buyer should not be discouraged if this option is not exercised.

Term 5

This term specifies what John is purchasing and what he is not. For an asset sale, it is typical for the seller to keep the cash and receivables outstanding at the time of closing. Typically, the buyer would then collect any receivables on behalf of the seller in exchange for a 4% administration fee. In a stock sale, this provision is not necessary—as all assets and liabilities are typically transferred to the buyer.

Term 6

Term 6 addresses any shortfalls in the actual condition of Target at closing relative to what was expected from previous financial statements. A small reserve is held to cover such items as: less equipment present at closing; settling vendor disputes that were incurred by the seller (Note that, while in an asset purchase John would not be liable for such items as vendor, supplier, or trade payables, he may want to settle any discrepancies regardless to maintain positive relations with an important partner); and any decrease in value of the inventory.

Terms 7-8

These speak to Jane’s requirements, both during and after the transition. Should she not live up to these responsibilities, remedies stipulated in the longer, more detailed closing documents can be enforced. Measures can include not paying her the full Seller Escrow, deducting money from the Seller’s Note, and taking legal action.

Closing

The final paragraphs set realistic timeframes both parties should strive to achieve. While a thorough due diligence effort is warranted, transactions must maintain momentum, lest they decrease the sale’s likelihood. John is also requesting an exclusive look at the business so Jane cannot shop the deal during his due diligence.

The document ends on a positive note because the LOI should also serve as a sales piece for John. After all, at this point Jane still has the leverage, a situation that will change once the agreement is executed.

Bob is copied to include him in the process. Often the LOI will go first to the business broker who will present it to the seller. Regardless, the buyer will want to establish the strongest relationship possible with the broker since he has influence over the seller.

A few final points

This article does not cover negotiating strategy. A buyer should form in his own mind, before submitting any LOI, acceptable terms given what he knows of the target company at that point. This set of conditions should be considered the bottom line. An opening position should leave sufficient negotiating room to come off your initial proposal while satisfying your “must haves.”

Even after signing this document, these terms should be frequently revisited since more will be learned about the business and its industry, competitors, employees, etc. All terms in the LOI will be explored in more detail in the closing documents.

By the end of the due diligence process, if you are not comfortable with the established terms—and you must be honest with yourself—you have two choices: renegotiate or walk.

David Grossman is president of Renue Systems Inc., a global franchisor and operator of specialized deep-cleaning services businesses to the hospitality industry. He can be reached at david.grossman@renuesystems.com with more information available at .

The post Be Careful What You Wish for: Drafting a Letter of Intent appeared first on Cleanfax.

More than 500 of you took part in this year’s survey, despite your always-busy schedules. We sincerely thank you for that!

The survey’s results are highlighted over the next four pages and provide a look at how pricing is changing, what average pay looks like, how companies are bringing in new customers, and a whole lot more.

Through this year’s responses, we can see the COVID-19 pandemic still affecting companies in the industry, from revenue to most profitable service. While effects have been felt by every company, those effects are not uniform. For instance, while 41% experienced a negative financial impact due to the pandemic, another 20% saw revenue boosted by it.

It’s been another chaotic year since our last survey, but the results continue to show the strength of restorers in the face of adversity. Continue soldiering on and being a powerhouse of an industry!

About this report: The data in this survey is based on results from restoration contractors responding to invitations to participate in the survey. Results are not necessarily based on audited financial statements. Sponsored by , Dri-Eaz, and ProRestore Products.

Download the full report.

This year’s survey saw a big jump in the number of new owners in the industry. Companies with less than two years under current ownership nearly doubled. Meanwhile, the numbers fell across the board for those with more than 10 years.

Nothing has impacted the industry in the past year as much as the COVID-19 pandemic. About 40% of companies surveyed faced shrinking revenue and financial trouble from the pandemic, but 34% saw an increase in business thanks to additional COVID-19 services.

Starting out can be pricey, with 47% spending more than $50k to get started.

While, overall, less than half of respondents go outside their local service area for large-scale CAT work, the numbers vary by region. In Western states, only 27% say yes; whereas in the South, it’s almost half (49%), perhaps due to the frequency of tornadoes and hurricanes.

Just as we saw in 2020, restoration companies are continuing to work more in the commercial space.

Cash flow and company differentiation swapped places, compared to the 2020 survey, reflective of the growing market saturation.

Those reporting biohazard and trauma cleanup as their most profitable service more than doubled over 2020, no doubt due to additional work in pandemic-related cleanup.

Yelp continued its drop in popularity, falling 4% over 2020, while lead services grew by 4%.

Those experiencing an average wait time of more than eight weeks grew by 6% this year.

The average prices for all services fell this year.

6% of companies might add reconstruction this year, which is already the second most common secondary service.

Loyalty is strong, with 51% of those with employees reporting an average tenure of more than four years.

See the 2020 Restoration Benchmarking Survey Report

Download the full report here:

The post 2021 Restoration Benchmarking Survey Report appeared first on Cleanfax.