We鈥檝e served up another helping of industry data in our 2021 Carpet Cleaning Benchmarking Survey Report. We聽 reached out to carpet cleaners for info on their businesses to develop a comprehensive view so our audience can see how their peers are running things and use that knowledge to make changes (or not) in their own businesses, as well as commiserate over shared challenges. This year鈥檚 survey saw much more commonality in reported struggles than usual, with almost everyone reporting the same 鈥渢wo biggest challenges鈥�: employees and economics.

1 | Employees

Employees issues are almost always the most reported problem, and it鈥檚 no surprise many named the current labor shortage as the biggest industry challenge. For years, carpet cleaning companies have struggled to draw employees鈥攅specially with experience, a good work ethic, and customer service skills. Not to mention many report fewer interested younger people. Add to this the current decline in job seekers, and we have an issue that鈥檚 crippling businesses.

Difficulties keeping employees has also been bemoaned for years. This has been exacerbated by the 鈥淕reat Resignation,鈥� as employees are quitting their jobs in droves. In September, Microsoft found more than 40% of employees were considering quitting. In August, 2.9% of the American workforce quit their jobs, a record (that followed a record in July). Many in the industry are trying to find ways to retain employees but struggle to meet rising expectations of higher wages, more benefits, and more flexibility.

Owners, who made up 93% of respondents, are working more. Those putting in more than 40 hours a week grew by 4% over 2020, with 73% actively cleaning, also up 4%.

2 | The economy

The U.S. economy is in a strange place, and carpet cleaners are feeling it. The economy looks strong; despite the dive it took in 2020, it is now bigger than before the pandemic, with faster growth than in years. However, the Fed lowered growth forecasts in September as supply chain disruptions and elevated inflation continue.

The supply chain and inflation issues directly affect industry companies. Many pointed to difficulties聽 getting products they need and, more commonly, the rising costs of those products, as well as fuel, rent, and insurance premiums. The cost of doing business weighes heavily right now, with cashflow and capital high on many people鈥檚 lists of problems.

Customers, too, are feeling the effects of inflation, pushing more to turn to price shopping for services, another common struggle for industry companies. Meanwhile, many survey respondents pointed to an influx of low-ball competitors who undercut their prices and flood the market, making acquiring and keeping customers increasingly difficult. Respondents also reported trouble adjusting prices to reflect the odd economic climate.

Despite the troubles industry companies faced this year, most saw growth, with over 60% claiming at least 5% growth over 2020. We found 79% of companies saw sales increase this year, and 59% expect gross sales revenue to pass $200,000.

The industry is filled with people who put in the hard work and hustle to get things done. I wish you all great success next year, filled with ample, qualified employees, bigger bank accounts, and even more success.

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

The post Employees and Economics appeared first on Cleanfax.

Over time, flooring inspectors have developed a bad reputation, with phrases such as 鈥渦se at your own risk,鈥� 鈥渄o we have to,鈥� 鈥渦se as a last option,鈥� and 鈥渨hy must we鈥� associated with them. Many in the industry question whether a flooring inspector is worth the expense and if they are really an asset of doing business.

Certified flooring inspectors have a unique position within the flooring industry. We review failures and perform discovery of causation through visual and physical observation, testing (at times destructive), and use of specialized tools and equipment. We also are asked for
corrective-action suggestions.

There is a positive, preventative side to what flooring inspectors do: We perform evaluations prior to installations. For the restoration industry, we serve as a backup to any site condition that requires a third party when the parties cannot come together on an issue.

How to use a flooring inspector

Oil residue on porcelain tile resulted from cleaning with the wrong agent.

If you are reading this article, you likely want a basic understanding of what flooring inspectors can do. Once you take on a project, you are held responsible for any negative issues鈥攂ut inspectors can be used to mitigate risks. They can:

• Evaluate a site before any work is performed to determine if you will be able to control the workspace
• Determine before flooring installation (for substrate evaluation) if the surface is flat, smooth, and clean; whether the moisture content is within range; or if a moisture barrier is required
• Determine whether the subfloor is within tolerance to industry standards to support the new floor
• Determine whether the existing flooring is salvageable (on a restoration project)
• Determine if the area of negative concern is conducive to corrective action
• Determine if the product and installation materials are correctly specified
• Evaluate whether flooring maintenance has been performed within manufacturing and industry standards regarding protocol and chemical agents.

When to use a flooring inspector

Visual inspection shows the joint widths are different sizes.

Some things to consider when deciding when to call in a third-party inspector include whether:

• The job site has one or multiple issues
• The issues are beyond the scope of the technician performing the installation
• The technician is uncomfortable performing the work, and a certified person is, therefore, required for oversight
• The project has been reopened by the insurance company or consumer after completion due to negative issues
• Legal counsel has been brought into the project from either side
• Workmanship is questioned regarding compliance to existing standards
• The product has a latent defect
• The job has been stopped due to product defect discovered
• There is pattern alignment difficulty
• Control of the workspace is compromised
• There is a need to negotiate an amicable solution to issues鈥攑erhaps a corrective action suggestion
• You need a disinterested expert.

Why to use a flooring inspector

Shown here is moisture reflection on luxury vinyl tile (LVT) flooring.

There are many reasons to bring a third-party entity into a project. These experts are prevalent in all industries and disciplines, not just flooring. The basic reason for inspectors is not just to discover causation, but also to prevent negative issues from becoming a problem. A third party can offer value in tricky situations such as for:

• Substrate moisture issues that require testing
• Evaluation of substrate preparation action
• Measurement of flatness ratio of substrate surfaces
• Evaluation of workspace for flooring installation to determine if it is ready
• Documentation of the installation process鈥攖he before, during, and after
• Training the staff, consumer, general contractor, and claims representative as to the flooring specified and that will be installed
• Explanation of any warranty questions
• Determination of causation of the negative concern
• Bypassing the 鈥渢hey-said鈥� discussion and blame game.

There is no minimum level of need for calling in an inspector; they can work on the smallest residential project or the largest commercial project. However, each expert has capabilities to perform within their respective certifications and scope of work based on their training, education, and experience.

For example, in a water event, whether residential or commercial, the protocol is the same. After a restorer has evaluated (inspected) the site conditions, their scope of work begins, and the flooring comes into question. Type of flooring is a concern regarding the salvageability, which depends on the extent of the damage. Will the technician have knowledge and experience necessary to decide? Will they have the ability to present an actual value for the damaged flooring?

If legal action is presented against your company for work performed, whether it is a direct link to your workmanship or because you鈥檙e the last one to work on it, an expert is required. Or if it鈥檚 just the normal procedure of bringing everyone to the table during a construction defect lawsuit, an expert is required as well. It鈥檚 that expert, the third party, that will present the case for you to the lawyers. However, keep in mind that, as third-party experts, inspectors report on the facts of the case, not what we are told.

The mildew shown on this wool fiber is from improper storage and wrap.

For example, recently I was called in by a flooring contractor to determine why a new porcelain tile flooring had a 鈥渉aze鈥� on it. (A water damage event required a replacement from the preexisting vinyl floor.) The general contractor did not allow the flooring contractor to give the tile its first cleaning, as they should have. There was a grout haze on the surface. The janitorial company did not perform a perfect cleaning. So, the flooring contractor was called in to clean鈥� three times. There was still an undesirable appearance on the tile surface. Who is at fault in this case?

I performed a visual and physical review as well as a test cleaning with generic cleaning products. During this time, I discovered an oil-based substance on the surface in various corners. After interviews with the opposing parties and testing, I determined the tile had not been property cleaned yet. All four cleanings used the incorrect cleaning agents. I suggested a professional, certified cleaning company be brought in to correct the situation.

There is a need for third-party experts in many situations. Once you identify the need, they can become an integral part of your scope of work for any project.

Robert Blochinger started out in the flooring industry as a water and fire damage cleaner and restorer. After opening his own installation business, he worked to become an IICRC certified flooring inspector in eight separate disciplines. He currently serves as the chair of the Inspection Division of the IICRC. Blochinger currently works as a full-time inspector in addition to owning his own IICRC Certified Firm. Reach him at bob@blochinger.net.

The post How, When, and Why to Use a Third-Party Flooring Inspector appeared first on Cleanfax.

We were called by a previous client to screen and recoat the hardwood floors in a home they鈥檇 just bought. When we arrived, I realized we鈥檇 cleaned the carpet in the house before for the previous owners. We screened then cleaned the floors before tacking and rolling on the first coat. We left it to dry and then followed up with another coat. The floors turned out great, and we left another customer happy in one of my favorite neighborhoods to clean.

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]

鈥淪creening鈥� in wood floorcare refers to heavy cleaning or abrasion of the surface with a screen mesh disk or maroon-covered pad as part of the refinishing process.

Refinishing is needed when surface or gloss wear makes reapplication of finish necessary to return the hardwood floor to its desired appearance.

Read more at www.cleanfax.com/better-wood-floorcare.

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The students sat eagerly waiting for their professor to start the day鈥檚 class. This was a required course for their graduate program, so most were giving him their full attention.聽鈥淵ou鈥檙e about to graduate from school, enter the workforce, and try to make your mark in the business world. Based on what you鈥檝e learned so far in this class, what do you think is the most important factor that leads to business success?鈥� he asked.

Definitions of success

A student in the front row raised his hand immediately. He was the kind of guy who always came to class early and prepared, and he was eager to offer his opinion. The professor called on him.

鈥淟ike you鈥檝e always told us,鈥� he said, 鈥渢here is no such thing as a free lunch.鈥�

The professor replied, 鈥淚n a free market economy, there鈥檚 no doubt that everyone has to pay their own way in some form. After all, in business someone always pays.鈥�

While the idea of no free lunches made sense to the professor, he didn鈥檛 think the answer went deep enough, so he kept looking around the room. The next student the professor called on was minoring in finance, so the answer he offered was not much of a surprise. 鈥淚f you don鈥檛 hit your quarterly numbers nothing else is going to matter.鈥�

The professor suggested that, while a lot of investors and people on Wall Street might agree with him, he wasn鈥檛 sure if the small business owner on Main Street would. After all, she might be struggling with the demands of running a small business, keeping customers happy, and trying to have time for family or friends. He didn鈥檛 think she spent much energy worrying about meeting quarterly numbers when she was focused on weekly payrolls and keeping her employees busy.

The professor thought he鈥檇 give one more student the chance to weigh in. A student in the back of the room offered, 鈥淚t鈥檚 like the sign former president Harry Truman had on his desk that read 鈥楾he buck stops here.鈥欌��

The professor loved the idea of not passing the buck鈥攐f taking responsibility for one鈥檚 actions and owning the outcomes of the decisions made. But, once again, the answer he was looking for went much deeper than platitudes on an executive鈥檚 desk. He asked the students to think about the companies where they were currently employed or imagined being employed when they graduated. He asked them to think beyond financial performance, current management fads, or the struggle to balance business with their personal lives.

The trust factor

The answer the professor was looking for was much deeper than any of the answers he was hearing. It was something that served as a foundation for all the answers his students gave. In fact, it impacts virtually every element and outcome of business.

The word the professor was looking for was 鈥渢rust.鈥� Having been involved in business and then teaching business for years, he had witnessed firsthand the impact this five-letter word can have on the performance of a business, and it was a lesson he felt his students must understand before leaving school.

When the professor stated that trust was the most important factor that leads to business success, he couldn鈥檛 help but notice the confusion on some of his students鈥� faces. He figured a good way to explain his reasoning was to show how trust was at the heart of each of the answers they had given when confronted with the question.

Free lunch

鈥淟et鈥檚 start with the notion that in business there鈥檚 no such thing as a free lunch,鈥� he said, referring to the first student鈥檚 comment. He agreed that in a free market economy everyoneis responsible for his own wellbeing. And it鈥檚 based on us trusting that we鈥檙e all playing by the same rules, whether those rules apply to an economic system, society in general, or simply to the company where we鈥檙e employed.

The problem comes in when trust breaks down because we either discover or feel the rules don鈥檛 apply equally to everyone and we鈥檝e been misled. Before long we can start to feel that, rather than there being no such thing as a free lunch, the deck has been stacked against us. Trust soon evaporates.

Hitting the numbers

At first, the argument about hitting the quarterly numbers seemed fairly airtight. The professor conceded that numbers are important and that any business that doesn鈥檛 make its numbers鈥攈owever they鈥檙e defined鈥攐ften enough won鈥檛 be around for long.

But what happens when the need to hit the numbers crosses the lines of ethics or the law? What happens when a big corporation misleads investors about its financial performance in order to support its stock price? Or, when a small business manipulates its sales or expense reporting to secure a loan or to affect employee bonuses? Some will claim that every company does this, but do they? And is it really invisible to the people who can make a difference in a company鈥檚 performance?

How long does it take for investors or employees to lose faith in such a company or for its customers to start buying from other companies they trust? How will this affect hitting those quarterly numbers?

The buck stops here

The discussion was then brought around to Harry Truman鈥檚 famous sign stating, 鈥淭he buck stops here.鈥� The professor admired his student鈥檚 eagerness to take responsibility for his actions. He found it refreshing. He agreed that business leaders are responsible for everything that takes place within their company, either directly or indirectly. His concern was with those leaders who should change the sign to read 鈥淎ll the bucks stop here,鈥� in other words, those micro-managing leaders who don鈥檛 trust the people in their organizations to do the jobs they were hired to do. Where is that trust?

What kind of people will these companies be able to attract or keep once they discover their boss is a control freak? What kind of business performance can a controlling owner expect to generate if every decision must go through him?

The professor made it clear that he wasn鈥檛 na茂ve enough to think that every business and every person is trustworthy, but he could tell by the looks on some of his students鈥� faces that they were reconsidering the role that trust plays in business. His hope was that some of them were also rethinking the role that trust will play in their careers鈥nd their lives.

Chuck Violand is the founder and principal of Violand Management Associates (VMA), a highly respected consulting company in the restoration and cleaning industries. Through VMA, he works with business owners and companies to develop their people and profits. For more information, visit .

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Thanks to the wealth of information available on the internet, we can (and usually do) research every purchase we make, from vehicles down to can openers. What鈥檚 troubling is that some people spend more time and energy researching a car or stereo system purchase than they do researching the purchase of a business. This article is the latest in a series on business acquisitions and will provide tips on conducting a thorough due diligence process. You can find an overview of business-buying best practices in the March/April issue of Cleanfax and advice for drafting a letter of intent in the May/June issue.

The purpose of due diligence is to gather and analyze enough information about the business to make a wise investment. It鈥檚 true that you may find a dearth of record keeping from the typical small private company, but much of the information you need is available to the public if you make the effort to track it down. Think of yourself as a detective, gathering evidence and digging deeper into any aspect you find troubling. A thorough due diligence process should allow you to:

• Gain a solid basis of knowledge about the business
• Have the owner help educate you about the industry
• Start preparing for when you are running the business
• Begin to create and/or refine your own internal budget and projections.

Start with the owner

Despite what we may have experienced from our childhood school days, no one has ever committed the crime of doing too much homework. While I advocate digging deeply into all facets of the target business, there are real-world time constraints. Thus, you may want to consider taking a few minutes upfront to develop a plan to maximize your efficiency.

One approach calls for submitting a list of questions and document requests to the owner. This should be the first step immediately after executing the letter of intent since it will frame your future analysis. Also, it will take some time for the owner to address these items. Be professional about it and attempt to develop one list that is comprehensive enough to provide you a solid understanding so that you will not need to make multiple requests for high-level information. Conversely, you may not want to ask for trivial information that will delay her completion of the more critical items.

See the accompanying list of common inquiries from buyer to seller. Two fairly obvious caveats are in order. First, not all of the items on this list apply for every buyer and every business, so customization, additions, and deletions are in order. Second, be prepared for the seller to have incomplete or missing information. After all, this is probably the first time she is going through this process, and she likely manages largely by gut instinct.

To mitigate this risk, you may consider performing an audit where detailed pieces of financial information are examined. This process can include tracking invoices throughout the accounting system and reconciling bank statements with internal records. For the inexperienced, spending money for the assistance of a financial adviser or an accountant may be a solid investment.

To analyze the information from the owner, approach it once again as a detective who initially takes a wide view of the scene, looking at the company鈥檚 finances, operations, products/services, suppliers, employees, systems, competitors, and industry. From there, increasingly focus on a smaller number of critical issues that are either most foreign to you or most troubling.

Keep probing deeper on the few key areas until you have learned enough to be comfortable with them or not. If the owner pushes back on your inquiries, then she is either acting unprofessionally (which is likely a sign of how she runs her business) or hiding something (perhaps even more troubling). It is certainly your right to ask for additional information. After all, you are the one in the driver鈥檚 seat, and it is your money potentially at stake.

At the end of the process, do not be surprised if you have a better understanding of the company鈥檚 true financial picture than the current owner.

[infobox title=’Commonly Requested Information and Questions’]

• Complete financial statements (namely, detailed income statement, cash flow statement, balance sheet, and any accountant notes) for the past three fiscal years and for the current year to date; explanation of the accounting methodology used (i.e. cash versus accrual) and any deviations from GAAP
• Corporate federal tax returns for the past three fiscal years
• Projected income statement for the next three years by quarter
• List of assets (inventory, hardware, and equipment) and their book and fair market values; where applicable include the purchase date and the depreciation method used
• Detail of any real estate including property description, size, book value, depreciation method, most recent appraisal date and value, tenant description, lease terms, and any environmental reports
• Accounts receivable aging report, which is a document listing the total receivables as of a certain date, grouped by the number of days outstanding, commonly <30 days, 31-60 days, 61-90 days and 91+ days in age)
• Schedule of largest vendors and suppliers complete with price paid for each product
• Any business plans or overviews
• Any marketing materials, brochures, and catalogs; explanation of current sales and marketing practices in detail; break out percentage of customers by each advertising placement and referral source and acquisition cost per customer of each
• Breakdown of revenue by both customer and product
• Detail of customer demographics and purchasing behavior including frequency and order size; discussion of lifetime value of the customer
• Any material agreements covering customers, suppliers, vendors, employees, affiliates, leases, and others
• List of all employees, contractors, and consultants鈥攚ith current pay, date of last raise, average hours per week, overtime, start date, job title, job description, direct report, most recent year W2 or 1099 form, and any special relationships鈥攁nd indicate any who are unlikely to remain with the company
• Description of all employee benefit plans and eligibility requirements
• Product catalog with pricing information
• Description of all material ongoing contingencies, commitments, and liabilities
• Explanation of any customer or revenue sources that may be damaged or lost upon new ownership
• Detail of any past or current litigation, investigations, or inquiries by a third party, employee, affiliate, vendor, customer, or government agency of which the company was a part as either plaintiff or defendant
• List of all software packages used including version numbers
• Overview of the technology architecture
• Description of any intellectual property such as copyrights, patents, and trademarks
• Description of customer-fulfillment system from order to collections
• Educational sources or primers on the industry
• List of memberships in trade organizations and other affiliations; list of any board or active membership roles; list of major trade organizations and publications
• List of competitors including online and offline local, regional, and national players with an estimated size and explanation of how each one differs from your company
• Viewpoint of the current state of the industry, emerging trends, and the company鈥檚 position
• Explanation of the most attractive growth opportunities for the business

[/infobox]

Benefits of a consultant

While you want to keep your due diligence expenses low, you may want to turn to a consultant, particularly if the industry is new to you, you have never previously attempted to buy a business, or you feel your finance skills are weak. With some investigation, help can be found to address virtually any need. For instance, an industry veteran may assist by providing background information on the industry and competitors. An experienced business buyer can help you determine the appropriate price for the company, conduct the financial due diligence, or devise the income and cash flow statements.

You will, of course, have to pay for a consultant, but view it as the initial part of your investment. A consultant can not only help inform your decision to buy the business, but also save you time in the due diligence process by handling some of the work and pointing out the most relevant issues to investigate. Some people can comfortably handle the process themselves, but for many, the price paid for outside assistance is a good investment鈥攁nd it is only a fraction of the cost of the total business acquisition.

Projections and adjustments

If financial projections for the target business were not developed prior to signing the letter of intent, then you will most certainly want to create them at this point. It can be a simple exercise. Using the owner鈥檚 historical growth rate as a baseline, future revenue can be projected.

Adjustments should be made based on a number of factors, including your ability to manage the business, investment capital available, trends in the market, competitor movements, and inevitable road bumps and distractions during the transition. This projection will most likely be more conservative than the seller鈥檚 projection.

A similar exercise can estimate expenses, starting with the current expenditure level. On a relative basis, expenses should increase less than revenue so profit margins should widen (or if currently unprofitable the business should become relatively less so). If detailed expense records have been maintained, you can perform reality checks and make appropriate adjustments. Key steps include:

• Modifying the owner鈥檚 compensation to a level with which you are comfortable: This decision is important since it will need to be high enough to enable you or someone you hire to devote full-time effort to running the business, yet not so high as to limit the cash flow available for growing the business.
• Contacting vendors and suppliers: This is a good way to find out if current product costs are reasonable going forward.
• Changing the rent expense to what your costs will be: This is particularly relevant if you plan to relocate the business or the seller owns the real estate.
• Refining costs: Marketing and acquisition costs should be adjusted based on your plans for the business.
• Examining payroll expenses: It鈥檚 important to find out if employees are making market wages, which can lead to an upward or downward adjustment, and if overtime is being paid.

Note that your estimates of future expenses will likely be more accurate than your sales expectations. They are also more controllable should reductions be needed. That said, it is wise to plan a sizable cash reserve for the inevitable unforeseen expense such as replacing an employee with a higher priced one, buying office or other equipment not anticipated, or upgrading antiquated software. (Of course, some of these expenses may be deferred, and countermeasures such as deferring owner salary can be taken.)

More importantly, revenue slippage may occur due to the loss of some accounts upon new ownership, the seller losing momentum while focused on the sale process, or collections of receivables taking longer than planned.聽 Any of these occurrences can lead to significant shortfalls in cash, which is the measure most important to you. The business does not need to be overfunded when the deal closes, but extra capital should be available.

Finally, do not forget to account for deal expenses. These expenditures consist of any hired consultants, accountants, and lawyers plus other due diligence costs including travel, credit reports, and third-party background searches performed on the company and the buyer. A hard-and-fast number is difficult to provide, but assume legal fees alone will cost at least $10,000.

Predicting cash flow

Your projections of revenue and expenses, developed for the next 1-3 years, can be used to generate a cash flow model. The cash flow statement is arguably the most important financial forecasting tool for most small businesses. The adage 鈥渃ash is king鈥� rings true since profit does not pay the bills, but cash does. And after all, what good is growing sales if increased inventory leads you to run out of money to pay your employees, your vendors, or yourself? This is a very common occurrence that can be mitigated through proper cash management planning.

To construct a cash flow model, start with the net income and add back any non-cash expenses such as depreciation and any outside debt or equity investments into the company. Next, subtract capital expenditures and any debt financing (the principal portion only since interest has already been accounted for in net income). Finally, the timing of the lags between sales and collections (a negative hit) as well as invoices and bill payments (a positive one) should both be incorporated. As with the income statement, err on the side of caution when forecasting available cash.

Should the projected cash position become negative, then the business must be run differently. While out of the scope of this primer, suggestions include:

• Scaling back marketing initiatives鈥攅ven though this will result in slower growth
• Leasing equipment or financing capital purchases as opposed to buying them outright with cash
• Stretching payables with your vendors
• Offering discounts to customers in exchange for quicker payments.

Your internally generated income and cash flow statements should be continually revised as you learn more about the target business. View them as works in process as opposed to one-time static exercises.

Final thoughts

Upon refinements, if you reach a point where the acquisition investment is no longer attractive because the economics are poor, the risks are too great, or any other reason, there are three choices: Make no change, renegotiate with the seller even if you risk losing the deal, or walk away. If you are truly honest with yourself, you probe deeply on the key issues during the due diligence process, and you do your best to remain objective, then you will make a better decision. The worst outcome is making an acquisition while ignoring your strong negative feelings. You may win the battle by closing on the transaction, but you will have increased the odds of losing the war.

Look for the final installment in this series, which will offer an overall quick-tip guide for the business-buying process, in early 2022.

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 .

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Working in the remediation field, we often hear client concerns about mold and its associated health risks, hypersensitivities, and finance-crippling lawsuits, but, despite this, some in the industry continue to underestimate the hazardous effects of mold on workers and occupants. But mold, just like the other contaminants of concern, is dangerous to our health, and failure to prioritize mold safety puts our people, clients, and company in harm鈥檚 way.

The bodily effects of mold exposure are many but are primarily respiratory related鈥攆rom sinuses down into the lungs. There is also the potential for mold to affect one鈥檚 immune system long term, making a person not only more susceptible to mold, but also to other respiratory-related illnesses. These reactions occur both in immunocompromised people as well as healthy individuals with no prior allergic reactions. This is why it is so important not to overexpose workers in occupational settings.

This article aims to provide restoration companies an overview of the risks related to mold remediation work and how to keep workers safe while protecting the company from associated liability. This is part of a larger series (Look for more articles from this series in past and upcoming issues.) on PALMS, which is an acronym used to discuss these contaminants of concern:

• PCBs/Pandemic
• Asbestos (March/April 2021)
• Lead/Legionella
• Mold/Metals
• Silica (July/August 2021).

Hypersensitivity and workers

For years, clients who reported hypersensitive reactions to mold were met with suspicion and derision from many restoration and insurance companies alike. However, scientific studies like those from the Institute of Medicine have found sufficient evidence to link indoor mold exposure with upper respiratory tract symptoms鈥攃oughing, wheezing, shortness of breath, stuffy nose, itchy eyes and skin, fever, etc.鈥攊n otherwise healthy people, in addition to the immunocompromised. These findings have compelled most of the industry to accept the existence of hypersensitivities.

It is important to remember that those same sensitivities in clients can occur in front-line workers鈥攁nd hypersensitivity can develop over time from overexposure to mold. Many remediators working in the field prior to the rise of safety equipment use were exposed to high concentrations of mold over the years and have since developed their own hypersensitivity to the substance. Those in the industry who still do not take the proper precautions (PPE, pressure differentials, containment, etc.) are opening themselves up to the same problems, and the adverse effects of exposure might not be evident until much later.

Many have questioned whether hypersensitivity or the potential for hypersensitivity should preclude someone from working in the industry altogether, but avoiding the work is unnecessary鈥攁nd unrealistic on a larger scale. If we avoided all hazardous materials, restoration and many other industries would cease to exist.

There are many hazardous materials that workers can interact with safely. The other contaminants of concern on the P.A.L.M.S. list all pose dangers to workers, and potentially more so than mold, but technicians are able to work with them without harm. The key is exposure prevention. If workers understand the materials they work with, whether mold, asbestos, PCBs, silica, or other contaminants; know how to prevent exposure through containments, negative air, engineering controls, administrative controls, and personal protective equipment (PPE); follow best practices; and get licensed, they will be protected.

Despite the interaction with dangerous materials, hazard pay is illegal in settings with mold or other contaminants because it offsets the exposure prevention responsibility by shifting focus from prevention to reaction. The responsibility to prevent exposure is both a moral and legal one that depends on proper controls.

Personal protective equipment

Remediators should always wear proper PPE for every potential exposure. This means skin coverage, respiratory protection (with a HEPA-filtered P100 and organic vapor cartridge), and eye protection. Per the United States Occupational Safety and Health Administration (OSHA), the level and type of PPE for each project should be determined by performing a risk/hazard assessment.

While we recommend workers wear full-face respirators whenever possible because it gives a slightly higher protection factor and covers the eyes, many workers prefer half-face respirators because they wear glasses, have respiratory issues, etc. Added eye protection in these cases is essential, and skin should be protected using disposable coveralls, booties, and sometimes a double layer of nitrile gloves. A hood is highly recommended, and in some cases, work gloves are, too. Any openings鈥攁t the wrist and ankles and around the hood and respirator鈥攕hould be sealed with tape.

Regulations and training

Mold remediation work is not regulated at the federal level in the United States, but more and more states (15 currently) are implementing their own regulations on the industry. Likewise, in Canada, mold remediation, except for in health care facilities and government buildings, is not regulated at the federal level, and a push for providence-level regulations is underway. (Quebec currently has regulations in place.) With the continued growth of weather-related water-infiltration events, like major hurricanes and flooding, regulations will, no doubt, grow in response to needed large-scale remediation recovery work.

OSHA and the U.S. Environmental Protection Agency (EPA) have issued numerous guidance documents on safe work practices with mold, especially in schools and other institutional and health care settings, that address proper management of mold growth and limiting worker exposure, but these are recommended practices, not laws. Importantly, however, the General Duty Clause of the OSH Act of 1970 requires 鈥渄ue diligence,鈥� and similar requirements for due diligence exist in Canada under the guidance of the Canadian Centre for Occupational Health and Safety.

Due diligence places the onus on employers to ensure workers are not exposed to hazardous conditions that could cause serious harm on the job site, as well as to comply with the safety and health standards set forth in the Act. This means that, while there may be no direct laws regulating the work in an area, it is still the responsibility of the employer to protect employees or face penalties ($13,653 per serious violation and up to $132,598 per violation in the case of willful or repeated offenses per OSHA). Due diligence requires a site risk/hazard assessment and the development of an exposure control plan that lays out the appropriate equipment and PPE needed, among other requirements, but it is unfortunately not uncommon for workers to go forward with a project without performing an acceptable risk assessment.

Proper remediation training is key to ensuring due diligence is followed. It is more important than simply making sure workers know how to do their jobs; training also teaches them how to protect their own health and safety, as well as that of their families and others they could expose secondhand. The ANSI/IICRC S520 Standard for Professional Mold Remediation provides guidelines for workers to properly decontaminate themselves when leaving a containment area to prevent just that. If workers are not aware of the practices laid out in the Standard and the required due diligence, they will open themselves up to exposure, and the company opens itself up to legal, moral, and potentially criminal liabilities due to health-related issues.

[infobox title=’A Note on Containment’]Outside of small amounts of mold or where it is limited to the surface and can, therefore, be remediated with source removal, containment should be built. Once we have moderate or significant levels of mold present and must remove building materials, containment with pressure differentials is necessary to contain dust and spores in a localized area. This prevents cross contamination of unaffected areas.

If you spread the hazards to otherwise clean areas, you are creating additional work for yourself to rectify the situation鈥攐r worse, if left unaddressed, creating liabilities for your company. In states and jurisdictions with mold regulations in place, it is illegal not to build containment.[/infobox]

Pre-sampling and PRV

Sampling costs money, but it is an expenditure that protects workers, occupants, and companies, both before and after a remediation project.

One of the most important aspects of remediation is to initially locate the mold. Condition 3 contamination (鈥淐onditions鈥� are defined in the ANSI/IICRC S520.) identification is easy to find, as it consists of visible mold and/or active growth, but in situations with Condition 2 mold, where an area is contaminated with settled spores spread there by airflow, people, etc., it can typically only be identified by sampling.

Clients might be apt to say, 鈥淭he mold is there on that wall. I just want it removed,鈥� but discovering any other contaminated parts of the building is critical to the work. As a contractor, it is important to identify Condition 2 areas via pre-sampling to

avoid taking blame for their contamination, and the only way to do that is to find them ahead of time. Entering a project without establishing background levels leaves you open to liabilities if Condition 2 contamination is later found.

We sometimes hear people in the industry say sampling is unnecessary because there is no established threshold limit to which we can compare samples, as exist for PCBs, asbestos, lead, or silica. While it is true there are no recognized limits for mold contamination, comparing post-remediation samples against pre-work samples taken in unaffected areas provides proof of success (or failure) on a project; alternatively, juxtaposing post-remediation sampling with samples taken from outside also offers a means for judging success. The air inside the building should have the same types of mold as outside, only at much lower concentrations.

Sampling is key to post-remediation verification (PRV), which serves as a risk assessment for reoccupancy. There are other verification processes beyond sampling that are important, like visual and olfactory inspection, but surface and air sampling are highly important for gauging remediation success. It is important to note that PRV by a third-party, independent of the contractor, is required in areas where mold remediation is regulated.

An indoor environmental professional (as defined by the ANSI/IICRC S520), which may be refered to as a certified mold accessor or industrial hygienist depending on jurisdiction, certifies a project鈥檚 completion by ensuring: all visible mold is removed, areas are dust free, no dirty water is left behind, and everything is clean overall with nothing of concern left behind for occupants.

Focusing on safety

Recognition of mold hazards and early remediation date back thousands of years. The Bible chapter Leviticus refers to 鈥渄efiling mold鈥� and provides methods of remediation, including inspection and removal of contaminated areas and ultimate demolition of the entire structure if the mold could not be removed or contained.

If people living more than two millennia ago recognized the inherent dangers mold exposure poses, then perhaps it is well beyond time all remediation professionals do as well. We must ensure anyone interacting with mold contamination is properly trained and equipped to protect themselves and those around them, that we use all the tools in our box鈥攊ncluding proper work practices, containment, and sampling鈥攖o guarantee success, and that we lean on post-remediation verification to prove that success to insurance adjusters, clients, regulators, and ourselves.

Ultimately, adhering to safety guidelines for mold remediation can only serve our companies. They benefit us by protecting our most important resources, our workers and clients, while also protecting our businesses from lawsuits and a destroyed reputation.

Further reading:

ANSI/IICRC S520 Standard and IICRC R520 Reference Guide for Professional Mold Remediation

OSHA Safety and Health Topics: Mold

EPA Mold Guide

CDC Mold Guide

鈥淕eneral Duty Clause,鈥� OSH Act of 1970

NYS Department of Labor Mold Program

NYC Health Mold Guide

鈥淒amp Indoor Spaces and Health,鈥� Institute of Medicine

NIEHS Disaster Recovery: Mold Remediation

Mark Drozdov is known for his diverse work in environmental, health, and safety (EHS) projects worldwide including HazMat remediation; industrial hygiene; hazard/risk assessment; and compliance training, certification, and audits. He contributes to the AIHA/RIA/IICRC Crisis-Response Joint Task Force, IICRC Board of Directors, ISO infection control and EHS standards, and AIHA government relations. Drozdov鈥檚 PALMS program is the go-to method for dealing with contaminants of concern. Email him at聽mark.drozdov@cooper.edu. 聽

Carey Vermeulen is the owner of Indoor Air Management Canada. He is known as one of the IICRC鈥檚 busiest instructors, averaging more than 70 classes yearly, has served on the IICRC Board of directors for 23 years, including three as president, and was elected chair of the executive committee for 2022. Vermeulen helped develop the ANSI/IICRC S500, S520, S100, and S300 (for which he was chair) standards. He is an industry speaker, technical author, and consultant to the restoration, cleaning, and insurance industries.

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

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When restoration workers encounter hazardous materials on the job, a respirator is a necessary element of personal protective equipment (PPE) to keep workers safe. In this article, industry experts talk through the dos and don鈥檛s of proper respirator use so you can protect yourself and your employees from on-the-job hazards.

David Oakes, member of the IICRC Field Guide for Safety and Health for Disaster Restoration Professionals, notes that use of a respirator begins with a written respiratory protection program that identifies the potential hazards and the type of respirator to be used. The program should include:

• A medical evaluation stating whether each employ can use a respirator based on their physical health
• A fit test for the respirator to be used
• Training:
  • How to don and doff a respirator
  • When to use a respirator
  • What cartridges should be used and how to change them
  • Proper use and care for a respirator.

Respirators in restoration

Knowing when to use respirators is an important first step for restoration professionals. Honeywell Respiratory Protection Product Sales Manager Robin Regan reminds us respirators are needed any time workers are exposed to materials deemed hazardous by the National Institute for Occupational Safety & Health (NIOSH) or the Occupational Safety and Health Administration (OSHA). As Oakes pointed out, hazard assessment should be completed at the start of any job, and the appropriate PPE protocols followed based on the assessment.

Common hazards in the restoration industry that indicate respirator use include hazardous particle matter (most specifically particles under 10 microns), mists, solvents, cleaning/disinfectant chemicals, lead, asbestos, fungal parts and spores, and other microbial pathogens, according to Oakes. Additionally, he points out that fire restoration comes with its own set of hazards, including particles of incomplete combustion, polycyclic aromatic hydrocarbon, and dioxins, many of which are known or suspected carcinogens.

Image courtesy of NIOSH.

All site hazards, including airborne hazards, are addressed using OSHA鈥檚聽hierarchy of controls (elimination, substitution, engineering, administrative, and PPE), our experts noted. Because PPE is the least effective measure, other engineering controls should be the primary focus. 鈥淩espirators are sometimes used for a short period of time while implementing other controls in the hierarchy,鈥� explains Lee Senter, chairman of the IICRC Field Guide for Safety and Health for Disaster Restoration Professionals.

Our experts also stress that different jobs require different types of respirators, and OSHA requires proper training to ensure workers understand the different types, their uses, capabilities, and limitations. Senter says, 鈥淭he use of N95s is not common due to their fit being lost over longer durations of use. The use of half-face respirators with a p100 organic vapor cartridge is common for fire and smoke remediations. For mold, trauma, and sewage remediation, the use of a powered or non-powered, full-face respirator is the norm.鈥�

Regan adds that disposable N95 respirators聽may be used for smaller jobs, such as mold that contaminates 10 square feet or less. The larger the job, the higher the level of filtration needed, he says, adding 鈥淔or significant jobs with high levels of contamination, we recommend restoration workers use [a PAPR respirator].鈥�

Fit testing and integrity

For a respirator to do its job properly, a correct fit is essential. 鈥淔it tests need to be performed prior to wearing a respirator for the first time and then on an annual basis,鈥� Regan explains. 鈥淎n additional fit test would be required if a worker switches their model of respirator or experiences changes to their face size.鈥�

A fit test ensures the respirator creates a proper seal against the face and tests the integrity of the seal when the wearer is moving, talking, and breathing heavily. 鈥淚f an individual wears a respirator with a loose fit, it cannot provide proper protection from breathing in harmful contaminants.聽A聽tight seal across the face is key,鈥� Regan says. The test is performed using either a special instrument designed for fit testing or the wearer鈥檚 senses (taste, smell) to detect if a test agent is able to pass the respirator鈥檚 seal.

Fit test administrators do not need special certification, but they must be trained in how to perform the test properly. Senter notes that it鈥檚 the employer鈥檚 responsibility to ensure all employees have been fit tested for respirators prior to using them on the job.

Regan points out that respirator manufacturers like his company generally offer fit test training for customers via videos, webinars, or even face to face, so businesses should first look to manufacturers for help with fit testing. Regular fit tests are necessary because several factors can jeopardize the integrity of the fit, including substantial weight loss or weight gain, significant dental work, or severe scarring that may alter the face shape.

Senter adds, 鈥淭here can be no facial hair between the skin of the face and the seal of the respirator,鈥� so workers who rely on respirators must be clean-shaven where the seal is formed. See the facial hair guide from NIOSH above to help employees ensure their facial hair does not conflict with the respirator鈥檚 seal.

Image courtesy of NIOSH.

In addition to regular fit tests, restoration workers in the field should pay attention to any indication that their respirator is not working properly. 鈥淭he first warning sign is usually odors,鈥� Senter says. 鈥淚f the odors are detectable, your respirator may not fit you correctly.鈥� However, the absence of odors does not necessarily mean the respirator is working properly, as some contaminants are odorless.

Other signs of respirator malfunction include fogging and air whistling. If a wearer鈥檚 glasses or goggles fog, this is likely a sign of respirator fit problems due to air escaping around the nosepiece. 鈥淟ast but not least,鈥� Senter says, 鈥渨hen performing your positive/negative seal checks prior to performing work, any 鈥榮ound of wind鈥� would indicate that the respirator is missing a gasket or another component.鈥�

Donning and doffing

As with all PPE, donning and doffing is a crucial part of proper respirator use. 鈥淲hen donning respirators, workers should conduct a seal check. A seal check is an easy way to make sure the respirator is working properly and should be done every time a worker puts on their respirator, not just at the beginning of their shift,鈥� Regan explains. All other PPE should be donned prior to the seal check, which is performed by covering the filters and inhaling. 鈥淭he respirator should not have gaps that allow air through while inhaling.鈥�

Donning and doffing requires training. Look to the respirator manufacturer for recommendations and training. 鈥淭his would include proper warming of the respirator facepiece prior to donning it and paying specific attention to the proper molding of any nose clip of an N95,鈥� says Senter. He adds that a respirator鈥檚 straps should not leave marks or indentations on the face if properly fit.

Proper doffing is equally important to ensure no cross contamination occurs. 鈥淲orkers should be careful not to get the contaminants from the outside of the respirator on their hands that could then be transferred to their mouth or eyes,鈥� Regan explains. 鈥淔or added safety measures, workers should always wash their hands after taking off a respirator and make sure the respirator is cleaned and sanitized properly.鈥�

Donning and doffing should be done with a partner whenever possible, Senter suggests, 鈥渆specially when wearing coveralls and other PPE. While doffing, your co-worker may have to assist in decontamination, especially in potential
biohazardous situations.鈥�

Conclusion

Proper respiratory use begins with a written respiratory protection program, which all restoration companies should have on file. As you develop your program, Oakes advises studying the safety data sheets (SDS) of any chemicals used. Keep in mind the SDS info is for the concentrate, not the dilution, so consider both the application method and concentrations you will use.

鈥淵ou may be surprised to find out that some of the products (chemicals) we use on a regular basis require little or no respiratory protection, while others we think are safe do [require protection],鈥� Oakes says. 鈥淪ometimes substituting a different product can eliminate the need for PPE.鈥�

Oakes reminds us that employees are a company鈥檚 most valuable asset, so ensuring their health and safety has to be a prime objective. A comprehensive respiratory protection program鈥攁long with employees who are trained to use their PPE, including respirators correctly鈥攊s crucial to every restoration company to protect that asset.

Amy Hughes is a freelance writer who has worked with Cleanfax for three years and has worked as a writer and editor for nine years. Reach out to her at amylynn.alh@gmail.com.

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One of the impacts of the pandemic is that all cleaners, including carpet cleaning professionals, are taking a second look at the products and cleaning solutions they use. They are evaluating them based on several criteria, including which are best at protecting occupant health (a top consideration during the ongoing pandemic), which are safest for technicians to use, which perform well, and also which are most cost-effective.

Examining such issues subjectively is not always beneficial. We need a formal investigation, and in most cases, this is accomplished by conducting a product audit. Usually, these are best performed with three or more people who are familiar with the products being analyzed and who use them regularly. Conducting an audit with multiple users brings more experience to the table and helps broaden the scope of the evaluation.

Product audit process

There are a few basic steps and best practices to follow to ensure an objective product audit. Before conducting the evaluation, consider the following:

• Price and performance often do correlate (you typically get what you pay for), but this is not necessarily true in all cases. Price should not sway the evaluation of a product鈥檚 effectiveness, so focus first on objective product performance when conducting a product audit. Consider the costs of the product later.
• While those involved in the product audit should be familiar with the products, it may be warranted to get additional product feedback from clients where the product is used.
• Allow enough time to conduct a product audit thoroughly. Important decisions can come from a product audit, which can impact your business for several months, or even years, into the future.

Once you have selected the products to be evaluated, assembled your audit team, and set aside the necessary time, follow these basic steps for conducting a product audit:

• All products used for the same or similar purpose are evaluated at the same time. However, to make the process easier, limit yourself to four products at a time. An example would be a comparison of four different spotters from four different manufacturers.
• As they are evaluated, each product is given a score indicating effectiveness, ease of use, and overall performance. A typical scoring method is a rating in each category of one to five with one being poor and five being excellent.
• After the performance evaluation is complete, reveal the price of each product and rate according to cost-effectiveness with a one being very costly and a five being very cost-effective. Be sure to account for any differences in concentration so that the price per volume is consistent across products.
• All scores are then averaged for all products being evaluated.

Product audit in action

Now that we know the basics of conducting a product audit, let鈥檚 take a look at possible results using the following scenario.

Four products, A, B, C, and D, have been analyzed. Products A and C receive low (poor) evaluations, while products B and D have comparable high evaluations. The company chooses to stop purchasing products A and C due to their poor appraisals.

Products B and D both perform and cost about the same. However, the auditor wants to select only one of these two products.

When this happens in a product audit, we must investigate other factors that could influence which product is best for the company. In this case, the company considered the following:

• Product B has been used for several years by all the technicians. No additional training is required to use this product.
• Product B is green certified, whereas product D is not. Because many clients want environmentally preferable cleaning products, this gives product B the upper hand.
• Product D is sometimes in short supply, which could pose problems in the future.

Adding these factors to the evaluation makes clear that product B is the best choice for this company.

Other benefits

In our scenario, the company decides to purchase and use only product B. Making such a decision has several benefits. The first is cost savings: Eliminating the purchase of the other products will help reduce costs. Further, purchasing large quantities of product B can result in possible discounts from the manufacturer or supplier.

Additional benefits include the following:

• More closet/truck space: Storing one brand of cleaning solution takes a lot less space than four different ones.
• Less confusion: Fewer products means minimizing the likelihood of selecting the wrong product for a specific purpose.
• Greater safety: Different cleaning solutions may have different safety concerns. Minimizing the number of products used helps workers know their products, ensuring worker safety.
• Revelation: Often when a product audit is conducted, it is the first time we actually evaluate the products used in our everyday work. Expect a few surprises to be uncovered in the process like technician dissatisfaction with a product鈥檚 performance.

Keep auditing

As to how often a product audit should be conducted, the answer is that it can vary. If no new products are selected or used after completing one product audit, another product audit may not be necessary.

However, new products are often introduced over time. When this happens, companies find they are in the same boat as before, purchasing several products, all used for the same or similar purposes. That鈥檚 when it鈥檚 time to conduct another product audit and refocus product purchasing once again.

Michael Wilson is AFFLINK鈥檚 Vice President of Marketing and Packaging. He has been with the organization since 2005 and provides strategic leadership for the entire supply chain team. Wilson enjoys working with the Wounded Warrior Project, fishing, and improving his cooking skills in his free time. He can be reached through his company website at聽.

The post How to Conduct a Product Audit appeared first on Cleanfax.

Click to view or download complete survey results.

We found, despite current labor shortages, respondents didn鈥檛 consider staffing the most important challenge. Instead, maintaining margins during supply chain and economy issues was the biggest thorn, with 96% saying it is most important.

The industry is standing strong despite the current chaos in the world. While the pandemic was the biggest factor affecting revenue (34% saw a negative impact), most companies reported strong sales in 2021. Only 9% expect a decrease in gross revenue, a huge improvement over the 46% in 2020. Meanwhile 74% of companies expect growth this year.

Read on to see other industry figures and find out how your business stacks up against its peers.

Download the survey results in PDF here.

About this report: The data in this survey is based on results from carpet cleaning contractors responding to invitations for this survey. Results are not necessarily based on audited financial statements. This report was made possible with support from .

This year saw a big uptick in those reporting full-service offerings over carpet cleaning alone.

Almost all respondents were company leaders, but most have found a decent work-life balance, with 81% reporting working less than 55 hours a week.

Respondents from North America and worldwide participated in this year鈥檚 survey. See a breakdown of employee wages and pricing by location on page 22.

Fewer companies than ever reported being part of a franchise system as the industry continues to be dominated by independently owned businesses.

The number of respondents reporting their companies as S corporations rose sharply, 9% over the 31% reported in 2020.

Most respondents鈥� primary revenue came from carpet cleaning, with 72% getting at least half from that source. Other revenue sources included various restoration services, hard floorcare, and rug cleaning, among

[infobox title=’2021 COVID-19 Data’]The pandemic continues to wreak havoc on small businesses.

More than a third of respondents said the pandemic negatively impacted revenue this year, though 18% saw a positive impact. [/infobox]

Every category under 鈥渃urrently offering鈥� rose over 2020, with trauma cleaning seeing a huge 41-point jump.

More than three quarters charge between $.21 and $.50 per square foot of residential carpet.

Most companies (48%) who offer rug cleaning do so both on location and in a wash plant.

Wages Paid per Hour by Region

Average starting wage in the South rose by $3 an hour over 2020, though pay for a tenured employee stayed the same. Meanwhile, the Northeast鈥檚 starting wage stayed the same, but the average wage rose by $3 an hour. Other areas were unchanged or stayed within a dollar of last year.

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