cleanthoughts Frank: Contractors Will Grow At 15-30 Percent A Year Over Next Four To Five Years Publisher Matt Gallinger mgallinger @ ntpmedia.com Associate Publisher Micah Ogburn mogburn @ ntpmedia.com Senior Editor Rich DiPaolo rdipaolo @ ntpmedia.com Associate Editor Aaron Baunee abaunee @ ntpmedia.com Account Executive Susan Pierce spierce @ ntpmedia.com Art Director Marty Harris marty @ grandviewmedia.com Director of Business Operations Michael Perkins mperkins @ ntpmedia.com Ad Materials Manager Rebecca Follos [email protected] CMI Administrative Manager Sharon Hillis shillis @ ntpmedia.com ® ext. 3159 ext. 3179 (516) 404-4532 ext. 3157 (256) 715-0342 I I often have the pleasure of speaking with various industry veterans, consultants, experts and insiders. I use this information to shape the edito-rial product of Cleaning & Maintenance Management ® , develop new story ideas or for general research. Recently, one kind expert agreed to go “on the record” and allowed me to partially publish one of our conversations. Dave Frank, who is a 30-year industry veteran, the president of the American Institute for Cleaning Sciences and colum-nist for Cleaning & Maintenance Management, answers some questions about the growing popularity of outsourcing. ext. 3133 would employ. But, they must have man-agementʼs support. [Also,] outsourcing will be inevitable if the in-house organization cannot provide documentation. They must be able to pres-ent layers of documentation and informa-tion necessary to justify what they are doing. ext. 3138 ext. 3165 Editorial, Advertising & Publishing Offices NTP Media, division of 13 Century Hill Drive • Latham, NY 12110-2197 (518) 783-1281 FAX: (518) 783-1386 For subscription information local calls (847) 763-1867 or Toll Free (866) 721-4807 How Can Contractors Prepare For Growth? Frank: For most cleaning contractors, the business model is based on, ʻWe do better cleaning.ʼ That is not going to work. Contractors have to be prepared for zero-base budgeting and they have to under-stand task-based workloading. It all has to be built backwards, ʻThis is the number now so how clean can we get the building for that number?ʼ Thatʼs the right business model. The contractor is going to have to identi-fy the business structure of cleaning. They can no longer just throw workers at it and say, ʻGo clean.ʼ They need operational structure to succeed. CM Canada Post: Publications Mail Agreement #40612608 Canada Returns to be sent to: Bleuchip International, P.O. Box 25542, London, ON N6C 6B2 Why Is Outsourcing Becoming Widespread Right Now? Frank: Cleaning is not a core competency of most in-house organizations. [But,] the need for outsourcing is really stemming from a need to cut costs. Today, chief financial officers (CFOs) are looking at the cost of everything, such as copy machines, materials and cleaning. And, since cleaning represents 20 percent or more of the maintenance and opera-tions cost, it is on a big radar screen. It is my prediction that contractors will grow at 15-30 percent a year over the next four to five years. Corporate General Manager Barry Lovette [email protected] Vice President of Operations Brent Kizzire [email protected] Chief Marketing Officer, Publishing Services Group Hank Brown [email protected] Vice President of Business Publishing Tracy Aston-Martin [email protected] Vice President of Finance Brad Youngblood [email protected] Director of Circulation & Fulfillment Delicia Poole [email protected] Circulation Manager Brandy Pate [email protected] Honorary Advisory Board: Mike Adams, Greenfield, IN; Stephen Ashkin, Bloomington, IN; Jim Brewer, Arlington, TX; Laura Dellutri, Lenexa, KS; Ron Goerne, Bloomington, IL; Russell Kendzior, Southlake, TX; Don McNulty, Blue Springs, MO; Bob Merkt, West Bend, WI. What Options Do In-house Cleaning Departments Have To Thrive? Frank: They can organize their operations and use best practices that a contractor Richard DiPaolo, Senior editor Send comments or thoughts on this topic or any other article that appears in CM/Cleaning & Maintenance Management ® magazine, to [email protected]. CM/Cleaning & Maintenance Management Online™ Service at www.cmmonline.com 6 CM/Cleaning & Maintenance Management ® • April 2009