Manufacturers of portable restrooms reported good growth during 2004, attributing some of the increase to natural
disaster requirements such as the hurricanes that devastated Florida. Many acknowledged that construction starts
have held,spurring an increase in portable restroom requirements.
Some explained that growing concern for overall sanitation has spurred a good portion of growth as the portable
sanitation industry has evolved into a time of acceptability. The need for portable restrooms has gained attention and
is readily embraced by an increasing number of decision makers.
disaster requirements such as the hurricanes that devastated Florida. Many acknowledged that construction starts
have held,spurring an increase in portable restroom requirements.
Some explained that growing concern for overall sanitation has spurred a good portion of growth as the portable
sanitation industry has evolved into a time of acceptability. The need for portable restrooms has gained attention and
is readily embraced by an increasing number of decision makers.
Collectively, the group of portable restroom manufacturers reported an overall increase of actual restroom sales at
about 12 percent more than the previous year. Newer entrants into the manufacturing sector reported strong
increases in their numbers.
At the close of 2003, an estimated 122,300 new portable restrooms had been introduced into the United States. In
addition it was further reported that sales of portable restrooms designed to accommodate wheelchair access hit
9,100 and hand wash facilities created a market for 12,300 interior and 11,700 freestanding. Much of the hand
wash increase was spurred due to new regulations in California mandating access to hand washing at construction
sites.
Although some portable restroom manufacturers are willing to share year end numbers, others exercise their option
to keep them private. It is estimated that for the 2004 calendar year, portable restroom operators added 136, 976
portable restrooms to their fleets.
For the most part, the industry escaped the downturn in the economy, pushing forward each year producing better
results than the previous.
Pricing for portable restrooms held steady throughout 2004 despite a continual upward push on raw plastic resins
which has gone from .37 a pound in January of 2002 clicking upward to .80 a pound by the close of the year, as
December came to a close, material increased by another .08 a pound.
Despite competitive pressures on the manufacturing front. it is estimated that pricing on portable restrooms may
see an increase of 3 to 5 percent which could cross over into other components such as hand wash facilities and
wheelchair accessible units. According to statistics compiled from a recent Journal polling, portable restroom
operators anticipate rate increases of approximately 8 percent for 2005.
The rental/service sector reports confirming numbers, enjoying good growth in the increase of actual fleet sizes,
despite a strong influence of new entrants into the portable sanitation business.
Overall margin percentages slipped while manufacturers and portable restroom operators battled a wave of
increases in the costs associated with doing business.
“We raised our rates 8% in June,” said Jess Thompson of New Jersey-based Johnny on the Spot. “No negative
repercussions to speak of,” he said noting, “We were among the two highest priced services before the increase!
Now we are the highest for sure. I like that, I’m confident with the value we provide.”
In addition to increasing rental rates and/or the addition of surcharges, Thompson looks to increasing efficiencies to
enhance the business.
about 12 percent more than the previous year. Newer entrants into the manufacturing sector reported strong
increases in their numbers.
At the close of 2003, an estimated 122,300 new portable restrooms had been introduced into the United States. In
addition it was further reported that sales of portable restrooms designed to accommodate wheelchair access hit
9,100 and hand wash facilities created a market for 12,300 interior and 11,700 freestanding. Much of the hand
wash increase was spurred due to new regulations in California mandating access to hand washing at construction
sites.
Although some portable restroom manufacturers are willing to share year end numbers, others exercise their option
to keep them private. It is estimated that for the 2004 calendar year, portable restroom operators added 136, 976
portable restrooms to their fleets.
For the most part, the industry escaped the downturn in the economy, pushing forward each year producing better
results than the previous.
Pricing for portable restrooms held steady throughout 2004 despite a continual upward push on raw plastic resins
which has gone from .37 a pound in January of 2002 clicking upward to .80 a pound by the close of the year, as
December came to a close, material increased by another .08 a pound.
Despite competitive pressures on the manufacturing front. it is estimated that pricing on portable restrooms may
see an increase of 3 to 5 percent which could cross over into other components such as hand wash facilities and
wheelchair accessible units. According to statistics compiled from a recent Journal polling, portable restroom
operators anticipate rate increases of approximately 8 percent for 2005.
The rental/service sector reports confirming numbers, enjoying good growth in the increase of actual fleet sizes,
despite a strong influence of new entrants into the portable sanitation business.
Overall margin percentages slipped while manufacturers and portable restroom operators battled a wave of
increases in the costs associated with doing business.
“We raised our rates 8% in June,” said Jess Thompson of New Jersey-based Johnny on the Spot. “No negative
repercussions to speak of,” he said noting, “We were among the two highest priced services before the increase!
Now we are the highest for sure. I like that, I’m confident with the value we provide.”
In addition to increasing rental rates and/or the addition of surcharges, Thompson looks to increasing efficiencies to
enhance the business.
|
An estimated 136,976 portable restrooms were purchased in 2004-Record breaking industry numbers but portable restroom operators express concern over escalating costs |
“We continually seek lower disposal costs. We have also tweaked driver productivity requirements to a point where
morale may suffer if we continue. We are currently communicating the need to our staff and will be very careful
about expecting more from our best people next year. We also need to keep the quality of each service in mind as
the portable restrooms\ rt and min\unit improved each of the last three years,” he said.
“We have always had portable restroom service driver evaluations here,” says Thompson who believes the process
to be valuable. “They (evaluations), help us communicate profitability to drivers. This process continues to identify
those who don’t run efficiently, and rewards those who do. We work close with those in need. GPS has been used
as an effective tool to analyze inefficiencies. Retraining beats rehiring in many ways,” he said. Thompson noted
some of the benefits of retraining as having an impact on morale, advertising, screening cost, initial training cost,
customer perception, and manager accountability.
Along with accountability comes compensation.
“We have kept our employee compensation package among the strongest in our state for qualified CDL’s ( wages,
opportunity, incentives, company outings, health and retirement, etc.). We do watch the overtime a little bit closer
now. The quality (cost) of our staff is a strategic investment. Higher caliber people reduce the “overall cost” of our
portable restroom services and provide real value to our customers. We lose drivers to competitors once or twice a
year. They invariably sacrifice some form of compensation for less accountability. We’ve become comfortable
with those losses,” he closed.
Increases in rental rates likely not enough:
Few portable restroom operators noted that price increases alone would be sufficient to correct a decline in
margins, expressing instead that a combination effort in operating efficiencies coupled with a percentage increase
would be required to level out profitability within the portable sanitation industry. “Simply put, adding a 5.5%
surcharge for the increase of fuel only passes along some of the costs and does little to enhance margins,”
explained one portable restroom operator who declined to give his name.
Nationally, restroom rental rates have stalled and according to an informal Journal polling conducted last year
averaged $69.50 per four week billing cycle, excluding additional line items such as pick up and delivery, damage
waivers, or other specific line items.
Industry veterans claim restroom rental rates to be similar or in some cases less than what they were twenty years
ago.
Although many report difficulty in raising standard restroom rental rates, line items have been used to off set some
costs. In October 2003, a Journal polling revealed that of those portable restroom operators responding, 74%
charge late fees for customers that do not pay within terms, 45% charge a stand-by fee, 80% have a delivery fee,
80% charge for a damage waiver and 35% said they charge for an inaccessible unit-return to service fee. In most
cases each item was negotiable. Other line items included, disposal, fuel, actual damage, winter usage, additional
service, out of area and
for services that require immediate attention such as last minute orders.
morale may suffer if we continue. We are currently communicating the need to our staff and will be very careful
about expecting more from our best people next year. We also need to keep the quality of each service in mind as
the portable restrooms\ rt and min\unit improved each of the last three years,” he said.
“We have always had portable restroom service driver evaluations here,” says Thompson who believes the process
to be valuable. “They (evaluations), help us communicate profitability to drivers. This process continues to identify
those who don’t run efficiently, and rewards those who do. We work close with those in need. GPS has been used
as an effective tool to analyze inefficiencies. Retraining beats rehiring in many ways,” he said. Thompson noted
some of the benefits of retraining as having an impact on morale, advertising, screening cost, initial training cost,
customer perception, and manager accountability.
Along with accountability comes compensation.
“We have kept our employee compensation package among the strongest in our state for qualified CDL’s ( wages,
opportunity, incentives, company outings, health and retirement, etc.). We do watch the overtime a little bit closer
now. The quality (cost) of our staff is a strategic investment. Higher caliber people reduce the “overall cost” of our
portable restroom services and provide real value to our customers. We lose drivers to competitors once or twice a
year. They invariably sacrifice some form of compensation for less accountability. We’ve become comfortable
with those losses,” he closed.
Increases in rental rates likely not enough:
Few portable restroom operators noted that price increases alone would be sufficient to correct a decline in
margins, expressing instead that a combination effort in operating efficiencies coupled with a percentage increase
would be required to level out profitability within the portable sanitation industry. “Simply put, adding a 5.5%
surcharge for the increase of fuel only passes along some of the costs and does little to enhance margins,”
explained one portable restroom operator who declined to give his name.
Nationally, restroom rental rates have stalled and according to an informal Journal polling conducted last year
averaged $69.50 per four week billing cycle, excluding additional line items such as pick up and delivery, damage
waivers, or other specific line items.
Industry veterans claim restroom rental rates to be similar or in some cases less than what they were twenty years
ago.
Although many report difficulty in raising standard restroom rental rates, line items have been used to off set some
costs. In October 2003, a Journal polling revealed that of those portable restroom operators responding, 74%
charge late fees for customers that do not pay within terms, 45% charge a stand-by fee, 80% have a delivery fee,
80% charge for a damage waiver and 35% said they charge for an inaccessible unit-return to service fee. In most
cases each item was negotiable. Other line items included, disposal, fuel, actual damage, winter usage, additional
service, out of area and
for services that require immediate attention such as last minute orders.
The Sanitation Journal is a monthly trade publication that caters to the portable restroom industry. Each month
thousands of portable restroom operators utilize information from the Journal to aid in business decisions.
Subscribe today and make sure you never miss an issue.
thousands of portable restroom operators utilize information from the Journal to aid in business decisions.
Subscribe today and make sure you never miss an issue.
Portable Restroom Operators Report
Strong Growth for 2004
Strong Growth for 2004
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Serving the American Liquid Waste Industry Since 2002