The past couple years have reinforced that diversification can be a good thing in the portable sanitation industry. Some restroom contractors who were hit hard by the economic downturn in construction found that it was beneficial to be serving special events. And some PROs found that when restroom service in general lagged, another service they perform, such as septic cleaning and repairs, may have picked up the slack.
So we asked a few contractors what they’d be doing if diversification were on their immediate horizon. The wide range of answers may surprise you.
For Andy Zabrieszack, who offers portable restrooms, storage and offices made from shipping containers, the question of diversification isn’t theoretical. “This year, we’re going into the jetting business,” he says. “We’ve been talking to the Rooter-Man franchise because we need to find ways to generate more revenue.” He reports that business has been slow. Many of his 1,200 restrooms have been staying in the yard this year.
“We don’t do the pumping as much as we do the portables, and we have the offices, mostly all rentals. We’d like to even out the seasonality of the business as well as diversify a bit into a business that uses equipment we already have.”
A & A has already proven the wisdom of such natural service extensions. The company had been in the storage container business when Zabrieszack realized he could put the containers to double duty by refitting some of them as small, portable offices. “We also knew we could place a restroom inside those offices, so it was one more way to make money off of products we already handled, using equipment we’ve already got, on jobsites we’re already servicing.”
“The first thing I’d do is add more restrooms to my inventory, and add accessories such as hand sanitizers, sinks and soap to the units I’ve got,” says Doug Saunders, a relative rookie in the portable sanitation industry. Those 50 units are mostly PolyJohn Enterprises Corp. PJN3 restrooms and a Wells Cargo Elite VIP trailer.
“I’d also look into adding CCTV work, inspecting lines for people,” adds Saunders, a veteran of the municipal sewer side of wastewater management. “I’m already a certified camera operator from that other job,” he explains, saying he believes such inspection work is likely to soon become a growth industry.
“With all the municipalities trying to keep (inflow and infiltration) out of the sewer lines, I think there may come a time when, before any house gets sold, the line has to be videoed for issues that need to be fixed before the property can change hands.”
Calvin McFarland sees expanding his niche in portables and party rentals into something similar and logical. “Definitely trash,” he says, “because restrooms and trash go hand-in-hand. On jobsites, it’s mandatory to have (roll-off containers) and portables.” He has about 200 units in inventory that he mainly uses to service construction sites and special events. He also offers VIP trailers and high-end portable units for parties, all of which require trash collection.
Jay Ackley says his business is already diversified with septic and grease trap pumping in addition to his portable restroom rentals, but he’s always interested in new opportunities. He identifies one that’s rather unique.
“I’d like to go into the revamping of older trucks. The price and the (U.S. Environmental Protection Agency) regulations on today’s truck motors are going to squeeze (profit margins) down so far that you’re going to spend more time getting the truck to run than running the truck. With the incinerator exhaust systems on them, the money you’re going to make you’ll have to spend to keep the truck running.”
He believes the refurbishing idea is the direction in which the whole industry is trending in the next 4-5 years. “I think that’s where the money is, and it’s a way of greening things up, including (retrofitting trucks to run) biofuel.”
