When George “Buster” Downing decided to become a septic tank installer and pumper in 1971, he didn’t know much about the industry. But almost 40 years later, he’s a seasoned veteran who’s combined old-fashioned New England common sense, the ability to capitalize on new business opportunities and a unique waste-disposal arrangement to build a successful pumping and portable restroom business.
In fact, G.A. Downing Company Inc., based in Minot, Maine, is healthy enough that Downing’s two children — Beth Ducharme, 39, and Bradd Downing, 37 — plan to keep running it after he retires in a few years.
“They’re slowly taking over,” the 66-year-old Downing says. “They complement each other. They both have a good understanding of what each other does. She knows the business from the inside and he knows it from the outside.”
ALL IN THE FAMILY
Beth spent two years studying business administration before joining the company as an office manager in 1989. Bradd, who earned an associate’s degree in civil engineering, initially wasn’t interested in continuing the family tradition. But he reconsidered when he got tired of the travel required by his job at a construction firm.
Contemplating a career change, Bradd Downing attended the Pumper & Cleaner Environmental Expo International about five years ago to “look around and see what’s going on in the industry,” his father recalls. Intrigued by what he saw, Bradd decided to work in the business for a while and see if he enjoyed it enough to stick with it.
After both children committed to staying with the business, which is about 80 percent portable restroom services and 20 percent septic tank installation and pumping, Downing hired an attorney and an accountant to draft a succession plan, as well as guide him through a maze of inheritance and tax laws. In drafting a formal plan, Downing was advised to make a sound exit strategy a priority.
“They’re my retirement, in essence,” Downing says of his children and the business. “Without an exit plan, my wife, Susan, and I might be at the mercy of whoever might buy the company. Susan and I and the kids want to ensure that there’s a comfortable living for all of us for the foreseeable future. So it behooves everyone to make sure things are done in a proper manner.”
While declining to discuss specific details of the plan, Downing said one of the most important elements dictates that he gets a say in any sale of the company.
“The way the agreement is structured is unique to our situation,” he says. “But the bottom line is that if the kids decide to sell, I’d get a say in the matter. That’s important because if it’s sold and then goes belly-up, then I have to come out of retirement.”
OFF THE CORPORATE LADDER
Complex legalities such as succession plans and inheritance tax laws were the farthest thing from Downing’s mind when he worked years ago as a supervisor for one of the world’s largest package delivery companies. Things changed when he was offered a promotion that would have required relocating.
“As a Maine boy at heart, I decided I wanted to stay here,” he recalls. “The new position also would’ve meant a lot of additional pressure, so I figured I’d try going into business for myself instead.”
Downing hooked up with an accountant who found a company with three divisions, including one that focused on septic pumping. The company’s two partners wanted to split, with each one taking one division to run on their own. That left the septic division as a business orphan, and sensing a good opportunity, Downing decided to become its adoptive parent.
“So I went out and bought a backhoe, a septic truck and a few hand tools, drove home and started from there,” he says.
Downing soon realized he couldn’t handle things alone, so he hired a semi-retired uncle to help install septic tanks and drainage fields. By the mid-1970s, he owned about a dozen pieces of heavy equipment and employed three to four people.
RESTROOM OPPORTUNITY KNOCKS
A chance phone call thrust Downing into the portable restroom business. A contractor asked if Downing had any portable restrooms to rent for a construction site. “That night, I got to thinking about it, and called him back the next day and said we’d come up with something,” Downing says.
In the infancy of the portable sanitation business, Downing had nowhere to turn for advice. So at first, he built his own restrooms out of plywood. Soon, he was spending so much time building and cleaning restrooms that he couldn’t tend to the rest of the business.
“I figured there had to be a better way,” he says. “I finally found a company in Rhode Island that made fiberglass restrooms. Not knowing much about it, I drove down there and bought 10 units, lashed them on the back of a trailer and drove home.
“I learned a lot by trial and error. We used a small portable unit in the back of a pickup truck to pump out the restrooms. It was crude by today’s standards, but it worked well enough to get by.”
Today, Downing owns about 600 restrooms, most of them basic units built by PolyJohn Enterprises Corp. The company’s restroom service fleet includes a 2002 International 4700, and 2004, 2005 and 2006 International 4200s. Coleman Vacuum Tank Manufacturing Inc. built all the service trucks, which carry 1,000-gallon, stainless steel, three-compartment tanks (split into 650 gallons for wastewater, 200 gallons for pre-mix and 150 gallons for heated/pressurized freshwater).
On the septic pumping side, Downing owns a 1991 International 8100 with a 3,200-gallon stainless-steel tank, also built by Coleman; and a 1999 Peterbilt 330 that carries a 2,500-gallon waste/300-gallon freshwater aluminum tank from Progress Tank.
Downing also relies on a 2004 GMC 3500, 1-ton dually pickup truck to tow trailers, and a Kubota R400 articulated loader/forklift to load and unload trucks and trailers.
EMBRACE COMPETITION
Downing’s reputation as a quality outfit spread by word-of-mouth, aided by the fact that at the time, he was the area’s only restroom operator. He says he dreaded the day when competition would arrive, but now believes competing businesses were the best thing that could’ve happened.
“More competitors mean more exposure (for the industry in general), so more people think about your service — it creates demand,” he says. “Good competition also substantiated our rates by giving customers something to compare to.”
Early on, setting prices was a challenge, especially since there was no competition to gauge against.
“There are a lot of things you have to toss in when you’re figuring out prices,” Downing notes. “So many people get into the business and don’t know what their true costs are, and what kind of profit they need to survive. Or they price according to the competition, charging $5 if the other guy charges $10, figuring they’ll take away his business. You need to do your homework and figure out exactly what your costs are, so you can run a responsible business.”
Downing says his current prices are at the “high end of the spectrum” in his service area. As such, he makes a special effort to educate customers so they understand the value they’re receiving when comparing his service to price-cutting competitors. In short, Downing believes customers get what they pay for.
Higher rates also enable Downing to buy the best equipment for his employees. He insists on paying extra for air suspension, which not only is more durable than spring suspension, but also provides a smoother, more comfortable ride.
“It’s a small investment over the life of a vehicle, especially when you consider that employees live in their trucks for eight to 10 hours a day,” he says. “But when you follow that philosophy, you have to charge a little more, too.”
Downing hires a mechanic to come in once a week to check the trucks over and keep them in good working order. “Well-maintained trucks are the cheapest to operate,” he says.
UNIQUE DISPOSAL ARRANGEMENT
Downing says an unusual waste-disposal arrangement with the owners of a former woolen mill reduces his operating expenses. The local mill, which closed about five years ago, operated its own treatment plant to handle waste.
Even after the mill closed, the owners kept the treatment plant running to process waste from outbuildings that were converted into residential rental properties. But that only consumed a fraction of the treatment plant’s capacity. Because the plant is expensive to operate, the owners started looking for companies that needed waste-disposal services, which would help generate income to defray the plant’s operating costs.
“I had done work for some of the owners, and they asked me if I was interested,” Downing says. “A couple years ago, we reached a handshake agreement to give it a try.”
The plant can handle up to 30,000 gallons of waste a week, and the rates are competitive with other area disposal facilities. Because of truck route logistics, Downing disposes only 25 to 35 percent of his septage at the facility.
“It took us a while to get to the point where it was beneficial because sometimes the mill was in the opposite direction of our truck routes,” Downing explains. “But we started to develop routes to maximize efficiency. In the long run, it saves us money. Anytime we can get closer geographically to a treatment facility, it’s advantageous for us — and our customers. If we can dispose of waste for less money, we can lower our rates accordingly.”
Any septage not taken to the mill facility is either trucked to other local disposal facilities, or stored in two 10,000-gallon holding tanks that Downing installed in the 1980s, when there weren’t as many waste disposal facilities. Another waste hauler periodically empties the tanks and transports the waste to the nearest facility.
A FAMILY COMPANY
As Downing eyes retirement, he’s grateful that his children are interested in keeping the business family-owned and operated.
“I didn’t realize until I got to this point in my career how fortunate I am that they’re interested,” he says. “I could’ve just as easily had two children with no interest whatsoever.
“I’m certainly very proud of them taking it over. I feel a lot better about it than if someone else just came along and bought it. I can’t imagine not having the opportunity to do it this way.”
