Bruce is Bullish on Portable Sanitation

New United Site Services CEO says the industry will overcome a slump caused by the housing downturn.

As the new president and chief executive officer for restroom services giant United Site Services Inc., Kevin Bruce has an interesting perspective on the portable sanitation industry.

Bruce joined USS in August 2007, bringing with him more than 30 years of senior management experience. His career includes stints as the CEO of Strategic Equipment and Supply Corp., a provider of equipment services and supplies for the food service industry; a senior officer for the North American business unit of SG Lufthansa/Sky Chefs, an in-flight airline caterer; and a senior officer at PepsiCo.

USS has purchased dozens of smaller portable sanitation companies and has ambitious plans to grow via further acquisitions. Its equipment inventory includes more than 156,000 portable restrooms and more than 1,000 service and delivery vehicles. USS does business in more than 50 locations nationwide, providing service throughout the continental United States.

Along with portable restroom services, the company responds to emergencies and disasters with equipment and supplies, ranging from fuel and trucks to fencing and mobile command centers that can operate when phone and power lines are down.

Overall, Bruce is bullish on the portable sanitation industry, and shares some thoughts on the increasing role of technology, the potential for increased industry regulation, the rewards of business diversification and the need for professional standards of service for portable sanitation operators.

Pumper: What prompted you to switch gears and join the portable sanitation industry?

Bruce: I think the industry has a tremendous amount of upside. It provides a service that’s often overlooked — until it’s needed. You’re involved in everything from large special events down to important family occasions, such as reunions, barbecues and such. I think providing that kind of service is a really great experience.

From a business perspective, there’s clearly an opportunity to bring in elements from other industries — other approaches and disciplines — that can help the company and the industry advance.

Pumper: What trends do you see emerging in the portable sanitation industry? For instance, do you anticipate more and larger national service providers?

Bruce: Interestingly, most industries are not consolidated due to difficulties and the capital required to execute a consolidation. The portable sanitation industry has traditionally had few barriers to entry, but many barriers to consolidation. Local entrepreneurs have been able to go into the business and make a good living with minimal capital investment.

Moreover, there has been little available technology that can differentiate a large player from a small one. But we are starting to see many of those factors change.

Pumper: Do you see a trend toward more technology in terms of, for example, computerized truck routing, GPS tracking, laptop computers in trucks, etc.?

Bruce: I think it all starts with service. Quite frankly, some customers don’t care if there’s a laptop computer in a truck. Sometimes a clipboard and a route sheet is appropriate technology. It all comes down to analyzing things and making a decision about capital investments versus return on capital. It’s up to each individual operator to make that determination.

In our case, USS is moving ahead to implement the first service verification system in the country. Using a combination of third-party and our own proprietary systems, we’ll be able to verify delivery and service of our restrooms nationwide. The system allows us to know — on a real-time basis, nationwide — when service is taking place, right down to the Global Positioning Systems coordinates. This allows us to deploy services in a very efficient manner. Additionally, a driver entering a large residential development will know exactly where the units are. And the service is factual and data based, which helps resolve potential disputes with customers.

Pumper: Do you see increased sanitation regulation on the horizon?

Bruce: Yes, I would expect to see regulations increase. The Portable Sanitation Association International is a leading provider of expertise to many governmental agencies and, as a result, we can really help craft regulations that accomplish a good public purpose while also supporting our industry.

It is clear, for instance, that the health, morale and productivity of construction workers are improved when there are adequate sanitation facilities onsite. The PSAI has been working with the Occupational Safety and Health Administration to change the current regulation of one restroom for every 20 workers to one for every 10 workers. We fully support PSAI in these efforts.

We’ve seen California adopt hand-washing regulations for jobsites and special events. We expect to see this expand to more states as health officials recognize the positive effect it can have on public health.

In short, we have to be very mindful that we’re dealing with a service that, when properly executed, is very low profile. When it’s not properly executed, it’s not low profile. Philosophically, I’m as free market as you can get — but there’s definitely a need for regulations.

Pumper: What is your opinion of standards of professionalism in the industry?

Bruce: Bringing a strong level of professionalism to our industry is helpful to both our customers and our employees, and I would expect to see an ongoing effort for certification and education. New technologies, such as call recording, will help companies improve the skills of their customer service teams.

With call recording, we have a consolidated call center that includes the ability to record phone calls so employees can learn how to better manage customer needs over the phone. We can zero-in on training opportunities, and reward those who are doing a good job.

Pumper: What do you think the future holds for the special events and construction markets?

Bruce: I think these will remain very important areas of emphasis, regardless of the current situation in the residential homebuilding segment. We have contracts with large national customers that are an important part of our growth. That said, we also work hard to capture every small event possible. We’ll serve any customer from a backyard wedding with one portable toilet to a huge air show with hundreds of portable toilets and a fleet of restroom trailers.

Pumper: What are some logical areas where portable restroom operators can diversify?

Bruce: Well, for USS, diversification includes septic, stormwater pollution prevention programs, erosion, fencing, power, recreation and special events. Different market segments require different services.

For example, when we provide emergency response for a disaster, we see urgent needs for potable water, power generation and showers. Special events, on the other hand, often require temporary fencing, barricades, mobile storage and temporary offices. Some of these services overlap market segments, while others are somewhat unique to a particular segment.

Let’s put it this way: A rising tide lifts all boats. The name of our company is United Site Services, and there’s a reason for that — we’re not limited to portable sanitation. We look for ways to help our customers meet their particular needs. We do that by asking them about their needs … and I would encourage all operators to think that way.

The capital requirements or geographic constraints may create barriers, but that doesn’t stop folks from thinking about broader services. Necessity is the mother of invention … look around and see how you can leverage your strengths elsewhere.

Pumper: What challenges does the portable sanitation industry face going forward?

Bruce: The most obvious challenge is our nation’s homebuilding downturn. Each region of the country has been affected differently. Red-hot markets, such as California and Arizona, have seen the biggest corrections.

But other areas, like the Northeast, have been affected less because housing represents a smaller part of the portable sanitation market. Other strong markets, such as Houston, haven’t been as affected by the subprime lending market problems because strong underlying economic growth sustains demand for housing.

The long-term forecasts for population growth in the United States remain strong, and this is the underlying driver of housing demand. We don’t see the current housing market creating a fundamental change in the demand for portable sanitation; it’s more of a short-term, over-supply issue. Our industry will have to work through this dynamic. Growth will begin again, but on its own timetable.



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