If there is one thing I have learned, that the demise of any company rarely gets predicted accurately.
SO TRUE ! Although I do remember catching a bunch of ______ for predicting that Steamway, Chemtex,
Vortex & the other Biggee truck mount maker going down the tubes, 5 years ago on the blue board. To me it was just really obvious that none of these companies would make it as long term players. Steamway may claim to still be selling chemicals but the phone is answered with a recording 24/7 , that says it all they are gone. Chemtex is on the ropes,
Chemspec is liquidating inventory for 10 cents on the dollar :mrgreen:
direct to the end user, and
Vortex has now been sold for what the 3-4th time ? A local supplier told me that White magic will be gone before the fall, they are running out of cash. The enormous amount of bad press they got recently probably didn't help. Personally I don't see
Vortex or the other biggee truck maker (I already forgot their name) being around much longer. There is a very limited market for these units, tons of used ones on the market that don't seem to be moving, and we are in a time where "easy financing" is a thing of the past.
I think you are going to see a trending down of the equipment. When guys realize they don't need 300 degree water to clean carpet , paying $1600 a month for a unit/ truck makes little business sense. Financing will be tougher so start ups will be running more portables, and mid-level machines like the
Prochem Legend or Judson TNT will become the standard.
Before things get back to "normal" we will see 3-4 major manufacturers disappear, a bunch of distributor downsize or fold and a few major consolidations. In good times 25% of carpet cleaners disappear, this year it will be more like 50%. That is a real opportunity for the operator that has his cost structure under control , adequate cash to coast through the rough months, and marketing in place that accommodates the value shopper of today. If you stick to trying to get .70 a square foot in today's market you will have a rough couple of years. The newbies will take your customers, and build a business with that reposed truck mount they bought for 25 cents on the dollar.