Content about Washington

WASHINGTON — Optimism continues for the apartment industry, according to the latest results of the National Multi Housing Council (NMHC) Quarterly Survey of Apartment Market Conditions. The findings reflect a gradual recovery for the multifamily sector that faced a 50-year low in apartment starts in 2009, which is good news for the coin laundry business.

The first-quarter survey’s four indexes measuring Market Tightness (74), Sales Volume (57), Equity Financing (62) and Debt Financing (65) remained above 50 for the eighth time in the past nine quarters. Any number above 50 indicates quarter-to-quarter growth.

“Market conditions improved across the board, even from the rather strong level of three months ago,” says NMHC Chief Economist Mark Obrinsky. “Demand for apartment residences—and apartment properties—continues to grow. We anticipate this increasing further in the coming years due in part to the large number of younger households moving into the housing market and a greater preference shown for renting.”

FORT LAUDERDALE, Fla. — The 2012 Spring Educational Conference of the Multi-housing Laundry Association (MLA) will focus on increasing profits through business cycle changes; interviewing, hiring and evaluating employees; and the political picture of 2012.

Also, the group will bring back its popular route operator roundtable discussion.

The Ritz-Carlton Fort Lauderdale (Fla.) will play host to the event on April 22-24.

Three educational sessions are scheduled in addition to MLA committee meetings, networking opportunities and more.

Educational sessions on the tentative agenda include:

• The Intersection of Politics and Policy, by Ron Brownstein, National Journal Group.

A two-time Pulitzer Prize finalist, Brownstein explains with lucid precision the complexities of American politics. He appears regularly on MSNBC programs, including Hardball, Andrea Mitchell Reports, and Morning Joe, and has served as a regular panelist on Face the Nation.

His sixth and most recent book, The Second Civil War: How Extreme Partisanship Has Paralyzed Washington and Polarized America, was published in 2007.

• Talent Acquisition and Retention, by Deidre Siegel, PEAR™ Core Solutions.

Siegel is founder and CEO of an outsourced, human resources management firm that provides core competencies in behavioral analytics for individuals and in the workplace, talent acquisition strategies, and all levels of human resource support in areas of legal compliance and organizational development pertaining to policies, procedures, process, and people.

Her company has worked with teams in many organizations across a variety of industries. Clients are able to understand their unique business culture in a strategic manner, MLA says, and using this knowledge of specific and unique corporate dynamics, as well as the implementation of proper processes, documentation and communication, remain in growth mode perpetually.

• Increasing Profits through Business Cycle Changes, by Alan Beaulieu, ITR Capital Partners.

Beaulieu co-authored Make Your Move, a book on how to increase profits through business cycle changes. He is president of the Institute for Trend Research, principal and managing partner of ITR Capital Partners, and an active member of ITR’s Investment Committee.

Beaulieu has been consulting with companies throughout the United States, Europe and Japan. His firm’s accuracy rate and unique position—with more than 60 years of calls throughout every major historic economic turning point—as well as his extensive understanding of business cycles and the ability to explain the implications makes his presentation unique, MLA says.

Away from the conference, attendees can take advantage of Fort Lauderdale’s art and museum tours, yacht charters, sports fishing, casinos and racetracks, and more.

The reservation deadline has passed at the host hotel, but rooms may still be available. Call 800-542-8680 for information.

MLA membership entitles each company to two complimentary registrations. Additional registrants or guests may attend at a registration fee set to cover the cost of food, beverages, and speaker expenses.

To learn how to register, call 800-380-3652 or e-mail nshore@mla-online.com.

SANTA FE SPRINGS, Calif. — Continental Girbau West (CG West) has hired Andrew “Bud” Bakker as vice president of sales. In his new role, Bakker manages and works to grow the regional distributor’s vended, on-premise and industrial laundry sales efforts.

“Bud is an incredibly experienced sales professional with undeniable character,” says Continental Girbau President Mike Floyd. “He understands field sales and comes to CG West with more than 28 years of experience.”

Bakker launched his career in 1984 as an owner/operator of Simon and Son Fine Dry Cleaning, in Woodinville, Wash., where he stayed for 11 years. He went on to serve Westport Supply, Tukwila, Wash., where he handled drycleaning, industrial laundry, hotel laundry and janitorial supply sales. Most recently, he served as the Northwest sales account manager at Dynamic Sales and Service, Kirkland, Wash., where he managed a territory including Washington, Oregon, Idaho and Montana.

A subsidiary of Wisconsin-based Continental Girbau Inc., CG West serves the California vended, on-premise and industrial laundry markets by providing equipment, parts, financing, service, warranty and training.

LAUNDRYLUX NAMES CHATEAU WESTERN REGIONAL BUSINESS MANAGER FOR COIN SALES

INWOOD, N.Y. — Robert Chateau is the new Western regional business manager for coin sales for Laundrylux. His territory includes Arizona, California, Idaho, Montana, Nevada, Oregon, Utah, Washington, and Alberta and British Columbia in Canada.

“We have been working with Robert for a number of years and his sales skills, leadership abilities, and product knowledge are outstanding,” says Howard Herman, Laundrylux president.

San Diego-based Chateau brings 12 years of industry experience to Laundrylux. He learned to repair commercial washers and dryers while in the Navy. In 2000, Chateau joined longtime Laundrylux distributor Golden State Laundry Systems as service manager and worked his way up through the sales department. For the past two years, he has worked for Electrolux Professional, traveling to the Electrolux factories in Sweden and France many times for training.

“I saw a great opportunity with Laundrylux and am especially pleased that I will represent the Electrolux and Wascomat brands,” Chateau says.

SEAGA WELCOMES BACK BOWERSOX AS CHANNEL MANAGER

FREEPORT, Ill. — Industry veteran Dave Bowersox has returned to vending machine manufacturer Seaga as its channel manager for the full-line division. He is in charge of serving the company’s full-time customers and prospects.

While based in Seaga’s headquarters in Freeport, he will be working from his home in Minneapolis.

“We welcome Dave back to the Seaga family with open arms,” says Steven Chesney, Seaga CEO. “Dave is the epitome of what a Seaga employee should be: loyal, honest and ready to serve any and all customer needs.”

WASHINGTON – The U.S. Environmental Protection Agency (EPA) on Feb. 10 officially characterized tetrachloroethylene—also known as perchloroethylene (perc)—as a “likely human carcinogen,” but the agency does not believe that wearing clothing dry-cleaned with perc poses a health risk.

EPA issued its final health assessment to its Integrated Risk Information System (IRIS) database, which describes health effects that may result from exposure to various substances. The assessment provides estimates for both cancer and non-cancer effects associated with exposure to perc over a lifetime.

The agency has already taken several significant actions to reduce exposure to perc. It has clean air standards for dry cleaners that use perc, including requirements that will phase-out the chemical’s use in residential buildings by Dec. 21, 2020.

EPA also set limits for the amount of perc allowed in drinking water, and levels for cleaning up perc at Superfund sites throughout the country, which will be updated in light of the IRIS assessment.

“The perc health assessment released today will provide valuable information to help protect people and communities from exposure to perc in soil, water and air,” says Paul Anastas, assistant administrator for EPA’s Office of Research and Development. “This assessment emphasizes the value of the IRIS database in providing strong science to support government officials as they make decisions to protect the health of the American people.”

The assessment replaces the 1988 IRIS assessment for perc and for the first time includes a hazard characterization for cancer effects. The new assessment has undergone several levels of rigorous, independent peer review, the EPA says, including: agency review, interagency review, public comment, and external peer review by the National Research Council.

EPA’s updated perc IRIS assessment can be found here.

Additional information about perc is available here.

WASHINGTON — The minimum wage increased in eight states effective Jan. 1, boosting the incomes of more than 1.4 million low-wage workers in Arizona, Colorado, Florida, Montana, Ohio, Oregon, Vermont and Washington.

The state minimum wage in these states rose between 28 and 37 cents per hour—an extra $582 to $770 a year for a full-time worker—as a result of state laws that require the minimum wage to keep up with inflation, says the National Employment Law Project.

More than 1 million workers have been directly impacted as the new minimum wage rates exceeded their hourly pay, and 400,000 more have seen a raise as pay scales were adjusted upward to reflect the new minimum wage, according to an analysis of government data by the Economic Policy Institute.

Eighteen states and the District of Columbia have minimum wage rates above the federal level of $7.25 per hour, which is approximately $15,000 per year for a full-time minimum wage earner.

Washington state has the highest minimum wage at $9.04 per hour. Georgia and Wyoming, at $5.15 per hour, have the lowest.

There are no minimum wage laws in Tennessee, Louisiana, Mississippi, Alabama and South Carolina, according to the Department of Labor.

WASHINGTON — After three years of restrained growth, franchise businesses show signs of recovery in the year ahead and the Personal Services category—which includes laundry and dry cleaning services—is pegged as the growth leader, according to a report by IHS Global Insight for the International Franchise Association (IFA) Educational Foundation.

Personal Services franchises are expected to be a growth leader, with 6.2% in output growth, followed by Retail Products and Services at 6.1%. Real estate will also show growth of 5.8%, the report says.

Weak consumer spending and tighter credit standards have restrained franchise business growth, the report says.

“The forecast for modest growth is good news for the franchise industry and the overall economy, given franchising supports 12% of the U.S. private sector workforce,” says IFA President & CEO Stephen J. Caldeira. “However, the rate of growth is far below the growth trends we experienced before the recession.

“Pro-growth policies out of Washington to provide certainty to the franchise industry, such as comprehensive tax reform that lowers the corporate and individual tax rates, as well as increasing the flow of credit to small businesses by the lending community, will help to get us on a more aggressive path of growth and job creation.”

The full report is available for download here.

WASHINGTON — With the end of the 2011 tax year approaching, coin laundry owners can help prepare themselves for the upcoming filing season by clicking in to the U.S. Small Business Administration’s free Dec. 15 web chat for tips on potential year-end savings.

Host Edward S. Karl, vice president of Taxation for the American Institute of Certified Public Accountants, will answer questions about tax deductions and credits that small-business owners can use to reduce their tax payments, as well as other tax-saving tips.

Participants can join the one-hour live web chat beginning at 1 p.m. EST Dec. 15, and also post questions in advance here. No registration is required.

WASHINGTON — New independent poll results from Luntz Global confirm Americans’ overwhelming preference for the dollar bill over the dollar coin, their disapproval of legislation seeking to abandon the greenback, and urging for Congress to focus on finding real solutions to the country’s debt problems.

The poll reported 83% of Americans favored keeping the dollar bill over the dollar coin (800 Americans nationwide were surveyed), according to a press release from the ad hoc group Americans for George. Convenience and national pride were among the reasons people preferred the dollar bill, with 97% of respondents saying the bill was more convenient for them to use than a coin.

The survey also found that a majority of Americans, 64%, do not support legislation, such as the Currency Optimization, Innovation and National Savings (COINS) Act, to switch from the dollar bill to the dollar coin and view it as an impractical proposal to cut government spending.

In a report issued earlier this year, the Government Accountability Office (GAO) estimated that replacing the dollar bill with the dollar coin would provide a net benefit to the government of approximately $5.5 billion over 30 years.

WASHINGTON — The Henry Hub spot price for natural gas averaged $3.56 per MMBtu in October, 34 cents lower than the September average, according to the U.S. Energy Information Administration’s (EIA) Short-Term Energy Outlook report released Nov. 8.

This month’s Outlook lowers the 2011 forecast by 6 cents to $4.09 per MMBtu and lowers the 2012 forecast by 19 cents to $4.13 per MMBtu compared with last month’s report.

Even while the delivered cost of natural gas continues to decline, EIA expects the cost of coal delivered to electric generators to increase by 6.4% during 2011. The net effect will be relatively modest growth in retail electricity prices over the forecast horizon, the report says.

For route drivers, EIA forecasts that the annual average regular-grade gasoline retail price, which averaged $2.78 per gallon in 2010, will increase to an average of $3.54 per gallon in 2011, before declining to an average $3.46 per gallon in 2012. The agency expects that on-highway diesel fuel retail prices, which averaged $2.99 per gallon in 2010, will average $3.84 per gallon in 2011 and $3.79 per gallon in 2012.

WASHINGTON — The Henry Hub spot price for natural gas averaged $3.90 per MMBtu in September, 15 cents lower than the August average, according to the U.S. Energy Information Administration’s (EIA) Short-Term Energy Outlook report released Oct. 12. EIA expects that Henry Hub spot prices will fall further in October, before rising above $4 per MMBtu in December.

The report lowers the 2011 forecast by 5 cents to $4.15 per MMBtu, 24 cents less than the 2010 average. Although the average 2011 spot natural gas price is lower than the 2010 average, the forecast price over winter 2011-12 is higher than last winter’s average.

EIA expects this winter’s heating season will start with an average Henry Hub spot price of $3.78 per MMBtu in October, and that the price in 2012 will average $4.32 per MMBtu.

WASHINGTON — Commercial real estate vacancy rates are flat and projections for growth have been moderated because economic growth and job creation have been weaker than expected, but modest improvements are expected over the coming year, according to the National Association of Realtors®.

The weakening economy will slow the growth in demand for space, says Lawrence Yun, NAR chief economist. “Disappointing economic growth in recent months means a slower recovery for most of the commercial real estate sectors, although multifamily housing continues to benefit from pent-up demand resulting from an abnormal slowdown in household formation in recent years.

“Many young people, who normally would have struck out on their own from 2008 to 2010, had been doubling up with roommates or moving back into their parents’ homes. However, they’ve been entering the rental market as new households in stronger numbers this year. As a result, apartment vacancy rates are declining and rents are rising at faster rates.”

Growth in the Gross Domestic Product slowed to 0.4% in the first quarter and 1.3% in the second quarter, much lower than the 4-5% expansion needed after a recession.

“A healthy recovery is already occurring in the multifamily sector, with average apartment rent expected to rise 2.5% this year and another 3.2% in 2012,” Yun says. “Normally, rising rents correspond to rising home prices. However, this isn’t happening in this recovery because buyers are constrained by unnecessarily restrictive mortgage underwriting standards.”

Looking at commercial vacancy rates from the third quarter of this year to the third quarter of 2012, NAR forecasts vacancies to decline 0.3 percentage point in the office sector, 0.6 point in industrial real estate, 0.7 point in the retail sector and 0.9 percentage point in the multifamily rental market.