RedBox + Dumpsters

Service brands develop bullet-Proof reputation in a recession-Proof industry

Due to the unprecedented COVID-19 crisis, the U.S. economy has reached a road it has never been on before. In the wake of any economic uncertainty, consumer spending naturally tends to lean towards essentials versus non-essentials, causing a ripple effect on businesses worldwide.

Now, with the presence of inflation, a healthy job market, and increased spending, a rumored recession is looming. The question is when will it come, and which brands will survive?

As economists figure out a “soft landing” from a potential recession, it’s valuable to point out which industries are relatively insensitive to this type of uncertainty and instability. When analyzing economic trends, some businesses tend to do reasonably well or even thrive due to changing patterns of consumption and behavior. Oftentimes, these are industries where demand is inelastic to changes in prices and income—where consumer demand is relatively stable. Some more obvious essential industries include healthcare, food, consumer staples, and everyday transportation. One less observable, though indeed essential, industry in particular is the residential and commercial services sector. Since 1948, the sector has had a relatively cyclical insensitivity to signs of economic downturn. Plus, steady growth has led the service industry to account for nearly 20 percent of total employment. BELFOR Restoration is one example of the service industry’s recession resistant model. Serving a need will never deteriorate; and residential and commercial service brands like BELFOR, the leading restoration company, are simply essential to the health and safety of the community. What drives repeat business is the relationship before the need. The real service is being the servant - restoring order from chaos. Some economists conclude that a servicedominated economy promotes stability over the business cycle. Furthermore, the bulk of employment growth has been in the service sector, accounting for nearly 67% of GDP in the U.S. last year. Now in recent times, while the impacts of COVID-19 continue to linger on, the industry plays a vital role in response to crisis and recovery. Steady growth has made it apparent that the sector continues to be resistant to economic uncertainty. Historically, during a recession, consumers are likely to spend more on repairing rather than buying new, as well as embarking on do-it-yourself home improvement and garden work. Companies like redbox+ Dumpsters, part of BELFOR Franchise Group, can benefit from this consumer

trend. Not only does the brand’s innovative, patented roll-off dumpster position it as a market disruptor in its sector, but its exceptional service of delivering dumpsters on time and as scheduled has ultimately led to their success and growth. As consumers still engage in these DIY projects, redbox+ Dumpsters wrapped up 2021 with upwards of 300 franchise territories and over 80 franchisees across the country. When times are tight, one way to cut costs is to repair what you own rather than replace it, and to do maintenance yourself. We can look back throughout history to see this first hand. Starting with the recession in the early 1980s, my father tapped into the residential and commercial services industry, which paved the way for me to follow suit. Furthermore, on to the financial crisis of 2008, the service industry continued to see strong performance from services such as home and garden retailers. BELFOR restoration around this time, was able to strengthen its market position in Asia, was able to enter the Slovakian market, and acquired Alexander Wall Corporation (AWC) from Long Island, NY, to better serve the Greater New York City metropolitan area. During the height of COVID-19, while the U.S economy shrank by 3.5 percent in 2020, spending on home improvement and repairs grew more than 3 percent to nearly $420 billion. For redbox+ Dumpsters, the business has a symbiotic relationship with the construction industry, which represents 13 percent of global GDP playing a critical role in responding to the crisis and in the recovery. Strong performance from increased demand for construction and DIY projects brought on by the pandemic created an even greater demand for the waste hauling industry. To illustrate redbox+ Dumpsters’ role as a disruptor, the brand’s innovative business model mends the gap between the construction and waste hauling industries. Historically, the waste removal industry was plagued by a lack of innovation, poor customer service, and issues with toilets on construction sites. redbox+ Dumpsters caters to its audience’s needs by delivering exceptional customer care and service with its patented combined roll-off dumpster and portable toilet design, focusing on safety and cleanliness on job sites. redbox+ Dumpsters saw its best year yet for container rentals in 2021 and continues to see steady growth. The brand holds a 90 percent retention rate with contract partners and is positioned as a market differentiator in a growing sector. By the end of 2022, redbox+ Dumpsters is expecting another year of double-digit unit growth and will be adding individuals to the franchise system who are hardworking, have a desire to be independent, and are dedicated to providing the highest level of customer care and service. “ What drives repeat business is the relationship before the need. The real service is being the servant - restoring order from chaos.”

About Tim Fagan:

Mr. Fagan has been in the restoration industry for over 25 years, having been the CEO of a predecessor water mitigation/contents company, which became part of the BELFOR family of companies in 2010. He has managed emergency losses in residential, hospital, university, business, manufacturing, multi-family and K-12 school facilities. Mr. Fagan is the principal instructor for BELFOR’s continuing education courses for insurance agents and real estate licensees. He also manages the internal “BELFOR Boot Camp” training program for BELFOR Estimators, Project Managers and General Managers from around the US and Canada. Mr. Fagan is a licensed builder as well as a Restoration Industry Association Certified Restorer (CR) and Water Loss Specialist (WLS) – the highest level of training and certification available in the restoration industry.

About Belfor Franchise Group

BELFOR Franchise Group is the world’s largest residential and commercial services franchise group based on geographic footprint and number of units. The privately held, multi-concept franchise system is a division of BELFOR Property Restoration, the world’s largest disaster restoration company. For over a decade, BELFOR Franchise Group has empowered entrepreneurs by offering industry-leading training, support and equipment, turnkey business models, and ongoing coaching and business development. BELFOR Franchise Group is the parent organization for 11 of the strongest service-based franchise opportunities for home and commercial cleaning and restoration. The franchise brands include: 1-800 WATER DAMAGE, Chem-Dry & Upholstery Cleaning, DUCTZ International, HOODZ International, N-Hance Wood Refinishing, Blue Kangaroo Packoutz, The Patch Boys, redbox+ Dumpsters, WINMAR, 1-800- BOARD UP, and Z PLUMBERZ. For more information, please visit https://belforfranchisegroup.com/.