While most Americans were stockpiling hand sanitizer and toilet paper in mid-March 2020, the temporary site services industry began bracing for potential backlogs and fluctuating service demands at construction sites. From portable toilets to dumpsters and storage containers, the potential of shutdowns and staffing reductions have left a lot of uncertainty in the industry.
During the week of March 16, temporary site service vendors, specifically suppliers of portable toilets, dumpsters, temporary fencing, temporary storage and mobile office trailers, responded to an industry survey sent out by ZTERS Site Solutions. Vendors from 35 states provided feedback on how COVID-19 is currently affecting their companies and how they anticipate the virus will affect business over the next few months.
Stock Levels
Unsurprisingly, the number one concern cited in the survey was the potential of shortages in toilet paper and hand sanitizer stock. Fully 40% of respondents said they expect to run out of one or both at some point before the situation levels out. Two major factors contributing to this expectation are increased handwashing station requirements and theft.
In many areas, handwashing stations or hand sanitizing stations were already required on jobsites. With COVID-19, there are now additional requirements to provide more access to hand washing facilities in areas where construction is considered essential. Since the week of March 30, backorders and waiting lists for handwashing stations have grown to an unprecedented degree and most vendors are expecting to be backordered well into May 2020.
Theft has also been a widespread problem, as people have been cutting locks and wall mounts inside portable toilets to steal hand sanitizer and toilet paper. While some vendors report an ability to replace supplies relatively quickly, others have sent out notices that customers will be charged restocking fees plus unscheduled delivery fees if restocking occurs between regular service trips. Fees vary by vendor but can run higher than 0 per restocking trip.
To counteract theft and prevent restocking fees, vendors have sent out notices to customers asking them to place toilets in protected areas and/or keep a closer eye on them. At least one vendor reported so much damage to toilets that it necessitated the removal of locks and wall mounts entirely.
On the ground, almost all vendors have changed the way portable toilets are maintained. This includes increasing the number of service visits to disinfect toilets on worksites and performing deeper cleaning on the units between rentals.
Some companies are also offering damage protection waivers that will cover the cost of damages if someone destroys a unit.
Service Delays
Despite backorders on handwashing stations stretching into May, less than 10% of vendors said they feel unprepared for COVID-19. As for staffing, less than 10% said they expected to lay off any staff during the crisis. For the most part, vendors appear to be prepared to meet demand.
Approximately 90% of vendors said they felt prepared for business interruptions, but availability delays across several temporary service product lines will still occur.
Almost a quarter of portable toilet vendors, 24%, expect service delays to continue through the near future. Only 15% of roll-off dumpster vendors and 11% of front-load dumpster vendors expect to see delivery delays in their product lines. For storage containers and mobile offices, 13% of these vendors expect to have delivery delays.
Vendors who also provide commercial waste service are seeing the largest change in service because many commercial businesses are closed and need to adjust their waste pickup and contract terms. For construction sites, the dumpster rental industry is not expected to change dramatically.
Pricing Changes
Pricing issues weren’t singled out by vendors in any product line, but prices have increased nationwide in recent weeks.
Portable toilet rentals and handwashing stations have seen the most noticeable price increases since the COVID-19 crisis began. Increased disinfection standards and the associated increased supply of cleaning products needed are likely contributing to this trend. Some regions of the country are also seeing increased demand for portable toilets, which also leads to higher rental prices.
By far the biggest price increase has been for handwashing stations. Many vendors have reported they are ordering new units to keep up with demand, but for the next few weeks there will likely continue to be low stock and high demand.
It’s unclear how much longer these circumstances will continue, but temporary site services vendors appear to be adjusting to the situation in order to continue servicing worksites.
