Portable Sanitation Association International

Page 15 ASSOCIATIONINSIGHT Portable Sanitation Association International News BIWEEKLY EDITION JANUARY 8, 2020 IBISWorld reports that the construction sector is expected to grow overall into 2024, but at a significantly slower pace than in the previous five years. Plan on average growth of approximately 1.1% annually between 2020 and 2024 compared with the average of 3.3% we have seen between 2014 and 2019. Demand from commercial building construction is expected to outpace the 1.1% average by growing at an 8.3% rate, and residential construction will also rise faster at about 3.2%. If these types of projects are hot in your area, the growth may be even greater. In general, you should see continued opportunities to provide portable sanitation to construction sites in most major markets. Areas with rapidly growing populations, lack of housing or with funds allocated to infrastructure will have the biggest opportunities for portable sanitation revenue from construction. • Events are a function of both long-lead planning cycles and shorter-term disposable income availability. IBISWorld reports that event revenue overall is expected to grow at an annualized rate of 1.9% between 2020 and 2024. Thus far it appears the 2020 event season will be as strong as recently past years. However, there are several factors that could impact the need for portable sanitation and the willingness of planners to spend money on related services. » Event attendance drives how much equipment is needed and the frequency of service. This, in turn, is driven by attendees' disposable income and their confidence in the overall economy. If potential attendees feel good about their own future, they will likely continue to swell attendance at events as they have for the past several years. If they become nervous about spending money on entertainment, expect planners to get nervous about contracting for equipment. Operators should keep their fingers on the pulse in their markets. If people generally feel good about their earning prospects, you should be able to successfully sell more to the event planner. If there is a degree of nervousness in the area, be prepared to offer creative solutions that seem to help customers save money or boost attendance in spite of conditions. » During the recent economic expansion, the number of event promoters has grown. As long as there is enough business for everyone in a strong economy, that has been well and good. If the overall economy slips more than expected or consumers pull back on optional spending, newer and smaller promoters will be vulnerable. Portable sanitation companies will want to be especially careful in creating contracts and payment terms to ensure they are not vulnerable if these events don't succeed or the promoter skips town. » Corporate spending at events on things like luxury boxes, premium seating, and premium access to the venue are expected to continue their recent climb as long as the rest of the economy performs as expected. Portable sanitation providers may have opportunities to sell luxury restroom options to planners looking for additional perks to offer this highly profitable market segment. The Economic Outlook…continued from page 14 …Continued on page 16

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