Retail Environments - November/December 2012

AND MORE SERVICES

Installation companies are emphasizing
logistics, by adding new capabilities or add-
ing expertise through acquisitions. As Bill
Rinder, executive vice president of PHG
Retail Services, based in Independence,
Ohio, notes, “The challenge is coordinat-
ing logistics—getting everything together
with the right materials at the right time
with the right installers.”
A few other areas where installation com-
panies are providing more—or improved—
support services include:

• Fixture removal, reuse, and recycling.

CH Robinson Worldwide Inc., headquar-
tered in Eden Prairie, Minn., offers fixture
“de-installation” as well as fixture recycling
through reuse and material segregation.

TIPS FOR A BE T TER INSTALLATION 1 Provide a clear scope of work for the project. Work with your installation company to make sure that expectations (for both sides) are clear—as early in the project as possible. Providing specs and other details will help the installer define the scope of the project and what’s required to get it in-store correctly and on time.

INTERNATIONAL INSTALLATIONS

OF THE INSTALLATION COMPANIES THAT RESPONDED to A.R.E.’s September survey,

82 percent now provide installations services internationally. For a few installers, international growth is coming from new clients based internationally. But most of the companies A.R.E. spoke to for this article are expanding their own geographic reach as they follow existing domestic retail clients who are opening overseas.

Larry Thibodeau, partner in Manchester, N. H.-based Flexecution Inc., which has previously focused on the U. S. and Canada, now has opportunities in both China and Europe. Thibodeau says he expects to see international installation services continue to grow. The biggest challenge, he says, is completing the work in a cost-competitive manner. Overseas travel, for example, is expensive.

Richard Hall, president of Atlanta-based Beam Team Inc., notes that international is a slowly growing area for his company. “Language translations, cultural differences, and labor laws are all challenges that need to be considered before jumping into a new country,” he says.

Evan Giniger, founder and president of New York-based Dynamic Resources, says his company started by opening an office in London in 2008 and now has offices in Dublin and Dubai. “The international market is virtually untapped for a single-source installation service,” he says.

Installation Solutions, based in Brooklyn Park, Minn., has been handling installations in Canada, Mexico, and Puerto Rico, according to Isaac Bindert, CEO. As international retail markets heat up, his company is beginning to work in Europe as well—almost entirely for domestic clients who are expanding internationally.

A world of new challenges

With this geographic expansion across borders comes a world of new challenges, some predictable, others less so. “With international projects, your biggest challenges tend to be associated with remote planning/scheduling, understanding of regulations, logistics, customs, language barriers, and international travel,” notes Rick Davis, CEO of Dallas-based DAVACO.

Another installation company noted that

language is a bigger challenge than many might realize. This company, which was expanding into Mexico, realized that they needed to develop new communications software for Spanish.

Bob Thomas, executive vice president of Suddath Global Logistics, based in Jacksonville, Fla., notes that in the past year, labor strikes have disrupted transportation in a number of ports across the globe. In addition, permitting and building guidelines are very different from U.S. standards.

As Installation Solutions’ Bindert notes, “It takes more than simply applying for a permit.” It’s necessary to understand not only the local laws and regulations—and the red tape—but also how to work with local authorities to execute jobs.

And a range of other challenges, as cited by Mike Haddon, COO of Plymouth, Minn.-American Installation Companies: import tariffs (depending on country of manufacture); local labor laws, including wage scales and overtime practices; company registration and laws in local provinces that may differ from national laws; communication; and quality assurance.

“You need a person on the ground for communication, and clearly defined quality expectations for finished products,” Haddon says.

Giniger agrees, and cites additional challenges including national and regional pride, and varying work ethics and rules, which he says tend to be “more casual than the American ‘get it done at any cost’ mentality.”