Why Simpler Cleaning Systems Win in a Changing Workforce Featuring Matt Schenk, President & CEO of Midlab

WEBVTT
1
00:00:05.000 --> 00:00:13.000
Hello, everybody, and welcome to Distribution Unpacked. My name is Charles McLaughlin and with me today is Matt Schenck, the president and CEO of Mid Lab. Matt, thank you so much for coming today.
2
00:00:13.000 --> 00:00:14.000
Oh, I'm glad to be here.
3
00:00:14.000 --> 00:00:19.000
Of course. So why don't you take a quick moment to introduce yourself and Mid Lab to the audience?
4
00:00:19.000 --> 00:00:37.000
Okay. I'm Matt Shank. I've been working at Mid Lab since the early 90s. Midlab is a manufacturer of cleaning products. And so we, we pride ourselves on having a lot of innovation in the marketplace, a very sustainable business footprint and a great customer experience.
5
00:00:37.000 --> 00:00:45.000
Awesome. So in your industry in particular, what are some of the market trends that are most impacting your business and where are you choosing to focus that business?
6
00:00:45.000 --> 00:01:12.000
I think we're seeing the market trends is we're seeing a lot of innovation out there in the marketplace, a lot of opportunity for innovation. We, with AI coming into the marketplace is also changing the way, you know, people go to market. So I think those are the kind of the trends that we're seeing right now. And on the innovation side, you know, we've had a lot going on with pfas and that type of thing, and plus, so a lot of different things.
7
00:01:12.000 --> 00:01:17.000
Yeah. So why don't you tell me a little bit more about how you're embracing technology into the world of chemicals?
8
00:01:17.000 --> 00:02:00.000
Okay. So I guess that starts at our roots in our facility. Mid Lab operates a LEED Gold certified manufacturing plant that's corner to corner. Our entire facility is LEED certified. And so it's a little bit different from the rest of the people in the industry. So one of the things that we've done is we've moved to a completely paperless operation and everything talks to itself through our IoT strategy inside of it. Then we also have AI integrated into all of our business services. And predictive analytics has been something we've done for a long time. So we've embraced technology and are using it to move our business forward.
9
00:02:00.000 --> 00:02:25.000
Great. Bringing all kinds of efficiencies to the world of distributing those chemicals for you guys. So we talked a little bit about market trends, but I want to pivot a little bit to some of these vertical markets. You're talking about health care, education, enterprise, office spaces. Where are some of these vertical markets that you guys are focused on? What are some of those unique demands that they're looking for in the world of chemicals? And how are you adapting to meet those specific vertical markets? Markets.
10
00:02:25.000 --> 00:02:58.000
Okay, well, let's start with like, maybe education. Education is really looking to have simplified processes that are safe for their employees and for the students and their staff. So what we're seeing is also a trend away from having that janitor that's been in that school for years, working there and retiring there to a lot of more building service contractors. So a little bit different change. So simplification of training and product selection is really important. And safety of product selection is really important.
11
00:02:58.000 --> 00:03:10.000
Sure. So how is that sales pitch changed for that wholesale dealer who is used to selling to that seasoned janitor that now they're being, they're using that cleaning service? Does the pitch change at all? The offerings change?
12
00:03:10.000 --> 00:03:27.000
I think the pitch changes a little bit. Where you talk about the, you know, obviously cost is a table stake and when you're talking about government. Government. But the differentiators change. Safety, health, sustainability, those change, and those are driving the market now.
13
00:03:27.000 --> 00:03:46.000
Very interesting. So one of the things that, you know, our main tagline here at SP Richards is simplifying complexity. And we are, you know, it's a, it's a tradition on the show that we ask all of our, our guests what are some of the complexities that you see in this wholesale distribution channel and how are you guys simplifying those complexities?
14
00:03:46.000 --> 00:04:20.000
So I think one of the things that I see is complexity is, is change, is, is the employee changeover. It's turning the turnover. Excuse me, turnover. So training employees. So your, your, you know, your wholesale customer is then trying to sell to an end user and that end user is changing over, over and over. So training is getting to be a big issue because your, your customer can go out and train a school system how to use their products. Within three months, half that, half that staff is gone. There's a new staff there. So simplification. One of the things we've done to simplify our things is made our products very simple to use.
15
00:04:20.000 --> 00:04:21.000
Right.
16
00:04:20.000 --> 00:04:36.000
And that may be through the use of our plus label system, which is a training on the bottle program. Or it could be simplifying by reducing the SKUs and getting from, from maybe 15 or 16 SKUs needed to two or three. So those type of things.
17
00:04:36.000 --> 00:04:59.000
So it sounds like, you know, beyond just the, the information on the packaging, that educating customers and end users on the product is a huge focus for you guys. How can our customers, that wholesale distributor, take advantage of some of that training and how can they kind of pass that training on to their end users?
18
00:04:59.000 --> 00:05:03.000
The best way to do that is through Esprit Rich's training portal.
19
00:05:03.000 --> 00:05:06.000
See, don't say that.
20
00:05:06.000 --> 00:05:24.000
But Go. Go to that. Where we post our resources to you as well. And then also, you know, one of the things that is new, new this year, we're launching a How to sell for your distributors or where, you know, where. Where to. How to train your distributor wholesalers to sell these products that they may not be used to.
21
00:05:24.000 --> 00:06:07.000
Right. Awesome. No, that's. And that's a huge deal because you have dilution control, you have chemicals for different applications. You know, you need something for the restroom versus the cafeteria versus the, you know, the classroom. So having that education is so important. And I think it's, you know, it's a huge value add, not just to have a product that cleans really well, but can be applied to a channel very. As efficiently as simply as possible. So it's a really unique focus to have. But before we close out today, I wanted to make sure I gave you the floor a bit to kind of address our wholesale distribution community here. Is there any last thing you wanted to bring up or mention before we end the show today?
22
00:06:07.000 --> 00:06:53.000
Yeah, you know, one of the things when you talked about industry trends that I wanted to talk about a little bit, and I think this is really important because there is, you know, we've gone through waves of environmental responsibility in our industry. And I think right now our end users, our building management people, our building service contractors, are looking for products that are cost effective, that perform, but they're also concerned about indoor air quality. They're concerned about, you know, safety of their employees. So all these type of things. And so I think one of the things you're seeing in the industry is rate is raising to that challenge to provide products that clean effectively but yet still meet those new standards of health.
23
00:06:53.000 --> 00:07:06.000
Sure. And you see a lot of that in, like, the contract business, some of those required applications. Which industries? Or is there a specific industry or is there a specific vertical market or state that's really aggressive on these requirements?
24
00:07:06.000 --> 00:07:43.000
Well, there's states, I mean, coast states are pushing that heavily. But the industries, you know, education's big, people send their children there. You know, class A office space is important because people are there and on a regular basis and they want to be in a healthy environment. So I think, you know, cleaning should be a positive impact to the health of the community, not a negative impact. So that's where we've really started to focus on making sure that every one of our products, we're striving to make every one of our products meet those standards.
25
00:07:43.000 --> 00:08:16.000
Meeting those standards is such a critical part of growing a new business. So it's really great that you guys are a valued partner in making sure that those new trends are being not just addressed, but embraced in the product offering. Well, thank you so much for your time today, Matt. I really appreciate you coming on the show. Thank you. It was great to have you, and thank you all for watching, and we'll see you next time.