Petrogram - Spring 2010 - (Page 20)
Enviro CORNER Re-Engineering our Business Model for Future Success urely by now, many of our businesses have been significantly and negatively impacted by the recent downward turn in the economy. This downturn has also forced many of us to re-evaluate prior business models and to make and/or consider necessary strategic changes that will ensure our long-term Irv Heath Esq. success and the viability of our businesses. At this December writing, we await the impact of projected state budget deficits in the range of $2.6 billion with next year forecasts, without stimulus money, of some $5.6 billion. Although we do hear and see some signs of slowly improving economic conditions, most agree that any turnaround and/or upswing in the economy may take years to occur, and even then, may not allow us to return to the profits and benefits we previously enjoyed. We should proceed with caution as we review and plan to alter our prior business models because there are several key industry changes we should carefully consider as we make these planned changes. The major change for all Florida petroleum impacted site owners, operators, dealers and other responsible and/or interested parties is naturally the level of funding the Inland Protection Trust Fund (IPTF) may or may not receive. You can rest assured that members of the FPMA and other organizations continue to vigorously drive eﬀorts to increase everyone’s understanding of and need for this funding. We have met with the Governor, every inﬂuential legislator, committee chairpersons and anyone who could impact this decision and would listen. We also shared several ﬁnancial impact case studies of the start and stop funding approach, Department of Health water wells and nearby contaminated well maps, and other information that clearly demonstrated the need for and beneﬁts of the IPTF program. Many of our new suggestions for program improvement, rather than just asking for funding, may have been shared by this writing as they are progressive and have been well thought out and prepared. S We remain concerned about IPTF funding and the impact this too may have on your future strategies for both acquisitions and divestments. As you know, when remediation and cleanups are slowed and/or stopped, we not only delay your business options but we also continue to threaten Florida’s waters and citizens. As a result, our real estate strategies can also be aﬀected when lenders no longer consider FDEP funding as secure for program sites whether EDI, which was formally almost a guarantee, and they now consider suspect because they do not know if funding will be available. In addition, major oils and others continue to divest their retail sites, which can also be a catch-22 regarding your prior market expansion and acquisition or divestment plans as programs continue to change. As you may know Exxon, Mobil, and Shell have conﬁrmed they want to stop owning and leasing retail outlets that they consider a low-proﬁt business in order to focus on the exploration, production and sale of reﬁned product. However, while this may present potential business opportunities for small businesses, it is an opportunity that requires a well-thought-out strategy. Under previous business models, reﬁners would provide owners/operators/dealers with favorable incentives, allowances and rebates. However, now that larger buyers and/or jobber or distributor third parties are buying large numbers of sites for premium prices, many Although we do hear and see some signs of slowly improving economic conditions, most agree that any turnaround and/or upswing in the economy may take years to occur and even then may not allow us to return to the profits and benefits we previously enjoyed. 20 | Petrogram | Spring 2010 www.fpma.org
Table of Contents for the Digital Edition of Petrogram - Spring 2010
Petrogram - Spring 2010
A Celebration of the Petrogram’s 50th Anniversary
How to Stage a Great Grand Opening
FPMA Efforts to Improve the Cleanup Program
Out & About the Industry
E-10 and Single-Wall Fiberglass Tanks
Are You Ready for PCI Compliance?
Crind and Bear It
Index of Advertisers/Advertiser.com
Petrogram - Spring 2010
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