1. TERRITORY SCOPE / RESPONSIBILITY
1,300 UNITS
3
Mechanics
4
Mechanics
5 Standby’s
UMASS
Amherst
2 Standby’s
NOTE: Standby Mechanics not available for regular callbacks due to contract requirements

2. Revenue Margin Vs. Overhead Cost
1990 2002 2014
Revenue
Margin
Overhead
Costs
UNSUSTAINABLE!

3. CONTRIBUTING FACTORS
• Directed to push revenue margin as #1 priority
• Preventative Maintenance lowest priority
• Upselling and “selling your way out of repair obligations” top priority
• Reduced allotment of labor hours per unit (reduced number of available mechanics), reduced
material spending budget for repairs
• Account managers signing on new contracts that are immediately unprofitable (underpriced)
• Larger than average mix of old and obsolete units increase complexity of repairs
• Mechanic Talent pool issues; reliant on talent provided from local union hall, cannot hire from
outside or violate “seniority” rules when hiring
• No Adjustor level mechanics directly available for troubleshooting most complex repair issues.
Reliant on “borrowing” from other supervisors when available.
• Steady increase in number of units per maintenance route (continuous increase in Unit-to-
Mechanic ratio)
• Geographical challenge – reduced density of units and poor unit-to-mechanic ratio over large
territory directly affects response time to repair callbacks. Significant risk when dealing with
elevator entrapments or large/high priority customers that demand quick response time.
Bottom Line:
low prioritization of preventative maintenance >>>>> increase in callbacks >>>>> less time
available for preventative maintenance >>>>>> vicious cycle >>>>>> unhappy customers >>>>>>
cancelation of contracts