ABM Announces “ELEVATE” Strategy for Value Creation and Growth at its 2021 Investor Day
ABM Announces “ELEVATE” Strategy for Value Creation and Growth at its 2021 Investor Day
Aims to Unlock Long-Term Value Through Strategic Focus on Client
and Team Member Experiences and Industry-Leading Technology and Data Transformation
Strengthens Client-Centric Business Structure
with Formation of new Manufacturing & Distribution Industry Group
NEW YORK, Dec. 15, 2021 (GLOBE NEWSWIRE) -- ABM (NYSE: ABM), a leading provider of integrated facility services, today hosted a virtual Investor Day where President and CEO Scott Salmirs and other members of ABM’s senior leadership team presented the Company’s strategic growth plan and financial targets. ABM’s industry-leading COVID-19 response and recent acquisition of Able Services together serve as a launchpad for the next phase of ABM’s evolution. The Company is well-positioned to leverage market trends, optimize the business and innovate – all while driving profitable growth.
In the presentation shared with investors today, ABM’s senior leaders discussed the Company’s comprehensive strategic plan, called ELEVATE, to unlock significant long-term value for all stakeholders and strengthen ABM’s industry leadership position. Through end market repositioning and building on its core services, this long-term strategic plan is designed to guide ABM’s investments in the coming years through three strategic pillars:
- ELEVATE the client experience: Innovating to provide ABM’s clients with new offerings that increase transparency, drive efficiencies, and deliver an overall better experience tailored to clients’ evolving and unique needs.
- ELEVATE the team member experience: Further developing ABM’s talent management system capabilities to create greater career-growth opportunities for ABM team members; investing in on-demand training and development tools that will improve the connectivity and productivity of ABM’s workforce.
- ELEVATE ABM’s use of technology & data: Expanding ABM’s use of data and modernizing its digital ecosystem to power ABM’s clients and team members with cutting-edge analytics, processes, and centralized workforce management tools that will improve service delivery and the overall value ABM delivers.
“We believe elevating the client and team member experiences through the use of technology and data will further differentiate us in the marketplace and establish a growth trajectory that is fueled by our purpose – putting people first and taking care of the spaces and places that matter most to them,” said Scott Salmirs, President and CEO of ABM. “Today, we are well positioned to invest in our future, and we are fortunate to be launching our ELEVATE strategy from a position of strength. Leveraging the structural changes implemented through our recently completed “2020 Vision” strategic plan and applying key learnings from the ongoing COVID-19 pandemic combined with our deep understanding of emerging trends, we are excited to embark on this next step of our journey.”
New Industry Group Accelerated by Pandemic-Driven Shifts
ABM’s senior leadership team further highlighted ABM’s commitment to creating an environment centered on accountability and client focus with the announcement of several new changes to its Industry Group structure that will increase the density and proximity of support provided to ABM’s technology, manufacturing, and distribution clients.
- Forming a new industry group: ABM announced the formation of a new Manufacturing & Distribution (“M&D”) group to replace ABM’s Technology & Manufacturing (“T&M”) group. The new M&D group will consist of ABM’s large manufacturing and distribution/logistics clients.
- Expanding the B&I industry group: ABM announced it will shift its portfolio of Technology clients, previously included in ABM’s T&M group, into its Business & Industry (“B&I”) group. The Company believes its Technology clients, with their expanded office footprint, will be best served by B&I and its extensive branch network.
“We’re evolving our Industry Group structure at a time of unprecedented change for our clients, accelerated in part by pandemic-driven shifts and to capitalize on secular growth trends,” added Salmirs. “E-commerce growth has led to a boom in U.S. distribution and warehouse space that is now reaching urban markets. In fact, estimates now show that 1 billion square feet of net new U.S. distribution and warehouse space is needed to support consumer demand for e-commerce1. ABM has a strong presence in this high growth market, and the changes to our Industry Group structure announced today will help unleash the full potential of the extraordinary capabilities we’ve built to serve our manufacturing, distribution, and technology clients.”
Earl Ellis, Executive Vice President and CFO of ABM said, “To continue to win in the future, we must build on our positioning to capture the opportunity ahead and sustain the resilience our shareholders depend on. We believe the investments we’ll make over the next few years will accelerate our organic growth, expand our profitability, and significantly enhance both our client and team member experiences. We are confident these investments will drive substantial and sustainable improvements to our operational and financial performance while improving both team member and client retention.”
A replay of ABM’s 2021 Investor Day will be available on the Investor section of the Company’s website located at www.abm.com/investors, and for more information on ELEVATE, please visit www.abm.com/elevate.
1Jones Lang LaSalle, Industrial real estate demand on the rise in the U.S., Summer 2020
Cautionary Statement under the Private Securities Litigation Reform Act of 1995
This press release contains both historical and forward-looking statements about ABM Industries Incorporated (“ABM”) and its subsidiaries (collectively referred to as “ABM,” “we,” “us,” “our,” or the “Company”). We make forward-looking statements related to future expectations, estimates and projections that are uncertain, and often contain words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “may,” “outlook,” “plan,” “predict,” “should,” “target,” or other similar words or phrases. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and assumptions that are difficult to predict. For us, particular uncertainties that could cause our actual results to be materially different from those expressed in our forward-looking statements include: The COVID-19 pandemic has had and is expected to continue having a negative effect on the global economy, and the United States economy, and it has disrupted and is expected to continue disrupting our operations and our clients’ operations, which may adversely affect our business, results of operations, cash flows, and financial condition; our success depends on our ability to gain profitable business despite competitive market pressures; our business success depends on our ability to attract and retain qualified personnel and senior management and to manage labor costs; investments in and changes to our businesses, operating structure, financial reporting structure, or personnel relating to our ELEVATE strategy, including the implementation of strategic transformations, enhanced business processes, and technology initiatives may not have the desired effects on our financial condition and results of operations; our ability to preserve long-term client relationships is essential to our continued success; our international business involves risks different from those we face in the United States that could have an effect on our results of operations and financial condition; our use of subcontractors or joint venture partners to perform work under customer contracts exposes us to liability and financial risk; acquisitions, divestitures, and other strategic transactions could fail to achieve financial or strategic objectives, disrupt our ongoing business, and adversely impact our results of operations; we may experience difficulties integrating Able Services and may not realize the growth opportunities and cost synergies that are anticipated from the Able acquisition; we manage our insurable risks through a combination of third-party purchased policies and self-insurance, and we retain a substantial portion of the risk associated with expected losses under these programs, which exposes us to volatility associated with those risks, including the possibility that changes in estimates to our ultimate insurance loss reserves could result in material charges against our earnings; our risk management and safety programs may not have the intended effect of reducing our liability for personal injury or property loss; we may experience breaches of, or disruptions to, our information technology systems or those of our third-party providers or clients, or other compromises of our data that could adversely affect our business; unfavorable developments in our class and representative actions and other lawsuits alleging various claims could cause us to incur substantial liabilities; a significant number of our employees are covered by collective bargaining agreements that could expose us to potential liabilities in relation to our participation in multiemployer pension plans, requirements to make contributions to other benefit plans, and the potential for strikes, work slowdowns or similar activities, and union organizing drives; our business may be materially affected by changes to fiscal and tax policies; negative or unexpected tax consequences could adversely affect our results of operations; changes in general economic conditions, such as changes in energy prices, government regulations, or consumer preferences, could reduce the demand for facility services and, as a result, reduce our earnings and adversely affect our financial condition; future increases in the level of our borrowings or in interest rates could affect our results of operations; impairment of goodwill and long-lived assets could have a material adverse effect on our financial condition and results of operations; if we fail to maintain proper and effective internal control over financial reporting in the future, our ability to produce accurate and timely financial statements could be negatively impacted, which could harm our operating results and investor perceptions of our Company and as a result may have a material adverse effect on the value of our common stock; our business may be negatively impacted by adverse weather conditions; catastrophic events, disasters, and terrorist attacks could disrupt our services; actions of activist investors could disrupt our business. For additional information on these and other risks and uncertainties we face, see ABM’s risk factors, as they may be amended from time to time, set forth in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent filings. We urge readers to consider these risks and uncertainties in evaluating our forward-looking statements. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
ABM (NYSE: ABM) is one of the world’s largest providers of integrated facility services. A driving force for a cleaner, healthier, and more sustainable world, ABM provides essential services that improve the spaces and places that matter most. From curbside to rooftop, ABM offers a comprehensive array of facility services that includes janitorial, engineering, parking, electrical & lighting, energy solutions, HVAC & mechanical, landscape & turf, and mission critical solutions. ABM delivers these custom facility solutions to properties across a wide range of industries – from commercial office buildings to schools, airports, hospitals, data centers, manufacturing plants and distribution centers, entertainment venues and more. Founded in 1909, ABM is a Fortune 500 company with annual revenue exceeding $6 billion and more than 100,000 team members in 350+ offices throughout the United States, United Kingdom and other international locations. For more information, visit www.abm.com.
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