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Executive Report

An Industry at Work
 
Three weeks ago RIA distributed a survey to members in an effort to gauge some of the impact on the industry of the widespread flooding in the central U.S. As with any survey, much of what members told us we had suspected, and other information was surprising.
 
RIA members love to serve. In fact, despite so few of the properties in the disaster zone being insured, more than 93% of the respondents stated that they would be working with property owners on financing options to enable restoration of their homes and businesses. This means not just extra work for a contractor, but added financial risk as well.
 
Only 25% of the contractors said that they would not require additional equipment to handle their jobs, and the remainder were evenly divided between having definite plans to acquire more hardware and being uncertain if they would need it. One of the reasons for the uncertainty is that contractors need to work out payment terms with so many property owners before they can be certain of jobs, and the average respondent projected a capacity of 77 residential jobs and 13 commercial. (At the time of the survey respondents reported commercial and residential were evenly split with 52% commercial and 48% residential.)
 
With all of that potential work, it’s not surprising that a quarter of the respondents will be adding to their payrolls with 56% of the new hires coming from labor agencies, 31% from new hires, and a smaller percentage from recalls of former employees.
 
Where are they finding these jobs? Respondents said 44% of them came from a direct sale to the property owner, while 31% resulted from referrals from another contractor and 31% from a referral network. (In fact, the B4B[1] analysis reveals that RIA is the most cost effective network for contractors to work with.)
 
Will all of those jobs affect their ability to respond to community needs should a major Atlantic storm hit one of the coasts? Fifty-six percent report no effect on their ability to respond, while 19% said that their response capacity will be slightly reduced. However, 20% did report that they are fully committed and cannot respond to other jobs for the next several weeks to months.
 
Our thanks go out to all of the members who took the time to respond. Any of our readers who have a suggestion for future special purpose surveys can write to NewsBreak@restorationindustry.org. Our next survey will attempt to learn how many jobs were actually performed and how payment issues on uninsured properties were handled (or not).
 
Don Manger
Executive Director


[1] Bang for the Buck, aka shameless self-promotion

RIA NEWS

RIA NEWS
Toolbox Tips
Product Spotlight
On Press Now

INDUSTRY NEWS

"RIA, IESO Collaborate on Fire Damage Restoration Standard"
"NOAA Study Forecasts Greater Extremes in Weather"
"Clearing the Air"
"Carpets And Allergies: Unraveling the Myths"
"Despite the Smell, Post-Flood Air Quality Not So Bad"
"OSHA Unveils New Flood and Tornado Cleanup"
"Midwest's Postflood Risk: Toxic Basements"
"Why Choose Encapsulation?"
"Tips for Contractors Dealing with Disaster Work"
"Reinsurers Could Absorb Another Katrina--Amlin"
"Run From Rayon Rugs"
"Cleaning The Systems"
"Critical Care"


RIA NEWS

Breaking News
 
California Wildfires Still Burning
The fires that started burning at the end of June are still not out. More than 614,000 acres of land were lost. The latest reports state that of the 1,780 fires, approximately 300 or more are still burning and are not expected to be contained until the end of July.
 
Natural Disasters Losses and Hotspots
NatCatSERVICE has already analyzed approximately 400 natural catastrophes for 2008. Three hundred of these are attributed to extreme weather conditions with overall losses totaling roughly $50 billion, only $32 billion less then 2007’s losses. RiskMeter Online identified the top ten tornado areas in the U.S. as: Denver, CO; Houston, TX; Miami, FL; Hollywood, FL, Tampa, FL, Lincoln, IL, Lakeland, FL, Little Rock, AK, Cape Coral, FL, and Oklahoma City, OK.
 
Midwest Flooding, Early Estimates
Early estimates for flood damages are high. According to online journals and papers, Iowa’s structural damage is estimated at $504 million, with $232 million at the University of Iowa alone. Other states that have incurred damages are Wisconsin, Indiana, Illinois, Missouri and Nebraska. NatCatSERVICE roughly estimates the losses at $10 billion.
 
SAFELY OUT
A project of Citizen Voice developed through a partnership with the Red Cross Sacramento Sierra Chapter is designed to ensure the most vulnerable people are safely evacuated during disasters. The easy -o-use kit sells for $10.
 
For more visit www.citizenvoice.org.
 
RIA Briefs
 
Last chance To Update Your Profile, Print Directory Coming Soon!
RIA is in the final stages of compiling its printed Membership Directory which will soon be distributed among active dues paying members. This directory includes contact information, a company description, the products and services a company provides, branch locations, as well as any advanced RIA certifications earned. This is the last chance to log onto your profile on the website, www.restorationindustry.org, to make sure your company profile is displayed correctly. To ensure that branch locations are listed in the directory, please call RIA’s membership department at               443-878-1000       .
 
Risk Management: What They Don’t Teach You at Restoration & Remediation School
Geared for environmental restoration specialists and damage restoration professionals, this day-long conference will be “heavy on the how-to’s” of risk management, delving into a variety of aspects from legal hotspots and insurance coverage to the psychology of risk, when it’s better to walk away from a job than to accept it, how to recognize risk factors and what approaches to take to minimize their impact.
 
This RIA Environmental Conference on November 19, 2008, will challenge and keep you on the cutting-edge for risk management strategies and give practical nuts & bolts take-aways to help you protect your assets.
 
Session Highlights Include:
  • When To Say No: Walking Away From the Job
  • The Psychology of Indoor Air Quality 
  • Insurance Risk Management: Watching Your Business Back
  • You’ve Been Served: Now What? Legal Aspects of Risk Management
 
 
Frequently Asked RIA Certification Questions
By Cynthia Mullaly
 
This is the first in a series of certification updates aimed at answering your frequently asked questions
 
I paid my recertification fee on time. Is that all I am required to do in order to maintain my certification?
Maintaining your RIA advanced certification requires two components:
1. Paying your certification renewal fee every three years, AND
2. Attending continuing education courses that relate to your specific certification during your current 3-year cycle and submitting those courses to RIA for CECs.
 
Why must I submit continuing education credits? Isn’t it enough to pay the renewal fee?
Because you hold an advanced certification, you agreed to maintain a higher level of learning and accountability. The purpose of CECs within a 3-year cycle is to ensure that RIA’s Certificants are constantly obtaining updated and current knowledge and keeping themselves on the cutting edge of their field of specialization. Courses submitted must be attended within the 3-year cycle to be valid.
 
Cynthia Mullaly, is RIA Director of Education & Certification. She can be reached at cmullaly@restorationindustry.org..

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The Air You Breathe
By Wade E. Miller, CR
 
Walking into a new post-disaster situation brings many potential perils. One major risk is the contents of the air we breathe. Oftentimes we enter buildings, basements or confined spaces in a rush to assess what was damaged. But do we know what is in the air? We should and can protect ourselves before exposing the workers or anyone else to unidentified breathing hazards.
 
Start with a qualified safety team (whether internal or subcontracted), to assesses the potential exposure hazards. This will help to identify your exposure concerns. This qualified hazard assessment team assumes the worst and enters fully protected (based on the conditions of the job). They should identify potential for:
  • Friable Asbestos
  • Microbial Presence
  • Sewer Gases (e.g., Hydrogen sulfide, Ammonia, Methane, Sulfur Dioxide, etc.)
  • Carbon Dioxide
  • Carbon Monoxide
  • Animal or Food Decomposition Gases

This is a sample list and individual jobs may need to be specially tailored.

Wade E. Miller, CR, is the president of Mitigation Services, Inc.

 
Marketing Savvy
By Casey M. Geisler
 
Email Marketing
From sending faxes to emails instead of post cards and letters, technology has become an integral part of our daily lives. Following the recent postage increase, many companies are turning to technology to connect with customers.
 
Email is a commonly used form of written communication. It ensures that mail will be sent immediately after clicking the ‘send’ button.
 
Email marketing can be used for the express purpose of enhancing already created relationships with current customers, acquiring newer customers, and to convince older customers to purchase a product or service from you soon.
 
The advantages of using email marketing include:
  • Hyperlinks to websites that put the products at their fingertips.
  • The ability to track who has received your email.
  • Getting your message out to potential customers and not waiting for visitors to find your website.
 
There are disadvantages to this technique too:
  • Some email servers may classify your email as “junk” and therefore place it in the junk folder or delete it.
  • Email inboxes do have capacity limits and recipients may not receive your message or attachments.

Casey M. Geisler is the RIA communications specialist.

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Product Spotlight

RIA Advanced Certification Brochure
The Mark of a Professional
 
Providing the highest level of professionalism and education for the industry, this recently updated brochure is designed as a marketing tool specifically for individuals holding one or more of RIA’s advanced designations.
 
Showcase your unique credentials, inform customers and insurance professionals about the history of RIA’s designation programs, and educate others on the criteria for earning these respected designations. Individuals who hold RIA advanced certifications have completed the equivalent of a master’s or Ph.D. degree in the restoration arts and sciences.
100 brochures
$100/members
$150/non-members
 
500 brochures
$375/members
$500/non-members
 
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On Press Now

Here’s a look at what’s coming in the August 2008 issue of RIA’s award-winning magazine, Cleaning & Restoration.

Public Adjusters and Restorers; Working Together in the Insurance Industry
By Stephanie Greene
 
When it comes to restoration and the insurance industry, more vendors are now connecting with insurance companies as a way to broaden their client pool. For this reason, it is no surprise such a small percentage of restorers have openly pursued professional relationships with public adjusters. Biased opinion labels public adjusters as a hindrance to the claims process and “ambulance chasers,” if you will. The truth is, a public adjuster will often make the difference between getting a client back to a full recovery and having an insured take on debt to cover the cost of the repairs.
 
Benchwarmers
By D. Tim Cordle
 
Restoration professionals often spend hurricane season waiting for the wind to blow and blow hard. Why? Because they view it as “manna from heaven,” despite its frequent lack of profitability. Unless your company has a contractual obligation to serve, or has offices in the city or state, perhaps being a benchwarmer could be the best decision.  
 
Diary of a Crazy-Mad Adjuster
By Peter J. Crosa
 
Adjusters are disarmed by moderation. They believe the “bad guys” are on a feeding frenzy every time a loss occurs. Contractors must prove they are not after unjust riches, they’re just trying to make an honest living by performing an effective, professional service.
 
Common Mistakes on Commercial Property and Inland Marine Insurance for Restorers
By Ross Driscoll, CR
 
It is probably safe to say that most insurance brokers do not understand exactly what restorers really do for a living. However, there are several large property exposures for restoration professionals that are routinely unaddressed by the average main street agency. 
 
Debt Recovery in the Restoration Industry
By Michelle Felan
 
With the economy facing some very difficult times, some companies may be experiencing a higher than average volume of delinquent receivables. In order to maintain a successful business with the lowest possible delinquency, there are many steps that companies can follow when finding and assigning accounts to an outside collection agency.

Not a subscriber? Then visit
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INDUSTRY NEWS

"RIA, IESO Collaborate on Fire Damage Restoration Standard"
Cleanfax (06/08)

A new collaboration agreement between the Restoration Industry Association (RIA) and the Indoor Environmental Standards Organization (IESO) will result in the creation of a fire damage restoration standard, said RIA Executive Director Don Manger at the 11th Annual Meeting & Exposition of the Indoor Air Quality Association in Tampa. According to Manger, "The transition into an American national standard marks another milestone in the maturation of the damage repair industry. The broad-based consensus supporting the fire damage standard will benefit the damage repair and insurance industries, as well as property owners, by providing clarity regarding repair options and a basis for cost control, while helping to expedite project completions and payments." IESO Secretariat Kristy Lee says RIA members, representatives of the IESO Standards Development Committee, and other industry players will meet this summer to work on the standard.
(Web Link)
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"NOAA Study Forecasts Greater Extremes in Weather"
Boston Globe (06/20/08) Eilperin, Juliet

The U.S. Climate Change Science Program, lead by the National Oceanic and Atmospheric Administration (NOAA), issued a 162-page study regarding the impact of global warming on the climate of the United States and Canada over the last five decades. Greenhouse gas emission hikes likely will cause more droughts and excessive heat in North America, according to the study, and some regions will experience greater rainfall and more hurricanes. The Southwest region is expected to see greater droughts, while other regions will see increases in rainfall as more water vapor hangs in the air. NOAA's National Climate Data Center Director Thomas Karl says, the report "concludes that we are now witnessing and will increasingly experience more extreme weather and climate events." Examining data as far back as 1895, researchers indicate that fewer cold periods were reported in the last 10 years than in any other decade. Extremely hot days, which occurred one time every couple of decades, now occur every three years.
(Web Link)
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"Clearing the Air"
Cleanfax (07/08) Vol. 23, No. 7, Sanchez, Richard

Disaster restoration firms should employ air scrubbers containing HEPA filters to remove upwards of 99.97 percent of airborne particulates 0.3 microns or bigger when cleaning up after a fire. Research shows that particulates under one micron can stay in the air for days or months; and if they are inhaled, they can cause cancer or other respiratory problems. Air scrubbers use negative air movement to trap soot, mold, dust, and other particles, as well as odors. These machines should operate at various speeds and allow for the use of pleated and carbon filters so that they can be used for different cleaning jobs. An indicator light alerting cleaning technicians to problems with the filtration system also is useful, as is the ability to use the machines either vertically or horizontally.
(Web Link)
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"Carpets And Allergies: Unraveling the Myths"
North American Precis Syndicate (06/30/08)

Despite the fact that three-quarters of the homeowners surveyed recently by the Institution of Inspection, Cleaning and Restoration Certification (IICRC) think carpets exacerbate allergies, IICRC technical advisor Jeff Bishop points out that scientific research underscores the benefits of carpets in alleviating allergies. He says the Environmental Protection Agency and other experts have conducted studies that reveal airborne allergens are trapped in carpets and can be removed by frequent vacuuming and deep cleaning by professional certified cleaners.
(Web Link)
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"Despite the Smell, Post-Flood Air Quality Not So Bad"
Cedar Rapids Gazette (Iowa) (06/24/08) Hadish, Cindy

Though the air in Cedar Rapids, Iowa, and other flood-ravaged areas may smell bad, Linn County Public Health air quality division supervisor Jim Hodina says air quality has not been affected. He reports low levels of particulate matter, ozone, and other outdoor pollutants, mainly because utilities and industrial plants have been closed due to the floods. However, concerns about mold in flooded buildings and asbestos in structures being razed necessitate the use of N-95 or higher respirators by restoration workers. Additionally, University Hygienic Laboratory industrial hygiene program manager Pam Kostle encourages building owners to focus on drying water-damaged structures, rather than spending money on mold tests.
(Web Link)
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"OSHA Unveils New Flood and Tornado Cleanup"
Indianapolis Star (06/23/08) Worthy, Sharon

The Occupational Safety and Health Administration unveiled a new Web site that offers targeted information for workers involved in the cleanup and recovery of the Midwest floods and tornadoes. The site, which can be accessed from the U.S. Department of Labor's main page, houses 40 fact sheets in English and Spanish that provide workers with information about such hazards as electrical wires, chain saws, decontamination, and heat and sun. It also contains public service announcements about cleanup and recovery, as well as activity sheets to help employers identify hazards and reduce employee exposure during specific cleanup and recovery tasks, such as floodwater removal and utility restoration. "We encourage employers and employees to access this vital information targeted to the conditions in which they will be working," said Assistant Secretary of Labor for OSHA Edwin G. Foulke, Jr.
(Web Link)
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"Midwest's Postflood Risk: Toxic Basements"
Christian Science Monitor (06/30/08) Spotts, Peter N.

Indoor toxins are one of the main challenges facing home and business owners in the Midwest now that floodwaters have abated. Fertilizer, gasoline, oil, chemicals, and toxic metals swept up by the floodwaters are lurking in basements across the Midwest, which is why researchers have taken the knowledge garnered after Hurricane Katrina and applied it to the current flooding. Many emergency crews provide homeowners with the go-ahead to re-enter their homes after testing for toxins outside of structures; but in many cases, toxins can be higher inside. Researchers, like Louisiana State University's Nicholas Ashley, note that heavy metals seep into homes through cracks and chinks when floodwaters are on the move; and as water recedes, silt settles inside basements and lower levels of homes. Waterborne organic chemicals, on the other hand, often seep inside mold, which then emits them when spores are released. Ashley and Dr. Louis Thibodeaux are working on a model to help homeowners determine toxin levels inside their homes, particularly after flooding. The researchers note that the longer a home remains airtight and closed for restoration or demolition can impact the level of toxins inside. Thibodeaux and Ashley hope to develop a simple water and sediment sampling kit for rescuers and emergency workers to test homes damaged by flooding, which will provide property owners with viable information for cleanup and restoration.
(Web Link)
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"Why Choose Encapsulation?"
Cleanfax (07/08) Vol. 23, No. 7, Schreiber, Herb; Darrah, Andrew

Many carpet cleaning professionals continue to employ the hot water extraction method of cleaning, which gets rid of most soils and detergents. However, the surfactants in the carpet cleaning chemicals often stick to carpet fibers and result in resoiling. More carpet cleaning specialists are adopting low-moisture encapsulation, which involves cleaning products containing polymers that dry into a hard crystalline powder that vacuuming eliminates without hassle. Additionally, experts note that encapsulation uses less water so that carpets take about an hour to dry. Efficiency is noted as another benefit, with up to 3,000 square feet of carpet cleaned in one hour. Finally, encapsulation uses less chemicals, with up to 500 square feet of carpet cleaned with one gallon of properly diluted encapsulation products.
(Web Link)
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"Tips for Contractors Dealing with Disaster Work"
Associated Construction Publications (06/23/08)

Members of the Restoration Industry Association have several tips for disaster restoration firms traveling to the Midwest to clean up after recent flooding. Before traveling to the disaster zone, these experts underscore the importance of ensuring that licenses and insurance coverage are adequate, that crew leaders and project managers have received the appropriate training, and that respirators and other personal protective equipment are on hand. Additionally, they stress the importance of up-to-date immunization against tetanus, hepatitis A, hepatitis B, and other diseases. They also should make sure they have enough money because insurance payments might not come in for a year or more; and they need to have satellite phones, GPS systems, housing, tools, and equipment in place before making the trip. Finally, they should ensure a trip to a disaster zone will not negatively affect business back home, and they should know how much they are willing to spend and how much they will be paid before beginning a job.
(Web Link)
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"Reinsurers Could Absorb Another Katrina--Amlin"
Reuters (06/24/08) Challis, Simon; Holmes, David

According to Amlin Finance Director Richard Hextall, a catastrophe larger than Hurricane Katrina, which cost insurers more than $41 billion, would be necessary to unseat the reinsurance market. Reinsurers drastically reduced their exposure to large catastrophes after the 2001 terrorist attacks and the 2005 hurricane season, and they also increased capital reserves and tightened their underwriting to charge higher prices for catastrophe risks. Hextall indicates that only reinsurers failing to ensure they retain adequate liquidity will be injured by another major catastrophe. He says the reinsurance market would remain challenging for up to four more years as competition increases, and pricing pressures come to bear on the market.
(Web Link)
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"Run From Rayon Rugs"
Cleanfax (07/08) Vol. 23, No. 7, Wagner, Lisa

Lisa Wagner, RIA/NIRC Certified Rug Specialist, of San Diego Rug Cleaning Company says rayon rugs are not very durable and pose numerous problems for carpet cleaning professionals. While breaking a wool fiber takes over 10,000 "bends," she notes that rayon fibers break with just 70 bends. Given that these rugs tend to bleed, fade, and absorb soil, Wagner underscores the importance of carpet cleaning specialists closely examining the underside of the rug to determine how much dye has transferred to the back or has been lost due to prior cleanings or sun fade. She recommends that cleaners obtain a total release of liability before proceeding, especially if the rug is undergoing its first clean and likely will lose a substantial amount of dye. Rayon rugs also are prone to yellowing due to moisture and age, and all yellow areas should be documented prior to cleaning. Cleaning specialists should employ an acidic rinse to reduce yellowing, but the acid should be used quickly to avoid bleeding. Rayon is vulnerable to shedding as well, necessitating the use of soft brushes and wringers, centrifuges, or wand covers to prevent agitation when water is extracted; any pulls in the fiber should be noted beforehand. Finally, rayon fibers often stiffen after cleaning, making it important for cleaning professionals to use fabric softener and groom by hand with hand-held soft brushes, carding brushes, or broom brushes. In all the aforementioned cases, Wagner recommends drying the rugs flat and face down.
(Web Link)
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"Cleaning The Systems"
Today's Facility Manager (06/08) Haugen, Pete

Cleaning a building's HVAC system reduces energy consumption and bolsters indoor air quality. The Department of Energy has found that the amount of energy consumed by HVAC systems jumps 30 percent when the coils are dirty, but experts underscore the importance of cleaning the entire system to ensure energy efficiency and reduce microbial contamination. HVAC systems encompass return air grilles, return air ductwork, air handling units, supply ductwork, turning vanes, reheat coils, VAV boxes, supply registers, and exhaust systems--basically all parts necessary to heat, cool, filter, humidify, dehumidify, and distribute air. The National Air Duct Cleaning Association suggests an annual inspection of air handling units and a biennial inspection of the supply and return ductwork; yearly inspections are recommended for healthcare and industrial facilities. These inspections will determine if enough dirt and debris have accumulated within the system to necessitate a thorough cleaning. The association's "Assessment, Cleaning and Restoration of HVAC Systems" document can serve as a cleaning specification or as a guide for building owners working with environmental consultants or cleaning contractors to create a building-specific cleaning specification.
(Web Link)
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"Critical Care"
Health Facilities Management (06/08) Vol. 21, No. 6, P. 57; Dugal, Bertrand

Hospital environmental services (ES) departments no longer focus on cleaning alone, as they recognize the importance of clean operating rooms (ORs) in the healing and recovery process and their ethical obligation to offer a safe environment for patients. It is crucial that ES directors collaborate with perioperative nurses and infection control professionals, review terminal cleaning procedures, and survey the OR at each step of the terminal cleaning process. ES technicians need a good grasp of aseptic principles to understand that contaminants left behind could cause surgical-site infections, meaning that ES departments need to provide the necessary training to these technicians and orchestrate a cultural shift from "how" ORs are cleaned to "why" appropriate cleaning and disinfecting is necessary. ES departments should focus on the ES storage closet, ensuring that walls, floors, and fixtures are cleaned and disinfected at the start and end of each shift because contamination in the storage closet could spread to the OR. Additionally, equipment should be cleaned after each OR use to further reduce cross-contamination; and regardless of whether a procedure has been undertaken in the OR, terminal cleaning should occur every 24 hours. Experts recommend the use of microfiber cleaning products to effectively remove dust particles which settle on surfaces after they have been sterilized, as well as the use of hospital-grade germicides registered with the U.S. Environmental Protection Agency that have the ability to kill numerous pathogens.
(Web Link)
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NewsBreak is another valuable service of the Restoration Industry Association.
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July 2008


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RIA NewsBreak is an executive summary of noteworthy articles pertaining to the cleaning and restoration industry distributed monthly to the RIA membership. Our editorial staff monitors nearly 7,000 newspapers, business publications, Web sites, national and international wire services, and other periodicals and summarizes significant articles into an easy-to-read summary.

NewsBreak is another valuable service of the Restoration Industry Association.
 
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