Metar Weather Helps Divisions Maintenance Group Protect Against Winter Weather Volatility
Florham Park N.J.-based Metar Weather announced that Newport, K.Y.-based, Divisions Maintenance Group, a provider of facilities maintenance services nationwide to retailers and property management companies, has selected Metar Weather to provide innovative weather risk protection insurance products to help them offer their clients a fixed snow removal budget, while insulating their own expenses during seasons of variable snowfalls.
Metar’s unique products offer sellers of snow removal services a means of mitigating risks associated with above-average or below-average snowfall by maximizing revenues in the case of abnormally low snowfalls or minimizing expenses in the case of abnormally high snowfalls.
For buyers of snow removal services, such as retail businesses, shopping centers, parking lots, corporate office buildings and colleges and universities, Metar Weather’s products offer budgetary certainty, including insulation from years of heavy snowfall and a financial benefit during years of low snowfall.
“Divisions is dedicated to maintaining the safe and unimpeded usage of our clients’ properties, but in a number of states we service, including Texas, Oklahoma, Tennessee, and Arizona, annual snowfall can be highly unpredictable,” said Grant Mitchell, senior vice president for strategic sourcing at Divisions Maintenance Group. “Metar’s weather protection plans are a win-win all round, allowing us to continue to provide our customers with the fixed snow removal budgets they demand, while maintaining our own flexibility to pay our own service providers based on actual snow fall instead of fixed contracts – mitigating the risks associated with above-average or below-average snowfall.”
Divisions provides facilities maintenance services nationwide, including snow removal, to their customer base of retailers and property management companies through a network of offices including locations in Chicago, Ill; Las Vegas, Nev; Detroit, Mich; and Nashville, Tenn.
Buyers of snow removal services typically choose from two kinds of contracts. They can either purchase a seasonal contract, whereby they pay one lump sum no matter how much or little it snows, or they can purchase a per occurrence-type contract, whereby they pay each time services are performed. Seasonal contracts provide buyers of snow removal services with a cap on expenses, but force them to give up the potential cost savings during a season of light snowfall. Per occurrence-type contracts expose buyers to uncapped expenses during seasons of heavy snowfall and the inability to accurately budget.
“Fortunately, through the purchase of a weather risk protection plan, there is an effective way to get the security and budget predictability of a fixed contract without the need to have to pay a large upfront sum,” said Nemet. “In the past, such protection plans were non-existent or ineffective due to the lack of products and the lack of access to local weather data, which made it difficult if not impossible to accurately assess risk. Access to complete data, which draws on historical records at the zip code level, has provided a foundation for the development of innovative weather risk protection plans.”
Metar has created protection products for the snow industry that accurately reflect customers’ weather risk exposure as a result of access to hyperlocal weather data through a proprietary relationship with WeatherWorks, a national leader in providing customized and innovative meteorological services and products.
“Snow is currency to many weather-dependent businesses and our products provide them much-needed peace of mind by stabilizing their profit margins,” said Nemet.
For more information on Metar Weather's snow removal protection products, visit www.metarweather.com.
About Metar Weather
Founded in 2011, Metar Weather helps clients reduce risks to earnings, expenses or revenues resulting from a broad array of measurable meteorological phenomena, including temperature, precipitation, humidity and wind. Metar creates highly customizable weather protection products for a variety of weather-dependent industries, including the snow removal industry, ski resorts and golf courses. Their proprietary structures and strong industry partnerships have helped distinguish them as one of the nation’s premier retail weather risk specialty firms.
About Divisions Maintenance Group
Divisions Maintenance Group is providing facilities maintenance services professionally, efficiently, and consistently across our customers' portfolios, while guaranteeing customer satisfaction. Divisions forms reliable partnerships by anticipating needs throughout the life of the relationship.
Founded in 1999 by five partners, Gary Mitchell, Grant Mitchell, Doug Lackey, Andy Smith, and Hugo Sakson, Divisions has quickly become a national leader in the facilities maintenance industry. Divisions' expert team of Facility Management professionals and network of certified providers keeps properties running at their peak. Our position as a leader in the marketplace is the direct result of our unwavering commitment to provide uninterrupted peace of mind to our customers for their facilities’ maintenance management needs.
For more information, please visit www.divisionsinc.com.