Quietly confident

3 August 2001



Independent launderers’ willingness to adapt to change means they should continue to thrive despite the pressures, says Nicholas Marshall


Prominent independent launderers in the UK are quietly confident of securing good levels of business in the medium term.

They stress that large groups often cannot match their operational flexibility and that their closeness to customers allows them to be quickly alerted to changing requirements and problems.

Colin Rowe, joint MD of Cornish Linen Service, believes prospects for independent suppliers of flatwork and garment rental services are excellent.

Such suppliers, he says, can be thoroughly in tune with their customers’ needs. Furthermore, they completely understand production pressures and handle them efficiently.

Being sensible

In a particularly strong position are those independent companies that have implemented a policy of “sensible investment” in equipment over a number of years. Helpful to many of these firms has been the need to satisfy the demands of family shareholders rather than those of the City.

Mr Rowe says independents are well placed to serve the increasing number of luxury, independently-run hotels. These establishments appreciate the independent launderer’s approach to linen specification and to providing an individual service.

The way in which independent textile care firms are able to offer a complete package of services, perhaps embracing textile rental, contract laundering and commercial drycleaning, is often welcomed.

Mr Rowe says the current headache for independents is keeping up to date with new legislation. Maintaining a watch on requirements regarding water and effluent charges, health and safety issues, working time regulations, and the Climate Change Levy is burdensome for companies also facing increasing labour costs.

Nigel Armstrong, chairman and managing director of Texicare, Lancaster, considers that owner-driven independent textile service companies have much strength in providing flexibility to customers. The management, mindful that its “own money” is in the business, remains production orientated and vigilant on efficiency.

The independents, he says, have to recognise the superior power of the national groups when it comes to sales and marketing, the giant companies have the big budgets and specialised teams.

Customers with national operations – large hotel groups for example – often want to have linen hire suppliers which also operate nationally, and so independents can lose out, even if they have an impeccable track record of service.

Healthy prospects exist for independents in the provision of garment rental, an activity that is often regionally organised and where “personal” service is usually highly regarded. Considerable investment is, of course, required in dedicated processing plants if the food and pharmaceutical sectors are being targeted.

Managements of independent textile care companies tend to be closer to their staff than those of the large groups, and this can be both good and bad, Mr Armstrong contends.

A good independent employer can build up an enviable relationship with staff teams, generating an enormous commitment to production efficiency and customer service. A bad one can do the opposite, affecting performance adversely.

Start-up independent businesses, serving niche markets, continue to emerge, observes Mr Armstrong. These businesses, sometimes launched by former employees of the national groups, often operate modestly, perhaps with a bank of washer-extractors and an old ironer.

Brian Hampson, joint managing director of Wintex UK, Winchester, says the way in which independents are able to offer customers high quality products helps to make their services outstanding.

Independently-run hotels can be offered towels in a deluxe 600gsm quality rather than in a standard 450gsm quality. The restaurant market can be provided with a wide range of flatwork colours and fabrics – restaurateurs are able to choose a style that complements their operations.

Independents often have to be capable of coping with a large number of classifications. The introduction of a further 10 lines to a product portfolio needs to be carefully evaluated in terms of how it will affect finishing department performance. Extra storage is another consideration.

The huge plants of the large textile care groups are able to achieve notably low production costs and, by investing in top-grade, high-volume finishing equipment, can maintain excellent quality. Independent operators find it difficult to compete against this sort of performance.

  Mr Hampson points out that independent operators often have plants located in towns where there is a shortage of affordable housing. Recruiting and retaining staff is therefore difficult as most people prefer to work locally.

Robert James, managing director, Petersfield & Reliance Launderers & Cleaners, says he is examining ways of automating to reduce the number of staff required but that this is not an easy task, given the wide mix of work his business processes. There is often no substitute for a literally hands-on approach.

School hours

He says parents can be attracted to work at times which fit in with school hours, and agency staff can be utilised. Staff shortages in the holiday season can be pre-empted through recruitment of students.

When long-serving staff retire, there is a tendency for the skills shortage to be increased. The situation is not helped by the fact that new staff are often not committed to staying in a job long term.

Mr James also believes in flexibility. Petersfield & Reliance focuses on providing a higher level of service with quality stock. Sales staff are also responsible for service and make regular contact with customers, which leads to a healthy rapport. This approach is, he says, preferable to having sales staff who pass the details of the contract to someone else. Petersfield & Reliance gives customers an individualised service with real choice and dedicated stock. New business comes through recommendation and through representatives on the road. Fifty per cent of the throughput is rental, mostly flatwork; 30% is contract and 20% domestic.

Clive Brunswick, MD of Anton Laundry, Andover, which specialises in domestic work, maintains that creating new business in this sector is not easy.

Traditionally domestic laundry customers have been people who have always wanted to send out their washing and have had the means to do so. Their lifestyle allows laundry to be collected and delivered during the working day.

No time

There are many potential customers who are cash rich but time poor. However, they would need evening collections and deliveries and the associated labour costs tend to make this group unviable.

Mr Brunswick underlines that labour costs are high, particularly in the south east of England. In recent years, increases in costs have been successfully passed on, but, he says, further price rises now or in the near future might create market resistance. He believes that this might have a greater effect than first realised.

For example, domestic work customers who face increased prices may reduce the number of items sent for professional laundering, sending just the “difficult” items. As a result, a plant handling domestic laundry could find itself with a lower volume of work that would still demand intensive labour. Mr Brunswick acknowledges that ironing services have become a competitive force in the domestic market area. Those running these services start with low overheads and offer low prices, but, when they begin to grow, their costs profile changes and profitability is eroded.

He agrees that attracting and retaining staff is a problem faced across the whole textile care sector, and recruitment problems are definitely affecting independent launderers, whose costs are being driven up by higher wage and fuel bills.

New customers come to Anton through personal recommendations although the company does carry out marketing activity. Customers appreciate how they can have access to the managing director. The company keeps in touch with customers by letter, and organises a popular Christmas quiz.



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