UK
The Textile Services Association Conference got off to a good start with a record attendance of 176 delegates, meeting at St Georges Park Hilton, Burton on Trent, over 21-22 October. According to TSA chair Charlie Betteridge in his welcome speech this new record attendance is proof that the new format, introduced last year, works. However, his summing up of the current economic situation for laundries seemed to indicate it is a bit like the curate’s egg – partly good and partly bad – but not as bad as it could be.
“So, where are we one year on from the last conference?” asked Betteridge. “In many ways we are in a similar place. Then the Employment Rights Bill had just been revealed, scrapping zero hours contracts. Not good for us, but a bigger problem for hospitality. The Budget was just around the corner and then, as now, we question whether Chancellor Rachel Reeves really knows what she is going to do. The hike in NI employer contributions was a big problem for us and our customers. National Living Wage increases now mean the UK has the fourth highest minimum wage in the world (12% higher than Germany).
“Hotels are actually doing well in terms of occupancy (London 86.3% in September), up since last year and RevPAR also significantly up, so earning a lot more money (but try getting 5p more for a bedpack). Volumes, however, are down as hotels are encouraging guests not to have daily housekeeping.”
Betteridge reported that healthcare, surprisingly, also experiencing with lower volumes within existing customers, and he speculated this could be down to changing bed linen not as often, possibly less weekend and overtime work as NHS waiting lists are no longer a priority.
He also said that workwear is stagnant as it reflects the economic situation – and a lot of caution. At end of day, we can only wash what our customers give us. “Reeves had referred to the UK at the IMF annual conference as ‘beacon of economic stability’. Wrong, as we are a beacon of economic stagnation,” lamented Betteridge.
He continued: “UK GDP growth looks not too bad but GDP per capita (taking into account of immigration) is the lowest in G7. We are though, the highest in the G7 for inflation (3.8%). Wage inflation is runnin gat 4.6%, so Prime Minister Keir Starmer may claim the man and womanin the street are better off. They don’t feel it, though, and thinking twice about a weekend away or a meal out. More to the point, it all results in higher costs for business.
The newspapers on the day of Betteridge’s speech reported that Government debt has increased in the six months to September by £99.7 billion. “Debt interest last year was £105 billion. This is not sustainable and Reeves must break the Labour manifesto and increase personal tax as kicking business in the teeth again will only lead to further problems. Low productivity is a problem in UK but to encourage investment (and attract foreign companies), business needs support, not higher costs,” said Betteridge.“Getting away from the doom and gloom loop, and in summary, things aren‘t great but they are not catastrophic and perhaps the new normal.
Summing up, Betteridge praised TSA for the efforts it has been making regarding events like the conference and the various training days across the year. “The positive side is that the TSA continues to do a fantastic job with a huge array of webinars and courses on all sorts of subjects (technical, HR, legal and general topics),” said Betteridge, adding: “Enjoy the conference and talk to each other. We are all in same boat.”
