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American Laundry News - June 2019

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JUNE 2019

Late News Cintas donates more than 30,000 garments CINCINNATI — Cintas Corp. reports it donated more than 30,000 pieces of Cintas garments to The Salvation Army Thrift Store in Canada. The donation is valued at more than $3 million. “We’re always looking for ways to give back to the local communities we serve and are proud of our ongoing relationship with The Salvation Army,” says Abby Deere, Cintas Corp. “These donated items will help generate funds for The Salvation Army to operate the much-needed programs that are a vital part of the community.” Cintas says its donation includes discontinued inventory such as blazers, vests, dress shirts and suits. All items donated by Cintas will be offered for sale in 107 The Salvation Army Thrift Store locations across Canada at a reduced cost, which allows the Thrift Stores to support several of The Salvation Army’s social service programs. Donated items are also given directly to those most in need through The Salvation Army’s voucher program. ALN

To design, or to redesign That’s the question laundry operations must answer when capacity is reached, equipment ages out, etc. BY MATT POE, EDITOR CHICAGO — Faultless Healthcare Linen, based in Kansas City, Mo., knows what it’s like to design, build and retrofit laundry operations. It’s tackled around seven such projects in the past 20 years, according to COO Mark Spence. “Almost always the situation was capacity, creating new capacity to accommodate growth and to accommodate innovations in technology going on in the industry,” he says. Faultless’ most recent project was its first new build of a laundry facility in St. Louis, which opened in 2018. The situation of the new build was unique. In 2015, the company learned that its plant that opened in 2012 was going to be subject to eminent domain relocation

Q&A:

Faultless Healthcare Linen opened its new St. Louis healthcare laundry plant in 2018. (Photo: Jeff Wellman)

to accommodate Next NGA West, a megaproject jointly managed by the National Geospatial-Intelligence Agency, U.S. Army Corps of Engineers and U.S. Air Force. “It took about three years to negotiate a relocation package with the city and state and then to actually construct the building,”

See DESIGN on Page 6

Industry consolidation impact for Linen Management (ALM); Joseph Ricci, president and CEO of TRSA, the association for linen, uniform and facility services; and Sam Spence, a consultant with TBR Associates, to learn more about what’s going on with consolidation in the laundry/ linen services industry, and its impact.

Experts talk consolidation effects on laundry/linen services, markets served BY MATT POE, EDITOR CHICAGO — Consolidation. It’s not a new phenomenon in the laundry/linen services industry, but it seems to be occurring more frequently. For example, in just the past couple years, Cintas acquired G&K Services, and AmeriPride Services merged with Aramark. And it’s not just happening with laundry operations. Entities in markets that facilities service, such as hospitals and hotels, are merging and being acquired. What is the effect of this consolidation, and what does it mean for the laundry/ linen services industry? American Laundry News contacted Bob Corfield, founder of the consulting firm Volume 45, Number 6

INSIDE Demystifying Microfiber Workhorse product has revolutionized cleaning around the world, author says

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Spence shares. “We could not find an adequate industrial building within the city limits, geographically, where we need to be located. There just wasn’t any inventory. They did agree to let us construct a new

What has been the impact on the laundry/linen services industry as operations consolidate?

Mergers and acquisitions, along with activity by private equity firms, are changing the laundry/linen services landscape. (Image licensed by Ingram Publishing)

Laundry Design Group; Linda Fairbanks, executive director of the Association

www.americanlaundrynews.com

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Panel of Experts In this issue, the experts offer a variety of soil sort solutions to help reduce stains, rewash

CORFIELD: Consolidation is occurring on both sides. Hospitals are consolidating across markets, which drives volume to multimarket laundry operators. Hotel groups continue to consolidate with hotel GPO (group purchasing organizations) driving volume to larger plants. While the purchasers of laundry/linen services are driving toward lower cost by driving volume to single companies, See CONSOLIDATE on Page 10

The Newspaper of Record for Laundry & Linen Management

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Major Michigan Healthcare Laundry Three Michigan health systems collaborate on $48 million laundry service facility

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5/15/19 3:35 PM


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