www.americanlaundrynews.com
October 2024 • Volume 50, Number 10
The Newspaper of Record for Laundry & Linen Management
Gathering, and using, industry benchmarking data 1974 - 2024
Industrial laundry insiders share their expertise and strategies for this important process activity (Image licensed by Ingram Image)
BY MATT POE, EDITOR
T
he American Society of Quality (ASQ) defines benchmarking as the process of measuring products, services and processes against those of organizations known to be leaders in one or more aspects of their operations. “Understanding how to find, analyze and apply this data can be a game-changer for improving your operation’s processes and efficiencies,” says W. Kirby Wagg, a senior business adviser with Performance Matters out of Sarasota, Florida, who
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spent 45 years at Wagg’s Linen & Uniform and is a member of the American Laundry News Panel of Experts.
FINDING INDUSTRY DATA
Using benchmarking data to evaluate a laundry against similar operations in the industry is a worthwhile process; however, locating the information can be difficult. “Industry benchmarking data is often limited, but several associations offer studies based on member-provided data, some of which are available for purchase,” says Sarah Brobeck, president and CEO of the Association for Linen Management (ALM). “Industry-specific benchmarking allows laundries to identify opportunities for improvement and competitive advantages; however, significant challenges exist in collecting comprehensive and comparable data. These challenges include laundries’ reluctance to share sensitive information and inconsistencies in data collection methods. “Additionally, the time required for laundries to gather the necessary data often results in limited participation. While everyone seeks the information, few are willing to contribute the data needed to support the survey. “For years, ALM members requested a comprehensive benchmarking survey with the ability to filter data for meaningful comparisons. In 2019, ALM dedicated time and resources to create such a survey. Despite our best efforts, the challenges proved too great to overcome cost-effectively, and this year we made the difficult decision to retire the survey.” Ken Koepper, director of member and industry relations for TRSA shares that the association published two benchmarking studies in 2024: the Industry Performance Report (IPR) and the Plant Employee Compensation Report.
TRSA members who participated in the surveys that generated these reports received a free copy. Non-participating members get them at a discounted price and nonmembers pay full price. “Most data that linen, uniform and facility services operators provide for the IPR comes directly from their companies’ income statements and balance sheets,” says Koepper. “These documents automatically answer most of the survey questionnaire. “Respondents also provide indicators of company size (numbers of locations, routes, customers), market mix (F&B, healthcare, hotel, industrial), workforce size and capital expenditures.” Other data provided includes: • Total sales. • Rental sales and pounds by market. • COG/NOG sales for healthcare/hospitality. • Direct sales. • Sales/service of non-textile products. • Other sales. • Percent of sales growth from acquisitions. Respondents’ data is treated confidentially by the Mackay Research Group. No one from TRSA or its staff can access individual company data, and it’s published in the IPR in a way that prevents identification of any specific company. TRSA also periodically conducts: • Industry Safety Report for members to share progress in reducing workplace illness and injury rates in plants and branches; plus comparison of key metrics with nonmembers (U.S. Bureau of Labor Statistics data). Demographics are linen or industrial
See Benchmark on Page 6
LATE NEWS Alliance acquires Salt Lake City distributor RIPON, Wis. — Commercial laundry equipment provider Alliance Laundry Systems reports that it has acquired distributor Alliance Laundry Equipment in Salt Lake City. “Alliance has done an excellent job of representing our Speed Queen and UniMac brands with distinction,” says Craig Dakauskas, senior vice president, Americas Commercial, Alliance Laundry Systems. Alliance will become part of the Alliance Laundry Systems Distribution West Region while maintaining its Salt Lake City office. Founded in 1955, Alliance has provided its customers with a full-service approach that includes experienced in-house installers and service technicians with 150 years of combined experience. Matthew Christensen (CEO and general manager) and Jeffrey Christensen (COO and CFO) lead the distributor, which has served laundromat owners and new investors, as well as managers of on-premises laundries (OPL) in a variety of facilities in Utah, Wyoming, Colorado and Idaho. “Jeffrey and I are proud of our team’s dedication to serving customers at the highest level and are excited that that standard will continue after this sale to the global leader in commercial laundry equipment,” says Matthew.
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