www.americanlaundrynews.com
May 2024 • Volume 50, Number 05
Does your independent laundry have a backup plan?
The Newspaper of Record for Laundry & Linen Management
1974 - 2024
With mergers and acquisitions in the industry, now is the time for independent operations to prepare for processing disruptions (Image licensed by Ingram Image)
BY MATT POE, EDITOR
O
n the morning of July 30, 2023, Portland (Oregon) Fire & Rescue was called to a two-alarm fire at the warehouse of Indoor Billboard, a family-run industrial laundry. The blaze put the independent laundry’s processing capabilities out of commission. Fortunately, Indoor Billboard was able to enlist other laundry operations to process linens and mats while they recovered. “Since Aug. 1, we have been processing linen for Indoor Billboard in Portland,”
shares Rick Snyder, general manager of U.S. Linen & Uniform in Richland, Washington. “They had a fire, so their plant has been out of commission since then. They apparently have two other companies processing their mats. “While we did not have a formal backup plan with them, we were happy to help out.” As an independent laundry, Indoor Billboard was fortunate to find other operations that could handle processing as the company recovered. With more mergers and acquisitions (M&A) taking place in the laundry and linen services industry, it’s vital for independent operations to ensure they have viable backup processing plans in place in the event of emergencies or disasters.
THE POWER OF RELATIONSHIPS
The trend for larger national and regional laundry and linen service operations to consolidate smaller operations doesn’t show signs of slowing down. In 2023, American Laundry News reported on 10 such mergers and acquisitions with another five so far in 2024. Fortunately, these M&As haven’t affected independent laundry operations too much on a day-to-day basis. “Mergers and acquisitions have not affected how we currently operate,” says John Johnston, partner and CEO of Ed Robinson Laundry and Dry Cleaning/ Physicians Wear/CRDN in Columbia, South Carolina. He is also the vice president of the Independent Textile Rental Association. “They do allow us an opportunity to stand out as a local provider.” “We will find out soon enough as the biggest independent competitor in our
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area just sold to Cintas,” shares Jimbo Carrico, the owner of Springfield Laundry in Kentucky and an ITRA member. “I don’t have any other knowledge at this time as we haven’t experienced any industry changes due to acquisitions yet.” Snyder adds, “Not very much. It has just meant we have a few more prospects.” However, M&As do influence how independent laundries create and maintain their backup plans for business continuity. “We haven’t updated our plans in years. Now is a good time to start working on that,” Snyder says. “While we had never discussed being the backup for Indoor Billboard in Portland, we became their emergency backup plan when they had a fire last year. They currently have three companies processing for them.” “It is important as an independent to have positive relationships with other independents in case of emergencies,” Johnston says. “The emergencies could be as severe as a total loss or could be a minor disruption in service. “Being involved in organizations such as ITRA allows independents an opportunity to grow positive relationships with others and work on worst-case scenario plans.” “Relationships is all I have to say on this besides backup plans are needed,” Carrico adds. “With the fire we experienced a year and a half ago, it was very difficult at times to get other companies to help out. “With that said, being a member of ITRA, CSC, and other cost groups allowed me to become close to several other independent regional industrial laundry companies which helped us out
See Backup on Page 6
LATE NEWS Ortolano new executive director for AHE CHICAGO — The Association for the Health Care Environment (AHE) reports that Elizabeth “Lizzie” Ortolano has been selected as its next executive director. She replaces Patti Costello, who retired on April 5 after 29 years with the American Hospital Association (AHA) and AHE. “Patti has done a tremendous job leading AHE through both good times and challenges like the recent pandemic,” says Deanna Martin, vice president of professional membership groups at AHA. “She works tirelessly to support AHE members and environmental services leaders in hospitals and other care settings.” Ortolano will serve as executive director for both AHE and another AHA professional membership group, the American Society for Health Care Engineering (ASHE). Before this role, Ortolano was executive director of ASHE and another professional membership group. She brings nearly 20 years of leadership and association experience to AHE. “Lizzie is a strong leader who excels at creating a culture of collaboration to meet strategic goals,” says Martin. “She’ll be a great fit with the AHE team, the AHE Advisory Board, and AHE members, and will continue to ensure AHE meets member needs.”
4/16/24 11:4 AM