From Crisis to Opportunity: TRSA Hosts Virtual Associate Roundtables

Posted May 29, 2020 at 10:55 am



On May 19, TRSA hosted a series of virtual Zoom CEO/Executive Roundtable meetings with associate members to facilitate information sharing among supplier partners to the linen, uniform and facility services industry. Facilitated by TRSA President & CEO Joseph Ricci, participants were invited to engage in one of three sessions, limited to 15 people per session.

Sessions included equipment suppliers/manufacturers (hard goods), textile manufacturers and distributors (soft goods) or other products and services, such as chemicals, mats, hangers, consulting, etc. Prior to the meetings, participants were asked to submit questions for discussion, which covered a wide range of issues. Some topics included travel policies and access to servicing operational laundries, safety best practices, and market-sector specific impacts and path to recovery.

While there was variation between sessions, there was a consensus around the immediate impact of the COVID-19 crisis on specific market-sectors and an extended recovery process which will take months and possibly years. Companies servicing travel and entertainment (such as restaurants, hotels, casinos, and airlines) are particularly strained. Many felt the industry could reach 60 percent or more of year-over-year volume by December 2020 based on the strength of the healthcare sector and lesser impact on uniform/workwear rentals.

Experiences during the shutdown and as the country reopens vary tremendously by geography, both state-to-state and urban-to-rural. Customers and colleagues have differing interactions and expectations regarding travel, access to plants, and potential length of recovery.

The sudden and potentially long-lasting impacts of the crisis blindsided nearly every company, even shocking CEOs from established companies. One CEO noted that, “We thought we were prepared financially and strategically for any potential downturn but soon discovered that even decades old business cannot be prepared for the impact of a complete economic shutdown.”

The equipment manufacturers noted that sales and new orders were “dead,” and delays have turned their production facilities into “warehouses.” In general, most orders and installations were delayed, not canceled and many suppliers have extended “financial terms.” Equipment suppliers anticipate the longest potential recovery, expecting to take at least 12 months or longer before customers have the capital resources to begin reinvesting in new equipment. Most continue to manufacture based on backlogs, but this will soon end, and they will rely heavily on parts and service agreements.

While there was little supply chain impact on manufacturing, textile providers experienced both shortages and supply chain interruptions, especially those with operations in China, Pakistan and India. Some of these countries are now back, and others slowly returning. The textile manufacturers and distributors saw a dramatic increase in reusable PPE such as isolation and surgical gowns and scrubs but are uncertain if this is a short-term response to shortages or a longer-term strategy. Most are looking to diversify their own supply chains to improve their capabilities to meet customer demands and are recommending to their customers to maintain a better mix of reusable and disposable products.

Most session participants envision the slowest recovery for the F&B/restaurant and hospitality/hotel sectors and the association representing hotels (American Hotel & Lodging Association) and restaurants (National Restaurant Association) predict a return to early 2020 occupancies to take a full two years. Roundtable participants anticipate the industrial uniform/workwear sector market to rebound slightly faster as people get back to work. Expectations for the acute and non-acute healthcare sectors are the most optimistic, predicting a fast return or even potential growth, depending on the availability of elective surgeries and personal protective equipment (PPE). All predictions were contingent on the economy reopening over the summer, taking into account the potential for a coronavirus resurgence that forces a second economic shutdown, and the discovery and availability of a vaccine.

Diversification was identified as extremely important for business survival and recovery. The best positioned and most optimistic suppliers discussed the positive attributes of diversity both within the various linen, uniform and facility services market-sectors and their customers based outside of the industry. These organizations also provide products and services to manufacturing, consumers and other market sectors with these revenues supporting the downturn in the laundry market. Associates serving only F&B or hospitality linen supply were the most pessimistic of survival and several were unsure of their survival.

Although devastating in many ways, session participants also acknowledged certain positive aspects yielded by the shutdown. The increased demand for reusable products (such as isolation and surgical gowns) and the emphasis on hygienically clean standards create opportunities for growth. Potential new markets emerge, such as “coverings” for dental offices, sanitizers and cleanroom pharmaceutical manufacturing, and distribution center services. Many companies noted improved, more engaged internal and external communications and used the downtime as opportunities for training and business process updates. During the crisis, many companies refocused on internal development including R&D and systems upgrades, and improving sales presentations and marketing materials.

“The shared experiences of the COVID-19 crisis and virtual meetings at home have further personalized relationships,” said Darryl Williams, Landau Uniforms. “We feel more connected to both our co-workers and customers; maintaining this will require additional effort but we’ve established a solid foundation from which to build.”

Taking advantage of the opportunities for growth, diversification and market penetration requires educating customers and other influencers and stakeholders. This is where TRSA plays an important role in supporting members, by providing information, research and materials to help educate customers regarding the sustainability and cleanliness of reusable textiles. In addition, TRSA must further develop and maintain the industry’s “seat-at-the-table,” especially as current and post-COVID guidelines and standards that will potentially impact the industry are considered.

As Europe and other parts of the world begin reopening, it is important to note that “recovery is already happening in Asia,” according to Ed Kirejczyk, president, Sea-lion America Co., the American subsidiary of a laundry equipment manufacturer headquartered in China. “They are ahead of us on the curve … and I can tell you first-hand that the Sea-lion factory is getting busy again.”

During session discussions, groups identified several key shifts created by this crisis that may become permanent and positives. Some include:

  • Leveraging technology including virtual communication to conduct remote start-ups, customer training and sales
  • Hesitating to require travel due to travel restrictions for most non-essential services through August
  • Working remotely is here to stay for a wide range of functions from administration, sales and service
  • Increasing safety precautions impacting access to laundries, healthcare facilities, food manufacturing and long-term care facilities, which requires the reinvention of the sales process
  • Facility services outside of the industry, emphasis on helping customers, as well as focusing on business fundamentals of monitoring accounts receivable, and layoffs and furloughs

There was consensus on the importance of “associating” around shared experiences and reconnecting with competitors and colleagues as “therapeutic … and comforting to know that we are not in a boat by ourselves.” There was also universal praise for TRSA’s efforts to promote and protect our industry. One participant noted that, “TRSA is the only organization in our industry that really tries to promote and grow the opportunities that are out there.”

We want to thank the following industry supplier partner representatives that participated for their support, and the support of all TRSA members, in helping guide and coordinate our industry’s survival and return – Stronger Together!

Hard Goods, i.e., equipment manufacturers

  • Mark Brim, President, Brim Laundry Machinery
  • Tom Egebrecht, Sales Director, Chicago Dryer
  • Jeff Frushtick, Chairman and CEO, Leonard Automatics
  • Phil Hart, President, Kannegiesser
  • Arnaud Henrard, CEO, Foltex
  • Rick Kelly, Vice President, Sales and Marketing, Pellerin Milnor
  • Ed Kirejczyk, President, Sea-Lion America
  • Simon Nield, President, JENSEN
  • Gary Ostrum, Senior Executive Vice President of Global Sales and Marketing, G.A. Braun
  • JR Ryan, President, Meese
  • Justin Shamion, President, Colmac
  • Steve Twombly, President, Automation Dynamics
  • Tom Vanden Heuvel, CEO, Kemco
  • Keith Ware, Vice President of Sales, Lavatec

Soft Goods, i.e., textile manufacturers and distributors

  • Brett Barthel, Vice President of Sales & Business Development, VF Workwear
  • Charles Crowell, Vice President, Milliken Table Linens
  • Khurram Maqbool, Vice President, Sigmatex-Lanier
  • Jamie Orlando, Vice President of Healthcare Textiles, Encompass Group
  • Dan Sanchez, Vice President of Corporate Sales, Medline Textiles
  • Dan Schwartz, Vice President, Fashion Seal Healthcare
  • Darryl Williams, Vice President of Sales, Marketing and Design, Landau Uniforms
  • Steven Wright, Vice President of Business Development, Irving Weber Associates

Other, i.e., products and services, chemicals, mats, consulting, etc.

  • Jim Adler, Owner, Linen Master
  • Ty Dawson, Global Vice President, Milliken
  • Andy Feldman, Managing Partner, Compel
  • Greg Gurtler, President, Gurtler
  • David Hart, CEO, Mountville/M&A Matting
  • Bruce Howard, Chairman and CEO, Kleen-Tex
  • Mark Kowalski, Managing Partner, Envise Partners
  • Eric Kurjan, President, Six Disciplines Consulting
  • Ed Kwasnick, Director of Business Development, ARCO/Murray
  • Milton Magnus, President, M&B Hangers
  • Don Maida, Senior Consultant, TBR Associates
  • Jeff Markman, President, Positek
  • Rudi Moors, President, Christeyns
  • David Tingue, CEO, Tingue
  • John Walroth, CEO, WSI
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