Partnership for Equipment Upgrades Smooths Path to Sustainability

The City of Brotherly Love is home to a match of partners to revitalize a linen service as two of the city’s businesses join forces to facilitate key laundry equipment upgrades and benefit from the resulting efficiencies.

Arway Linen and Uniform has entered into an agreement with Ecosave, which will pay for $16 million in equipment for the new Arway laundry facility in Philadelphia, planned for a 2025 opening. Ecosave will collect fees from Arway as the company achieves savings from the upgrades. The companies will agree on savings Arway can expect (“guaranteed savings”) in determining the fees. If the guaranteed savings are exceeded, Ecosave is entitled to 25% of them. Annual savings are expected to easily offset the fee, leaving Arway cashflow-positive.

The new equipment will be Ecosave’s property. Ecosave provides utility-management service and comprehensive equipment maintenance, including repairs and replacement for the life of the agreement. The firm also is responsible for insurance.

Fees can be variable for sharing of overdelivered savings. Arway can opt to purchase the equipment for fair market value, with full depreciation, by the end of the contract term.

“Ecosave’s engineering and funding model aligns perfectly with Arway’s business and sustainability goals,” said Mario Stagliano, Arway managing partner. “They demonstrated the engineering insights to earn our trust, and the innovation and collaboration to become a trusted and valued partner.”

With the new facility’s state-of-the-art energy-efficient equipment upgrades, Arway anticipates reducing water and energy consumption by 51% per year.

In addition to upgrading outdated machinery with low-maintenance, energy and cost-efficient equipment, key benefits include:

• Automating processing systems to ensure operational workflows can be managed in a singular platform
• Monitoring, tracking, predicting and reducing energy consumption with AI-backed utility management systems and real-time data analysis
• Further minimizing water costs with valve installation enabling water-demand management
• Managing pollutant concentrations to ensure compliance with local environmental standards

Ecosave’s proprietary AI-powered management and analytics software safeguards operations and proactively manages building systems. Arway will be alerted when equipment begins to show signs of anomalies in operations before they impact operations at the facility – reducing downtime before it ever even occurs.