CHICAGO — The 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 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 and number of employees in plant or branch. This report is available only to participating members.
- Sustainability Report facilitates information-sharing on water and energy use by production volume, energy conservation and sustainable business practices from the TRSA Clean Green standard.
Cliff Beiser, principle of Champions Touch, a consulting service in Kissimmee, Florida, has researched several methods for finding laundry industry benchmarking data.
Besides benchmarking data available from associations, he has also purchased useful data from Fortune Business Insights, Statista, D&B Hoovers and Research Gate.
“I travel quite a bit for work auditing cleaning which gives me an opportunity to view and talk about hospitality laundry with the managers and employees,” Beiser shares.
“In addition, working for laundromat owners and expanding their commercial footprint opened the ability to talk to laundromat owners and observe their operations to obtain benchmarks.
“A third avenue to obtain benchmarking data and, in my opinion, one of the best is to use the manufacturer websites. Each manufacturer has a website full of manuals describing their machines and when you contact them directly, they have been generous in sharing what benchmarks (peak efficiency formula) their equipment can perform.
“A fourth source is to use search engines with terms such as ‘benchmarking industrial’ or ‘commercial laundry.’ I added specific terms such as hotel, laundromat, etc., for more specific results.”
Other resources Beiser has found include:
- Some consultants have benchmarking data for purchase or sharing if you are a client.
- Ken Tyler publishes “Benchmarking Cost Textile Care Operations” frequently which will give you a range to work with and is free.
- Laundry Blogs have also served as an abundant source of benchmarking data for industrial, laundromat and hospitality laundry.
- Create your own, as I have always timed myself and/or other key people in each station of the laundry based on my current equipment to find my baseline after determining my peak efficiency and adjust based on abilities of personnel, equipment age/breakdowns, flow of incoming linen and par stocks of available linen and terry.
“In conclusion, it is extremely important to remember that every laundry is different so all benchmarks should be viewed as rough guides and not an absolute answer,” Beiser points out.
Wagg agrees locating reliable industry benchmark data is the first step and offers the following recommendations:
- Industry Associations.
- Consulting Firms: Specialized consultants who understand the textile rental industry can provide tailored benchmarking reports, as they offer deep dives into industry-specific metrics.
- Internal Data: Your own operation’s historical data can serve as a powerful benchmark. By tracking key performance indicators (KPIs) over time, you can compare your performance against industry standards or your past performance.
- Trade Publications and Research Reports: Regularly subscribing and reviewing trade publications can also yield useful benchmarking data. These sources often include case studies, performance metrics and trends that can be applied to your operations.
Michael Dodge, continuous improvement manager for CITY Healthcare in Minnesota, adds that cost groups usually have this data, along with consultants.
“Our chemical suppliers and vendors also can provide us benchmark data,” he says.
Check back Tuesday for next steps to analyze and understand gathered data.
Have a question or comment? E-mail our editor Matt Poe at [email protected].
