CHICAGO — Whether it’s obvious or not, opportunities are beginning to blossom after the long dry spell experienced by the U.S. economy. Don’t let lamentations on the state of “today’s economy” fool you: Steve Kallenbach, director of market solutions at textile supplier ADI American Dawn, says that phrase more often than not keeps people from looking more closely at the economy to try to identify emerging opportunity.
In a recent Textile Rental Services Association (TRSA) webinar titled Untapped Market and Product Opportunities, Kallenbach expanded on his thoughts on the economy, and how commercial launderers can tap into the multitude of business opportunities in burgeoning industries in the coming years.
It can be tempting, he says, to look at unemployment rates to determine the health of the economy, but that can be misleading. If you’ve followed the gross domestic product (GDP) lately, you’ll notice that in 2014 it was back up to where it had been in 2005, before the recession hit—when things were steadily climbing upward.
“Right now, the economy is actually growing at that same speed,” says Kallenbach. “Our economic outlook is mostly clear and sunny.”
So where are the sweet spots that operators should be trying to locate and build on?
To find them, you’ll need to look at the growth related to the industries that commercial and industrial laundries serve. To better define the opportunities in various segments, Kallenbach lists four main areas of interest: industrial (manufacturing, automotive and food/pharmaceutical manufacturing), hospitality (lodging, hotels, spas and health clubs), food and beverage aka F&B (restaurants, catering, etc.), and healthcare (acute, non-acute, sub-acute).
HEALTHCARE PRODUCT DRIVERS
Customer service and perception of quality are causing major changes in the way laundries enter healthcare markets, says Kallenbach. Upgraded smocks and scrubs in a variety of designs and colors are becoming important in this segment, along with nurses’ warm-up jackets, lab coats for females, and upgraded linen. He adds that more front-end workers are opting for scrubs and uniforms.
“It’s a huge opportunity because they’re looking to image their organizations,” he comments.
Other changes involve the move toward non- and sub-acute care, which are growing as they help decrease hospital stays and contain healthcare costs.
“What you’re seeing in acute care, in hospital care, is that they want to get [patients] out of the hospital, and if you have a recovery time, you want to do that in an assisted living rehabilitative center.”
Long-term care, too, is growing as Americans grow older and live longer, and laundries should stay abreast of the opportunities this provides them.
And it should come as no surprise that just as in other segments, microfiber products are sought in healthcare environments.
“And again, if you’re not in healthcare and you’re just in industrial or any other segment, this is an area to enter the market in,” Kallenbach says. “Everybody’s talking about it—they’re all looking for solutions.”
TAPPING INTO COMING TRENDS
Kallenbach stresses the importance of microfiber for the future of all segments, saying that the consumer is “ready to respond” to products made from this material.
Antimicrobial technology is coming along, too, and while Kallenbach describes it as “not quite ready yet,” he says it will be an important technology for the laundry industry.
The use of radio-frequency identification (RFID) is increasing, especially for hotels, in products like sheeting and tabletops. And watch for the changes that Generation Y will bring. They’ll be more involved in purchasing, Kallenbach says, and they’re much more attuned to trendy colors and styles.
“Once a fad becomes a trend, that’s when it starts impacting us,” he adds.
It would be wise to invest in e-marketing solutions, if you haven’t already. Having a digital presence in the area of social media is increasingly important.
More savvy consumers mean that laundries will have to be sure they’re offering the best value possible to stay competitive.
“So if you’re coming to the table with just rental as opposed to rental and the direct sale opportunities, I think that folks that come with full programs are going to enjoy more of the market going forward.”
Another change that’s here to stay: sustainability. Now’s the time to get green, Kallenbach says, as consumer interest in this area has not waned and likely will not in the future. “Clean green is a big thing, and your sustainability story is a big thing,” he says.
No matter where you see the most potential, be sure to chase new business with a positive outlook, and don’t fall prey to the “victim” attitude when it comes to the state of the economy.
“You really do make your own economy,” Kallenbach says.
If you missed either of them, you can read Part 1 or Part 2 now.
Have a question or comment? E-mail our editor Matt Poe at [email protected].