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CHICAGO — Having received numerous requests for newly revised information on this subject, I have reviewed the volumes of information obtained from both healthcare and hospitality laundry operations worldwide for 2010-2011.

I did my best to convert foreign cost to U.S. cost—both were changing rapidly as of December 2011—and discovered that our foreign counterparts were, in most segments, slightly more cost-efficient and, due to exchange rates, getting more production for the money simply due to the value of certain currencies, lower fringe benefit cost and higher degrees of automation. (I am pleased to report that this gap is closing rapidly.)

There could be numerous explanations, of course, but the primary reason was the vast difference in labor and fringe benefit cost in our country vis-à-vis other foreign locations, primarily those in Europe, Russia and the Far East.

The basis for this analysis was to determine benchmark alignments once various currencies were adjusted to match the U.S. dollar. Both higher and lower extremes in costing for each element were evaluated for accuracy. A group of independent accounting specialists who volunteered its time was utilized to draw the various conclusions reached in the report. Foreign laundry experts assisted in the translation of some information.

Throughout the process of validating accuracy of the data provided and drawing comparisons, the identity of each facility remained confidential. Each facility was simply referred to as a number or letter, depending on the type of operation: healthcare or hospitality. For those with a combination of tasks, every effort was made to categorize each element.

Every facility that supplied information has done so every year since this periodic review began.

2011 FORECAST ON TARGET?

As consultants and various levels of internal management continue to overly complicate laundry operational cost scenarios, as well as depicting systems that may not prove cost-effective, it is apparent that laundry and facility managers, as well as top executives with a renewed interest, require a cost benchmarking rule of thumb that will assist them in selling their operations, i.e. justifying new systems or a new facility, obtaining new customers and, probably most important, comparing variable cost that should influence decisions to continue in-house operations or examine outsourced management, operations, linen rental, transportation, etc.

I remain amazed that folks who seem to be knowledgeable simply complicate data in such a form that it becomes extremely difficult if not impossible to interpret. The same situation applies when reviewing opportunities to automate and modernize operations. It is apparent in some cases that new operations with new systems are not as cost-effective as planned, mostly due to a misunderstanding of previous cost and the industry’s promises to improve on the status quo.

Institutions, general contractors and A/E’s that hire consultants to review laundry facility operations should also continue to rely on internal expertise and experience, I believe. The institutions should also ensure that the consultants and experts selected are experienced in reviewing all applicable operational elements. A consultant with expertise in energy management, for example, may not be qualified to review laundry production or linen distribution.

It is quite apparent that large laundry and linen-rental consortiums that deal specifically with healthcare markets are becoming more competitive. As business tends to escalate, and based on recent information, cost seems to be leveling out to some degree, with the exception of the impact of high cotton cost and, most recently, fuel cost.

My previous forecast that total cost of operations may reach $1.10 per pound processed/delivered by 2013 seems right on target. The rising cost of healthcare insurance benefits enacted as a result of healthcare reform could dramatically increase the cost of operations and associated product and equipment purchases in 2014.

A review of approximately 473 healthcare and hospitality laundry facilities located in the United States and 23 foreign countries with operations that process a combined 276 million pounds annually with varying degrees of efficiency reveal the following benchmark costs (in U.S. dollars) that should be deemed most efficient on the average, even though most every facility demonstrated opportunities to reduce cost, especially in labor-sensitive areas.

Most important to note in this analysis were the plans to reduce labor and utilities cost related to washing, drying, conveyance, and flatwork feeding and finishing. These facilities also reported that major efforts were under way to reduce textile-replacement cost through standardization efforts and by examining best value over lowest cost for an item. It’s unfortunate that the federal government seems to continue to focus on lowest cost rather than the impact of overall cost.

Other major components under review seem to drive at lowering chemical cost by conducting actual comparisons and focusing on the customer service element that is so critical to this facet of the operation.

The variables between healthcare and hospitality cost were certainly interesting. Hospitality was higher on the average, which was expected, with the average variance being between 6 and 7 cents per pound processed. This was mostly attributed to the higher quality/cost of textiles acquired, which is significant.

PRODUCTION COST BENCHMARKS

Processing Cost: Direct labor costs, including fringe benefits (health insurance, retirement, etc.), which are applicable to the receipt, sorting, washing, drying, ironing, conveying and preparing of textiles for delivery within a laundry processing facility. — 18-23 cents per pound processed

Administrative Cost: Covers personnel in laundry and textile product management, secretarial, contracting administration, general foreman and nonproduction employees/housekeeping (includes fringe benefit costs, such as union dues, health insurance, etc.). On average, fringe benefit costs were running at 24-32% of actual salary cost (in other words, add that percentage to base salary cost). — 3-5 cents per pound processed and delivered

Maintenance and Repair Cost: Labor cost and materials associated with routine maintenance of applicable systems, including processing and ancillary support equipment, carts, etc. — 7-11 cents per pound processed and delivered

Equipment Depreciation: Divide equipment value by 15 years. — 4-6 cents per pound processed

Depreciation of Property and Applicable Property Taxes: Divide aggregate cost of land and building plus annual taxes by 75 years. — 3-5 cents per pound processed and delivered

General Supply Cost: Includes leasing of office equipment, office supplies, covers, pads, hangers, thread, wax, patches, buttons, etc. — 2-4 cents per pound processed

Chemical Supply Cost: Laundry chemicals, water treatment, etc. — 3-5 cents per pound processed

Utility Cost: Electrical, steam, gas, water, oil, sewer, refuse removal, and solar. — 8-10 cents per pound processed

SUBTOTAL: For a most efficient operation, Production Cost should be 48-69 cents per pound processed.

TEXTILE DISTRIBUTION AND REPLACEMENT COST BENCHMARKS

Textile Distribution and Return Cost: Includes drivers, fees, tolls, leasing, fuel, vehicle maintenance/repair, linen room distribution (from cart assembly to end-user locations) labor and benefits, seamstress/repair/marking, uniform distribution, cart depreciation and replacement, and transportation to external customers. — 13-15 cents per pound processed (within this component, fuel cost was 4-5 cents per pound processed)

Textile Cost: Surgical, uniforms, general textiles, drapes and other textiles based on a seven-par maintenance value for healthcare or hospitality. — 17-21 cents per pound processed

SUBTOTAL: Textile Distribution and Replacement Costs should be 30-36 cents per pound processed and delivered.

TOTAL OPERATIONAL BENCHMARKS

The overall operational cost benchmark ranged in 2010-2011 from 78 cents to $1.05 per pound processed and delivered.

While the overall variance in cost ranges is certainly widespread, a manager must carefully and accurately calculate all costs associated with the actual operation—all are different.

A major failing on management’s part is the inability to calculate fringe-benefit cost and include it as part of the outcome. Calculating production cost while forgetting other costs simply raises additional questions. All costs depicted in this benchmark exercise are considered equally important; one without another would have painted an inaccurate picture.

If, for some reason, you think your costs are lower than the benchmark’s lowest range, I encourage you to re-examine and recalculate your numbers. More importantly, make sure you have included all costs so they parallel those listed in this report.

EXPECT COST INCREASES IN TEXTILE REPLACEMENT, TRANSPORTATION

As mentioned in my previous analysis, textile replacement cost and transportation cost for 2010-2011 did reflect marginal increases.

CHARLOTTESVILLE, Va. — Running a business can be a daunting responsibility, and perhaps at the core of this duty is strategizing the company’s move toward growth.

David Bernstein, senior vice president at Turn-Key Industrial Engineering Services, recently presented an Association for Linen Management (ALM) webinar titled Growing Your Business, during which he laid out key strategies and considerations for business owners ready to develop and grow their company.

Bernstein’s strategy first calls for owners to think of “SMART” goal setting: to be Specific about their company’s goals; set Measurable, Attainable and Relevant goals; and create a Time frame for accomplishing those goals.

“If you say [you] want to increase [your] business, you need to start thinking about what business is it that [you] want to increase,” says Bernstein. “What is it exactly that you want to do [and] what do you want to accomplish? And then make it measurable.”

Think of establishing key performance indicators that will not only enable owners to track the company’s progress, but also in an objective manner. Goals should ultimately be attainable by the company.

“A lot of times [owners] will really shoot very far into the stratosphere,” he says. “When you challenge your team […] are you giving them a goal that is attainable or have you given them a stretch goal? Make sure that you’re realistic with them about it.”

“Everyone thinks that they can do many things and add a lot to their plate,” he added. “But at a certain point, you start adding so much that you’re not doing anything very well.”

Another factor is determining whether a company has the physical means to sustain growth.

A clear understanding of the company’s production model, staffing requirements and equipment purchase projections are the key factors Bernstein pointed out when owners take stock of their capacity analysis.

“Make sure that you can […] live up to the promises that you’ve made to your customers […] while making sure that you’ve got the right amount of people [and] equipment [and that] you’re still caring for the equipment and the people in the way that they need to be.”

Regarding acquiring new equipment to boost capacity, Bernstein advises laundry owners to consider the various industries that many laundries service, and whether their company has the means to provide that service.

For example, if a hospitality laundry owner wants to start processing food and beverage goods, Bernstein suggests that they might look into purchasing a sorting and counting system to process smaller garments.

“If you’re strictly one or the other, moving to the one that you’re not can be quite an adjustment on your people and your process,” he says.

Taking on more accounts is one strategy to take to grow business. Another avenue Bernstein spoke about was the possibility of starting a direct sales/ancillary services department.

He cites several industrial, food and beverage, hospitality and healthcare laundries selling restroom services and cleaning supplies as part of their product line to existing customers.

“If you’re not offering these kinds of services, your competitors will,” he advises.

What strategies can owners take to develop and form new relationships with prospective customers? Bernstein admits that making cold calls can be a frightening ordeal, but there are other approaches owners can take.

A former customer, for example, may have become dissatisfied with your service. Consider calling them and addressing how your company has improved upon that specific service or product.

He also suggests using referrals, which allows barriers to come down because of the familiarity between contacts.

In addition to working with colleagues in scouting for new business, Bernstein suggests partnering with others in the industry who sell complementary products.

But no matter what approach business owners take, Bernstein recommends owners go out themselves and “make periodic visits” to customers.

“Remind them why they bought from you […] Remind them what you promised and that you delivered,” he says.

“It never hurts to ask them, ‘What could we do better?’ You may learn something,” he adds.

Bernstein suggests investing in services such as a customer relationship management (CRM) system—Zoho and Salesforce.com are examples—that will help employees organize, manage and automate a company’s business.

He also suggests the use of marketing automation software like Marketo.com or Constant Contact to keep in touch with customers on a digital scope, as well as prospect research tools like Hoovers and Manta to help owners learn more about prospective customers in their market.

With this foundation in place, according to Bernstein, business owners can begin to reach their growth objectives.

“These are the things that you need to be doing if you’re looking at growing your business and improving your sales.”

NORTH BERGEN, N.J. — The U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) has cited Prestige Industries LLC, doing business as Prestige, for safety violations found at its commercial laundry facility in North Bergen.

A complaint initiated OSHA’s October 2012 investigation and resulted in $219,000 in proposed penalties.

The agency identified four repeat violations, carrying a $185,500 penalty, based on the company’s alleged failure to protect workers from unguarded machinery, establish a lockout/tagout program and procedures for controlling energy sources, and provide energy control training for workers who perform maintenance on machines.

A repeat violation is issued when an employer previously has been cited for the same or a similar violation of a standard, regulation, rule or order at any other facility in federal enforcement states within the last five years. The same violations were cited in 2012 following a worker’s death after being caught in an unguarded machine at the company’s Bayshore, N.Y., facility, OSHA says.

The agency also noted five serious violations, with a $33,500 penalty, that were due to alleged electrical hazards; an inadequate confined-space program and failure to identify permit-required confined spaces; and no hazard communication program, training and material safety data sheets.

OSHA says a serious citation is issued when there is substantial probability that death or serious physical harm could result from a hazard about which the employer knew or should have known.

“The safety hazards present at this facility pose serious risks to workers and must be immediately corrected,” says Kris Hoffman, director of OSHA’s Parsippany Area Office. “OSHA will continue to hold employers legally accountable when they fail to provide safe workplaces.”

Prestige, based in Jersey City, has 15 business days from receipt of the citations to comply, request an informal conference with the OSHA area director, or contest the citations and proposed penalties before the independent Occupational Safety and Health Review Commission.

The citations can be viewed here.

Hotel/Motel/Resort Laundry: Charles Loelius, The Pierre New York, New York, N.Y.

Abraham Lincoln once said, “You can’t do business from an empty wagon.” Nothing has a greater impact on a laundry’s sales, service, operation, and reputation than an inadequate circulating linen inventory.

The lack of a sufficient amount of linen in circulation necessitates operating the plant longer hours than would otherwise be necessary. Labor, maintenance and utility costs increase, while both efficiency and morale plummet. Operating costs increase without the benefit of added revenue.

Laundering the linen more frequently than would otherwise be necessary shortens its life, resulting in higher depletion and additional replenishment cost.

Equally important, insufficient circulating linen results in decreased fill rates. The inability to provide complete orders negatively impacts both revenue and customer confidence.

The first step in managing circulating linen inventory is to recognize that linen loss will occur. The next step is to ascertain where this loss is prone to occur, and develop policies and programs to prevent unnecessary depletion.

How linen is processed, distributed, utilized, returned and monitored will have a direct bearing on both linen loss and replenishment costs.

Planned losses, such as discards and rag-outs, are the result of quality control programs. Planned depletion, along with a corresponding linen replenishment program, is necessary to maintain a viable circulating linen inventory.

At my hotel, I budget annual rooms linen replacement cost at $2.50 per occupied room; annual food-and-beverage linen replacement cost is budgeted at 20 cents per cover.

Consequently, I am able to completely turn over the circulating linen inventory every three years.

There are two types of linen depletion: actual and artificial. Actual loss represents a permanent depletion in circulating linen (the linen is not retrievable). This loss is the result of discard, abuse and theft, either deliberate or inadvertent. Artificial loss represents linen that, while not accessible to circulating inventory, is still retrievable. This loss is caused by linen being overstocked at the end-user location, which results in an under-utilized inventory.

In linen rental operations, overstocking at the customer not only renders linen inaccessible, it precludes generating additional rental revenue via “turning” the linen.

Conducting physical inventories on a regular basis will provide the information needed to determine if the amount of linen in circulation is sufficient for the operation. Physical inventories also help in the planning of future purchases, and are essential in determining linen loss.

Due to storage limitations typical at a Manhattan hotel, it is necessary to employ the practice of just-in-time ordering. Ordering less linen more often reduces the space needed for storage, but increases the reliance on accurate physical inventories. Like the carpenter’s credo of “measure twice cut once,” proper linen procurement relies on conducting exact physical inventories.

Conducting precise physical inventories will also serve as the basis for determining unexplained linen loss. This loss can be determined through this formula: Prior inventory – discards + linen injections – current inventory = unexplained loss.

Conducting physical inventories at the customer’s premises is a daunting task, but is necessary to properly gauge both linen loss and linen utilization. Complete inventories should be conducted at least annually. Salient information can also be gleaned from “informal” inventories, shelf counts, and linen abuse “spot checks” that can be conducted as part of sales, service, and goodwill calls.

Linen loss and abuse charges, as well as linen utilization fees, when implemented and enforced, can aid in reducing both actual and artificial linen losses.

There is the caveat, however, that enforcing these type charges, even if contractually stipulated, may result in strained relations with the customer.

Regardless of the laundry operation type, it is crucial to involve, educate and monitor the end-users, in properly controlling the linen at their disposal.

Chemicals Supply: Philip L. Bodner, Metro-Chem, Kearny, N.J.

One of the main challenges in purchasing new textiles is taking extra care to know exactly what it is you are being sold.

We are in a time of exciting new textiles and innovative, high-performance, high-quality fabrics, yet we are also in an era of low-cost outsourcing from places around the globe offering seemingly value-priced purchasing options that sometimes don’t perform to our standards and expectations.

Processing of “commercial level” quality textiles or an innovative new fabric is usually easy enough to accomplish. As always, make your purchasing considerations based on colors, sizes and fabric types. When placing your first order with a vendor, make sure to ask for a printed copy of the manufacturer’s laundering and processing recommendations.

Get all the info that’s available and then the correct laundering and finishing of these textiles becomes a matter of putting the manufacturer’s recommendations together with you and your trusted vendor’s experience to arrive at the correct processing routines. When handled properly, the mid- to higher-quality imported or domestic textile will stay in usable condition longer and will offer a good return on investment through its extended service life.

If you are buying large quantities of any textiles, or if you’re buying something new to your operation (or even trying to get a bargain), do two things to save yourself some potential grief. First, ask your distributor salesperson to let you speak to some customers who have purchased the same goods to get direct feedback on performance. Secondly, have an adequate quantity of sample products sent in advance to test-wash and finish to get a leg up on what to expect.

As far as how much linen inventory is enough, answers vary for each operation’s actual needs. One thing is sure: the same budgetary constraints we suffer today, the ones that send people bargain shopping, also tend to lead to inadequate par levels. This lack of linen—I call it “LoL”—can often leave a trail of major inefficiencies cascading down the line.

Both the planned and un-planned consequences of LoL are no laughing matter when they start costing you money. It starts the clock ticking on an investment that will surely wear out before it should. It’s just like wearing the same pair of shoes every day instead of alternating among a few pairs throughout the week. At the end of some shortened period of time, you will be reordering new replacement linens and those pesky invoices will start to play tag with accounts payable.

LoL also puts stress on everyone involved in your laundry or the laundry that provides your linen service. This can lead to processing shortcuts that can affect quality in laundering and finishing because nobody can take the time to do it right. Today’s soil is also today’s or tomorrow’s clean linens, so just get out of the way! We see this “hurry and scurry” approach played out over and over in many laundry operations.

LoL flies in the face of “green” initiatives. It’s carbon-intensive to burn all of that diesel fuel the linen service uses to drive back and forth seven days a week with the linen you absolutely have to have now. By adding par, you solve this, and may even put yourself in a better negotiating position when the next service contract is written. Your provider now only has to come rolling out to see your loading dock four times a week, which is a win-win situation for all except the oil companies.

Finally, it’s the unplanned consequences always lurking around that can and will affect you in not-so-pleasant ways. You have probably experienced some of these seat-clenching moments already.

Do you agree that laundry equipment never breaks, the delivery trucks always start in winter, it never snows, and everyone else’s workers always show up in force when needed just like yours do? If you don’t, then you’re a realist, and having that one or two extra par on hand in case of emergency is your buffer when reality hits. This option sure beats watching your employees stand around waiting for miracle linen to appear. Besides, the guests usually don’t stay humorous for long without clean sheets.

Having more par available keeps the goods looking better and lasting longer. More par means less stress and more time to get things done right. More par is more green. More par gives you breathing room when the best plans go awry. And we can all agree that having one less thing to worry about is always a good thing.

CHICAGO — More than 70% of respondents to this month’s American Laundry News Wire survey say they are OK with the Clean Show’s shortened three-day schedule this year, compared to the remaining 29.4% who are “indifferent about this change.”

One respondent proposed that the biennial convention be held “every five years,” but with a longer schedule. “Have mandatory attendance by all members, companies and organizations,” the respondent writes. “Have it for a full five-day week with...golf tournaments planned and social events for all in the evenings.”

In fact, a good number of respondents answered that the biggest factor in favor of visiting New Orleans for Clean was the “networking and socializing” opportunities (23.5%), while 11.8% favored the “exhibits of equipment and supplies.” Equal shares of 5.9% pointed to “educational sessions” and “combining business and pleasure.” The most popular response, however, was “all of the above” (52.9%).

The Association for Linen Management (ALM) and the Textile Rental Services Association (TRSA) are among the organizations hosting educational sessions during the June 20-22 show. Among ALM’s scheduled offerings, Reducing the Loss of Patient Linen and Scrubs and Standards and Regulations Affecting the Healthcare Laundry and Linen Industry have drawn the most pre-show interest among respondents. As for planned TRSA sessions, Textile Services Contracts and Negotiations and TRSA Clean Green and Hygienically Clean Certification Programs: Quantifying Your Commitment to Cleanliness and Sustainability are most anticipated.

More than one-third (35.3%) of those surveyed say they are planning to attend Clean, while 17.6% remain unsure. The remaining 47% aren’t planning to attend, with cost playing an important factor for some.

Among respondents who are not attending, about 45% “can’t afford the cost,” 27.3% “can’t spare the time,” and 27.3% said they “made other plans.”

“Employers do not give the time to attend seminars or trade shows,” writes one respondent. “We have to use vacation time to attend. In the past, employers would pay for employees to attend. Now, it comes out of our own pocket.”

While American Laundry News’ Wire survey presents a snapshot of the audience’s viewpoints at a particular moment, it should not be considered scientific. Subscribers to Wire e-mails—distributed twice weekly—are invited to participate in an industry survey each month. The survey is conducted online via a partner website, and is developed so it can be completed in less than 10 minutes.

All managers and administrators of institutional/OPL, cooperative, commercial and industrial laundries are encouraged to participate, as a greater number of responses will help to better define operator opinions and industry trends.

ARDMORE, Pa. — The so-called “fiscal cliff” tax package recently signed into law renewed more than 50 temporary tax breaks through 2013, saving individuals and businesses an estimated $76 billion. For the owners and operators of small- and medium-sized laundry businesses, there is good news and bad news contained in the fiscal cliff tax laws.

First, the good news: greater certainty in taxes. The owners and operators of laundry businesses have grown used to many longstanding tax breaks but they also have had to get used to the uncertainty of whether they will be renewed each year.

On the downside, in addition to a 3.8% Net Investment Income (NII) tax and a 0.9% Additional Medicare tax that, thanks to the Health Care and Education Reconciliation Act of 2010, began in 2013, many laundry owners discovered they are subject to new taxes. Single individuals with incomes above the $400,000 level and married couples with income higher than $450,000 will pay more in taxes in 2013.

EQUIPMENT WRITE-OFFS FOR PROFITABLE OPERATIONS

The American Taxpayer Relief Act extended through 2013 the Tax Code’s Section 179 first-year expensing write-off for equipment and business property purchases. Now, the higher expensing limits in effect in 2011 have been reinstated for 2012 and extended for expenditures made before Dec. 31, 2013. Thus, a laundry business can expense or immediately deduct up to $500,000 of expenditures in 2012 and 2013, subject to a phase-out if total capital expenditures exceed $2 million.

The tax break that allows profitable laundry businesses to write off large capital expenditures immediately—rather than over time—has long been used as an economic stimulus by our lawmakers. While 100% “bonus” depreciation expired at the end of 2011, today the new law allows 50% bonus depreciation for property placed in service through 2013.

Some transportation and longer-lived property are even eligible for bonus depreciation through 2014. If bonus depreciation had not been extended, the 2012 tax year would have been the final year in which substantial first-year write-offs for buyers of business automobiles and light trucks were available.

To be eligible for bonus depreciation, property must be depreciable under the standard MACRS (Modified Accelerated Cost Recovery System) and have a recovery period of less than 20 years. Section 179 first-year expensing remains a viable alternative, especially for small businesses. Property qualifying for the Section 179 write-off may be either used or new, in contrast to the bonus depreciation requirement that the taxpayer be the “first to use.”

Leasehold improvements and building improvements generally must be depreciated over 39 years. The tax law provides a special 15-year, straight-line depreciation break for qualified leasehold improvements, restaurant property, and retail improvements. Naturally, there are quite a few restrictions, such as the lease must between unrelated parties.

Qualified leasehold improvements also qualify for the 50% bonus depreciation. In fact, qualified leasehold improvements, restaurant property, and retail improvements up to $250,000 may qualify for Section 179 expensing. And, best of all, these provisions have been extended for property placed in service before Jan. 1, 2014.

MORE, MORE AND MORE

The Work Opportunity Tax Credit (WOTC), which rewards employers that hire individuals from certain target groups, has extended to Dec. 31, 2013, and applies to individuals who begin work for the employer after Dec. 31, 2011. Under the revised WOTC, laundry businesses hiring an individual from within a target group are eligible for a credit generally equal to 40% of first-year wages up to $6,000.

An S corporation is a pass-through entity and not usually subject to income taxes. It is, however, liable for the tax imposed on built-in gains or capital gains. The tax on built-in gains is a corporate-level tax on S corporations that dispose of assets that appreciated in value during the years when the operation was a regular C corporation.

The new law extends a relaxed version of the provision limiting the “recognition period” to five years, but only for “built-in gains” recognized in 2012 and 2013. Thus, if a laundry business elected S corporation status beginning Jan. 1, 2007, it will be able to sell appreciated assets it held on that date without begin subject to a hefty tax bill.

Check back Wednesday for the conclusion!

Information in this article is provided for educational and reference purposes only. It is not intended to provide specific advice or individual recommendations. Consult a financial adviser for advice regarding your particular situation.

PRIOR LAKE, Minn. — Each Christmas, generous donors give approximately 5,000 “gently used” blankets to the local charitable organization called Bridging through the annual Bring a Blanket drive co-sponsored by Subway Restaurants.

Of those, hundreds are usually slightly soiled and in need of washing, so Bridging turns to the Shakopee Mdewakanton Sioux Community (SMSC) Laundry Facility. The soiled blankets are delivered in February and March to SMSC, which washes, dries and hand-folds them at no charge.

“It is part of our mission to provide quality, gently used furniture and household goods to those in need,” says David Jensen, operations and logistics manager at Bridging. “Our partnership with SMSC allows us to make this happen. By receiving SMSC’s donated laundering services, Bridging has been able to distribute thousands of clean blankets to families in need over the years.”

The SMSC and its Gaming Enterprise, Mystic Lake Casino Hotel and Little Six Casino, has worked with Bridging for years to provide linens, furniture and other items. Several times a year, Bridging drops off large loads of linens that the SMSC Laundry also washes for free.

Bridging’s mission is to provide families and individuals transitioning out of homelessness and poverty with a gift of quality furniture and household goods to stabilize and improve lives while effectively using community resources. Through a network of more than 125 social-service agencies, eligible clients are referred to Bridging to pick out needed furniture and household goods to transform their house into a home.

The SMSC Laundry, which has 51 full-time employees, processes 3.6 million pounds of goods each year for several SMSC enterprises, including its hotel, casino, Dakotah! Sport and Fitness, and more. It also launders 575,000 employee uniforms annually.

MILWAUKEE — Alliance Laundry Systems, manufacturers of commercial laundry equipment under the Huebsch, IPSO, Speed Queen and UniMac brands, last week received a special award for “Market Leadership” as part of the Wisconsin Manufacturer of the Year program recognizing outstanding achievements in manufacturing in 2012.

Alliance was one of eight companies honored out of 58 nominated in the statewide awards program, now in its 25th year. Bruce Rounds, chief financial officer, and Jay McDonald, vice president of business development, accepted the award for Alliance during a black-tie ceremony at the Pfister Hotel.

“Alliance’s story started more than 100 years ago when two Ripon hardware store owners figured out how to mechanize hand-powered washing machines,” notes Alliance CEO and President Mike Schoeb. “Now, we are the largest manufacturer of commercial laundry equipment in the world. Our continued success is driven by that same spirit of innovation, the dedication and work ethic we find in the local labor force, our world-class distribution network, and the competitive advantages and positive business climate of Wisconsin.”

In addition to the “Market Leadership” award, the Wisconsin Manufacturer of the Year program handed out four grand awards to companies categorized by the number of employees – small, medium, large and mega. Alliance, nominated for the first time in 2012, competed in but did not win the Mega category.

Nominees were judged in such areas as financial growth or consistency, technological advances, product development, environmental solutions and sustainability, operational excellence/continuous improvement, commitment to employees, and effective research and development.

The awards program is co-sponsored by Baker Tilly, one of America’s largest accounting and advisory firms; Michael Best & Friedrich LLP, a leading Midwest-based law firm; and Wisconsin Manufacturers & Commerce, Wisconsin’s largest business association.

Equipment Manufacturing: Steve Hietpas, Maytag Commercial Laundry, St. Joseph, Mich.

Although not directly related to the manufacturing of commercial laundry equipment, for some of our customers this topic is a major concern. Professional laundry managers can do two things to help stem the flow of objects found in dirtied linens: an employee training program and, where applicable, conveniently placed containers for depositing razor-sharp objects.

In healthcare settings, a number of pointed objects—hypodermic needles, for example—are used on a regular basis. These needles, if left in soiled linens, are dangerous to professionals processing the laundry. By incorporating collection receptacles in or near every patient’s room, it makes disposing of these items properly more convenient and more likely. Coupled with a program to train staff of the importance of sharps disposal, laundry processing is much safer for all parties involved.

In the food and beverage industry, training again plays an integral role in reducing the amount of cutlery found within soiled linens. The awareness gleaned from training helps to protect those processing the linens and ensures the vast majority of utensils are available for patrons.

Textile/Uniform Rental: Tom Peplinski, Golden West, Oakland, Calif.

Sharp objects can be a safety concern to all those handling soiled linen. Each year, millions of workers suffer workplace injuries that could have been prevented. Approximately 30% of all workplace injuries involve cuts or lacerations, and about 70% of those injuries are to the hands or fingers.

Some practical steps can help minimize the risk of contact with sharp objects:

• Include the issue of sharp objects in your hazards safety meeting
• Post reminders that sharp objects may be present in soil area
• Be sure that gloves (puncture-resistant, when possible) are worn
• Be sure all personnel are trained in the procedures of handling soil
• Have a clear, written policy and procedure covering first aid
• Keep good housekeeping rules that include eliminating sharp objects and edges
• When sharp items are found in soil, try to identify customers from which they came and inform them of the issue.
• Post anti-sharp/anti-garbage posters at customer’s soil area
• Offer to speak at customer’s safety meeting to address the potential problem
• Inspect the area where the soil container is placed to see if there might be a safer area elsewhere
• Inform all service personnel when sharps are found so they are aware of the risk

Finally, review past incidents/injuries involving cuts and lacerations. Have participants discuss the cause of the injuries and possible solutions as to how the worker or employer could have prevented them. Apply suggestions for improvements to your “Cuts and Abrasion” policy and procedures.

Commercial Laundry: Richard Warren, Linen King, Conway, Ark.

Laundries don’t put the sharps into the linen stream, and we can’t keep them out.

I find that infection control staffs at hospitals are embarrassed about the issue, so we need to be sensitive in our approach. I find them quite willing to work with a laundry that maintains a professional attitude toward what they perceive as their own problem. We certainly can’t be heavy-handed when we discuss this issue.

We have done some things physically that have practically pushed this problem into extinction. We contact the infection control people, our point of contact in the linen department, and the linen committee to talk about how to keep the sharps out. They need to know where the offending item came from, so we help by taking a picture of the item. Sometimes it’s identifiable. If the discovery is made in the sorting department, we make note of the specific carts we are working with at the time. We e-mail all this information to personnel at the hospital so they have something to work with. Calling them to complain just keeps the adversarial relationship alive.

Not all hospitals recognize the urgency of the situation, but those that do have shown a dramatic decrease in incidents. We apply the same procedure to all manner of rogue hospital items, some of obvious value. Any customer would appreciate that attention.

There are commercially manufactured machines that “scan” the soiled laundry for foreign objects, and are used at the point of linen collection. I don’t have any first-hand knowledge regarding their effectiveness.

ST. LOUIS — Companies face various challenges in a given year. But for Faultless Healthcare Linen, a Kansas City, Mo.-based healthcare textile laundry company, the challenge of taking on more business was considered a “good problem.”

So much so that the company’s “good problem” led to the opening of a new $12 million, 103,000-square-foot facility in St. Louis.

“We were awarded a significant amount of business from the Barnes-Jewish Christian (BJC) Healthcare System in St. Louis, and we needed to create more capacity to accommodate that business and to be able to continue to grow,” explains Faultless CEO Susan Witcher.

Located at 1615 N. 25^th Street, Faultless Linen’s newest facility opened its doors last summer, and has enabled the company to process 17 million pounds of healthcare textiles annually to date, serving 470 customer accounts, the company says.

The company reached out to Gerard O’Neill of American Laundry Systems to design the plant, after having worked with O’Neill on a previous facility.

“Having worked with Gerard on our last plant in 2005, we found him to be an excellent resource,” says Witcher. “His involvement facilitates an efficient process through every phase of the project, from plant design, RFPs and vendor selection, infrastructure, installation, through start-up.”

“The two primary focal points in the design were energy efficiency and production efficiency,” she adds.

Though the new facility has boosted the company’s production capacity, the road getting there was not easily travel.

“When we got all of this new business from BJC, we actually had to take on that business before we got the new plant opened up,” Witcher says.

The company had to employ double shifts at its 45,000-square-foot facility in the Soulard area of St. Louis to accommodate the business acquired from BJC. Once Faultless opened its new facility roughly four miles to the north, it was able to shut down a separate 18,000-square-foot plant in Soulard, and split the BJC business 50-50 between the remaining Soulard plant and the new laundry.

The new plant employs the use of various industry-familiar systems, and bears the same layout of Faultless’ existing facilities, according to Witcher. “In terms of the general design of the workflow, it’s very similar to our other plants. A lot of the systems that we’ve used in our other big plants in St. Louis, we designed into this one.”

For example, the facility utilizes an E-Tech monorail system for sort soiling; Milnor PulseFlow® tunnel (eight 250-pound modules); Chicago Dryer Co. finishing system that includes ironers, feeders and folders; Softrol garment sorting system; and Kemco process water system.

Considering the new facility’s technology and capacity, it’s brought a sense of ease for the staff—there are 110 full-time employees—regarding the overall production, Witcher says.

“From a quality-of-life perspective, everybody’s in a much better place because we’re running both plants seven days a week (through) 10-hour days, so everybody’s back on a normal schedule and (has) more room to move.”

The larger facility has an annual capacity of 43 million pounds, but only 40% is currently being utilized.

To fill its unused capacity, the company’s sales force is continually scoping out prospective clients, Witcher says, and even hosted an open house in early November to ensure that the company acquires new business to be able to take full advantage of its facility.

In addition to energy and production efficiency, one other priority for the company was to ensure the new plant met standards established by the Healthcare Laundry Accreditation Council (HLAC), which examined the facility in early January.

Because Faultless Linen’s other facilities are already HLAC-certified, the company has a “very clean understanding of the processes that are required, and the documentation that’s required,” Witcher says.

Much like the Soulard plant, a wall divides the new facility in two, where one side strictly processes soiled linen, while the other handles clean linen to be shipped out. Soiled linen is sorted into slings by type and washed hygienically with the proper pH. Once properly cleaned, linen is stacked onto clean delivery carts that have been sanitized through an automatic cart washer.

Meeting standards like these, in addition to training employees on proper procedures, are just some of the ways the company is ensuring it meets HLAC’s criteria, according to Witcher.

Achieving the HLAC accreditation is “entirely voluntary,” she notes, but represents an important “stamp of approval.”

“I think it speaks to our customers, and our potential customers, that we are committed to doing things the right way. … From an infection control standpoint, it is becoming increasingly important,” says Witcher, adding that the Association for periOperative Registered Nurses (AORN) recommends the practice of laundering surgical attire in an accredited facility.

With the new facility up and running, the company still has many goals in mind, according to Witcher. In addition to awaiting HLAC certification, the company is also pursuing the Hygienically Clean certification from the Textile Rental Services Association (TRSA).

With room for the business to grow, Witcher says she feels “excellent” about the facility going into the new year.

“While we’re not at peak productivity and energy efficiency at this point, over the next several months we would expect nothing but continued improvement in the performance of the operation,” she says.

CHICAGO — Just 20% of laundry administrators and managers polled in this month’s AmericanLaundryNews.com Wire survey say their company or institution has experienced workplace violence involving their laundry operation or its employees.

These incidents of workplace violence included vandalism of employee vehicles, a fight between two employees working on the wash aisle, and an attack on a member of the management team by an employee.

Nearly 87% of respondents say their company or institution investigates the background of potential employees, and 80% say their institution/company doesn’t require psychological testing (13.3% didn’t know). More than 73% of respondents say their company or institution require its employees to display identification badges.

A wide variety of security measures are in place, according to our survey (respondents were asked to check all that applied at their workplace). Most common is increased lighting on grounds and/or parking lot, cited by 84.6% of respondents. Equal shares of 61.5% say their workplaces require visitors to sign in, and utilize video surveillance.

Nearly 39% of respondents say there are security guards in or around their facility, and 23.1% say employees must use a key card or punch in an ID code for entry.

While the Wire survey presents a snapshot of readers’ viewpoints at a particular moment, it should not be considered scientific.

Subscribers to Wire e-mails—distributed twice weekly—are invited to take the industry survey anonymously online each month. All managers and administrators of institutional/OPL, cooperative, commercial and industrial laundries are encouraged to participate, as a greater number of responses will help to better define operator opinions and industry trends.