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ROANOKE, Va. — A surefire way to improve the bottom line of your business or department is to increase the life of your linen. Increasing the number of quality servings you get from each piece of linen will dramatically decrease your cost of operation.

I recommend that the first step to increasing your linen life is to review each linen item with end-users to make sure that it is the proper item for the intended use.

If a bath blanket is being used as a lift sheet, excessive tears will develop. Are bath blankets or thermal blankets being used in place of mattress pads? Linen users find creative ways to use our linen and unless we engage in regular discussions with them, we will be unaware of just how our items are being used.

Bargain patient gowns usually do not have the sweep and coverage necessary to properly maintain a patient’s modesty. Ambulatory patients often use two patient gowns—one covering the front and the other covering the back—to make up for this shortfall. By purchasing a larger patient gown that provides greater coverage, you can decrease uses of the item by 30-35% and thereby increase its effective life.

I also recommend that you meet with your chemical vendor and review your wash formulas to make sure you are obtaining proper levels of cleanliness without excessively washing the linen.

Mechanical action and chemical action cause most fabric degradation. Wash each classification in such a manner to keep rewash below 3% of total volume produced. Some laundries sort all heavily soiled linen together and give it a special wash. High levels of alkalinity attack the cotton fiber and the finish on reusable barrier linen as well as the soil. One key to longer linen life is to reduce the alkaline concentration of the wash formula. Using enzyme detergents instead of traditional detergents can be an effective alternative.

Management should review the procedures for determining the proper size of each wash load. Overloading will cause poor quality wash and excessive stains. I have seen laundries that maintained excellent written procedures for weighing loads but their daily practice did not mirror what was on the page.

Carefully review all damaged linen to see if a pattern of abuse or product failure is evident. Once a trend is discovered, corrective action can be taken to adjust product quality or construction or to provide in-service education for personnel working in use areas.

We recently had a problem with small holes appearing in the barrier backing of our incontinent pads. We were unsure of the source but wanted to first eliminate the laundry. While brainstorming the problems, we figured that it could be happening in one of a number of locations: the soil-sort belt, tunnel washers, tunnel press, tunnel dryers, or one of the small-piece folders.

We determined to test our system by using brand-new pads. Our first step was to avoid the sorting belt and put the new pads directly into a sling. We ran a load through our No. 1 tunnel, its press and one of its dryers. The test load contained a number of damaged pads. We also ran a load through our No. 2 tunnel, press and one of its dryers and did not find any damaged pads.

We then ran a load through the No. 1 tunnel and press. Upon inspection, again we found damaged pads. Finally, we ran pads through the No. 1 tunnel and bypassed the press. This procedure still resulted in a number of pads being damaged. (It is interesting that we have not noticed damage to any other linen items going through this tunnel.)

Our short-term solution was to move all the incontinent pads from the No. 1 tunnel, where they had always been processed, to the No. 2 tunnel. This required us to make other changes in our pick lists to balance out the demand for the tunnel dryers. After a visual inspection of the interior of No. 1 tunnel, we found several possible causes for the linen damage. Today, we are still running pads through the other tunnel.

Check all dryers to make sure they are operating correctly. Excessive heat can damage linen and cause it to have a harsh hand. Inspect door seals and interior air-deflection blades to make sure everything is working properly. Dryers with poor seals that allow room air to enter the dryer without going through the burner area can cause artificially low outlet-temperature readings. These readings will cause the linen to be subjected to higher-than-programmed temperatures.

Thermal fluid ironers should not be operated at temperatures above 375 F. Ironing at higher temperatures will result in the loss of size stability in polyester fibers. Once the heat-set polyester fiber is no longer size-stable, the laundry will experience higher-than-normal shrinkage. I have seen contour sheets that started at 88 inches in length shrink to 76 inches. Resist the temptation to iron at higher temperatures to increase productivity, because you’ll be creating linen shrinkage problems.

These ideas do not represent an all-inclusive list, but they give you a good starting point. Determining ways to extend linen life is a never-ending task but one well worth the time and effort.

KANNEGIESSER PROMOTES HART TO EXECUTIVE VICE PRESIDENT

GRAND PRAIRIE, Texas — The owner of Herbert Kannegiesser GmbH recently promoted Phil Hart to executive vice president of Kannegiesser USA.

During the company’s recent Canadian sales meeting, owner Martin Kannegiesser announced that Hart’s role in the company will expand, moving him into supervisory positions with different departments, while continuing to be responsible for the company’s daily operations.

Hart joined Kannegiesser USA in 2004 as vice president of marketing, bringing with him more than 10 years of industry and product experience.

TURN-KEY INDUSTRIAL ENGINEERING HIRES BERNSTEIN AS SENIOR VP

CHARLOTTESVILLE, Va. — A veteran of the textile industry, David Bernstein recently joined Turn-Key Industrial Engineering Services as senior vice president. Bernstein’s role will be in business development, consulting, and adding new services to the firm’s lineup.

The fourth generation of his family in the textile rental industry, Bernstein brings a unique perspective and a diverse work résumé to his new position. He has more than 20 years experience, including stints as president of Consolidated Laundry Machinery Co., as director of the Uniform and Textile Services Association (UTSA), and as chief operating officer of F-MATIC.

“All of us at Turn-Key are ecstatic to be welcoming David as a member of our team,” says Chip Malboeuf, Turn-Key president. “His experience, skill set, intelligence and enthusiasm for the industry will not only enhance our current offering, but will also allow us to provide our clients with additional services to increase their revenue and improve their operations.”

In addition to his professional experience, Bernstein is two-time chair of the UTSA Plant Operations Committee, an inductee into the Plant Operations Hall of Fame, an instructor and task force member for the Production Management Institute (PMI) and Maintenance Management Institute (MMI), and a former member of the board of directors of the Western Textile Services Association (WTSA). He resides in Park City, Utah.

TINGUE, BROWN & CO. PROMOTES LAVIGNA TO PURCHASING DIRECTOR

SADDLE BROOK, N.J. — Paul LaVigna has been promoted to the role of purchasing director for the TB division of laundry industry supplier Tingue, Brown & Co. He will work out of TB’s satellite office in Clifton Park, N.Y.

LaVigna brings extensive experience to his new role, much of it gained through his years with the U.S. Army, where he was a procurement and logistics officer. More recently, he was an operations manager for a nationwide retailer. He has been in corporate operations with TB since August 2010.

A graduate of the U.S. Military Academy at West Point, LaVigna lives in Saratoga Springs, N.Y., with his wife and two children.

“I am grateful for the opportunity this new position provides,” LaVigna says, “and I look forward to working with all of Tingue, Brown’s partners in the laundry industry.”

VENUS GROUP HIRES INDUSTRY VET MCBRIDE AS SALES MANAGER

FOOTHILL RANCH, Calif. — Venus Group has a new Midwest regional sales manager. With more than 30 years of industry experience, Mike McBride is now responsible for the textile company’s sales and growth efforts in the Midwest.

His diverse résumé has allowed him to meet many Midwest dry cleaners and laundry owners as well as people with national textile chains. He started with Procter & Gamble as a field representative and trainer, then moved to Cleaners Hangers Co. as a sales representative. His most recent post with Cleaners Hangers was as vice president of sales and marketing.

McBride earned a degree from the University of Notre Dame, where he was also a member of the 1973 NCAA national champion football team.

G.A. BRAUN ADDS SLETTE TO FINISHING EQUIPMENT TEAM

SYRACUSE, N.Y. —The G.A. Braun Finishing Equipment Engineering Team has a new member. Matt Slette brings to the product development team a diverse experience in modeling components in 3D and developing 2D working drawings, bill of materials, and assemblies for production, Braun says.

Slette graduated with a degree in mechanical engineering technology from California Polytechnic State University. He is based at Braun’s corporate headquarters in Syracuse.

ALEXANDRIA, Va. — The Textile Rental Services Association of America (TRSA), representing independent, regional and national laundry operators and associates in the $16 billion reusable textile services industry, celebrates its 100th anniversary this year.

Most Americans benefit at least once a week from the cleanliness and safety provided by the industry—through its laundering and delivery of reusable linens, uniforms, towels, floor mats and other products for the healthcare, hospitality and industrial/manufacturing sectors, TRSA says.

“TRSA members launder reusable textiles and provide other products and services that help businesses project a clean and attractive public image,” says TRSA President & CEO Joseph Ricci, CAE. “Our industry reaches every major business and industrial region and city in the country.”

Textile services companies maximize efficiencies for laundering uniforms, hotel and hospital linen, garments, and restaurant linen by utilizing high-capacity, high-speed laundry equipment to minimize cost and consumption of water, energy and chemistry. Most of these companies are family-owned and -operated and have evolved from providing family laundry service in the late 1800s to serving the growing healthcare sector.

Today, the industry accounts for more than 200,000 individuals employed at 2,000-plus facilities nationwide. TRSA calculates that 1.8 million U.S. business locations are textile services customers generating roughly 15 billion pounds of laundry per year delivered by the third largest fleet of vehicles (behind only FedEx and UPS).

Healthcare and hospitality businesses account for about two-thirds of the laundry volume, with the balance to manufacturing and service industries that use customized work uniforms.

“Our industry has evolved as customer needs have evolved,” notes Ricci. “Before the turn of the century, textile services companies delivered clean, reusable items by bicycle and horse-drawn carriage as a less costly, time-saving alternative. Reusable textile service has long been the greener, more sustainable alternative to disposable products, home and on-premises laundries by reducing waste and conserving water and energy.”

ALEXANDRIA, Va. — The International Textile Services Alliance (ITSA), a global community of executives from national and regional business-to-business textile service associations, has been developed to pursue certain common objectives, the founding associations have announced.

ITSA will work to create a cooperative international business-to-business textile services community to share and compile studies, research, best practices and market figures; and to identify common issues, challenges and research projects to minimize redundancies and maximize resources.

ITSA is founded by the European Textile Services Association (ETSA) and the Textile Rental Services Association of America (TRSA), together with intex from Germany and the Federatie van de Belgische Textielverzorging / Féderation Belge du Textile (FBT) from Belgium.

The Alliance will be formally launched in May at Texcare International in Frankfurt, Germany.

Membership in ITSA is open to business-to-business textile service associations and limited to one representative from each country. The organization will be managed by a Steering Committee composed of representatives from several of the founding organizations, including:

• Robert Long, Secretary-General, European Textiles Services Association (ETSA)
• Joseph Ricci, CEO, Textile Rental Services Association of America (TRSA)
• Maarten Van Severen, Committee President, Federatie van de Belgische Textielverzorging / Féderation Belge du Textile (FBT), Belgium
• Klaus Jahn, Geschäftsführer, intex Verband, Germany

Inaugural ITSA members include:

• Australia - Textile Rental and Laundry Association Australia Limited (TRLAA)
• Belgium: FBT – Federatie van de Belgische Textielverzorging / Fédération Belge de l’Entretien du Textile asbl.
• Denmark: BVT – Brancheforeningen for Vask og Tekstiludlejning
• Finland: Tekstiilihuoltoliitto Ry
• France: GEIST – Groupement des Entreprises Industrielles de Services Textiles
• Germany: intex – Industrieverband Textil Service e.V.
• Italy: ASSOSISTEMA – Associazione Sistema Industriale Integrato Servizi Tessili e Medici Affini
• Norway: NRV – Norwegian Dry Cleaning & Laundry Association
• Sweden: ST – Sveriges Tvätteriförbund
• Switzerland: VTS – Verband Textilpflege Schweiz
• United Kingdom: TSA – Textile Services Association
• United States of America — TRSA – Textile Rental Services Association of America

ITSA will meet annually to address important issues and trends impacting the international textile services community. These meetings will be hosted by the “local” association coinciding with leading international conferences including Texcare International, Expo Detergo International and the Clean Show.

ROANOKE, Va. — We have nearly completed the first quarter of 2012 and it is time to take stock of where we are and where we want to go. It is time to develop a plan for the future.

It has often been said that failing to plan is planning to fail. In many ways, our happiness is dependent upon how effectively we manage our time and resources. In this column, I will discuss the need to keep our lives in balance, avoiding overemphasizing one part of our life at the cost of another.

We should be making goals and developing plans to improve some key areas in our lives: employment, finances, physical health, education, and social and emotional strength. Winning your future depends upon your ability to deal with all these areas at the same time.

Most of us spend a large amount of our time working on the employment portion of our life. I am blessed to have found laundry management, a vocation that I truly enjoy. But this is not the case for everyone.

I once knew a Milwaukee bus driver who hated driving a bus. He made sure that all his friends knew how much he hated it and how anxious he was to get his 20 years in so he could retire. Unfortunately, he only counted down the days to his early retirement and failed to develop other marketable skills that would help him find a job later. Consequently, after he had retired and moved to another state, he ended up once again driving a bus because it was his only marketable skill.

We should have a plan in place that will improve our marketable skills and help us get a better job in our field or in a new one. The laundry industry is facing many challenges, and we need to stay abreast of the skills and knowledge needed to meet them.

We also need to improve how we manage our finances. My mother told me that our needs, wants and desires always expand faster than our paycheck. A key to winning your future is to effectively live within your means.

Your happiness is not based on how much you make but on how effectively you manage your expenses. Our society encourages people to buy now and pay later, so it is easy for people to accumulate too much debt. The housing crisis is a stark reminder of what happens when we overreach our income.

Physical health is also important. It is certainly something that younger people do not spend a lot of time worrying about. When we are young, we believe we will live forever and there is no direct cause and effect between our choices and our health. As we get older, the realization that certain choices do affect our health is a hard pill to swallow.

I have put myself on a fairly vigorous exercise and diet program. My goal is to trim down and improve my muscle tone so my choices in my retirement (4 years, 10 months away) will not be limited. Many health insurance programs are now giving incentives for people to make healthy choices and improve their lifestyles. The trend is moving in that direction. I encourage you to get ahead of the trend and start now instead of later.

We all have untapped abilities, and we should look for opportunities to expand our knowledge in areas that we find interesting. We often think of education as something we only did when we were young and went to school, or those things we must learn for work. Education can enrich our lives and expand our horizons. There is so much to learn, and numerous opportunities await us online, at local colleges, and in our neighborhood bookstore.

The need to develop social and emotional strength recognizes that none of us are an island unto ourselves. We need the touch and companionship of other people. We need to be able to deal with rejection or criticism. We need to develop strong bands of fellowship and love.

Winning your future depends upon developing realistic goals in each of these areas and, most importantly, trying to keep your life in balance. If we emphasize one area of our life for too long, it will negatively affect other key areas. The person who is always at work may find that both his health and his social life are suffering. Many a marriage has ended in divorce because a person failed to keep an appropriate balance in his or her life.

Take charge of your life. By developing a plan for winning your future, your reward will be happiness and peace.

ALEXANDRIA, Va. — Richard Fairfax, U.S. Department of Labor deputy assistant secretary, will be a presenter during March’s Textile Rental Services Association (TRSA) Leadership & Legislative Conference in Washington.

Fairfax oversees the enforcement and construction directorates for the Occupational Safety and Health Administration (OSHA). In his previous post as OSHA’s enforcement programs director, he offered opinions on various safety regulations of interest to the textile services industry, in particular, those dealing with bloodborne pathogens and lockout/tagout.

His March 28 presentation comes as OSHA increases fines, as the average levy per serious violation has risen from $1,050 to $2,200 in the agency’s last two fiscal years. OSHA also is moving forward with its Injury and Illness Prevention Program (I2P2), an initiative that could see businesses revamping safety and health efforts.

Fairfax is expected to update attendees on the I2P2 process as well as other key rulemakings, including those related to noise control, musculoskeletal disorders, combustible dust, ergonomics, chemical exposure, the agency’s enforcement procedures and more.

To learn more about the conference, visit TRSA’s website.

ALEXANDRIA, Va. — The textile services industry has reached new heights in natural resources conservation, according to the latest Laundry Environmental Stewardship Program (LaundryESP®) survey released by the Textile Rental Services Association (TRSA).

Responses compiled from 500 U.S. TRSA member facilities indicated that their carbon footprint per pound of laundry is 11% smaller than in 2006, driven by a 14%-per-pound decline in energy use. Water consumption has dropped 6% in that time.

The results emerged on the heels of a study published by a European textile services coalition that concluded the production technology typically used by TRSA members “is the most sustainable way of doing laundry, almost without loss of quality and functionality.”

Such large-scale washing, drying and wrinkle removal is up to three times more sustainable than a domestic laundry process, the European group concluded.

It added that TRSA members’ techniques were also proven up to twice as effective in this respect as on-premise laundries (OPLs).

In terms of carbon footprint (carbon dioxide production), the metric most associated with sustainability, LaundryESP® determined that TRSA member laundries now generate 0.36 pounds of CO2 per pound of laundry washed. That’s a 24% decline since 1997, the first year of data tracking.

This prevents emission of 1.49 billion pounds of CO2 per year, which is the equivalent of taking 135,000 typical cars off the road. It would be necessary to plant roughly 30 million trees to achieve a similar reduction.

“LaundryESP® is a testimonial to TRSA members’ commitment to improving their efficiency, which enhances the environment and the economy,” says TRSA President Joseph Ricci. “Sustainability in commerce is not just about expending fewer resources, it means achieving those gains year after year because it’s profitable to do so.”

Businesses that patronize TRSA member facilities deserve much of the credit for the textile services industry’s greater efficiencies, according to Ricci.

“They understand that sending their uniforms, linens, floor mats, towels and other textile products to TRSA members is the most economical way to clean these,” he says. “LaundryESP® proves to our members’ customers that their patronage of TRSA companies is ‘greening’ their own businesses more than ever and enabling our members to continue to be vital corporate citizens in cities and towns across the nation.”

TRSA has prioritized promoting member companies’ services to facilities now using OPLs as well as businesses that could substitute durable, reusable cloth products for the non-launderable or paper equivalents they now buy.

The new research provides up-to-date confirmation that professional uniform service is a pro-environment choice that’s becoming more sustainable, Ricci notes.

The LaundryESP® findings indicate how TRSA members’ resource requirements have dwindled:

• 2.55 gallons of water per laundered pound, down 33% since 1997, a 9.9-billion-gallon annual differential, or enough to serve the residential purposes of 270,000 people in a year.
• 2,260 Btu of energy, down 27%, due to declines of 26% in natural gas, 9% in electricity, 81% in propane, 75% in fuel oils, and 30% in all hydrocarbon (production) fuels.

These combined reductions save energy at the rate of 11 trillion Btu per year, or enough to power 116,000 typical U.S. households.

Recent data comparing the sustainability of large-scale TRSA member laundering techniques to domestic and OPL processes were generated by TKT, the research arm of the Dutch national associations for textile services (FTN) and dry cleaning (Netex).

CINET, a council of mostly European national associations, published these studies.

ROANOKE, Va. — I once wrote about having an opportunity to use reusable barrier isolation gowns in all the hospitals that comprise the Carilion Clinic. The ability to start such a program was rewarding after having failed to gain approval over the previous seven years.

Product Packaging and Distribution Design

The key to success is to develop a packaging system for the reusable gowns that will work in the same manner as the disposable gowns.

The disposable barrier gowns were packaged in a bundle of 10 and then heat-sealed in plastic wrap. Some units used over-the-door caddies that held the gowns and various sizes of gloves, caps and masks. Large users used small isolation carts similar to a toolbox where the same items were stored in drawers.

We discovered the packaging for the disposable gowns didn’t work well in an over-the-door caddy; once the wrap was torn open, the gowns tended to fall on the floor. So, we tried a 14x16 zip-lock bag. We needed to make some small adjustments to the fold to get 10 gowns into a bag. Once a bag was filled, we were able to squeeze out all the air and create a nice-looking package. The 10 reusable barrier isolation gowns actually took up less space than the 10 disposable gowns.

The mini-distribution department and offsite warehouse handled distribution of disposable isolation gowns. When units needed an isolation cart or caddy, they called mini-distribution, which delivered one to the proper location. Once on location, the nursing unit was responsible for replacing any supplies. Nursing ordered replacements from the offsite warehouse.

Items for each unit were delivered weekly, so this meant a number of cases of disposable isolation gowns had to be stocked on each unit. Limited storage on the nursing units made this a real problem during peak flu season.

We designed a system in which the reusable isolation gowns were stocked on the units in predetermined quantities and delivered by the linen room staff. The staff inventoried the gowns each day and restocked as needed, greatly reducing storage space needs.

Quality Control

If you are going to handle reusable barrier linen, you must do it to the highest standards. Your presentation and quality must be above reproach.

No matter how carefully I washed the barrier linen, some degradation was unavoidable. I could slow repellency loss by limiting the amount of alkali, using a solvent-based detergent, and eliminating all bleach and softener, but slowing it was not good enough.

We added a small amount of a barrier retreatment product to the final rinse. Sutter testing showed not only that the loss was eliminated, the barrier on some items actually improved. There are basically three product types on the market: wax-based, fluoropolymer-based, and a mixture. I prefer the fluoropolymer, because it adheres to the fibers only, has no effect on the fabric’s air permeability, and will not cause yellowing.

We wash reusable barrier isolation gowns in our conventional washer-extractors so we can strictly control the wash chemistry. We have reduced the weight per load by 65-70% of stated capacity due to the gown’s weight.

We inspect and fold the gowns in our surgical pack room. Each gown is inspected for holes or tears, and checked to make sure all ties are in place and are the appropriate length.

A gown is marked on the quality-control grid with a number or letter assigned to only one employee. It allows us to track a quality-control problem back to a specific employee.

We also built in random inspections by our supervisor. This allows us to check the finished work for problems and adjust our training program or take appropriate disciplinary action.

Wednesday: Initial user training and product rollout...
Click here for Part 1.

Your company’s improved ability to promote its positive environmental impacts by obtaining TRSA’s new Clean Green certification will be described in a webinar at 2 p.m. Wednesday, Feb. 29. The presentation will discuss how the program reflects the industry’s commitment to sustainability through best management practices (BMPs) that reduce textile services facilities’ carbon footprint and enhance their environmental stewardship. Sixteen BMPs comprise the heart of the Clean Green standard; proof of deploying each one adds points to the score that textile services companies must attain to be certified under the new program.

This will be the first TRSA webinar available to non-TRSA textile services operators. Gary Gramp, TRSA certification programs manager, will be the presenter.

TRSA Members' registration link: https://www3.gotomeeting.com/register/612777230

TRSA Non-Members' registration link: http://www.trsa.org/node/2670

ROANOKE, Va. — I met with my production and maintenance staff recently to prepare for taking on a new account. We needed to move some of the work we were processing in our 275-pound open-pocket washers to one of our tunnel washers because of the continual growth of our reusable-isolation-gown business. It’s grown from 1,200 gowns a month to 92,000 per month! (Watch for more details about that in next month’s column.)

One of my maintenance men asked a question that shocked me. He wanted to know why we believed we could make money processing this type of product when the general consensus in the trade journals was that it was unprofitable. I decided not to argue with him about what the various trade journals may or may not have reported but instead to tackle the issue head-on.

Reusable barrier gowns and drapes made of 100% polyester are lightweight and therefore don’t work well with a system that charges by the pound, I explained. We had chosen to charge by the piece since our system allowed us to charge either by the piece or the pound. Charging by the piece also allowed our customers to make a quick and easy comparison to the various disposable alternatives on the market.

I also explained that, over the years, I had developed a special wash formula for processing these gowns that minimizes degradation to the fabric and increases their useful life. We also add a barrier re-treatment product in every wash load to ensure the fabric retains its fluid-repellent properties.

By using a Sutter Hydrostatic tester, I’ve proven on a number of products that the fluid repellency after 75 uses was actually greater than when they were new.

Consumer education is a vital part of making the system economically viable. Reusable barrier items must be used properly and returned to the laundry in order for them to get the expected number of uses. A key component is the manner in which they are packaged. The better the products appear upon delivery, the more likely the end-user will treat them with respect. I’ve seen a number of delivery methods that simply don’t encourage this.

The feel and “drapeability” of a 100% polyester fluid-repellent isolation gown is preferred over any disposable alternative, in my experience. We got our opportunity to introduce reusable barrier isolation gowns during the initial stages of the H1N1 flu pandemic. Front-line caregivers were disturbed at the number of gowns that were being thrown into the trash and the effect it was having on the environment. They asked us to develop a more ecologically friendly system.

My staff recognized quickly that we had done a number of things to ensure that we could actually make money on the product. They also came to realize that the largest piece of the puzzle was in how we charged for the items. Cost per piece is a universal term used across all disciplines and relates well to how our competitors market their disposable products.

The end-user or hospital administrator will want answers to these questions:

• Will the reusable product properly protect my staff and patients?

• Is it comfortable?

• How does it compare with the cost of the product we’re using now?

• Can I get a dependable supply of the reusable product?

• Can it be delivered and used in the same manner and system as the rival disposable product?

Designing a system that positively answers all these questions will allow you to get and keep the business while making a profit.

ROANOKE, Va. — We hear about global financial problems every day. We have seen the economic downturn and how the new healthcare law puts economic pressure on our facility’s bottom line. Several friends of mine have lost their jobs or been demoted in the latest round of cost cutting. While administrators make the tough decisions they believe will keep their facilities afloat, it is painful to watch the suffering of dedicated department managers.

In 1980, The Wall Street Journal reported that the Harvard Business School was devoting a segment of its MBA program to the topic of changing jobs. The article stated that one professor would begin the course by telling his class, “I will guarantee you that each and every one of the graduates of this program will be fired sometime during your career.” That is quite a statement considering that they are considered the best in the country. Therefore, it is logical that laundry/linen managers should assume that we are going to get fired at some point.

I found this hard to accept, because I held the popular belief that people were only fired for being incompetent. But I have learned that it is not the only reason. Your boss, for example, might have a son, daughter or friend who needs a job, and might feel that the laundry is a good place for them to start.

Someone may come in and do a super sales job on contract laundry management. For years, institutional laundry managers worried almost exclusively about the threat posed by commercial laundries. The growth of contract management is proof that this section of our industry is here to stay.

Hospital management consultants are recommending combining departments and reducing job titles along with associated benefits. One hospital just called in all its department managers and told them they were fired. The ex-managers were told they could reapply for their jobs, which had been retitled and downgraded.

Your facility could be bought out by one of the larger chains that doesn’t believe in operating on-premise laundries.

A number of years ago, 60 Minutes aired a special about a job marketing service. Clients included 200 people earning from $75,000 to $400,000 annually. Agency policy was that clients paid 10% in advance of what they hoped to make, and the agency agreed to market them for six months but with no guarantee they would get a job. Do you know how many the agency placed? Three!

Why is it that even industry giants don’t feel comfortable when it comes to selling themselves? Why are we so scared of that part of our lives? Statistics tell us that the average job tenure for all U.S. workers is 3.6 years. This means that the average worker conducts a job hunt once every four years.

In facing a job change, it doesn’t matter what business you are in. You can work for a chemical company, uniform supplier, hospital or commercial laundry, and sooner or later we will all face the same problem. The odds against a person going through their lifetime working for just one company are overwhelming.

What are you supposed to do in the most difficult type of job change? You know, the one where you walk in one day and your boss says, “Don’t take your coat off. I’ve got some bad news for you.”

In 1980, I went to the National Association of Institutional Linen Management’s (NAILM) annual meeting in Kansas City. Three gentlemen responsible for reviewing nominations for NAILM’s top annual award selected me as the Laundry Manager of the Year. Back home, due to a 2-year-long corporate conflict, I lost my job. Ten days after being named laundry manager of the year, I was looking for a new job. I couldn’t believe it, nor could anybody else.

If Job is Lost, One Must Take Action Immediately

When you lose a job, there is a series of things that should be done immediately. And unless you prepare, unless you are proactive, you are not going to know what to do in that situation. Each experience is unique, but these steps should prove helpful.

• Establish that you are fired; this is of vital importance. Some companies do not give vacation pay to employees who leave voluntarily. Most would never give severance pay to anyone who resigns. It is more difficult to establish your eligibility for unemployment insurance if you leave a job by choice.
• Insist on receiving your vacation pay. You’re entitled to any vacation time you have earned in the form of monetary compensation. Many reputable firms have that condition written into their employee handbooks, so there’s seldom an occasion when an argument is necessary.
• Ask for severance pay. This kind of compensation is more of a custom than an inalienable right. Some companies have never paid it. But a valued employee may be able to shame a company into some kind of concession, even if it’s only a week’s severance pay for every year of service. One way to handle this is to use an assumptive approach.
  
  “Tom,” you may say, “how much severance pay do I have coming?” If he hesitates, you can add, “I figure I have at least 16 weeks for the eight years I’ve worked for you.” You’ve asked for two weeks per year, but you’d probably settle for one.
• Protect your vested rights in a profit-sharing and/or pension plan. This is where you may receive an unexpected dividend as a result of being fired. It all depends on the individual plan your company has and the vesting formula of that plan.
• Get a commitment on a reference. You’ve worked hard and loyally for “Tom” these eight years and helped him save face on numerous occasions. There shouldn’t be the slightest doubt that he’ll give you a good recommendation should anyone phone to ask about you, right? Maybe. Once you’re out the door, “Tom” may not feel a shred of loyalty toward you.
• Ask your boss and co-workers for help. They may offer to furnish you with job leads. If not, then ask for them. Get all the contacts you can. Many people will try to help because, deep down, they know that there for the grace of God go they.

Monday: Establish that you are fired…

ARDMORE, Pa. — Thanks to the 100% “bonus” depreciation write-offs created by the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, many laundry and dry cleaning businesses are discovering that capital investments in equipment, machinery and other business assets are more affordable today than ever before. Remember, however, the 100% bonus depreciation write-off is available only for qualifying purchases made by laundry services and businesses in 2011.

Those that have hesitated or postponed making capital investments because of the recent economic downturn might now want to consider how the combined use of incentives and the 100% bonus depreciation can substantially reduce the cost of capital investments. Even funding those new-equipment purchases is easier—at least for a while.

Opting Out

Although the 2010 Tax Relief Act included the best terms ever for bonus first-year depreciation, namely a 100% write-off of the cost of qualifying property, not all laundry and dry cleaning businesses will find it desirable to use front-load depreciation deductions. While it is possible to elect out of bonus depreciation entirely, it is, at least for now, less certain that a laundry or dry cleaning business can step down from 100% to 50% bonus depreciation.

The prime example of a situation crying out for a laundry business to opt out of 100% bonus depreciation is one where there are about-to-expire net operating losses, the value of which would be lost if current-year income were reduced too much by claiming the maximum depreciation allowance. Similarly, a laundry or dry cleaning business that currently is, and in the recent past, has been in a low tax bracket and expects to be in a higher bracket in future years may want to defer depreciation deductions to offset future higher-taxed income.

An election to take a reduced bonus-depreciation deduction was specifically authorized under prior law, when a taxpayer could elect 30%—instead of 50%—bonus first-year depreciation. Until recently, however, it appeared that the only choice for a laundry or dry cleaning business that does not want 100% bonus depreciation was to elect out of bonus depreciation entirely. Now, the IRS has decided to follow Congress’ “General Explanation” for the 2010 Tax Relief Act and permit a step-down election from 100% to 50% bonus depreciation.

Discretionary Incentives

When it comes to a financial helping hand, the best opportunity for laundry and dry cleaning businesses investing in capital improvements may come in the form of discretionary incentives available at the federal, state and local level. Although many of these incentives require some level of job-creation or, at least, job-retention criteria be met in addition to capital investment, there are some notable exceptions.

The Federal New Markets Tax Credit, for example, provides a significant financial incentive for qualified investments made in certain eligible census tracts. Also, Delaware and Virginia offer cash grants based on future capital investment made by existing businesses without requiring a commitment to job creation.

It is the incentives offered by many local jurisdictions that often provide the most significant level of benefit for capital investment activities. Many municipalities have the ability to offer property tax abatement or tax increment financing as tools to encourage capital investment. The property tax-related incentives are typically long-term in duration and provide significant savings for making qualified capital investment.

Funding Based on Need

Last fall’s Small Business Jobs Act created the State Small Business Credit Initiative and funded it with $1.5 billion to strengthen state programs that support lending to small businesses such as laundries and dry cleaning operations (and small manufacturers). Designed to spur up to $15 billion in lending, January saw the first wave of awards to the states.

Under the State Small Business Credit Initiative (SSBCI), participating states will use the federal funds for programs to leverage private lending to help finance small businesses such as dry cleaning plants and laundries that are creditworthy, but that are not getting the loans they need to expand and create jobs.

Last year’s Jobs Act included other provisions designed to help small businesses obtain funding. Among that bill’s many provisions were several new—but temporary—funding programs, such as the U.S. Small Business Administration’s amped-up extension of its lending guarantee programs and fee reductions. In addition, increases in the maximum loan size for the SBA’s 7(a), 504, and microloan programs will help. The 7(a) and 504 loan program maximums would bump from $2 million to $5 million and the microloans would increase from $35,000 to $50,000. Loans made under the SBA Express program would temporarily increase from $300,000 to $1 million. Also included is a temporary allowance for small-business owners to use 504 loans to finance certain mortgages to avoid foreclosure.

The SBA’s CDC/504 Loan Program provides long-term, fixed-rate financing to acquire fixed assets (such as real estate and equipment) for expansion or modernization. It is ideal for small businesses requiring “brick and mortar” financing. Rather than commercial lending institutions, 504 loans are delivered via CDCs (Certified Development Companies)—private, nonprofit corporations set up to contribute to the economic development of their communities.

Gone but Hopefully Not Forgotten

The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 provided many opportunities designed to help businesses reap tax benefits for capital investments and provide funding for doing so. The 2011 tax year may be the optimal time to take advantage of the federal, state and local tax or financing incentives that encourage capital investments.

Under the right capital-investment scenario, a savvy business may be able to claim 100% federal bonus depreciation, New Markets Tax Credit, state investment tax credits and municipal property tax abatement on the same capital investment. Or, the laundry business may benefit from the soon-to-expire funding opportunities available today.

Click here for Part 1.