Laundry industry pleads for Government support on energy prices

Commercial laundries close to ‘throwing in the towel’ warns TSA

Just as commercial laundries serving the hospitality sector think they can see a light at the end of the Coronavirus pandemic tunnel, they face another crisis, this time because of the massive and unprecedented rise in energy prices.  The Textile Services Association (TSA) is warning that if the government ignores the industry again, and fails to offer support, then businesses will fail and the industries that rely on laundries, including hospitality, will face significant challenges.

Now the TSA has written to the Rt Hon. Kwasi Kwarteng MP, the Secretary of State for Business, Energy and Industrial Strategy (BEIS), pleading to include the commercial laundry industry in any support it may offer to energy intensive industries.

David Stevens, CEO of the TSA, says, “We are an energy intensive industry and are recognised as such, alongside areas like manufacturing, under the Climate Change Agreement.  Whilst we have worked incredibly hard to reduce consumption, you cannot operate an hygienic process without energy to wash and dry the products. Energy represents about 10% of a commercial laundry’s overhead.  When energy prices are quadrupling you don’t need to be a mathematician to work out the impact.”

Several organisations and politicians are calling on the government to offer energy intensive industries support in the short term.

John Reynolds, the Shadow Business Secretary, has been lobbying government, saying they should “Come out with a plan sooner rather than later, there are lots of options available including a mix of loans and grants.”   However, the TSA fears that laundries will miss out – again.

Commercial laundries missed out totally on any government support offered to the hospitality sector during Covid, because they do not directly deliver hospitality, despite being totally dependent on it (and despite hospitality being very much dependent on commercial laundries).  Similarly, in the past, energy grants have usually been limited to mainstream manufacturing industries, meaning commercial laundries have missed out.  

“We support any plan that helps our sector,” says Stevens.  “We have been to hell and back and really cannot face another crisis.  I can see many commercial laundries literally throwing in the towel if they are not offered support this time.”

Commercial laundries employ over 24,000 staff and wash over 50 million pieces of laundry a week, including over 90% of the NHS’s products and 95% of hotel linens. Virtually all food and pharmaceutical factories outsource their washing of workwear to laundries.  Without commercial laundries many parts of the UK economy would grind to a halt. 

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Update from the TSA

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Laundry Cost Index: 2021/2022 FYQ3

Laundry Cost Index

Please see our latest published Laundry Cost Index for 2021/2022 FYQ3 below. Please note, as well as the Cost Index, a TSA Laundry Cost Index Bulletin for January 2022 has also been published to sit alongside the Cost Index. This statement has been produced to highlight the unprecedent cost pressures which are not reflected in the current Cost Index. A similar bulletin was produced previously as well and can be found here.  

Latest Laundry Cost Index & Bulletin

Please see the Previous Annual Increases below for comparison:

The Full Report
Annual Increase
Laundry Cost Index 2021/2022 FYQ2
5.92%
Laundry Cost Index 2021/2022 FYQ1
3.26%
Laundry Cost Index 2020/2021 FYQ4
1.43%
Laundry Cost Index 2020/2021 FYQ3
2.00%
Laundry Cost Index 2020/2021 FYQ2
1.64%
Laundry Cost Index 2020/2021 FYQ1
2.02%
Laundry Cost Index 2019/2020 FYQ4
2.73%
Laundry Cost Index 2019/2020 FYQ3
1.75%
Laundry Cost Index 2019/2020 FYQ2
2.95%
Laundry Cost Index 2019/2020 FYQ1
4.00%
Previous Laundry Cost Indices

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What are commercial laundries worth to the UK?

The textile services sector sits behind practically every sector of the UK economy

Research conducted by Hatch Regeneris concludes that the textile services industry is ‘core to the operation of many businesses in vital and important sectors of the UK economy.’  It highlights three markets of particular significance, hospitality, healthcare and manufacturing, concluding that without the support of the textile services industry they would face insurmountable problems.  Yet the long-term sustainability of textiles services in the UK is under considerable threat and action is needed if it is to survive. 

The research was commissioned by TSA, the Textile Services Association, and was carried out in 2020.  The key problems it highlighted are dramatically rising costs, downward pressure on prices and severe staff shortages.  However, since then the industry has suffered even more setbacks and its position is even more precarious.  “Brexit, the pandemic and escalating fuel costs have amplified the issues to a catastrophic extent,” says David Stevens, CEO of the TSA.  “Without serious price rises for customers and government support – at the very least in terms of access to the EU labour market – there is a real risk that many textile services companies will go out of business.” 

Textile services encompass the supply, rental, laundering and maintenance of textiles.  It ranges from bedding and towelling in hotels; to PPE and workwear in factories; to surgical, pharmaceutical and high-care food workwear; to mats, roller towels and washroom services in a wide range of sectors.   Each week the industry processes 53 million textile items to end users in the UK. 

The report estimates that the textiles services industry contributes a total of £1.3billion in GVA to the UK economy and £190million to the Exchequer, while supporting 28,000 FTE jobs.  It notes that hospitality is dependent on the industry, since the provision of clean, fresh linen is fundamental to their business.  Just one hotel with 100 bedrooms will get through 750 pieces of linen per day.  Similarly in manufacturing, the report says production lines would come to a standstill within three days of not receiving new workwear.  Meanwhile, healthcare and social care can’t function safely without bedlinens, surgical gowns and patient wear washed to very high specifications.  

Aside from those three key sectors, as the report points out, ‘the textiles services industry sits behind practically every sector in the UK economy.’ 

“If commercial textiles services ceased to operate, many UK businesses, industries and sectors would grind to a halt,” says Stevens.  “We continue to press the Government for help, but so far they continue to ignore us, despite organisations like UKHospitality and NHSI supporting our arguments.” 

The Hatch Regeneris research, ‘The Economic Value of the Textile Services Sector to the UK Economy,’ is available to download at tsa-uk.org, from the TSA publications section in the documents library. 

If you have any queries, please do not hesitate to get in touch with us either via email or phone: 

E tsa@tsa-uk.org

T +44 (0) 20 3151 5600