Laundry Cost Index: 2022/2023 FYQ1

Update from the TSA

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Verdict on laundry industry: good, but room for improvement

Laundry Industry Culture Study shows employees think 80% of industry’s values are healthy

It’s an industry that stands behind just about every sector of the UK’s economy – and yet, for many, it’s invisible.  Without commercial laundries, 90% of hotels with more than ten bedrooms would shut within three days, and 90% of hospitals would be forced to close in one day.  Manufacturing, food processing, the pharmaceutical industry – all rely on a professional laundry service.  So the health of the industry is vital to UK PLC.  Which is why the Textile Service Association (TSA), which represents the laundry industry, undertook a comprehensive survey to find out how employees feel about their sector, and what state its cultural health is in. 

The TSA worked on The Laundry Industry Culture Study 2022 in partnership with the specialist consultancy Brands with Values.  The study used the Values Culture Decoder, a scientifically-led, values-based assessment tool.  It breaks down results by age, tenure, ethnicity, company size and sexual orientation and covers values and categories such as safety, authority, success, pleasure and community.  Over 500 people took part in the survey. 

So how did the laundry industry do?  Overall, the results are very positive, with 80% of values assessed being healthy.  The study showed that ‘community’ is the most important value to employees, and that they appreciate a culture that is successful, honest and respectful.  The top three personal values selected across different job roles are very similar, indicating that, regardless of job title, the same values are important.  Community was in everyone’s top three, with various combinations of tradition, safety and success filling the other top two places.  The top three ‘personal value’ words were honest, friendly and loyal.

However, the study also highlighted areas where the industry needs to improve.  The top unhealthy values highlighted were ‘demanding’ and ‘long hours’.  These were most often mentioned by supervisors, production managers, drivers and engineers.  While the results covering ‘belonging,’ asking whether employees felt welcomed, accepted and part of their organisation, were positive at 61%, TSA believes there is still room for improvement.   

“Clearly these are some of the areas we need to focus on,” says David Stevens, CEO of the TSA.  “The whole point of this study is to help our industry leaders understand what matters to their individual employees the most, and what needs to be changed or nurtured.

“This is even more relevant in the current climate, where recruiting people and retaining them is increasingly difficult.  We hope the survey will also raise the profile of our ‘invisible’ industry, attracting new people, since it underlines what a great work environment we can offer, and the wide range of career opportunities here.”

Brands with Values was able to benchmark the results against a similar survey it carried out with CBI members covering a variety of UK PLCs and, overall, the laundry industry’s study is healthier.

“I’d like to thank the 500 plus people who took part in the survey,” says Stevens.  “We are delighted that the results are very positive, and that the industry comes out with a really good score, but there’s no resting on laurels.  The insights are hugely valuable, now we need to dissect them and get to work to make our industry the best it can be.”

A copy of the Laundry Industry Culture Study 2022 is available to download here.

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

CLEAN attains DVSA Earned Recognition Status

30 May 2022

CLEAN is proud to officially become an ‘exemplar’ transport operator having been accredited on the DVSA’s highly prestigious Earned Recognition Scheme.

The Driver & Vehicle Standards Agency (DVSA) Earned Recognition scheme is a voluntary scheme for all vehicle operators who can demonstrate a strong track record of compliance and adherence to standards. Operators must be able to prove that they have robust systems and processes that promote effective and proactive transport management. DVSA earned recognition operators regularly share performance information with the DVSA in the form of scheduled reporting. Once successfully accepted into the scheme, these operators enjoy the benefit of a reduced burden of enforcement because the DVSA know that they are safe and compliant.

All transport operators who successfully achieve DVSA Earned Recognition status possess a proven culture of compliance. By allowing DVSA to remotely monitor compliance systems, checks can be carried out which will provide the assurance and confidence that the operator is effectively managing the transport operation and functioning in a compliant manner. In exchange, these operators may benefit from a reduced number of inconvenient and costly roadside checks and visits from enforcement officers thereby reducing the administrative burden of regulation on those who, like CLEAN achieve high levels of compliance.


Peter Cox, Head of Transport at CLEAN, said: “I’m delighted to announce our achievement in securing the ‘DVSA Earned Recognition’ accreditation. I am pleased to say that our focus on and high level of compliance, investment in appropriate IT technologies, ongoing training programme, collaborate culture hard work has really paid off. The scheme will allow us to demonstrate to customers, stakeholders and partners the excellent standards we have adopted here at CLEAN.”


He went on to say “The ‘DVSA Earned Recognition’ accreditation is another positive endorsement of our transport operation following the achievement of FORS and PRIM accreditations and a RoSPA Fleet Safety Gold Award. It’s further strengthened our focus on compliance and demonstrates that overall road safety is paramount for us. I would like to thanks to each and every member of the transport team here at CLEAN who have all played their part in securing this accreditation.”


This scheme ensures that compliant operators with DVSA Earned Recognition status obtain best business value from the enforcement regime and creates a model that will drive up compliance and enable others to aspire to. It also enables DVSA to divert its resource to target the seriously and serially non-compliant where the risks to road safety are highest.

To find out more about CLEAN, please visit www.cleanservices.co.uk or follow their updates on Twitter @cleanlinenltd.

We need to talk about laundries

TSA Roadshow – confirmed dates and your invitation to attend

Everyone involved in the commercial laundry industry is invited to the TSA Roadshow events.  They will be an informal forum, an open evening where businesses can network and find out about the latest ideas, over drinks and a buffet. 

There are three Roadshows confirmed, in Scotland, London and Birmingham.  All are open to both TSA members and non-members – indeed, the TSA is keen to talk to laundries who are not yet members, to get their input on the current state of the market. 

“After two crushing years we’ve learned a lot about what the industry needs,” says David Stevens, CEO of the TSA.  “Now it’s about surviving and building a new, more robust business model for the future.  That’s what the Roadshow is all about – what do we need to do to ensure profitability and a happy, secure workforce?  That’s why we want as many people to come long as possible, so as to get as many ideas and points of view as we can.

“They will be informal and informative, a relaxed environment where the industry can really talk.”

The Roadshows are also an opportunity to meet the TSA team, to chat to them about issues they may be able to help with, and find out more about the work they are doing in areas such as sustainability, diversity, standards, research and government lobbying.

All begin at 6.30pm with a reception followed by a brief introduction and a short presentation from an industry speaker.  The first one, on June 21, is at voco Grand Central, Glasgow, where Scott Inglis, commercial director of Fishers Services Ltd will lead the conversation on ‘Doing laundry in Scotland.’  Then on 19 July the London venue is One Kew Road, with Joseph Ricci, president and CEO of TRSA (the American Textile Rental Service Association) will share his experience as ‘It’s been tough for all of us,’ and he’ll look at how the world’s largest market is surviving.  The Birmingham Roadshow is on 13 October, with the venue and speaker currently being finalised. 

“We urge everyone to come along, and to encourage colleagues in the industry to join in too,” says Stevens.  “It’s a chance to have your say in what really matters.” 

All the TSA Roadshows are free to attend, but tickets should be booked in advance.  To register, contact the TSA on 020 3151 5600 or tsa@tsa-uk.org.  Alternatively, click here to book online. Please click here for more details of the event.

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

May market report

19 May 2022

High volatility remains a prominent feature in an illiquid energy market as oil and gas prices yoyo in the wake of supply and demand concerns. Respite in the markets has seen the gas markets fall to a 4-month low (at the time of writing) as the UK’s capacity, in the short term at least, appears adequate due to receiving an influx of LNG shipments, and ‘winter delivery levels’ arriving via the Norwegian shelf pipeline. Electric markets are at a 2-month low, coupled with higher-than-average seasonal temperatures leading to lower than the expected normal use for this time of year, which is common for this time of year as we enter the traditionally cheaper summer period.

So why are these small gimmers of positivity not seeing a reflective fall in consumer bills and contract offers? Volatility remains as the current stock levels are not reflective of the true stock levels required for the coming winter period; traditionally suppliers restock the UK’s limited storage during the summer lower demand periods in readiness for winter.

Nervousness is rife across Europe given the ongoing conflict in the Ukraine, with all EU countries rushing to store vast levels of gas given the uncertainty of the future supply of Russian gas and the potential move to future payments only being accepted in Rubles. With the desire of the UK and the EU to move away from dependency on Russian gas, alternate suppliers will be looking to potentially profiteer on their stocks, knowing that there are limited alternatives available and with various ‘defense’ treaties being agreed between non-NATO countries and the UK and EU, the markets are reflective of the potential escalation this could cause with Russia – indeed the day that the UK agreed to provide military support to Finland and Sweden in the event of an attack, the markets increased by nearly 22%!

Given all of this instability it is highly unlikely that the recent fall in wholesale costs will be seen by businesses in the near future and many analysts believe that the markets will return to the highs seen over the past few months as we enter the autumn/winter periods as demand soars, with Ofgem already warning consumers to expect further increases to the domestic price cap from October – and let’s not forget that businesses have no such price cap in place to protect them as many businesses are currently finding out to their cost with enormous increases in utility costs as existing contracts end and suppliers cease to trade, forcing them to market now.

In other troubling news, various suppliers have begun to enforce take of pay clauses on industrial and commercial businesses for exceeding their contracted energy volumes (most (but not all) suppliers have a circa + or – 20% tolerance on the contracted gas/electric in their terms and conditions), which prior to 2022 was rarely seen or enforced by suppliers. This enables the supplier to charge the business user the current market rate for usage deemed outside the tolerance levels, rather than at their fixed contracted rate as the supplier argues that they only purchased the contracted volume of gas at the time of the agreement and therefore the excess usage and subsequent supplier losses were not accounted for and are therefore passed on the client. At the point of an agreement, contracts are based and secured against the previous 12 months industry held consumption data; this is highly unfair, given the past 12 months data would not have accounted for Covid-19 lockdowns and was therefore unreflective of true use. It is also a clause that is always in the suppliers favour as any under usage would enable them to resell this gas for a huge profit in the current marketplace, which they do not share with the contracted business! There is little to prevent suppliers from enforcing this clause, but it can be fought and challenged to help limit the additional costs and we would advise you to engage with your supplier or consultant for assistance.

The 1st of April saw the annual review of industry and network capacity and transportation costs and charges which are generally covered in the daily standing charge element of energy contracts. Huge increases in cost to the running and maintenance of the networks, coupled with Ofgem’s SOLR (Supplier of Last Resort) costs being passed through to the remaining suppliers has seen many suppliers such as Avanti Gas in turn, passing these additional costs onto their clients with many seeing the cost of the daily standing charge increase by circa 150%! The SOLR scheme is part of a supplier’s energy license conditions, and in the event of failed suppliers, the remaining suppliers must foot the bill for the losses and payments due to the network from the defunct suppliers. Again, virtually all suppliers can pass these costs on to their customers under their terms and conditions, and as they are in effect ‘new Government & industry charges’ (although many suppliers do try to absorb them, rather than pass them on to customers). Many suppliers are also using the force majeure clause seen is all contracts to pass this additional charge on to consumers. Avanti Gas will not be the last to pass these costs on and the general feeling in the industry that given the losses being faced by suppliers in the wholesale markets, they will simply recoup these costs and losses from consumers, and this may become a seasonal ‘norm’.

In other industry news this month:

Nearly £20bn in government funding for energy storage is needed by 2030 – Almost 10% of grid capacity will be provided by battery storage by 2030, according to a new report. Tom Edwards, a Senior Modeller at Cornwall Insight, said: “The shift in power markets will significantly alter the operation and development of the power generation mix, making prices more volatile and more exposed to weather and demand patterns. This will necessitate the development of backup technologies to carry the system through when the wind does not blow, and the sun does not shine.”

Ofgem: “Inability to afford rising bills, a matter of life and death” – It is now extremely likely that Householders in England, Wales and Scotland will be hit by further increases in their energy bills in October. It is predicted that the Autumn default tariff cap will be around £2,600. Ofgem Chief Executive Jonathan Brearley has said prices in the energy market remain “highly volatile. For some, not being able to afford rising energy bills is literally a matter of life and death.”

Ofgem enables National Grid to make early payment of interconnector revenues, helping to reduce household bills – Ofgem has approved National Grid’s request to make early payments to consumers of £200 million over the next two years as part of the regulatory regime for electricity interconnectors. Ofgem’s cap and floor regime sets a yearly maximum (cap) and minimum (floor) level for the revenues that the interconnector licensees can earn over a 25-year period. Usually, revenues generated by the interconnector are compared against the cap and floor levels over five-year periods. Top-up payments are made to the interconnector licensee if revenues are lower than the floor; and similarly, the licensee pays revenues in excess of the cap to consumers. Ofgem’s approval enables National Grid to make payments of above cap revenues significantly earlier than originally planned, which will contribute to reducing consumer energy costs over the next two years. National Grid is now working with Ofgem to explore how to ensure the early payments can have the most impact for consumers.

For help and advice and to find out how Fox Energy can support and assist your business in these turbulent times, get in touch by calling 01233 884510 or email info@foxenergy.co.uk.

Laundry Cost Index: 2021/2022 FYQ4

TSA hits the road this summer

Textile Services Association roadshow gives laundries the chance to network

The Textile Services Association (TSA) is undertaking a tour of the United Kingdom in June and July of 2022 in order to spread the word of the work it does, as well as providing an unparalleled networking opportunity for commercial laundries.

The pandemic and its ongoing consequences have been tough for commercial laundries.  They had to navigate a business landscape where many of the regular customers they relied on shut down or greatly reduced their requirements for cleaning textile products.  At the same time, the government singularly failed to recognise that the industry needed help.

The TSA roadshow aims to bring leading laundries together to discuss how to rebuild and realign existing business models to improve profits.  It will also demonstrate the work of the TSA and how it can assist businesses in these endeavours.

The roadshow kicks off at voco Grand Central in Glasgow on 21st of June and will be followed by an event at One Kew Road in Richmond, London on the 19th of July. Other events are planned, depending on demand, with Birmingham, Bristol, Exeter and Manchester as potential extra locations.

Each event will begin at 6.30PM, kicking off with some welcome drinks. The introductory presentation will be an overview of the work of the TSA and the issues commercial laundries are facing. After this, guests will be treated to a short address from an industry speaker, and each event ends with a buffet that will make the perfect opportunity for networking.

“We’re looking forward to getting out there and reconnecting with existing members, as well as meeting potential new members and showing them the benefits the TSA provides,” says David Stevens, Chief Executive of the TSA. “The last couple of years have seen the industry cope with unprecedented issues. Working together and sharing knowledge is the best way for laundries to rebuild and regrow.”

Attendance at the road show events is free, for both members and non-members of the TSA. Anyone wanting to go should register their interest by contacting the TSA. Please click here to view the events brochure and how to book your place, or alternatively use the registration link here.

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

Christeyns helps ease driver shortage and expands HGV fleet

13 April 2022

Bradford-based hygiene chemical specialist Christeyns has added HGV driving qualifications to its apprenticeship scheme in order to provide a solution for the current driver shortage.

Two new apprentices, Tom Grundell and Danny Clark, commenced their apprenticeships in September 2021 and following 18 months of training and immersion in the business, will be out on the road delivering chemicals for use in the Industrial laundry and construction sectors.

“The driver shortage has hit the supply chain hard,” states Richard Boardman, Transport Manager at Christeyns UK.  We wanted to find a way to encourage young people into the profession as well as future-proofing our own business.”

Christeyns has also taken delivery of two new DAF XF480FAX Rigid HGV wagons with a gross capacity of 32 Tonnes, taking the fleet to a total of 11.  The average mileage of each of the trucks is 70,000 kms per year as they travel across mainland UK, Northern Ireland and Eire.

The drivers’ main responsibility is the safe transfer of bulk liquids from IBCs into customer’s bulk storage tanks using specialist pumping equipment on their wagons.

Christeyns develops systems and chemicals that help customers save money and improve the efficiency of their operations by maximising water and energy use and cutting down on waste whilst being kinder to the environment.

For further information visit:

www.christeyns.com

Update from the TSA

Please note this news item is restricted for TSA members only. If you are a member already, please click here to log in.

If you are not a member and you would like to find out more about our membership benefits and how to become a member, please click here.