Current Inflation and Laundry Operation

The effects of the pandemic remain to be felt worldwide and one of the results has been an increase in inflation. According to David Potack, president of Unitex – a uniform and linen provider in New York US, inflation in the laundry industry is predominantly felt in labour costs, both labour rates and labour availability. Although higher fuel and textile costs are decreasing margins significantly, these two factors are cyclical to an extent. Whereas the labour rate issue is non-cyclical and expected to increase labour costs for a long time ahead.

William Luther, Ph.D., – an assistant professor of economics at Florida Atlantic University and an adjunct scholar with the Cato Institute’s Centre for Monetary and Financial Alternatives stated that  being aware of the inflation environment is the first step to dealing with it. The government could prevent the negative scenario of permanent increase in inflation expectations,  where consumers expect prices are going to continue to rise at some rate greater than 2%, and employees begin to expect that inflation is going to affect their income.

To help reduce the impact of the current inflation over the long term, Potack states to maintain immediate gains through automation, overall business evaluation, facility evaluation and personnel evaluation. Maintain the discipline of best management practices to be the most efficient and effective laundry operator possible,” according to Potack.