As our industry exits the pandemic, the impact of it has remained and may have accelerated the piece trend decline which began during the recession of 2008/2009.
Pieces have diminished for a variety of reasons: smoking bans, remote working, more casual working dress standards, easier care garments, and price increases greater than the annual inflation rate, due primarily to significant wage increases.
In March of 2024 I was asked to prepare a session at the annual meeting of the Round Table of Launderers and Dry Cleaners (Round Table) on the “Future of the Industry”. In preparation for that session, I reached out to industry stakeholders, read industry publications, and reviewed past industry presentations on the same topic. I also asked each Round Table member (representing 19 companies) the following question, “If you were beginning your career, would you choose to enter this industry? Why or why not?”
As expected, the responses were bifurcated:
Concerns were obvious: the long-term decline in pieces; a reliance on labor; and a perfectly competitive industry with mature market saturation.
Proponents of the industry articulated: the industry had proven to be resilient despite the head winds; an established brand will always succeed; a segment of customers value convenience; no longer reliant on store locations; ability to diversify; potential with technology; pricing power; often leads to real estate investment; easy to be profitable; a cash business (no receivables); and the ability to be your own boss.
The stakeholders (a dozen in total) that I interviewed had time to ruminate prior to my conversation:
Many defined components of a successful future to include:
- The flexible mindset of those who developed the tools needed to navigate through the pandemic.
- The realization that “waiting for traditional pieces to return” may not be the answer but to provide cleaning services for the needs of the new customer.
- A reassessment of costs and prices in order to generate a reasonable profit.
- The Amazon mantra of convenience.
- An opportunity to consolidate, as many competitors will not want to go through the process of reinventing themselves.
- The ability to use technology, not for the sake of using it but in a way that will benefit the customer and/or reduce operating costs.
- To always be mindful of new processes and equipment that will allow you to be more efficient without sacrificing quality.
The Round Table members answered the question, of whether or not to remain in the industry, as follows: 11 in favor and 8 opposed.
Personally, I believe that piece decline will level off, yet consolidation will continue. To be successful a business cannot continue to operate as it has done in the past. It will need to service fewer customers, who want it done right and quickly and who are willing to pay a higher price. In short, we need to provide future consumers with the “sizzle” and the “steak” and charge them a fair price for our service.
