‘Massive
inflationary pressures’ as costs and shortages hit commercial laundries
The commercial laundries
serving the hospitality and leisure industries have been looking forward to the
bounce back, following lockdowns that saw them suffer more than many sectors
due to government indifference. But now
they are warning that cost increases and labour shortages are crippling the
recovery, and that they are being forced into increasing their prices.
“There are massive
inflationary pressures bearing down on our industry,” says David Stevens, CEO
of the Textile Services Association (TSA), which represents commercial
laundries in the UK. “Commercial
laundries are already on their knees, having had virtually no government help
through lockdowns, despite seeing volumes drop by up to 80%.
“Now they’re being hit by price
increases they can’t absorb – they simply don’t have the resources.”
The cost increases faced by
laundries cover just about every area of operation and amount to double digit
inflation. Labour shortages have led to
wages going up by between 10% and 25%.
Chemical costs are up 15%. Many
laundries also supply textiles services such as linen hire to the hospitality
industry. Here the prices are
skyrocketing, with sheeting and bedding up by 55% and container freight costs
by 300%.
In response to the acute
labour shortage the TSA is lobbying government to allow greater access to
overseas workers and has requested further classifications of workers to be
added to the shortage occupations list. Despite
support from the CBI and UKHospitality, Stevens is not hopeful. “Don’t hold your breath,” he says. “The government’s Brexit agenda means that, at
least in the short term, it’s highly unlikely that we will get access to the
European labour market.”
As if labour shortages weren’t
enough, the pingdemic has decimated the laundry workforce, putting even more
pressure on the sector.
UKHospitality is aware of the
situation, saying that 94% of hospitality businesses are already experiencing
difficulties with the supply chain, through shortages, delays and
inflation. For the hotels, restaurants and health clubs
that rely on commercial laundries, price increases seem inevitable. The
TSA has published an information bulletin to inform end users of the likely
impact. It’s available to download for
free from tsa-uk.org/laundry-cost-index.
The TSA is the trade association for the textile care
services industry. The TSA represents commercial laundry and textile
rental businesses. Membership ranges from family-run operations through to
large, multi-national companies. Visit www.tsa-uk.org
for more information.
Press Enquiries:
The
Publicity Works: 01263 761000; tim@publicityworks.biz
David Stevens, CEO, Textile Services Association,
T: +44 (0)20 3151 5600 M:
+44 (0)7966 531954 E:
david.stevens@tsa-uk.org