Textile Services in Europe - IndustriALL · Contents Part I: Economic environments of industrial...
Transcript of Textile Services in Europe - IndustriALL · Contents Part I: Economic environments of industrial...
Final Report
November 2016
Study funded with the support of the European Commission
Textile Services in Europe
Contents
Part I: Economic environments of industrial laundry in Europe 3
Characteristics 4
Industrial laundry: the reasons for success 12
Linen rental market in Europe: state of the sector between 2000 and 2012 16
Part II: Stakes for the sector 26
Part III: Comparison of the various sector stakeholders 39
Textile Services in Europe November 2016 2
Part I: Economic environments of industrial laundry in Europe
Textile Services in Europe November 2016 3
Customers have two choices when it comes to managing their linen: They can own their linen or rent it from a company
Source: Deloitte study for ETSA, June 2014
Textile services market
Customers
own their linen
Laundry done on the site where
the owner works
Laundry done at home by
the owner
Laundry outsourced to a laundry service
Customers rent their linen from a linen rental
company
Laundry outsourced
to a linen rental company
Linen rental and maintenance is a “full” and “complete” service that takes care of textile-related matters enabling customers to have a disciplined management of their textile budget: the relationship between the company and the customer is formalised by a rental agreement; the customer that rents out linen, invests in a stock of linen and other textile items and undertakes to manage the needs of each customer.
Textile Services in Europe November 2016 5
On the basis of three original core activities, industrial laundry has migrated to a global customer service concept
-Industry
-Agrifoodstuffs
-Retail trade
-Uniforms
-Clean rooms
-Public works/buildings
Work/industry clothing
-Accommodation (flat linen)
-Catering (flat linen)
-Sponges
-Uniforms and professional clothing
Hotels and restaurants
-Accommodation – hospitals, clinics
-Accommodation– retirement residence, home
-Techniques (laboratory, operating room)
-Professional clothing
Health
-Hand towels
-Soap
-Napkin/ industrial dishcloth
-Toilet paper
-Water fountain/…
-mat/protection (gloves, goggles), etc.)
Hygiene and accessories
Predominantly work clothing Predominantly flat linen
Predominantly flat linen
Textile Services in Europe November 2016 6
These laundry/dry cleaning segments consist mainly of five “customer” business lines
Healthcare institutions
Hotel industry
Industry Administrative and municipal
authorities
Catering
Clinics, hospitals, retirementhomes; whether for “flatlinen” (sheets, napkins, etc.),clothing for patients andstaff, or the supply ofsterilised linen (operatingroom, for instance), healthinstitutions are significantconsumers of linen rental andmaintenance.
The catering industryconcerns concurrentlythe wholesale laundryand linen rental-maintenance subsectors.Catering also includescollective catering incompanies andeducational institutions(schools, crèches, etc.),collective catering andtraditional catering.
Particularly through theneed for professionalclothing and relatedservices (hand towels,napkins, etc.)
Also constitute a non-negligible outlet(uniforms, etc.)
The hotel industry is aconstant outlet givenguest turnover in hotels,particularly in touristareas (with highseasonal incidence)
Textile Services in Europe November 2016 7
The services are geared to three major categories, which are largely segmented in turn
Work clothing
is increasingly synonymous with a
positive and dynamic corporate image;
companies that rent out linen provide the right
size clothing at the right time
Flat linen
Accommodation linen for patients and sterile linen for
medical staff; constitutes a significant demand in
Europe in terms of accommodation and home
linen, with a pronounced seasonal variation in France
and Southern Europe
Specialised servicesRange of accessory equipment and services for hygiene and sanitation comfort, protective
and anti-dust mats, industrial wipes for cleaning and absorbing
oils, grease and other liquids (automobile, printing and other
such industries); this activity has been deployed across the board to all customer sectors to provide a
comprehensive service
Textile Services in Europe November 2016 8
The services and items provided by a linen rental company are diverse, varied and very complete for a comprehensive service
Linen rental-maintenance companies provide various services to their customers, including:
o Textile articles and accessory items;o Clothing to measure, if necessaryo Industrial cleaning of the items used, ironing, drying or the finishing and appropriate or planned
presentation for each itemo Repairs of articles if necessaryo Automatic replacement of articles that are no longer in an appropriate state for their useo Wrapping and packagingo Transport of articles from the company to the customer’s place of use and collection from the indicated
addresseso Where necessary, distribution of clothes to the workstations at the user and other additional services to
improve overall customer service
Various articles are provided in these companies:
o Clothes that project an institutional image, particularly for service companieso “Ultra-clean” professional clothes for sensitive sectors (fine chemistry, etc.)o High performance Personal Protective Equipment (PPE) for safety and protection against occupational
risks (night visibility, acid projection, protection against fire and heat, etc.)o Traditional work clothing for industrial production siteso Accommodation clothing for patients and clothing for healthcare staffo Sterile linen for surgical operationso Accommodation linen for retirement homeso Accommodation linen for hotels and linen for restaurantso Hygiene services for sanitary facilities: hand towels, soap dispensers, air fresheners, feminine hygiene,
toilet bowl protection, etc.o Anti-dust protective mats for buildings, offices or industrial siteso Resistant industrial wipeso Protective accessories (gloves, shoes, goggles, etc.)
Textile Services in Europe November 2016 9
Industrial laundry services are correlated to the number of inhabitants, economic development and level of industrialisation of the country: Germany dominates the
European market (1)
Some 5 500 industrial laundry production units have been identified in Western Europe and theUnited States: most of them are located in Germany and the United States
18 500 industrial laundry production units have been identified in Eastern Europe and Asia: mostof them are located in China
It seems clear, therefore that the number of industrial laundries is correlated to the number ofinhabitants, to economic development, and the country’s level of industrialisation
There are ca. 24 000 industrial laundry production units in the world– this figure comprises only plants with a production exceeding 15 tonnes per week – which treat ca. 33million tonnes of textiles per year
To this are added 65 000 professionals specialised in cleaning/linen rental that process fewer than15 tonnes per week, which represents ca. 21 million tonnes of textiles per year; there is also a largenumber of very small companies that are not counted.
The concentration phenomenon witnessed in recent years in the sector has resulted in the twobiggest industrial laundry groups in Europe controlling more than 70 production sites, whereasthe 13 other groups of the sector do not exceed more than 10 sites each.
The largest group in the United States has more than 400 production sites, whereas most of theother laundry companies do not have more than 10.
Source: Laundry Operations, Steen Sogaard, Laundry Logics, 2014
Textile Services in Europe November 2016 10
The services provided by industrial laundry are correlated to the number of inhabitants, to economic development and to the industrialisation level
of the countries: Germany dominates the European market (2)
China, with 1.351 billion inhabitants, does not appear in the graph
Textile Services in Europe November 2016 11
32%
30%
10%
8%
7%
6%
2%2% 1%1%
1%
Distribution of sales (in volume) by industrial laundry in Europe
USA
Germany
United
Kingdom
France
Italy
Spain
Netherlands
Sweden
Denmark
Norway
Finland
80%
8%
5%
4%
3%
Distribution of sales (in volume) by industriallaundry in the East and Asia
China
Japan
MiddleEast
FarEast
EasternEurope
317
127
8166 63 61
47
17 9 6 5 5
Number of inhabitants (in million) per country
The growth of the profession addresses the stakes of tasks deemed ancillary and time consuming, accompanied by a still low level of penetration promising an even
higher potential for development (1)
OUTSOURCING is expected to double in Europe in the long term, to reach 55% to 60% (Deloitte study forETSA, June 2014 and Elis, June 2016):
• This rate is expected to triple in Spain
• It should double in Italy and Germany
• It should double in France, from 30% to more than 50%, with a substantial outsourcing rate inindustry and public hospitals: this rate was 11% in France in 2011, compared with 80% in Europe
• The outsourcing rate in the Nordic countries, the UK and Ireland is said to be less significant thanin France
ECONOMIC CONTEXT: The economic situation has “little” direct impact on the activity of industrial laundrygroups… even though it affects the sector indirectly:
• The sums invoiced are minimal compared to the charges borne by the customers who are notinclined to negotiate lower prices
• The different activities in which the laundry groups operate enable them to offset the decline inone sector by a rise in another. For example: the healthcare segment is not much affected by theeconomic cycle particularly because of the ageing of the population, and can offset losses sufferedin the hotel and catering sector which is impacted by decrease in momentum in tourism
ESSENTIAL SERVICES FOR THE ACTIVITY OF CUSTOMERS; linen rental and maintenance are essentialactivities for customers: once outsourced, they are difficult to re-insourced in that the supply andmaintenance of flat linen require sizeable investments.
Source: brochure of listed groups
Textile Services in Europe November 2016 13
The growth of the profession addresses the stakes of tasks deemed ancillary and time consuming, accompanied by a still low level of penetration promising an even
higher potential for development (2)
Textile Services in Europe November 2016 14
Source : Elis reference document 2015
35%
30%
15%
80%
50%
35% 50%
Flat linen
Work clothing
Hygiene/Well-being
Outsourcing rate and potential of the rental/maintenance marketfor flat linen, work clothing and hygiene/well-being equipment
in Europe in 2013
Outsourcing rate
Potential
Mat potential
Sanitary potential
Various factors are taken into account by companies when they decide to outsource linen maintenance: these factors seem unquestionably to follow the
“way of the world”
Concentration on the core activity
Reduction of fixed costs and better expenditure management
Simplification of human resources management
Allocation of the occupied space to another activity
Hygiene, cleanliness and safety of work clothing
Better quality textile management
Improvement of the corporate image
Compliance with sustainable development commitments
Traceability of work clothing
Source: brochure of listed groups
Textile Services in Europe November 2016 15
Linen rental market in Europe: state of the sector between 2000 and 2012
Textile Services in Europe November 2016 16
Segmentation of the linen rental market in Europe: the economic weight, particularly that of industry, structures the European business
Source: Deloitte study for ETSA, June 2014
Textile Services in Europe November 2016 17
Scandinavia€1.1 billion
Germany
€2.6 billion
France
51.7 billion
UK+Ireland
€1.3 billion
Switzerland +Austria€0.85 billion
Italy€1 billion
Benelux€0.75 billion
EasternEuropean countries
?
Spain€0.75 billion
The growth rate of the linen rental market in Europe slowed down after the 2009 crisis, but remains positive on the whole: situations vary widely per market,
however (economic cycle, economy of the country, etc.)
Textile Services in Europe November 2016 18
1.92.9
3.6
1.9
3.0
3.5
1.5
2.0
2.1
1.4
1.7
1.3
2000 2007 2012
Development of sales per geographic area in € billion in the linen rental and maintenancesector
Germany/Austria/Switzerland France/Italy/Spain/Portugal/Greece/Cyprus/Malta Sandinavia/Finland/Benelux UK/Ireland
€6.7 billion
€9.9 billion
€11.0 billion
+ 47.8%
+ 11.1%
The activity is dominated by the industry and services per type of customers, whereas flat linen is the 1st product in terms of market shares according to the type
of customers and performance
Source: Deloitte study for ETSA, June 2014
Textile Services in Europe November 2016 19
Development of the linen rental market in Europe
per type of customers
Turnover var. Market shares
2008/2012 2012
ITH* + 4.0% 30%
Healthcare + 1.7% 23%
Hotels + 1.1% 20%
Restaurants + 1.1% 5%
Other nc 22%
*Industry, Trade, Healthcare
Development of the linen rental market in Europe
per type of services
Turnover var Market shares
2008/2012 2012
Flat linen + 2.1% 41%
Work clothing + 3.8% 34%
Hygiene - 0.3% 12%
Anti-dust mat + 3.3% 10%
Clean room + 7.5% 3%
30%
23%
20%
5%
22%
Linen rental
Market in
2012
10.5 billion €
Industry,
Trade,Services
Other
Hotel trade
Catering
Healthcare institutions
41%
34%
12%
10%3%
Linen rental
market in
2012
€10.5 billion
Flat linenHygiene
Mats
Work
Clothing
Clean
Room
Source: Deloitte study for ETSA, June 2014
The different types of customers on the linen rental market in Europe attest to the slowdown in growth after the quite euphoric 2000 decade for
the sector
Textile Services in Europe November 2016 20
Characteristics of products on the linen rental market in Europe
Type of products Market size
Annual
Growth between
2008 and 2012
Growth
PotentialMarket segments
Industry
Trade,
Services
Healthcare
Institutions
Other
Hotel trade
Catering
€3.2 - 3.5
billion
€2.4 - 2.7
billion
€2.3 - 2.5
billion
€2.1 - 2.3
billion
€0.5
billion
4.0 %
1.7 %
nc
1.1 %
1.1 %
Favourable: :The outsourcing of this
service by companies
must continue
There is a great deal ofgrowth potential in France and in Eastern
Europe where the marketis not very developed
at present
Easterne Europe is a abuoyant market:
The hotel industry is growing
there and the linen rentalmarket is not capitalised on
yet
This market is highlycontested in the Southbetween competitors,
particularly concerningpaper products
Flat linen, industrial linen, work clothing, maintenance
linen
Flat linen, work clothingAnd sterilised linen
Toilet linen, mats,Maintenance linen
Flat Linen and workclothing
Flat Linen and workClothing
Source: Deloitte study for ETSA, June 2014c
The different types of services on the linen rental market in Europe: flat linen has greater potential but also remains the least profitable
Textile Services in Europe November 2016 21
Characteristics of services provided by the linen rental market in Europe
Type of customers Market size
Annual growth
between
2008 and 2012
Growth potential
Market segments
7.5 %€0.35
billion
nc
- 0.3 %€1.3 - 1.4
billion
3.8 %€3.5 - 3.8
billion
Bedspreads- ,, , sheets, pillowcases, blankets,
Napkins, curtains, tablecloths,
etc.
nc€4.3 - 4.9
billionFlat linen
Work clothing
Hygiene
Mats
Clean
Room
€1 billion
In recent years, growthin flat linen has beenlimited by
pricing pressure and thethe high rate of
outsourcing in hotels
This type of product isnot considered a premiumservice in the EU.
Strong competition from cheaper alternatives.
Good penetration forimportant customers.
Small markets are
difficult to capture becausethey do not have a largequantity of clothes towash.
The major part of growthfor this type of productsis driven by specialised
companies in this sector
Work clothing, service clothing.
Napkins, Hand towelsfemale hygiene, toilet
paper, dispensers.
Products for washing floors
Dust remover, aerosol sprays
This type of market is highly correlated to the
climate. There is growth
potential in EasternEurope
Linge plat
Vêtements de travail
Hygiène
Tapis
Produits d'entretien
100%
150%
200%
250%
300%
350%
0% 10% 20% 30% 40% 50%
Part du chiffre d'affaires en 2012
Pote
nti
el d
e c
rois
san
ce à
20
17
Growth potential per services and market segmentation
Source: Deloitte study for ETSA, June 2014
Lucrative activity that mobiliseslittle capital
Sizeable potential but less lucrative
than clothing
Lucrative activity,particularly for
technical products
Textile Services in Europe November 2016 22
The linen rental business in Europe is concentrated mainly in Germany, France, the United Kingdom/Iceland and Scandinavia/Finland:
the growth hypothesis at the time appears optimistic because they are based on an opening of the penetration rate that has yet to materialise
The study conducted by the European Textile Services Association (ETSA) made it possible to measure thegrowth potential of the linen rental market in Europe by 2017 per different geographic areas.
Two scenarios were considered:
Conservative scenario: The total turnover generated by linen rental companies in Europe wouldattain €21.5 to €26 billion, i.e. a doubling of sales.
Optimistic scenario: The turnover would register phenomenal growth to attain €36 to €46 billion inthe sector, i.e. x 2.7 compared with 2012.
Source: Deloitte study for ETSA, June 2014
?????Very ambitious, not materialised
Textile Services in Europe November 2016 23
Growth potential in the linen rental market in
Europe by 2017
Conservative Optimistic
scenario scenario
Germany 2.70 5.90 9.50
France 1.75 3.25 6.00
UK/Ireland 1.30 2.15 3.75
Scandinavia/Finland 1.15 1.95 3.45
Italy 1.03 2.50 5.75
Austria/Switzerland 0.85 1.70 3.00
Spain 0.59 1.70 3.00
Benelux 0.98 1.65 2.85
Portugal/Greece/Cyprus/Malta 0.14 0.55 0.75
Other countries 0.53 2.40 3.95
Total 11.00 23.75 42.00
In € billion 2012
25%
16%
12%10%
9%
8%
5%
9%
1%
5%
Distribution, per geographic region, of turnover generatedin 2012 on the linen rental market in Europe
Germany
France
UK/Ireland
Scandinavia / Finland
Italy
Austria/Switzerland
Spain
Benelux
Portugal/Greece/Cyprus Malta
other countries
The turnover generated in the linen rental sector in Europe should have been multiplied by two from 1994 to 2017 according to the scenario deemed
“conservative” by Deloitte; in hindsight, the study commissioned by ETSA appears very optimistic to say the least due to a penetration rate which knows no upward
break in the trend
Source: Deloitte study for ETSA, June 2014
“Enormous” market potential regarding the penetration rate which ultimately remains very stable
establishing the growth conclusions of the study
Textile Services in Europe November 2016 24
119%86%
65% 70%
144%100%
189%
69%
300%
116%
252% 243%
188% 200%
461%
253%
411%
192%
445%
282%
Growth prospects in the linen rental market per country by 2017
Var. 2012/2017 conservative scenario Var. 2012/2017 optimistic scenario
Linge plat
Vêtements de travail
Hygiène
Tapis
Salle blanche
30%
40%
50%
60%
70%
80%
90%
100%
110%
10% 20% 30% 40% 50% 60% 70%
Taux et potentiel d'externalisation du service de blanchiserie en Europe par
produits
La taille des bulles est proportionnelle au chiffre d'affaires réalisé dans chaque produit en Europe en 2012
Taux d'externalisation en 2013
Pote
nti
el d
'exte
rn
alisati
on
The flat linen and clean room services could benefit from higher potential; all “optimistic” hypotheses must at least be projected in the long term (1)
Source: Deloitte study for ETSA - June 2014; Elis AMF basic document – October 2014
Higher potential sustained by the professionalisation of the purchasing
process in hospitals, hotels and restaurants, but there are inter-hospital
regrouping risks
Still has a sizeable margin of manoeuvrability but difficulty in
reaching small companies
Attractive for thegroups by
competition from cleaning companies
Increasingly more stringent regulations militating for nearly total outsourcing
Textile Services in Europe November 2016 25
The textile rental and maintenance sector was very dynamic but was hit by the 2009 crisis; whereas the fundamentals and the potential are undeniable and
confirmed by the 2010 recovery, its powerful upswing has been slowed down in the very least
Industrial laundries have adapted their structures to turn more to the customer, and they have thusmanaged to increase the number of potential customers; they used to be more oriented to their internalprocess.
Companies in the sector have made enormous efforts concerning sustainable development; ETSA studieshave compared the consumption of resources linked to the washing of professional clothing over ten years,from 2001 to 2011:o Electricity consumption during this period has gone down by 20%o Water consumption has gone down by 24%o Oil and gas consumption has gone down by 34%
The outsourcing of the laundry service by companies has been generalised in recent years:operators prefer to focus on their core activity to optimise their efficiency;greater reliance on textile services tends to increase with the standard of living; however, thisgrowth market no longer reflects dynamism
Requirements and regulations have been tightened on certain segments, particularly on the medicalmarkets.
Companies that have had recourse to these services are attaching more and more importance totheir image: clean, carefully ironed uniforms, etc.
Conversely, the economic cycle is unquestionably weighing heavily on dynamism, slowing down theprofession – a situation that is more pronounced in countries where growth “is slipping.”
Textile Services in Europe November 2016 27
The market was impacted by the 2009 crisis, less by a downturn, than by a break in the momentum it had until then: the fact remains that it has potential to be reactivated, in
spite of non-negligible pressure factors (1)
Increasing outsourcing of laundry incompanies
More and more ecological and sanitarypressure
More exacting European hygiene andsanitation standards
Technical and technological pressures on theprofessional environment
Demographics (cf. seniors / health)
Productivity / technological leap / reactivity
Competition, dropping of prices, flexibility
Penetration to be improved on the markets
Improvement of the quality of services
Good economic cycle / weak euro
Innovation / PPE / Sophistication of products
Shareholding strategy
Growth or offer development factors
Economic cycle and sensitivity to industrialproduction
Increased competition / less palatable sector
Environmental constraints / logistics /transport / pollution of old sites
Competition from the “disposable” alternative(operating room), paper hand towel, electrichand dryers / cleaning company
Margin safeguarding measures / non-restitution of quality to the customer /perception of deterioration in the quality of theservice
New participants in the world of cleaningcompanies
Digital impact? Direct contact with thecustomer
Health: less lucrative offer / grouping ofhospital centres
Geopolitical tensions (Horeca)
Shareholding strategy: weight of investedcapital
Development of sellers / catalogues
Level of employment
Pressure and demand deterioration factors
Textile Services in Europe November 2016 28
The market was impacted by the 2009 crisis, less by a downturn, than by a break in the momentum it had until then: the fact remains that it has potential to be reactivated, in
spite of non-negligible pressure factors (2)
Relaxation factors Pressure factors
HealthcareRetirement home
Demographics Linen rotation Hygiene and sanitation requirements Care for residents Penetration rate Public sector (France) ----- reactive / financial constraint Clean room
Regrouping of specific, specialised participants Organisation of the healthcare world; outsourcing of
laundry (public health risk, nosocomial diseases) Rise of small structures with appropriate equipment
Hotel and catering
Tourism (Southern Europe) Economic recovery? Change of mentality (penetration rate) Innovation / Differentiation / range / competition
Consumption outside the home « Psychological » breaks of customers Textile costs versus « disposable » solution Geopolitical troubles Digital?
Industry
Penetration rate / increasing outsourcing Tightening up of labour legislation Term of contracts Competition Transfer of responsibility Flexibility / versatility Service Dishcloths
Development of employment in the industrial, agri-food sectors
Disposable, recyclable Cost-killer in the companies Relocation Term of contracts
Hygiene
Penetration rate Low level equipment Expertise Outsourcing of the service Differentiating, original offer
Psychological expenses Rates Strong competition from wholesalers / cleaning
company with captive demand
European
World
Economy
Economic recovery Penetration rate Ecological stakes Group strategy Ecology / sustainable development / recycling
Pressure on industrial activities Strategy of groups Continuation of relocation / employment Waste management Decontamination
Textile Services in Europe November 2016 29
Whereas the sector still has significant sources of growth identified quite early, the 2009 crisis dampened substantially the dynamism of the entire profession and the
recovery has been unequal in the different European countries
Guarantee an original and selective offer
Cultural transgression to be initiated for potential customers
HighG
row
th p
rosp
ects
Weak average
Partnership / adapted local structure
Residents’ linen
Hygiene activityand mats
Hotel trade
Healthcare professional
clothing
Sanitation stakes
Competition fromhealthcare“professionals”
Hyper technical (mechanical/ther
mal) high-performance professional
clothing
Strong development but:
Non-standardised products (logistical and industrial constraint)
“Specialist” and local SMEs (healthcare professional)
Traditional Professional
clothing for industry
Drop in traditional demand/relocation
Migration to more technical clothing with an increasingly stronger component linked to safety (advantage/ ---) particularly for SMEs (new European standards)
----- Product technicityStandard massification
products
Customised “specific" products
Innovation, customisation
Image clothing
Increasingly stronger environmental
constraint
Textile Services in Europe November 2016 30
The market was impacted by the 2009 crisis, less by a downturn, than by a break in the momentum it had until then: the fact remains that it has potential to be reactivated, in
spite of non-negligible pressure factors (3)
Increasingly higher costs (cotton, PPE, pressure from competition
leading to the renewal of expensive collection).
Point for monitoring and optimising flows linked to the distribution that
concentrates the stakes of the sector
Increasingly more demand, professionalised customers,
mindful of their costs
The profession is under pressure on the margins at various degrees depending on the markets
Cost control stakes with an impact on several financial years
Means put in place to recruit new consumers (penetration
rate)
Increasingly more customised offers and services
Reinforcement of investment or management of existing equipment population in accordance with the
shareholding strategy
Improvement on productive, collective pressure
Begs the question of quality service and activity control (washing) where a growing
share of the expertise is entrusted to detergent manufacturers and/or industrial equipment
manufacturersTightened cost management
Diversification of activities either in “hygiene” and/or “pest” or a local
activity (cf. Mewa, previously a specialist in
dishcloths, is a global player in textile rental), or an international
activity (Rentokil, Elis…)
The marked is “locked” by the giants of the sector; less favourable
competition situation than before the crisis, exerting pressure on
prices and the environment
Divergent sensitivity between operators / shareholders: “pure
player” and/or multi-activity group
Risk of new entrants (cleaning company; digital impact?).
Textile Services in Europe November 2016 31
The introduction of UGF RFID technology should be accelerated in the industrial laundry sector for the advantages it entails: still expensive and subject to improvement, it
obviously raises the question of development in the company’s organisation and the impact on employment that might ensue due to the productivity that would result (1)
What is RFID technology
Radio Frequency Identification (RFID) technology is used to trace clothing/linen by installing a chip in thehem of the stitching hems; this technology is available from the manufacturers of this chip,Tagsys, Atlantic, RF, IER.
The detection is made on the basis of contactless identification.
The installation of this technology in the industrial laundry sector was announced some ten yearsago, but, for example, in 2011, the rate of use in France is 2%.
The development of the technology is still facing a number of brakes.
The cost and reliability of the chips, a form of big bang in the organisation and the informationsystem, still constitute serious brakes, even if the deployment is expected to take placegradually by the end of the decade.
Industrial laundries prefer to invest in their own research and development programme, all the more so asthis system still seems to be very expensive for the profession.
Furthermore, by way of reminder, having lived through the inflation of the price of cotton, themultiplication of lines and sophistication of collection, linen weighs increasingly more in theincome statement of the different groups; even though reliability has improved, and with adeclining cost, the question of the balance of constraining opportunities makes the mainoperators cautious still.
Productivity gains of 10% to 20% expected according to Tagsys, probably to the detriment of employment, nonetheless …
Textile Services in Europe November 2016 32
The introduction of UGF RFID technology should be accelerated in the industrial laundry sector for the advantages it entails: still expensive and subject to improvement, it
obviously raises the question of development in the company’s organisation and the impact on employment that might ensue due to the productivity that would result (2)
ADVANTAGES
• Cost, purchasing, and stock control and management
• Reduction of distribution errors by using chips on the linen and hangers
• More rapid inventories (45’) in a linen closet and/or bag
• Less disappeared linen
• Traceability throughout the linen process (departure and arrival of dirty linen,customer reception, etc.).
• More rapid commitment / productivity
• Limitation of manual contamination
• Potential in terms of additional offer, in particular for residents’ linen
• Possibility of modular approach by having two information systems cohabit withoutdisturbing conveyance and sorting
DISADVANTAGES
• Labour “savings” / (entry control) risk for employment
• Optimisation of the organisation // reorganisation of services
• At times excessively rapid deterioration of chips which are subject to harsh conditions
• Very expensive system; very heavy cost and investments
Textile Services in Europe November 2016 33
The automation of the processes, traceability of clothing or use of solvents that are hazardous to health and questions relating to the management of the strenuousness of
posts are all problematic issues and stakes taking increasingly centre stage in the profession
Emergency of wet cleaning vs.perchloroethylene (this solvent has beenbanned since the layout of new machinesthat use it) 30% of the machinery
population in France were replaced inSeptember 2014, half of which by wetcleaning. More than half of the machinerypopulation in France will be replaced by theend of 2015.
Concern
to improve
the ergonomics
for the
operators
Concept of“turnkey”laundry
and emergence ofof low cost or even
autonomouslaundry
Upsurge of smallstructures
that come in support(subcontracting during an increase of activity)
of the large groupsof the sector
Automation of processes stepped up: RFID system, barcodes, untangling and
unitisation robots, Centralised dosing system, etc.
Source: Entretien textile
Challenge of reducing strenuousness and
improving ergonomics in companies as the
retirement age is prolonged
The problem of the
traceability of
of clothes and linen
remains
widespread
Challenge of training with the
change of positions / activities
(production, distribution)
Textile Services in Europe November 2016 34
Strenuousness affects nearly all the posts of laundry across the board with diversity and with a variable intensity; the stakes are high in a world where the staff is already subject
to high productivity and constant reorganisations (1)
Physical stress
• Manual handling of loads (lifting, carrying, pushing, pulling, moving with the load)
• Painful posture (arms in the air, crouched and/or kneeling position, extended standing station)
• Mechanical vibrations where necessary (hands / body)
Aggressive environment
• Chemical agents (exposure to a hazardous chemical agent)
• Extreme temperatures (industrial site + station)
• Noise
Work pace
• Night work (?)• Shift work• Repetitive work, with
imposed pace
More generally, risksrelated to the workplace …
Allergic, respiratory and/or skin ailments (detergents) or
infectious diseases (cf. hospital linen), joint injuries in upper limbs, discomfort of
strong odours –input control –high heat emitted by the
washing, drying and folding machines
…and inherent to the equipment
Moving parts of machinery, conveyor belts, arms of untangling and folding machines – hot and/or
burning pipes and machines with risks of leaked steam and
therefore of burns
Textile Services in Europe November 2016 35
Strenuousness affects nearly all the posts of laundry across the board with diversity and with a variable intensity; the stakes are high in a world where the staff is already subject
to high productivity and constant reorganisations (2)
Washer(Noise)
Bag hook Reel unwinding
Sorting on table
Tunnel loading
Mat supply
Honeycomb sorting / platform
Washer loading and unloading (flat
linen, clothing, mats)
Dryer loading and unloading
Engagement and reception (small and large plate calender, reels, folding machine
Distribution(driver, onsite
delivery person)
SewingManual folding
Shipment preparation
platform agent
Inspection
Quality control
Unpacking of chemical products
Warehouseman
Repair
FilmingClothing
shipments
Positions most exposed to physical stress are indicated in red
Textile Services in Europe November 2016 36
Strenuousness at work is acquiring a singular dimension in companies today; it is fought on several fronts through technical, organisational, industrial and other such
solutions
• Acquisition of automated systems with improved ergonomics (cf. increasingly more sophisticated example of untangling robots, conveyor and sorting system)
• Modernising and adapting the facility and trolley / roller tools.
• Reinforcing investments in distribution: more appropriate vehicles, ergonomics of loading platforms, work on delivery points with customers …
Avoiding and combating risks at the source and avoiding of multi-
strenuous situations
Taking account of technical progressTaking collective and/or personal corrective
measures
• Improvements of working conditions on the organisational front (minimising night work, adapting schedules in accordance with seasonality, etc.)
• Versatility and/or mobility of highly strenuous positions: reducing the time of exposure in strenuous position
• the Facilitating the latter years of working career
• Arrangement of posts
• Working the circulation flows
• Training for employees (gestures, postures, risks incurred, production of general safety instructions and sheets, etc).
• Appropriate equipment (PPE, gloves, goggles, mask, etc.)
Textile Services in Europe November 2016 37
QHSE approaches will be increasingly more differentiated and imperative for operators who wish to weigh on the sector: beyond the constraints that they entail,
they constitute powerful commercial mechanisms
Revision of the ISO 14001 – environment –standards
New commitments for the environmententailing proactive approaches(environmental analysis for water, air,noise, visual nuisance, risks, etc.) aimed atthe following aspects:
• Safety
• Energy consumption
• Purchasing/consumption
• Legal matters
Hygiene: RABC certification
Hygiene and linen treatment (linen hygiene control from collection to delivery)
Sensitive challenge for healthcare, the pharmaceutical industry and the foodstuff sector
Quality: ISO 9001 certification
It was revised in 2015 and only the 2015 version will be applicable as of 2018
Social responsibility: ISO 26000 certification
It concerns the following areas:
• Sustainable development and environmental design
• Development and human fulfilment
• Employment development and territorial anchoring
Environment: ISO 50001 certification
It was put in place in 2011 and is aimed at improving energy performance; it is based on the continuous improvement of the energy model which is associated with a management system
model
Textile Services in Europe November 2016 38
Salesianer
Mettiex*
Johnson Service
Group
Lindström*
CWS-Boco
Berendsen
Elis
Rentokil Hygiène-
Textile
Alsco**Mewa*
Anett
Malysse
Sterima*
Bardusch*
Elis
France
Rentokil
France
-20%
-15%
-10%
-5%
0%
5%
10%
15%
0 200 400 600 800 1 000 1 200 1 400 1 600 1 800
Chiffre d'affaires 2015 (en M€)
Varia
tion
ch
iffe
d'a
ffair
es 1
5/1
4
La pastille visualise la taille du Chiffre d'affaires de la SociétéSource : Données publiques - Traitement 3E Consultants *CA 2014 ; **CA 2013
Aucune variation du chiffre d'affaires n'est précisée
pour Alsco, Bardusch, Anett et Malysse Sterima car nous ne disposons pas des données N-1
Haniel
(3 808 ; -3.4 %)
Rentokil
(2 423 ; + 1 %)
The growth of industrial laundry groups in Europe is lacklustre in 2015, and continues to be driven by external growth operations: the movement begs the question of the sector’s
state of health in spite of what are still comfortable margins
Rentokil turnover in France deteriorated because of a very
competitive market and an economy that is still in difficulty
Elis organic growth: +2.9
%
Positive impact acquisition of London Linen
RLD
Textile Services in Europe November 2016 40
Most European companies that rent out linen have a profitability of over 10%, except the Johnson Service Group, Haniel and CWS-Boco
Johnson Service Group
Lindström
CWS-Boco
Rentokil - division textiles/hygiène
Berendsen
Elis
Rentokil
Mewa*
Rentokil France
14.6%
4%
6%
8%
10%
12%
14%
16%
18%
20%
200 400 600 800 1 000 1 200 1 400 1 600 1 800 2 000 2 200 2 400 2 600
L'échiquier européen des loueurs de linge : chiffre d'affaires et taux de profitabilité en 2015
Chiffre d'affaires 2015 (en M€)
Tau
x d
e r
ésu
ltat
op
érati
on
nel
La pastille visualise la taille du Chiffre d'affaires de la SociétéSource : Données publiques - Traitement 3E Consultants
Haniel
(5.1 % ; 3 808)
Elis : Après retraitement
des amortissements sur rachat clientèle
*données 2014
Elis : ROC/CA
Profitability sector with highly capitalistic business nonetheless (which drives
linen in particular)
Textile Services in Europe November 2016 41
Operating result/
turnover
Elis
Johnson
Berendsen
Haniel
Mewa
-30
10
50
90
130
170
30 35 40 45 50 55 60 65 70 75
Po
ten
tiel d
e p
ressio
n d
es m
arc
hés f
inan
cie
rs(E
nd
ett
em
en
t n
et
/ f
on
ds p
rop
res)
Indépendance financière(Fonds Propres / Passif du Bilan)La pastille visualise la taille du Chiffre d'affaires de la Société
Source : Données publiques - Traitement 3E Consultants
Rentokil(484; 10)
Following a successful launch on the stock exchange in the beginning of 2015, Elis has cleared the level of debt somewhat, even if it remains high; that of Rentokil
also remains high, albeit lower than in the past; Mewa has “bank” status
Margins of manoeuvrability re-established with the
disposal of Celesio in 2014
Excellent, “bank” status
Fragile, but clearly improved financial
situation for Rentokil
Indebted leading operators: a situation which is strongly reflected
in the pressure extended on the staff and/or the organisation in the search
for margins of manoeuvrability
Textile Services in Europe November 2016 42
Participants
David Mohar: [email protected]
Florie Busca: [email protected]
1 Avenue Foch - BP 9044857008 Metz Cedex 1Tel: 03.87.17.32.60
83 avenue Philippe Auguste75011 Paris
Tel: 01.55.25.77.77
3E Consultants
Textile Services in Europe November 2016 43