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May 14, 2013

CHICAGO — Nearly two-thirds of dry cleaners have given pay raises on individual basis in last six months

CHICAGO — A majority of dry cleaners report they have given raises in the last six months, according to data from this month’s unscientific American Drycleaner Wire survey.

When asked if they’ve reviewed employee compensation in the last six months, 64.7% of respondents replied yes, saying they “raised pay on an individual basis,” while 23.5% “raised pay across the board.” Only 11.8% replied no, saying that they “did not raise pay.”

Coinciding with this trend, more than half of cleaners (52.9%) report that they pay their employees more than other plants in their market area. Roughly 41% of respondents have kept their pay rates about the same as other area plants. Just 5.9% report paying their staffers less than other plants in their area.

Just 17.6% of respondents report having had to lay off employees in the last 12 months for financial reasons.

April 29, 2013

FAIRFAX, Va. — Has spent majority of 33-year career in senior management positions

FAIRFAX, Va. — Reid Bechtle is the newly appointed chief executive officer for ZIPS Dry Cleaners, the Mid-Atlantic dry cleaning franchise chain has announced.

This comes on the heels of the company’s recent acquisition by JPB Capital Partners, a Maryland-based private equity firm that makes control investments in lower-middle market companies located primarily in the Mid-Atlantic and Southeast United States.

“ZIPS is the perfect opportunity to work with a proven franchisor and enhance a franchise network that is poised for aggressive growth,” Bechtle says. “Together with JPB Capital Partners, I look forward to moving ZIPS Dry Cleaners through its next phase of growth, including improved execution of the existing system and further geographic expansion of the concept.”

April 16, 2013

CONCORD, N.C. — Where darks and lights meet; cleaning furs; and protecting ornamental trim

CONCORD, N.C. — In a previous edition of American Drycleaner, readers like you were given a “heads-up” about what to expect from the fashion styles entering the marketplace (Fashion vs. Fabricare, November/December 2012).

The Federal Trade Commission’s recent request for comments on garment care labeling is a symptom of the continuing problem facing our industry.

The manufacturer’s focus on marketability and profitability at times runs contrary to serviceability. It is the obligation of the garment care professional to recognize that the customer’s item has a unique set of handling characteristics and then determine the best way to protect those unique characteristics while reconditioning the item for continued use in the future.

That is a mouthful, I admit, but I hope you get the point. “They” design the garment and “we” have to clean and finish the garment.

April 8, 2013

SAN FRANCISCO — Gather for three days of networking, presentations around industry, general business best practices

SAN FRANCISCO — America’s Best Cleaners (ABC) Affiliates from across the United States gathered in Scottsdale, Ariz., last month for three days of networking and presentations around industry and general business best practices.

The March 13-15 meeting included presentations by consultants from various industries and businesses that support dry cleaning, as well as a tour of local Affiliate Z Cleaners’ new production facility and a dinner hosted by Frank Dubasik of Metalprogetti.

Speakers included Nicholas Regine, technical design and application specialist from Swarovski Crystals, who discussed the latest trends in fashion embellishments and application techniques. He also talked about how Swarovski supports ABC Affiliates across the country and applied a custom ABC’s crystal transfer to a shirt owned by ABC’s executive director, Christopher White.

February 28, 2013

NEW YORK — DEP will work with affected businesses over next year to implement new rule ahead of enforcement date

NEW YORK — Beginning next February, New York City dry cleaners will be required to disclose to consumers the primary chemicals used in their dry cleaning process, says the New York City Department of Environmental Protection.

About 1,400 dry cleaning businesses throughout the Big Apple will be required to list the chemicals and a link to information about their health effects, so that consumers can access their potential impact.

DEP will work with affected businesses over the next year to implement the new rule ahead of the enforcement date.

“The local dry cleaner is an essential part of life for most New Yorkers, and it is important that information about all the chemicals used by these businesses is available,” says DEP Commissioner Carter Strickland. “At virtually no cost to businesses, this rule will ensure that this important public health information is available to the public.”

February 20, 2013

ARDMORE, Pa. — Package renews more than 50 temporary tax breaks through 2013

ARDMORE, Pa. — The so-called “fiscal cliff” tax package recently signed into law renewed more than 50 temporary tax breaks through 2013, saving individuals and businesses an estimated $76 billion. For the owners and operators of small- and medium-sized dry cleaning businesses, there is good news and bad news contained in the fiscal cliff tax laws.

First, the good news: greater certainty in taxes. The owners and operators of dry cleaning businesses have grown used to many longstanding tax breaks but they also have had to get used to the uncertainty of whether they will be renewed each year.

On the downside, in addition to a 3.8% Net Investment Income (NII) tax and a 0.9% Additional Medicare tax that, thanks to the Health Care and Education Reconciliation Act of 2010, began in 2013, many dry cleaners and laundry owners discovered they are subject to new taxes. Single individuals with incomes above the $400,000 level and married couples with income higher than $450,000 will pay more in taxes in 2013.

February 19, 2013

ARDMORE, Pa. — Package renews more than 50 temporary tax breaks through 2013

ARDMORE, Pa. — The so-called “fiscal cliff” tax package recently signed into law renewed more than 50 temporary tax breaks through 2013, saving individuals and businesses an estimated $76 billion. For the owners and operators of small- and medium-sized dry cleaning businesses, there is good news and bad news contained in the fiscal cliff tax laws.

First, the good news: greater certainty in taxes. The owners and operators of dry cleaning businesses have grown used to many longstanding tax breaks but they also have had to get used to the uncertainty of whether they will be renewed each year.

On the downside, in addition to a 3.8% Net Investment Income (NII) tax and a 0.9% Additional Medicare tax that, thanks to the Health Care and Education Reconciliation Act of 2010, began in 2013, many dry cleaners and laundry owners discovered they are subject to new taxes. Single individuals with incomes above the $400,000 level and married couples with income higher than $450,000 will pay more in taxes in 2013.

January 28, 2013

CHICAGO — Unemployment rate remains unchanged in the final month of 2012

CHICAGO — DECEMBER SAW THE NATION’S ECONOMY adding another 160,000 jobs, although the unemployment rate remained at 7.8%, according to the U.S. Bureau of Labor Statistics. Job numbers increased in the healthcare, food service, construction, and manufacturing industries.

“December’s report marks 34 straight months of private-sector job growth, which have added close to 5.8 million jobs,” says Secretary of Labor Hilda L. Solis. “For nearly three years, steady gains have occurred across different sectors of the economy, and December finishes a strong year of consistent growth with average increases of about 160,000 private-sector jobs per month in 2012.”

THE NON-MANUFACTURING SECTOR ALSO GREW in December for the 36th consecutive month, according to the latest Institute for Supply Management’s Non-Manufacturing Report on Business, with a report of 56.1% in December, which was 1.4 percentage points higher than the November figure.

January 22, 2013

LUBBOCK, Texas — Customers can see the plant from the front counter

LUBBOCK, Texas — The newest location from Texas-based Comet Cleaners Franchise Group can be found in a fast-growing part of Lubbock. The clean, modern store, which covers 3,500 square feet, features two drive-thru lanes with a canopy. Friendly, professional staff greet customers with bottled water.

Comet Cleaners offers dry cleaning and laundry services, alterations, and wedding gown preservation, as well as cleaning of household items and drapes. Same-day service is available until 2 p.m. on weekdays.

The production area—customers can see the plant from the front counter—includes a Union dry cleaning machine, Wascomat laundry equipment, and Unipress and Forenta finishing and tensioning equipment. Boiler room equipment is by Lattner Boiler. The plant utilizes DCCS workstations.

Comet employs 13 full-time-equivalent workers and generates more than $10,000 in weekly sales.

Owner Ron Caffey designed the plant layout, Mike Lowe was architect, and Gulf States Laundry Machinery was the project’s equipment distributor.

January 14, 2013

DENVER — Event in response “to increasing concerns over dry cleaning solvent releases”

DENVER — The Small Business Assistance Program (SBAP) at the Colorado Department of Public Health and Environment (CDPHE) is partnering with several dry cleaning-related organizations to present a Dry Cleaning Alternatives Summit and Trade Fair here later this winter.

The Rocky Mountain Fabricare Association, GreenEarth Cleaning, CDPHE’s Hazardous Materials Waste Management Division and the Drycleaning & Laundry Institute are partnering with the agency to present the March 9 event showcasing dry cleaning alternatives “due to increasing concerns over dry cleaning solvent releases to the environment, and related impacts on air, water and soil,” the CDPHE says.

The one-day event at the Denver Marriott Tech Center will feature presentations and panel discussions on dry cleaning alternatives from industry, allied trades and CPDHE speakers. Also, there will be an exhibitor trade fair offering a multitude of resources in dry cleaning, laundry and wet cleaning equipment supplies.

January 10, 2013

CONCORD, N.C. — Diversify to pamper your customers and their garments

CONCORD, N.C. — I recently received a phone call from my friend, Norman Oehlke. Norm probably served IFI (now DLI, the Drycleaning and Laundry Institute) in most every technical position and wrote this very column until 2008. When he speaks, I listen. Closely.

He still keeps a close eye on the cleaning industry and the changing solvents. We talked about the changes we had seen and the struggles facing owner/operators in today’s marketplace. We exchanged a few ideas and agreed that many cleaners have fallen victim to the concept of processing over pampering.

A symptom of this is that large companies have perceived there is profit in home dry cleaning kits due to consumer dissatisfaction with the quality of garment care available. Sadly, these dry cleaning kits have intimidated a number of cleaners, owner/operators who consider the end product of their service to be little better than the level of quality delivered by a rag, a bag and a home dryer.

December 20, 2012

TORONTO — The cost of production starts at the cleaner’s front counter

TORONTO — There are dry cleaners that are confused about what to charge for their services, where that pricing structure places their operation within the industry, and how the consumer perceives them.

It is important to explain what goes into the pricing structure used when charging customers for their dry cleaned items. There are a number of ways to do this.

A cleaner could play a continuously looped video at the counter that illustrates how a garment is processed (including as many different processes as are used), place signage at the counter, or use various advertising mediums.

The cost of production starts at the cleaner’s front counter. When a customer drops off clothes, they should consider what system is in place to create the invoice and receipt they receive and how the cleaner identifies their items so what they brought in will be returned to them.

Proper identification includes a complete description of each article, indicating the type of item, color, label identification, and any stains or tears that may be on the garment at the time it was marked in.

December 18, 2012

CONCORD, N.C. — Party clothes can produce great income if you earn customer’s respect, build reputation for reliability

CONCORD, N.C. — In order to honor reader requests and continue a tradition, this month’s column addresses some of the more common “land mines” awaiting the professional cleaner during the holiday period.

Party clothes can be a great source of income if you have earned the respect of potential customers and have built a reputation for reliable stain removal.

OIL AND BUTTER

When tablecloths and napkins containing oil and butter are put away, those substances will oxidize. This type of stain is relatively easy to remove when treated early, but the stain will turn deep yellow to brown over time.

Treat oxidized oil with paint-oil-grease remover (POG) on the dry side. Allow the garment to sit for at least an hour before dry cleaning as normal. If this procedure fails to completely remove the stain, repeat it. If the stain still remains, your last option is using KOH solution, made by mixing one-quarter tablespoon of potassium hydroxide into a quart of butyl alcohol. Apply the KOH solution on the dry side and allow the garment to sit for an hour. Tamp and re-clean the area to remove the remaining stain.

November 14, 2012

NEW YORK CITY — Will premiums go down? Will it be easier to shop for insurance? Will available policies offer better coverage?

NEW YORK CITY — It’s the nation’s most comprehensive health insurance reform since Medicare. And it’s been endorsed as constitutional by the U.S. Supreme Court.

Now, how will the Patient Protection and Affordable Care Act (PPACA) affect your dry cleaning business? Will your premiums go down? Will it be easier to shop for insurance? Will the available policies offer better coverage? And will you be protected from those profit-busting price hikes that so often occur when one employee in a small group gets seriously ill?

We’ll answer your most important questions at the end of this article. Here’s one thing to get out of the way first, though: No employer will be required to provide health insurance. However, some employers, as you will see, will pay penalties if they do not provide insurance and their employees decide to buy insurance from the new statewide insurance pools.

October 11, 2012

CHICAGO — State of economy most influential issue in helping them choose

CHICAGO — If U.S. voters agree with the majority of dry cleaners who responded to this month's AmericanDrycleaner.com Wire survey, Mitt Romney will be elected the 45th president of the United States next month.

Nearly 62% of dry cleaners polled in the anonymous, unscientific survey say they are supporting the Republican ticket of Romney and running mate Paul Ryan. Roughly 24% are supporting Democratic incumbents Barack Obama and Joe Biden, and the remaining 14.3% are not sure at this time. No one who took the survey said they would not be voting for president, or that they are supporting a third-party or write-in candidate.

In comparison, four years ago, 80.8% of dry cleaners supported Republicans John McCain and Sarah Palin to only 14.1% for Obama/Biden and 5.1% for third-party or write-in candidates.

October 3, 2012

CHICAGO — Some indicators continue to show economic improvement, with consumer confidence gaining slightly

CHICAGO — ECONOMIC ACTIVITY CONTINUED TO IMPROVE in July and early August, according to the 12 Federal Reserve Districts in the latest Beige Book report from the Board of Governors of the Federal Reserve System.

Nine districts report modest economic growth, with two reporting slow growth and the 12th indicated mixed reports with some slowdown.

Retail activity, including car sales, had increased since the previous report, although the districts showed only slight increases. Several districts – Boston, New York, Richmond, Atlanta, Minneapolis and San Francisco – indicated that tourism was on the upswing.

The tourism increase was backed by a report from the U.S. Department of Commerce’s International Trade Administration. International visitors, according to the commerce report, have spent more than $82 billion on U.S. travel and tourism-related products since the first of the year, an increase of 11% from this time last year.

September 26, 2012

CHICAGO — West only region to report better first-half profits compared to 2011

CHICAGO – The West and Northeast reported increased sales in August from one year ago, while dry cleaners in the Midwest and South saw their collective sales fall just short of August 2011 levels, according to the latest AmericanDrycleaner.com StatShot survey.

When comparing first-half profits for 2012 to those for 2011, the only region reporting growth was the West, and it was minimal.

In comparing August 2012 sales to August 2011, the West saw a 6.3% increase. Sales in the Northeast rose 2.4%. The South and the Midwest saw their collective sales each drop 0.2% from August 2011.

First-half profits this year in the West topped 2011’s first-half results by 0.5%. The other regions reported declining profits when compared to the previous year’s January through June: Northeast, down 4.0%; South, down 2.1%; Midwest, down 0.3%.

September 5, 2012

CHICAGO — New law mandates improved control/containment, better training, more comprehensive reporting

CHICAGO — Illinois Gov. Pat Quinn has signed a new law to impose tougher safety measures on the use of perchloroethylene (perc) by the state’s dry cleaners. House Bill 4526 requires Illinois dry cleaners to utilize “best management practices” while using the solvent.

The legislation includes improved control and containment systems, better training, and more comprehensive reporting, the governor’s office says.

The law will require all new dry cleaning machines operating in Illinois, beginning in 2013, to have “primary and secondary” control systems to reduce the concentration of perc, and to have sealed containment structures to contain leaks or spills by 2014.

“If improperly handled, dry cleaning solvents can seep into our groundwater and skies, and pose a threat to workers,” Quinn says. “This new law will help protect our drinking water, and we salute the dry cleaning industry — and especially the Korean American Drycleaners Association — for partnering with environmental advocates to get this done.”

August 9, 2012

LAFAYETTE, La. — Cleaner stored perc in Rubbermaid containers, dumped waste down toilet

LAFAYETTE, La. — A Louisiana dry cleaner pleaded guilty last week to negligently causing and allowing the discharge of hazardous waste—perchloroethylene, also known as perc—into a publicly owned treatment works or sewer system, according to U.S. Attorney Stephanie A. Finley.

Jason Prejean, 38, of Lafayette owns One Low Price Cleaners (OLPC) and entered the guilty plea on behalf of him and his Lafayette business.

At the hearing, Prejean admitted that he acted negligently in failing to ensure the proper and lawful disposal of wastewater containing perc and that he failed to train OLPC employees on the lawful disposal of perc waste. He also admitted that he had not used a disposal company since February 2007.

Investigations by the U.S. Environmental Protection Agency, Criminal Investigation Division and Louisiana Department of Environmental Quality (LDEQ) revealed that from December 2007 through May 2009, perc was improperly stored on-site at OLPC and that employees routinely poured perc wastewater down the toilet inside the store.

July 24, 2012

CHICAGO — Each start-up is unique, but there are basic guidelines to follow

CHICAGO — Opening a new dry cleaning business is a big step, whether you’re coming in fresh to the industry and are investing for the first time or you’re a current owner who’s looking to expand your operation by adding a new location.

Each plant start-up has its own unique challenges and requirements to meet, but there are some basic guidelines to keep in mind as you pursue your new venture.

STARTING POINT

An entrepreneur has to decide whether to buy an existing plant that will produce immediate cash flow or open a new location, says industry veteran Harvey Gershenson, who worked 44 years as a dry cleaner before selling his California business in 2007 and opening a consulting firm.

And whatever choice he or she makes, Gershenson hopes that it is influenced by a thoughtful business plan. “The No. 1 thing I would suggest for anybody who’s going into the business, whether they buy existing or look to start from scratch, is to do a written business plan.”

July 11, 2012

CINCINNATI — How to successfully integrate new hazcom system in your dry cleaning operation

CINCINNATI — Cintas Corp., a provider of first aid and safety products, has released its top tips for businesses impacted by the Globally Harmonized System (GHS) requirements for chemical classification and labeling. The new system will require millions of businesses and employees nationwide to be retrained on hazard communication.

“Hazardous-chemical information needs to be communicated to any employee who is exposed to or works with chemicals—even bleach,” says John Amann, vice president, First Aid & Safety, Cintas. “With GHS affecting over 5 million businesses, it is important that all employees are trained and understand the upcoming changes to chemical safety so businesses can keep workers safe and maintain OSHA compliance.”

The top tips for transitioning to GHS include:

UPDATE YOUR WRITTEN SAFETY PROGRAM

Anytime a safety standard is created or updated, written programs must be changed to include guidelines for complying with the regulation. Update your written program to incorporate GHS in all of your current hazard communication protocols.

April 11, 2012

WASHINGTON — What does the EPA’s classification of perc as a “likely human carcinogen” mean for the future of the solvent

WASHINGTON — When the U.S. Environmental Protection Agency (EPA) posted the final health assessment for tetrachloroethylene—also known as perchloroethylene, or perc—to its Integrated Risk Information System (IRIS) database in February, it deemed the chemical to be a “likely human carcinogen.”

The assessment replaces the 1988 IRIS assessment for perc and for the first time includes a hazard characterization for cancer effects. The assessment underwent several levels of rigorous, independent peer review including: agency review, interagency review, public comment, and external peer review by the National Research Council, according to the EPA, and all major review comments were addressed.

The Halogenated Solvents Industry Alliance says 70% of U.S. commercial dry cleaners use perc; EPA estimates the total number to be 27,000. So what does this development mean for the future of the industry’s preferred solvent?

April 3, 2012

CHICAGO — If there is one investment philosophy that approaches universal agreement among financial advisers, it’s the need for careful diversification in every portfolio in order to minimize risk

CHICAGO — If there is one investment philosophy that approaches universal agreement among financial advisers, it’s the need for careful diversification in every portfolio in order to minimize risk, but exactly what does diversification mean, and how can you tell if your investments are truly diversified?

One popular TV show on finances features a segment called “Am I Diversified?” in which viewers call in, give the host their top five holdings and the host lets them know if they are properly diversified. According to Jason Whitby, MBA, CFA®, CFP®, AIFA®, senior financial adviser with Miami-based Investor Solutions, it’s not that simple. “The idea of five-stock diversification is mostly refuted by the financial community,” he says, “which tends to agree that the number of individual stocks needed for diversification is actually closer to 30.”

March 20, 2012

CONCORD, N.C. — There are times when all stains begin to look alike

CONCORD, N.C. — There are times when all stains begin to look alike; they seem to be a shade of tan or yellow. The problem is, not all yellow stains are the same.

They do not have the same origin; they do not have the same composition. This yellow/tan can range from caramelized sugar, to a beverage stain, to a stubborn oxidized oil stain.

The earlier the stain is identified, the easier it will be to remove the stain. This points to the need for your customer service representative to form the habit of asking each customer, “Are you aware of any spots or stains on any of your garments?” Information gathered should be passed on to the spotter to assist in establishing the proper course of action to effectively remove the stain.

Stain content will determine the chemical tools necessary and the protocol to follow in stain removal. Fiber content and garment construction, as well as the age of the stain, can adversely affect the stain-removal process. Any attempt by the customer to remove the stain will make professional stain removal more difficult or even impossible.