Problems Ahead for 2009?

2009 is almost upon us, so it is not too early to make organizational and financial plans for the next pivotal months. The nation as a whole, and maybe our entire industry are facing so many really tough challenges. In fact some soothsayers are saying we will soon be facing a real depression, if we are not already in one. How could this affect the laundry industry?

Congress and the Administration have pulled out all the stops to create the right atmosphere, but all they have done does not seem to have worked. Immediately after the key votes, all of the market indicators really tanked. We know that the underpinnings of our economy are sound, but the high flyers in Washington and Wall Street are taking it on the chin. That may be OK with us, because they seem to be the ones who started the whole economy thing going downhill.

We, who are in the coin and card operated laundry industry, can take heart because we are in what has long been hailed as a depression and recession proof business. We will continue to survive and, when we are well planned and positioned, can even prosper. That doesn’t mean that there are so few problems facing us that we can smirk and smile at the difficulties faced by others. We will suffer some too.

The status of our current business climate means we must be better prepared and far more aggressive than we have been during past cycles of the economy. For example, few of us would never think of buying new equipment when we are in bad times. We’ll wait until things get better, then we can buy. But newer, bigger, better washers and dryers may become the most important requirement for success during these trying times because the new equipment can give us an extra competitive edge

Here are some of the noticeable problems we are facing already.

The federal people from the Immigration and Naturalization are putting on the pressure and so many of our best laundry customers have returned to their country of origin, doing so mostly this year. On top of that, immigration of illegal aliens is being curtailed to a great degree by stronger border enforcement. That means that fewer undocumented folks are entering the country to become good laundry customers.

This reversal of immigration patterns already has hurt laundries in both Arizona and California. One multi store owner says that the dollar volume of his laundries in Arizona have gone down over 25% this year. One major soap & supply dealer in California tells the News that their sales to laundry owners have dipped ten percent, or more, and say their customers are losing sizeable portions of the critical Hispanic customer base. They seem to be returning home again. This also is affecting hundreds, or perhaps even thousands of coin and card operated laundries all over the western states.

Mother Nature really designed southwestern states to be a very lightly populated desert area. A nice place to visit, but you really wouldn’t want to live there. Too many people are here already and they still keep coming. This is putting a tremendous pressure on the water supply that is so essential to laundry operations and to modern life in general.

The population continues to grow along with the pressure to conserve water in the drought prone portions of these states. Regardless of what the general business climate looks like, the population is attracted by the wonderful weather. So, water rates will climb and a very real threat of water rationing will persist.

Costs for electric service and natural gas used in laundries will also continue to rise. The utility companies have already begun a march to higher prices, and it will be not different in 2009. Some rates for natural gas, electrical power along with the plentiful supply of water laundry businesses need have all grown dearer in price and even a depression will not turn them back.

Washing machine and dryer manufacturers, their distributors and dealers are making changes to face these economic hard times with consolidation and mergers. We see them building larger and larger sales territories. As these territories are being carved out, there comes a need to cut back on personnel to cut costs. With this could come a resulting reduction in the types and kinds of services they can offer you in your local area. Lack of services, such as parts and technical support, in one particular area or city could mean laundry operators may have to travel further than normal to find parts and items they need for their businesses. This will take more time and energy to remain effective in business. There really is no one to blame. Everybody has a need for profits and they too are seeing a reduction in their over all costs.

When times get tough there is usually a rise in both vandalism and serious crime, and particularly laundries that are not attended will suffer more senseless acts of violence on their machines and structures. Operators need to concentrate more on keeping safety in their facilities. A second part of that is the willful injuries in laundries that are originated and directed towards threatening lawsuits against that laundry owner. It is seen as an easy way to make a buck in tough times.

Our laundry industry has faced most of these problems in the past, and certainly will face them again in future times, no matter what happens in the coming year. The approach of the year 2009 still offers us all an opportunity for growth and profits. We think you should know what potential problems there may be, but you should not be afraid of 2009 or, for that matter, any upcoming year.

Being optimistic and ready for what could happen is the best formula for your laundry businesses’ future success. Optimism is the first and primary key to success. When you believe your business will make it, then it likely will. There is a lot to worry about, but then there always has been a lot of problems, all of which operators in our industry have over come in the past. We will do again! Planning and persistence will help see us through this upcoming new year. Worry less, be prepared and have a Happy New Year!

Date:-05/28/2011
By:-Admin


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	Problems Ahead for 2009? 2009 is almost upon us, so it is not too early to make organizational and financial plans for the next pivotal months. The nation as a whole, and maybe our entire industry are facing so many really tough challenges. In fact some soothsayers are saying we will soon be facing a real depression, if we are not already in one. How could this affect the laundry industry? Congress and the Administration have pulled out all the stops to create the right atmosphere, but all they have done does not seem to have worked. Immediately after the key votes, all of the market indicators really tanked. We know that the underpinnings of our economy are sound, but the high flyers in Washington and Wall Street are taking it on the chin. That may be OK with us, because they seem to be the ones who started the whole economy thing going downhill. We, who are in the coin and card operated laundry industry, can take heart because we are in what has long been hailed as a depression and recession proof business. We will continue to survive and, when we are well planned and positioned, can even prosper. That doesn’t mean that there are so few problems facing us that we can smirk and smile at the difficulties faced by others. We will suffer some too. The status of our current business climate means we must be better prepared and far more aggressive than we have been during past cycles of the economy. For example, few of us would never think of buying new equipment when we are in bad times. We’ll wait until things get better, then we can buy. But newer, bigger, better washers and dryers may become the most important requirement for success during these trying times because the new equipment can give us an extra competitive edge Here are some of the noticeable problems we are facing already. The federal people from the Immigration and Naturalization are putting on the pressure and so many of our best laundry customers have returned to their country of origin, doing so mostly this year. On top of that, immigration of illegal aliens is being curtailed to a great degree by stronger border enforcement. That means that fewer undocumented folks are entering the country to become good laundry customers. This reversal of immigration patterns already has hurt laundries in both Arizona and California. One multi store owner says that the dollar volume of his laundries in Arizona have gone down over 25% this year. One major soap & supply dealer in California tells the News that their sales to laundry owners have dipped ten percent, or more, and say their customers are losing sizeable portions of the critical Hispanic customer base. They seem to be returning home again. This also is affecting hundreds, or perhaps even thousands of coin and card operated laundries all over the western states. Mother Nature really designed southwestern states to be a very lightly populated desert area. A nice place to visit, but you really wouldn’t want to live there. Too many people are here already and they still keep coming. This is putting a tremendous pressure on the water supply that is so essential to laundry operations and to modern life in general. The population continues to grow along with the pressure to conserve water in the drought prone portions of these states. Regardless of what the general business climate looks like, the population is attracted by the wonderful weather. So, water rates will climb and a very real threat of water rationing will persist. Costs for electric service and natural gas used in laundries will also continue to rise. The utility companies have already begun a march to higher prices, and it will be not different in 2009. Some rates for natural gas, electrical power along with the plentiful supply of water laundry businesses need have all grown dearer in price and even a depression will not turn them back. Washing machine and dryer manufacturers, their distributors and dealers are making changes to face these economic hard times with consolidation and mergers. We see them building larger and larger sales territories. As these territories are being carved out, there comes a need to cut back on personnel to cut costs. With this could come a resulting reduction in the types and kinds of services they can offer you in your local area. Lack of services, such as parts and technical support, in one particular area or city could mean laundry operators may have to travel further than normal to find parts and items they need for their businesses. This will take more time and energy to remain effective in business. There really is no one to blame. Everybody has a need for profits and they too are seeing a reduction in their over all costs. When times get tough there is usually a rise in both vandalism and serious crime, and particularly laundries that are not attended will suffer more senseless acts of violence on their machines and structures. Operators need to concentrate more on keeping safety in their facilities. A second part of that is the willful injuries in laundries that are originated and directed towards threatening lawsuits against that laundry owner. It is seen as an easy way to make a buck in tough times. Our laundry industry has faced most of these problems in the past, and certainly will face them again in future times, no matter what happens in the coming year. The approach of the year 2009 still offers us all an opportunity for growth and profits. We think you should know what potential problems there may be, but you should not be afraid of 2009 or, for that matter, any upcoming year. Being optimistic and ready for what could happen is the best formula for your laundry businesses’ future success. Optimism is the first and primary key to success. When you believe your business will make it, then it likely will. There is a lot to worry about, but then there always has been a lot of problems, all of which operators in our industry have over come in the past. We will do again! Planning and persistence will help see us through this upcoming new year. Worry less, be prepared and have a Happy New Year! Date:-05/28/2011 By:-Admin