fabricare industry

“Cautiously Strong” Is The Fabricare Industry

“Cautiously Strong” Is The Fabricare Industry

Business remains strong in the North American markets, particularly for the vended, on-premise laundry, and high-end dry cleaning sectors, reports Kathleen Armstrong…

With regard to dry cleaning, businesses catering to the higher end customers are thriving, while the middle and lower demographic market segments are not so lucky.

“Cleaners who serve these segments are often closing their doors at the end of their leases and, unlike it has been in the past, are not selling their businesses to others, given the deteriorated piece counts in these market segments,” says Tim Maxwell, president of GreenEarth Cleaning. The new entrants are not current cleaners acquiring existing exit cleaners but rather are largely entering via the franchisee route.”

The situation is similar in Canada with some consolidation taking place in the higher demographic markets.

“Given that a large percentage of our GreenEarth Affiliates serve the upper demographic segment of the market, our rate of renewal continues to remain around the 95% mark,” he adds.
Recently the US House of Representatives passed legislation aimed at targeting and evaluating high risk chemicals in US industry, including drycleaning. “While it remains open to vote in the US Senate, this is one of the few bipartisan actions that has been undertaken successfully and certainly signals the willingness of both the legislators and their constituents to focus on this issue,” Maxwell comments.

“We anticipate a significant change in legislation aimed at eliminated perc on a national basis similar to what has been done by the state of California,” he adds. In California, in 2007 a law was passed mandating the phase-out of all perc machines in the state and it will be banned from use in 2023.”

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