American Drycleaner - January 2024 by American Trade Magazines

® JANUARY 2024

Leaping Into the New Year

SAVING ENERGY IN PLANTS AND STORES DRYCLEANING OPERATIONS AND AI

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drycleaner drycleaner A M E R I C A N

January 2024

Vol. 90, No. 9

FEATURES

(Photo: iStock.com/Dilok Klaisataporn)

Pre-Inspection Welcome to the Future

Y 2024

DEPARTMENTS

Outlook for 2024

Around the Industry

Classified Ads / Ad Index

30-31

Wrinkle in Time 32 Cautious Optimism, Hardline Approaches and Declaring War

Leaping Into 19 the New Year Leaping Into the New Year

A new year can mean new opportunities to those dry cleaners who have learned from the difficult lessons of the recent past. We speak with economic and industry experts about what 2024 might hold for cleaners.

Saving Energy in Plants and Stores

While energy prices have risen sharply for many dry cleaners in the country, there are also technologies available that can take some of the sting out of the utility bill.

Artificial Intelligence in Drycleaning Operations

While Artificial Intelligence (AI) is still an area very much in development, there are tools today that can assist dry cleaners in everyday tasks, and those tools are only going to get more advanced as time goes on.

American Drycleaner, January 2024

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PRE-INSPECTION

Welcome to the Future “The future” always seems like a time that never quite arrives, but the truth is that we are living in the future now. This mindset of “someday” can work against us at times because it allows us to kick the can down the road. After all, we need to deal with today’s problems at this moment — the future is something we’ll deal with later. As we start a new year, it’s important to keep in mind that today was yesterday’s “future.” If, as the calendar flipped over to 2023, you had started potentially profitable programs or services to your customers, you’d be a year into them now. Challenges neglected then have had a year to take stronger root. The future of 2023 is now today’s reality. Dave Davis All our features in this month’s issue of American Drycleaner deal in some way with the future of the drycleaning industry. For our cover feature, “Leaping Into the New Year,” we’ve asked an economist and professionals in the drycleaning industry about some of the effects 2023 had on cleaners and what might be coming down the path in 2024. Those who prepare for the future are better able to take full advantage of the opportunities presented. Our second feature, “Saving Energy in Plants and Stores,” documents some steps dry cleaners have taken to lower their utility bills while limiting their impact on the environment and keeping customer service at the forefront of their minds. Investments made today can lead to real savings going forward. And, in a bonus feature, guest contributor Barry Victor takes a look at what the growing role of artificial intelligence might mean for dry cleaners going forward. While this might sound futuristic, some benefits that AI can bring to business owners are now available to those willing to learn. American Drycleaner has been covering the industry for more than 90 years. While today’s advancements might have sounded like science fiction to those at the beginning of the 20th century, it’s the world we now live in. Let’s embrace the future by putting it to use today. American Drycleaner (ISSN 0002-8258) is published monthly except Nov/Dec combined. Subscription prices, payment in advance: U.S., 1 year $50.00; 2 years $100.00. Single copies $10.00 for U.S. Published by American Trade Magazines LLC, 650 West Lake Street, Suite 320, Chicago, IL 60661. Periodicals postage paid at Chicago, IL and at additional mailing offices. POSTMASTER, Send changes of address and form 3579 to American Drycleaner, Subscription Dept., 125 Schelter Rd., #350, Lincolnshire, IL 60069-3666. Volume 90, number 9. Editorial, executive and advertising offices are at 650 West Lake Street, Suite 320, Chicago, IL 60661. Charles Thompson, President and Publisher. American Drycleaner is distributed selectively to: qualified dry cleaning plants and distributors in the United States. The publisher reserves the right to reject any advertising for any reason. © Copyright AMERICAN TRADE MAGAZINES LLC, 2024. Printed in U.S.A. No part of this publication may be transmitted or reproduced in any form, electronic or mechanical, without written permission from the publisher or his representative. American Drycleaner does not endorse, recommend or guarantee any article, product, service or information found within. Opinions expressed are those of the writers and do not necessarily reflect the views of American Drycleaner or its staff. While precautions have been taken to ensure the accuracy of the magazine’s contents at time of publication, neither the editors, publishers nor its agents can accept responsibility for damages or injury which may arise therefrom.

American Drycleaner, January 2024

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President Charles Thompson Publisher Donald Feinstein 312-361-1682 dfeinstein@ATMags.com

Editorial Director Bruce Beggs 312-361-1683 bbeggs@ATMags.com

Editor Dave Davis 312-361-1685 ddavis@ATMags.com

Digital Media Director Nathan Frerichs 312-361-1681 nfrerichs@ATMags.com

Production Manager Mathew Pawlak Advisory Board Jan Barlow Kermit Engh John-Claude Hallak Monika Manter Wesley Nelson Kyle Nesbit Fred Schwarzmann Vic Williams Wayne Wudyka Office Information Main: 312-361-1700

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TALK OF T H E T R AD E

Outlook for 2024 T

he new year can bring a new set of expectations for drycleaning owners. While many signs point to 2024 being a better year for those dry cleaners who survived the past few cycles, there’s still a lot of uncertainty in the air as we head into the next 12 months. For this American Drycleaner Your Views survey, we asked our audience what their outlook is for 2024 and how they plan to make the most of the upcoming year. The majority of our respondents are feeling positive when it comes to forecasting their sales volume for 2024, with 43.2% saying they expect a year-over-year gain of more that 5%, and 32.4% saying they expect their gain to be between 1% and 5%. On the other end of the scale, 10.8% said they expect a year-over-year loss of more than 5%, 5.4% expect a loss of between 1% and 5%, and 8.1% are looking to hold steady at current levels. Part of successfully running a business is putting the lessons learned into action for future growth. When asked what takeaways from 2023 they will be putting into effect for 2024, answers included: • Aggressive pricing and continuing to search and remove “sacred cows” that no longer add value. • No hotel valet service and no insurance work. Too difficult to collect. • There is a lot of business out there — you just have to look under every rock and be able to shift your current model to accommodate. There was a wide range of answers when we asked our respondents how they see their business evolving in 2024. For 18.4%, there answer was to not evolve at the moment, saying they were keeping their business as-is. Another 18.4% are planning to work on adjusting their staffing levels, while increased emphasis on marketing and investing in new machines or technology tied with 15.7% each. Increasing route operations is the plan for 13.1% of respondents, adding new services is the focus of 10.5% and adding new storefronts is on the horizon for 7.8%. When asked about what they see as their operation’s biggest challenge in 2024, two answers — “labor issues” and “dealing with inflation” — tied for the top place with 31.5% each. “Finding/retaining customers” followed at 29%, with “supply chain issues” and “increased environmental regulations” tied at 2% each. 6

American Drycleaner, January 2024

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What is your forecast for sales volume in 2024? What is your forecast for sales volume in 2024?

43.2% Year-over43.2% year gain Year-overof more year thangain 5% of more than 5%

32.4%

8.1%

5.4%

Loss of Hold steady Gain of 8.1% 5.4% 32.4% 1% to 5% at current 1% to 5% Loss of Holdlevels steady Gain of 1% to 5% at current 1% to 5% levels

10.8% Loss of 10.8% more Loss5% of than more than 5%

What do you see as your operation’s inoperation’s 2024? Whatbiggest do you challenge see as your biggest challenge in 2024?

31.5% Labor 31.5% issues Labor issues

31.5%

29.0%

2.0%

Finding/ Supply Dealing with 29.0% 2.0%chain Increased 2.0% 31.5% environmental issues retaining Inﬂation Increased Finding/ Supply chain regulations Dealing with customers environmental issues retaining Inﬂation regulations customers

When asked what their plans are to combat their biggest challenges, answers included: • Better website, POS, and opening at least two new storefronts in high-demand areas. Together with this, we will also look at more corporate contracts as well as investigating route options and new services. • Upgrade equipment to increase productivity with less people. • Once I find that “diamond-in-the-rough” employee who buys into our culture, make sure they are well compensated and provide them with a retirement plan. The “Your Views” survey offers a current snapshot of the trade audience’s views. The publication invites qualified subscribers to American Drycleaner emails to participate anonymously in the unscientific poll each quarter.

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Leaping Into the

New Year (Photo: © suriyawut/Depositphotos)

Dry cleaners open to new ideas could see big gains in 2024 By Dave Davis, Editor

REVIEWING THE YEAR THAT WAS

Before looking forward, however, let’s take a quick review of the year just ended and see what kind of momentum the industry has built up. Now that it’s over, most drycleaning industry and business professionals say that 2023 was a definite improvement over 2022. “Things were still a little up in the air last year,” says Mary Scalco, CEO of the Drycleaning & Laundry Institute (DLI). “We were out of the pandemic — we can say that now — but we still weren’t sure how consumers were going to react.” 8

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Scalco believes that the industry will continue to lose some drycleaning businesses, but the worst should be behind us on that front. “There was still a shake-up going on in 2023, and while I believe the industry itself has pretty much settled out, I don’t think we’re quite done yet,” she says. “But, by the early part of 2024, we will have settled, and those who are going out of business will have gone out of business. I think you’ll see a little more consolidation, which has been occurring, but I think we’re pretty much at where we’re going to be moving forward.” The concept of working from home has been the bane of dry cleaners the past few years, says Dawn Avery, interim executive director for the National Cleaners Association (NCA) — a factor that ebbed but did not go away last year. “With the reduction of people returning to the office, the landscape is going to be different from this point

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oming off some of the most challenging years the drycleaning industry has ever faced, it’s only natural to wonder what 2024 has in store. While it’s impossible to accurately predict what this new year will bring, we can use the lessons of the past to anticipate what 2024’s challenges could be and how best to meet them.

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LABOR PAINS IN 2024

One of the biggest challenges experts see in the coming year is a continuation of one of last year’s major concerns: bringing in people who are willing to work. “Dry cleaners are still finding it very hard to get employees,” Scalco says. “That has carried forward, and I think it’s going to carry forward into the new year. It might just be an accumulation of things, from people retiring early to people deciding that they can do gig work. Everybody is still finding it a challenge.” So, is this something that will be solved, or is a shortage of labor simply the way it will be going forward? “There’s no relief in sight,” says economist Chris Kuehl, managing director of Armada Corporate Intelligence. “If there’s one issue that is at the top of the list for ev10

American Drycleaner, January 2024

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erybody, whether it’s small, medium or large businesses, it’s the worker shortage. It’s just pure demographics.” Part of these demographics is the fact that baby boomers are aging out of the job market — something that Kuehl believes should not have come as a surprise to anyone. “The powers that be somehow didn’t realize that aging was chronological,” he says. “By the end of this decade, you’ve got every single boomer reaching retirement age. That’s 76 million people. Boomers are notorious for not having lives, so we just keep working. You can do that into your 60s and 70s, but when you start getting into your 80s, people say, ‘I want to enjoy (my) golden weeks. I think I’ll actually quit now.’ And there’s no replacement for them.” Many independent dry cleaners are having to fight huge companies for workers — not an easy battle to wage. “You’ve got major corporations that are hiring almost the same level employee that we’re looking for,” Scalco says, “but they’re in a position where they can pay better, and the benefits are a lot more than what we can really afford without raising prices astronomically.” Competition for a shrinking pool of labor has put many dry cleaners in a tight spot — one where they are forced to change their goals and schedules to accommodate the shortages. “Because of the lack of employees, a lot of owners are having to work in the business instead of on the business,” Avery says. “We’re seeing a lot of owners jump in and do the deliveries and things they didn’t have to do before.” For Engh, part of winning the struggle to keep enough people to operate is finding ways to break the cycle of constantly replacing workers. “I’ve heard statistics that a third of all new hires

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forward,” she says. “While we do have a lot of people going back to the office, either they’re not full-time or they’re disgruntled about it, so they’re starting their own side gigs. That drops our (number of) pieces — you’re not dressing to go to the office.” The trend of consolidation in the drycleaning space, where healthier stores bought out their struggling competition, could actually be considered a positive for the industry, says Kermit Engh, owner of Fashion Cleaners in Omaha, Nebraska, and managing partner of consulting firm Methods for Management (MfM). “There were too many poor operators out there,” he says. “There were too many weak operators. There were too many discount operators. So, (consolidation) allows the strong operator to have better market share and better profitability. That will allow those companies to continue to grow and be strong, and a strong company creates jobs.”

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Looking Ahead to 2024

AUTOMATION STATIONS

One of the possible solutions to the labor crunch is to embrace technology that eliminates the need for so many employees. “Automation” might be the watchword of 2024. “Dry cleaners need to start embracing automation for some of their tasks,” Avery says. “That will reduce some of the employees. It’s not going to reduce them all — it’s still a hands-on job — but they could reduce some of their mundane daily tasks with the use of programs, AI, or whatever is out there for them to use. I think that they could reduce labor costs and get more done. You could be more productive.” “I think that, because labor is not going to get better for a long time, operators are being forced to look incredibly seriously about the automation of anything that they can automate,” Engh agrees. “One of the major changes that has happened in this last year has been the adoption of 24-hour kiosks that allow stores to be open without being staffed.” Engh has seen the value in kiosk technology both from the experiences of MfM members and from his own experience as a dry cleaner. “I’ve spoken to numerous operators who have gotten multiples of these, and they will never go back,” he says. “It allows them to reduce the number of hours open in a store, or in the case of somebody calling in sick, the store doesn’t close. That’s been my experience, as well. In our company, we installed one of these back in April, and it’s been fabulous.”

THE BIGGER PICTURE

While Kuehl believes that the United States will avoid a recession — defined as two consecutive quarters of negative growth — that factor doesn’t paint the complete picture. “You’re seeing a lot of difference in different parts of the country,” he says. “California is losing a lot of population because people are fleeing (from) high taxes and high cost of living. But if you go someplace like Texas, things are going great, because they’re all moving there 12

American Drycleaner, January 2024

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from California to escape the taxes. You see a lot of growth in places like Tennessee and the Carolinas, and even the middle of the country, often at the expense of the West Coast, and to a certain extent, the Northeast.” This disparity between geographic parts of the country makes the concept of a national recession less important than looking at the situation regionally, according to Kuehl. “You could look at some parts of the country and

This disparity between geographic parts of the country makes the concept of a national recession less important than looking at the situation regionally, according to Kuehl. say, ‘Yeah, California is likely to get some recessionary periods,’” he says. “But if you bring up the ‘R’ word in the Carolinas, they’re just going to laugh at you and say, ‘You’re not from around here, are you?’” Kuehl says that the sheer size of California, in fact, can skew economic data for the country as a whole. “One of the things that always distorts the U.S. is that California is such a major part of our national GDP,” he says. “All by itself, California is the 11th largest GDP in the world. And so, if they’re having a bad year, it looks like the whole U.S. is having a bad year. And then people that are in the Carolinas or South Dakota are saying, ‘That doesn’t mean anything — we’re not tied to that.’ South Dakota, for instance, has an unemployment rate of 1.1%.”

FINDING SUCCESS OUTSIDE OF THE BOX

As consumer behavior and habits change, dry cleaners who want to thrive in 2024 will have to find ways to become part of their customers’ everyday lifestyle. “Successful cleaners have figured out that drycleaning apparel piece count is going to remain where it is, and they have to diversify and figure out how to get other business through the doors,” Scalco says. “We’ve got members who are looking at doing housecleaning. They’re going to clean the house and then take your laundry and dry cleaning, and they’ll drop it off when they come and clean the next week. That’s the ultimate in convenience — the

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leave within 90 days, and I have to believe it’s because the onboarding process was inadequate, or that it didn’t exist,” he says. “I think investing in the staff that we have, and investing in onboarding processes and training, should be a major focus to start to slow down the turnover and to start making our industry career-oriented, as opposed to just job-oriented.”

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Looking Ahead to 2024

consumer doesn’t have to think about it.” “Those who thought outside of the box during the pandemic have thrived,” Avery says. “Those who stayed in the box are struggling. We’ve seen people open new tailoring departments who never had those things. We’ve seen an increase in wash and fold. We’ve seen them diversify and say, ‘OK, I can do area rugs, I have the space. Why not?’ We just really need to get out of our little box and imagine how we can help people — because suits, dresses, shirts and ties are down. Where are we going to make that up?” Scalco believes that any way cleaners can make it easier for customers to do business with them is a good use of their time and resources. “I think routes are going to become more important,” she says. “I’ve never understood why they are not more popular than they have been up to this point, but I think that’s going to gain in popularity. “I think we’re going to see more kiosks and 24/7 valets — anything we can do to make it more convenient for the customer is going to serve the dry cleaner well moving forward. And I think most have figured that out. They’re not afraid to put people on routes, they’re not afraid to do whatever it takes in their particular market to make it easier to do business with them.” “I’m a big believer in offering more convenience services,” Avery says. “On-demand pickup and delivery are going to be big, because everyone’s so used to that now with food services and shopping. Customers want to be able to put (in) their order at the push of a button. They can order something from Target now, pull into the lot and have someone bring it to their car. So, I think we need more of that in our industry.” “In the old days, the mindset was, ‘We’ll just train our customers,’” Scalco says. “Well, there’s no more training your customers. Amazon changed the way people get things, the way people buy things and the way people look at doing things. If dry cleaners don’t figure that out, they’re going to go the way of big malls.”

ROOM FOR OPTIMISM?

While there are certainly reasons to be cautious as we enter 2024, Kuehl believes the economic outlook is improving for much of the country. “I wouldn’t say it’s a year that people can look forward to as a breakaway year, but I think there’s going 14

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to be a reduction in inflation concern, and the recession threat is a little overblown, depending on where you are,” he says. “I would not be that optimistic if I’m in California, but Texas? The Carolinas? Tennessee? Kentucky? Yeah, I’d be looking forward to this year.” Even if the economic outlook in their particular area isn’t as positive as others, that doesn’t mean that dry cleaners are at the mercy of economic trends, Scalco says. Lessons from the previous few years will be valuable as we move forward. “We learned that we can figure this out,” she says. “We’re not afraid to make changes — and I think we have to make changes. By 2025, the industry is going to look different. I think the people who are here are the movers and the shakers. These are the people who are going to reshape the industry. We’re not just going to be dry cleaners — we may retain the name, but it won’t just be dry cleaning. And I think people have figured it out and they’re excited by the challenge. They’re excited about growing, whether that means buying the local competitor who’s not doing very well, adding additional routes or doing some sort of diversification. I am optimistic.” Avery says she’s optimistic because she’s met new people coming into the drycleaning industry — either because their parents are retiring, or they are leaving the corporate space and purchasing drycleaning businesses to build something for themselves. “It’s fun to work with the new people and offer information that they didn’t know and coach them,” she says. “Many of these new people got the business for a good price because the owner wanted out. They are coming and wanting training. It’s fun to talk to them. Some of the older owners are very ‘doom and gloom,’ and these people are coming into it with a fresh mind. I’m also excited that we’re back to in-person classes, because we got away from it. I’m excited for 2024.” Engh believes the future is bright for those willing to build on their skills, reach out for new ideas and share their own experiences. “Those who do not engage, who would rather just look at their four walls, will lose those four walls in the future,” he says. “Surround yourself with people who are like-minded. Surround yourself with people who are optimistic, and who are the go-getters. If we share ideas and work together, we’ll all come out of this, and those who survive will do very well.” www.americandrycleaner.com

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Saving A

Energy in

Plants and Stores

s energy costs have risen sharply over the past few years, many dry cleaners have been on a renewed quest to find ways to lower their expenses without sacrificing the quality they offer their customers. While some of the solutions may require an initial outlay, many cleaners find that their new equipment is paying for itself fairly quickly, leaving them with a more efficient, cost-effective operation.

BOILING UNDER

Joe Ziccarelli, president of Owl Cleaners in the Pittsburgh area, says he has found different methods of lowering his monthly energy bills. One of these solutions is a new, high-efficiency boiler in his plant, which services five locations. “We’re looking at between 20% and 25% in gas savings, which is substantial,” he says. “We’re not doing anything differently in the plant, so it’s a good direct comparison. It was expensive — about $70,000 — but it was worth the investment. I’d rather make a significant capital investment and have it pay off over time.” Ziccarelli says that his monthly bill to run the boiler dropped from about $3,000 to $2,500. “That’s $6,000 a year in savings,” he says. “It was something that needed to be done.” The boiler room was also where Esteban Corona, production manager of Greene’s Cleaners in Napa, California, found a place to save in his

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Ways dry cleaners have found to cut costs without sacrificing service

(Photo: © ra2studio/Depositphotos)

By Dave Davis, Editor www.americandrycleaner.com

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Saving Energy in Plants and Stores

BRIGHT IDEAS

For Corona and Strong, real energy savings also occurred when they took advantage of the power of the sun. Both have installed solar panels on their roofs to take advantage of the clean, free energy. “Our first major step was back in 2015 when I believe, to my knowledge, we were the first dry cleaner in California to be solar-powered,” Strong says. At that time, he had solar panels installed on the roof of one of his company’s three drycleaning plants. “That was our first big step into energy savings. We were paying $4,000 to $5,000 in electricity each month.” Strong saw immediate savings once the solar technology came online. “Depending on the time of year, it could be 85% to 90% of the electricity we use,” he says. “In the winter, that might go down to less than 50%.” Strong estimates he’s saving at least an average of $1,700 per month on his electric bill. “That was basically making my payment on the loan,” he said. “It did pay for itself in less than three years. Now, it’s just free electricity.” While his plant needs it a lot less, he notes that it’s still 20

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necessary for his plant to be connected to the electric grid. “We’re not completely solar-powered,” Strong says, “and I would advise other dry cleaners that they don’t need to go 100%, because of tiered electricity pricing. The cost of electricity at the first tier of use is lower than what it costs to install more solar panels, meaning there’s no payout in being 100% solar-powered. I think the sweet spot is about 80%. Incrementally, it gets more and more expensive to be 100%.” In addition to a solar-powered system in his own plant, Corona developed a method of recycling the heat gathered by his water-cooled drycleaning machine. “The solar panels took about two years to develop — we hired an outside contractor for that, so that was out of our hands,” he says. “The water tank collector was something we designed and installed ourselves. The drycleaning machines are water-cooled while they’re running, and that water usually goes down the drain. Now, it goes through a copper tube and comes out a little warm, and then gets stored in a 200-gallon tank. We collect it and use that recycled water to wash our clothes.” For Corona, the solar energy, recycled heated water and high-efficiency boilers all play a part in the same overall solution for his company. “I looked at the four biggest expenses that we have, and PG&E (Pacific Gas & Electric Company) was one of them,” he said. “We started to think of solutions about how to fix that. The solar panels was an easy one. It was the water tank collector that took some thought.”

START YOUR ENGINES

Both Ziccarelli and Strong have also added electric vehicles to their fleets. “We have four Tesla Model 3 for our managers to drive,” Strong says. “They plug into the charging stations right here where we’re producing electricity from solar panels. So, that’s another huge savings for gasoline, because those four vehicles are not burning any fuel at all. No gasoline. No petroleum.” Charging the vehicles from the company’s solar panels also gave Strong a price break on his overall electricity bill. “In California, if you own an electric-powered vehicle, and you are solar-powered, the electricity you do use from the provider is at a lower rate,” he says. “If you put in solar and you drive an electric vehicle, they’ll actually lower the price of electricity that you do use from the grid.”

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plant, which serves five drycleaning stores in his area. “We replaced our two boilers about five years ago with more efficient boilers,” he says. “The old ones were about 30 years old, and they used twice as much gas. They were also a maintenance nightmare — every week, something seemed to go wrong with them.” Robert Strong, president of Country Club Cleaners and Brightleaf Cleaners in Alameda County, California, also found a way to save with heating the water necessary for his operation. “We installed tankless hot water heaters, so we have constant hot water that never runs out,” he says. “That’s also more energy-efficient because it only warms the water when you need it. It doesn’t keep the tank heating up a boiling pot of water there all the time and doesn’t take any sort of management to operate.” While the tankless heaters save money for Strong in the short term, they also look to be a winner in the long run. “They last longer than the traditional tank hot water heaters, and the service on them has been minimal,” he says. “A tank hot water heater will last about five to seven years here with our water because it’s such poor quality. These tankless heaters will go for 20 years.”

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Saving Energy in Plants and Stores Ziccarelli’s electric vehicle has been put on a route. “About 14 months ago, we purchased a Ford electric van for a delivery vehicle, and it’s been pretty good,” he says, although he does have a caveat. “My hesitation is that the range is a little iffy. The maximum range they’re showing is maybe 150 miles per change, but the real range is a lot less than that, especially if it’s cold.” While the range issue is something for him to consider, the van has paid off in other ways for Ziccarelli. “It’s simple and efficient from the perspective of not having to stop at the gas station to fill it up or having to get oil changes,” he says. “All we do is plug it in overnight and in the morning we’re good to go. The drivers like it, and it’s a great savings from an economic and user point of view. We’re really trying to utilize the marketing opportunity of going for an all-electric van, along with the ancillary benefits of no oil changes and less downtime filling up.” While the vehicle charges off Ziccarelli’s electricity at the plant, he says the costs are negligible. “Instead of paying for the gas, we just charge it up overnight,” he says. “That charge is also part of our electric and, as a commercial customer, you’re getting pretty good rates compared to charging at home. It’s almost a drop in the bucket. It wasn’t even a perceptible change in our overall electric use because it was such a small amount.”

MAKING THE JUMP

While wanting to be more energy-efficient is an admirable goal, Corona sought to put those savings to a more immediate use. “It was to save money and reinvest into the company,”

he says. “But not only just for the company, but for the employees as well. That’s why we’re able to provide health care, 401(k) plans, paid vacation, and higher wages for all the staff. We’ve always supplied all that, but to keep supplying it as the cost of things increase, you have to look for other places to cut back, and that area was pretty big.” Strong weighed the short-term and long-term impact the energy-saving initiatives he’s used for his company would have. “The answer is the same for both,” he says. “It reduced my operating cost, and it reduced my tax liability in the short term and the long term. So, it was a good move for me to do this.” Strong also enjoys that the equipment he uses runs in the background and doesn’t add anything to his or his staff’s workload. “It did not take a lot of what I call ‘intellectual overhead’ to maintain the system. For the solar, it’s on and working in the background. If, for some reason, it fails, they notify you that your system’s down, and then they have to come out and fix it. It rolls automatically to the grid at that point.” For Ziccarelli, he enjoys that more than energy is being saved with his efforts. “With our boiler there’s significant gas savings, and there are also time savings,” Ziccarelli says. “It probably saves about 10 minutes a day in terms of it’s up to steam a lot faster. When you want to get started, 10 minutes a day adds up over the course of the year. As for the electric vehicle, I’m not paying for anybody to sit there and get gas, which doesn’t sound like a lot, but surely adds up. If it’s twice a week for five to 15 minutes per stop, it can be significant.”

FUTURE ENERGY-SAVING PLANS (AND ADVICE)

Corona, Strong and Ziccarelli are all looking for more areas to use increasingly energy-efficient technology when it makes sense for their businesses. The key is finding the right solutions for their particular needs. “Every business is unique,” Strong says. “If you’re in a strip center, and you don’t own your building, solar power is going to be kind of tough for you. If your electricity use is low, it may not make sense.” While he wanted to replace the vehicle his company (Photo: © anatoliy_gleb/Depositphotos) 22

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(Continued on page 27)

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ECONOMIZING OPERATIONS AND REDUCING ENVIRONMENTAL IMPACTS

AI-enabled laundry equipment will monitor the entire process and adjust energy, water consumption and supply additions based on load size, fabric and soil levels without the need for human intervention. Operators utilizing this technology would have an advantage over 24

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operators not using it in terms of cost, but also in terms of “environmentally friendly” bragging rights.

IMPROVED QUALITY AND FABRIC LIFE

AI-powered systems will help sort and classify different types of laundry items for the most efficient use of machinery and manpower. An AI-enabled system will analyze the fabrics being processed and adjust cycle length and mechanical action as well as chemical additives, water levels and temperatures to produce the best possible product while reducing the processing cost. These adjustments will extend the life span of the textiles and help prevent damage. Post-process visual inspection by AI will improve the quality of the finished product and increase customer satisfaction while reducing the need for human participation and cost in this important part of the process.

PREDICTIVE MAINTENANCE

Anyone who has seen the movie “2001: A Space Odyssey” will remember the AI-capable computer named HAL 9000, which predicts the failure of an external component on the spaceship and sends the one awake astronaut out to repair it before it fails. AI will enable this type of predictive maintenance on laundry equipment, order the replacement parts and schedule time from human or robotic service staff to make the repairs before costly downtime is encountered. This predictive maintenance will not only allow operations to stay on track for product delivery but will also prolong the useful life of the equipment.

ROUTE EFFICIENCY

UPS package delivery, as well as most of the other large services, currently use AI to improve their package delivery by optimizing delivery routes using data supplied by customers, drivers and vehicles, altering routes on the

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t’s difficult to ignore the attention being paid to AI (artificial intelligence) in the media these days. It seems almost every day a publication or network news show dedicates time to this topic. While many academics and technologists deliver their research, thoughts, ideas and predictions on the future of AI, the next-generation AGI (artificial general intelligence) and beyond, this tool is in widespread use in almost everyone’s life — whether they know it or not. While the early adapters of this technology are the largest corporations using AI for speech recognition, customer service, vision recognition, marketing and stock trading, among many others, I wondered what the future of AI might look like in the drycleaning industry. Having read several books on the subject yet not knowing where to start, I sat down at my desktop computer and navigated to ChatGPT, an AI chatbot released to the public less than one year ago to help me organize my thoughts on this topic. I asked ChatGPT, “How will AI affect the drycleaning industry in the future?” It gave me no less than 10 points for my editorial consideration. One thing I thought was interesting is that it prefaced its points of interest with a disclaimer that its data was last updated in September of 2021, which is a lifetime ago in AI terms. Following are the general points of consideration it gave me, along with my editorial musings and personal predictions for possible use cases for cleaners in the future.

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fly based on weather and accidents. This same technology can be utilized in our industry to economize on fuel, time and vehicle wear while improving delivery time.

CUSTOMER SERVICE INTERACTIONS

Almost everyone has had an experience with an automated attendant when calling the power company or their cable provider. I believe most of us would agree that these virtual assistants can be frustrating at times with their limited ability to understand our requests, but great strides are being made in this area. Some are approaching the perceived skills and friendliness of a human. I am not planning to replace our human customer service representatives at my company, but I can envision adding AI to the tools to allow us to help our customers more quickly and accurately.

DATA-DRIVEN INSIGHTS

In its current evolution, analyzing data is one area where AI really shines. It can look at huge amounts of unstructured data and find patterns that would escape most human researchers. Many times, AI will arrive at solutions to problems using a process unknown to the AI developers, yet are inarguably better than any previously known. We will no doubt use the power of AI to help our managers

and decision-makers optimize operations, improve target marketing and improve overall customer satisfaction.

REPLACING HUMAN LABOR

While humanlike robot assistants are not common now except in repetitive assembly line factories, this technology is advancing rapidly. It will not be long before robotic assistants powered by AI will perform tasks like folding, ironing, and storing clean laundry. Companies like Boston Dynamics are developing research robots that can lift more weight than I can, dance better than me (though I don’t set the bar very high) and navigate obstacles better than I’m able to do. If you want to get a sense of the state of the art in robotics, watch the YouTube video “Do You Love Me” on the Boston Dynamics page. As AI technology continues to evolve, many fields, including the drycleaning industry, could see exciting transformations and enhanced efficiency in the years to come. Be sure to keep your ear to the ground as this technology matures. Barry Victor is the founder of PROS Parts, an industrial and commercial laundry equipment and drycleaning operations parts supplier. He can be reached at 763231-7379 or barryv@prosparts.com.

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Saving Energy in Plants and Stores (Continued from page 22)

uses to shuttle between stores and go with an electric model, the timing wasn’t right. “The reason why I didn’t go electric (was) it was a year-and-a-half wait,” he says, “and I had to buy right then. But as soon as these become available, and I need another one, it will definitely be electric.” Ziccarelli has explored using solar power, but for the moment, the technology isn’t quite there for him yet. “I wish we were in a place where we could get more sun,” he says, “but (western Pennsylvania) and Seattle have about the same amount of cloudy days. Solar is still effective, but it’s just not worth the investment here like it is when you’re in the sunnier places.” As for Corona, becoming more efficient is something that will come in stages in the future: “The only thing we’re going to do is, if something breaks down, replace it with higher-efficiency modernized technology.” This strategy is based on using higher-efficiency tech while keeping an eye on the company’s bottom line, balancing today’s spending with tomorrow’s savings. “I know all dry cleaners say, ‘Well, I’ve got to be more profitable, more efficient,’” Corona says. “But the thing they overlook is replacing really inefficient equipment that guzzles up water or gas or electricity. Going with a more efficient unit will save you in the long run, and then you will become more profitable once you see those statements.” Ziccarelli recommends a “waitand-see” posture — but don’t wait www.americandrycleaner.com

too long. “Always be aware of what’s out there, and don’t be afraid,” he says. “You don’t always need to be the first to do something, but follow up

right behind the first people. If there are known problems, you’ll find out if you do your due diligence. A lot of times, it’s just better to bear down and get it done.”

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AROUND THE INDUSTRY

Hargrove-Avery Appointed as NCA Interim Director

Announcement comes after passing of former director Nora Nealis

NEW YORK — The National Cleaners Association (NCA) has announced the appointment of Dawn Hargrove-Avery as its new interim executive director. This announcement comes as the NCA is also paying tribute to its former executive director, Nora Nealis, who passed away last month. Hargrove-Avery has been with the NCA since 2002, most recently serving as the organization’s digital marketing manager since 2010. “Dawn Hargrove-Avery brings to the NCA a wealth of experience and a progressive vision,” the NCA said in its statement. “Her primary focus will be to build upon the robust foundation established by Nora Nealis, ensuring that the NCA continues to lead and innovate within the industry. Dawn’s commitment to excellence and her

strategic approach are expected to be instrumental in advancing the association’s mission during this crucial period.” The NCA looks forward to continued growth and success under Hargrove-Avery leadership, says Bruce Barish, the NCA’s board president, and she has his full support “Dawn Hargrove-Avery is uniquely qualified to guide the NCA during this transitional period,” he says. “Her extensive experience and visionary leadership are precisely what the association needs to continue our legacy of excellence and innovation. We are confident that under Dawn’s leadership, the NCA will not only honor Nora’s legacy but also blaze new trails in the industry.”

NEALIS’ PASSING

As previously stated, this news comes in the wake of the passing of former executive director, Nora Nealis, on Nov. 12, 2023 at the age of 70. Prior to her tenure at the NCA, Nealis started her fabricare career at Diversitron, where she sold and repaired

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equipment for dry cleaners. This experience, according to an NCA statement, allowed her to amass “invaluable insights and expertise,” and served her well in leading the organization. Environmental concerns in the drycleaning field were a special focus for Nealis. “She passionately advocated for the responsible use of perchloroethylene (perc),” the NCA statement said at the time of her passing, “masterfully navigating environmental concerns while safeguarding the interests of countless small businesses. Her diplomacy and foresight were instrumental in harmonizing industry and governmental goals.” These efforts, the organization stated, will be part of her lasting legacy. “Nora’s impact was not confined to those she directly assisted; her efforts to ensure environmental compliance have left an enduring imprint on the industry, benefiting even those she never met.” While these efforts were a professional priority for Nealis, she will be remembered by many for more personal reasons. “Her boundless generosity and wisdom touched many lives, particularly those within the drycleaning community,” the NCA said. “She was a mentor and a guiding light, offering her time and knowledge selflessly, even to

those struggling to meet dues. Her compassion and commitment to inclusivity were unparalleled.”

ZIPS Names Hall as New Field Training Manager

Former store operations and development manager returns to support operators

SAVAGE, Md. — ZIPS Franchising LLC announced that Jennifer Hall, formerly a store operations and development manager for the company from 2008 to 2019, has rejoined the organization as field training manager. Hall will be focused on identifying and monitoring training needs throughout the organization as well as helping to design, plan and implement training programs, policies and procedures to fulfill those needs. “We are delighted and honestly quite fortunate to welcome Jennifer back to our organization,” says Jennifer Davis, ZIPS’ training and development manager.“Her overall experience and her specific familiarity with ZIPS make her an incredibly valuable asset to our corporate and field operations.”

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WRINKLE IN TIME

Cautious Optimism, Hardline Approaches and Declaring War 10 YEARS AGO. Cautious Optimism — According to the results of the American Drycleaner Your Views survey, dry cleaners were looking ahead to 2014 with some optimism, with 30.8% predicting their sales volume would “bounce back slightly” with gains up to 5%. Nearly 19% predicted their sales volume would “improve substantially” with at least a 5% year-to-year gain, and 27.5% forecast their sales volume would “stay essentially unchanged.” Many cleaners said they would be using more online initiatives to boost business, including new websites with a focus on mobile design. 25 YEARS AGO. A More Hard-line Approach — NCA-I Executive Director Bill Seitz and newly named Associate Director Nora Nealis met with U.S. EPA representatives to discuss a shift in EPA’s enforcement and compliance programs regarding dry cleaners and their operations. The meeting confirmed that dry cleaners are targeted in a compliance effort. It was the EPA’s thought that, having done extensive outreach and information distribution over the past year, the time had come for a more hardline approach against dry cleaners who had ignored the compliance issues presented to them. NCA-I noted that EPA inspectors were cross-trained in air, water and hazardous waste issues and urged cleaners to do self-audits to ensure they were in compliance. 32

50 YEARS AGO. Saving Energy, Attracting Business — The oil embargo of 1973 and the resulting energy crisis had ramifications that continued into 1974 and hit many industries, including dry cleaning, said American Drycleaner writer Marcia Miller in her “Over the Counter” column. “Our focus has changed suddenly,” she wrote, “from defensive tactics in a hard market, to the rising to challenges created by other factors.” Positives that dry cleaners could take from the situation were that customers had to conserve fuel. “We can help them by taking care of fabrics,” she wrote, “by taking the drain off their household and putting it in the efficient hands of professionals with professional, fuel-conserving equipment.”

American Drycleaner, January 2024

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75 YEARS AGO. Declaring War on Faulty Fabrics — In an effort to educate merchants about the products and materials they sell to consumers, the National Retail Dry Goods Association (NRDGA) prepared an exhibit of “problem fabrics” at a meeting of ready-to-wear retailers. The display offered views of ruined garments, showing the “textile tragedies” that dry cleaners were all to used to seeing. Bleeding dyes, buckram crocking, fume-faded materials and unserviceable finishes were only part of the exhibit. “It’s up to retailers to buy and offer for sale only those goods that will serve the public well,” said NRDGA General Manager J. Gordon Dakinss. — Compiled by Dave Davis, Editor www.americandrycleaner.com

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