2007: The Year in Review

By Bob Nieman | May 11, 2009

In odd-numbered years, nothing that happens in the self-service laundry industry can top the spectacle of The Clean Show. And 2007 was no exception.

A total of 14,667 people descended upon the Las Vegas Convention Center in June for Clean ’07 – breaking the mark of 13,951 for the 2005 show in Orlando, Fla.

Nearly 10,000 of the registrants were trade show attendees there to see the hottest new products and services being offered by the 484 exhibiting companies. “Las Vegas continues to be a good venue for the Clean Show,” said John Riddle, president of Riddle & Associates, the show’s management company. “All indications are that the exhibitors had a great show and Clean ’07 was a huge success. Attendees seemed equally pleased with all they were able to see and learn.”

International attendance also was up from Clean ’05. The show drew 1,948 international visitors from 82 countries.

“By any standard you care to use to judge such events, there is no argument that Clean ’07 was a resounding success,” said Brian Wallace, president and CEO of the Coin Laundry Association. “The exhibitors were busy. The educational seminars were entertaining, informative and jam-packed all four days. And the attendees were sent back to their businesses exhausted, but armed with new ideas and the latest industry information to help them take their operations to new heights – and at the end of the day, that’s what it’s all about.”

On the Road Again

In addition to four eventful days in Las Vegas, the Coin Laundry Association staff made 93 trips to local affiliates, distributorships and personal visits in 2007. The CLA calculates that its travels have put staff members in touch with 4,100 industry participants.

“There is nothing like meeting laundry owners in person,” Wallace said. “It gives us a chance to ask about their businesses and the services they need from the association.”

Besides the Clean Show and the association’s Florida educational conference in March, the CLA staff delivered nearly 60 individual presentations around the country. A majority of these events have taken place at affiliate meetings and at distributor-member open houses.

“Meeting people in their hometowns allows us to provide education to those who cannot make it to national events,” said Michael Sokolowski, executive vice president.

CLA Insurance Breaks Records in ’07

CLA Insurance also made news in 2007 with a record-breaking 97.4 percent retention rate. The agency, based in Plano, Texas, credited its continuing mission of educating laundry owners on the importance of insuring their investments and protecting themselves from liability.

Other good news for CLA Insurance was the fact that it again began providing coverage to laundry owners in Florida and the five boroughs of New York – the Bronx, Brooklyn, Manhattan, Queens and Staten Island.

“It’s been a long road to gaining coverage for Florida – and even longer for New York, but we’re finally there,” said Ruby Burch, CLA Insurance executive coordinator. “We are always looking for additional ways to help laundry owners, so we’re thrilled that we can be of service to these areas.”

Furthermore, a redesigned insurance application has made it easier for laundry owners to complete, and a Frequently Asked Questions section has been added to the CLA Insurance website.

Association Adds More Member Benefits

The CLA also beefed up its member services in a big way in 2007 with two major new programs – $15 demographic reports and a utility savings program.

The Utility Savings Plus program allows members to work with an independent utility consultant that will provide options for competitive utility rates and advice. The program analyzes existing accounts and contracts, looks for billing errors and obtains best pricing. The program also handles paperwork for managing the transition to new suppliers, if necessary.

The second benefit is a greatly reduced cost for demographic reports ordered through the association. These reports are available for $15 and feature site statistics and a demographic analysis summary.

“This new benefit gives CLA members the opportunity to make informed decisions based on their trade area at an extremely low rate,” Wallace said.

Legislative Update

In 2007, the CLA also was quite active in leading the fight to protect laundry owners and their businesses from overzealous lawmakers looking to get more than their fair share of taxes from the industry

In Michigan, with lobbying help, store owners successfully retained a sales tax exemption for self-service laundries, despite the passage of a broad sales tax on service businesses.

In Wisconsin, CLA President Brian Wallace joined the leaders of the Wisconsin Self-Service Laundry Association in testifying before the Small Business Committee in Madison, in support of a bill that would extend a current sales tax exemption to all forms of payment for laundry. As of press time, there was no movement on this bill.

Lastly, in Maine, again with the aid of a lobbyist and the collective efforts of industry leaders, store operators retained an exemption from a sales tax for self-service laundries.

These battles – and those similar to them in other states – are sure to continue in 2008, as cash-strapped municipalities continue to seek new ways to fill their coffers.

Around the Industry

Some of the coin laundry industry’s heavy hitters also made news in 2007. Here’s a recap of a few of this past year’s major headlines:

Alliance Names New President: Alliance Laundry Systems, LLC, announced the appointment of Michael D. Schoeb as the company’s president and chief operating officer. Schoeb – who joined ALC with 20 years of operations, marketing and executive leadership experience in both domestic and international operations – reports to CEO Thomas F. L’Esperance.

Dexter Announces Restructuring: The Dexter Co. changed its name to Dexter Apache Holdings Inc., following a corporate restructuring and acquisition of Apache Stainless Equipment Corp. Under the new structure, Dexter Apache is made up of four subsidiaries – Dexter Laundry, Dexter Foundry, Dexter Financial Services and Apache Stainless Equipment. The company’s headquarters remains in Fairfield, Iowa.

Wascomat Founder Retires: Bernard Milch, the founder and CEO of Wascomat Corp. for nearly half a century, announced his retirement and resignation as the company’s chief executive officer. His son, Neal, has taken over that role.

Maytag Chooses New “Repairman”: Whirlpool Corp. selected Clay Jackson of Richmond, Va., as the “Maytag Repairman” character to help promote the reliability of it Maytag brand of large appliances. The company had conducted a nationwide search for the “new face of Maytag.” More than 1,500 people participated in the auditions.

Mac-Gray Buys Hof Service Co.: Mac-Gray Corp. acquired the assets of Hof Service Co. for a cash purchase price of approximately $43 million. “The acquisition provides us with an excellent opportunity to profitably expand our position in the Washington D.C., Baltimore and Virginia markets, said Stewart G. MacDonald, Mac-Gray’s chairman and CEO. Earlier in the year, Mac-Gray rejected an offer to be acquired by Coinmach Service Corp. for approximately $180 million.

Coinmach Goes Private: Coinmach Service Corp. agreed to be taken private by an affiliate of Australian investment and advisory firm Babcock & Brown for approximately $713 million in cash.

Who and what will make news in 2008 is still anybody’s guess. But next year promises to be just as eventful as ’07, as the self-service laundry industry continues to evolve and embrace an increasingly professional, energy-conscious, service-oriented business model.

“I tell people that coin laundries are America’s secret business opportunity,” said long-time multi-store owner Bob Meuschke, in an interview in The Journal earlier this year. “We don’t see it advertised much, but I think it’s still one of the best, most viable businesses. It’s a great opportunity for the person who has done a little bit of planning and gotten his or her coin laundry education ahead of time.”

Those who attended the Clean Show in Las Vegas this year clearly got the coin laundry education of a lifetime.