Garment life & corporate value

Increase margins & customer satisfaction

 

Next to labor, acquiring and replacing corporate uniforms and industrial gear is the second largest expense in industrial cleaning operations, typically representing 20-25% of operating costs. 

TERSUS analysis of publicly-available financial information for major textile rental companies reveals that increasing the useful life of workwear from 2 years to 2.5 years would improve margins by 4% (from 18% to 22%) while reducing CAPEX from 19% to 15% of sales. 

Workwear currently has a useful life of between 2-5 years, leading to: 

  • High CAPEX that reduces free cash flow; 
  • High depreciation that reduces operating margins, and; 
  • Higher prices for industrial laundry customers. 

Currently deployed water-based laundry operations accelerate garment degradation, increasing costs to service providers. Until now, an alternative to water-based cleaning was not available. TERSUS is the only technically- and economically-viable alternative to water-based industrial laundry. 

 

Factors contributing to garment degradation: 

The combined components of water-based cleaning of corporate workwear and industrial gear produces tangible damage to textiles after each cycle. Now there is an alternative to water-based cleaning that is gentler to textiles, restores technical function, and can increase garment life.

 

Fiber degradation due to water-based laundering: 

The potential margin improvements and CAPEX reductions from increasing the useful life of workwear are significant. Ask us to assess your unique situation and provide guidance on margin improvement. 

Brit GibsonComment