{"id":24618,"date":"2023-06-13T10:33:58","date_gmt":"2023-06-13T10:33:58","guid":{"rendered":"https:\/\/www.staging.detergo.eu\/?p=24618"},"modified":"2023-06-13T10:33:58","modified_gmt":"2023-06-13T10:33:58","slug":"reportage-the-dry-cleaning-and-laundry-business-market-a-debate-between-the-trade-associations","status":"publish","type":"post","link":"https:\/\/www.staging.detergo.eu\/en\/reportage-the-dry-cleaning-and-laundry-business-market-a-debate-between-the-trade-associations\/","title":{"rendered":"REPORTAGE – The dry-cleaning and laundry business market, a debate between the trade associations"},"content":{"rendered":"

A reportage, in fact a tour of horizons for this month, a comprehensive confrontation between the representatives of the trade Associations on the most important and crucial issues, under discussion. Partially common themes among the small and medium-sized businesses, but also closely related to the more specific activities of the small laundries. The round table debate involved Franco Pirocchi, the President of Assosecco (Confcommercio), Maurizia D\u2019Agostino, the President of CNA and Carla Lunardon, the President of Confartigianato<\/strong><\/span><\/p>\n

Let’s start by approaching and trying to understand the economical trend of the sector. Inflationary pressures and higher interest rates are reducing the possibility of accessing a credit, or if obtaining it, involving higher costs. The business volume has undoubtedly increased compared to the previous years, but the costs uncertainty it is a constant threat for the companies. Considering all this, how did the first months of 2023 developed and which perspectives do you see for the second half of the year? <\/span><\/p>\n

F. Pirocchi.<\/strong> Inflation and rising energy costs have seriously and still negatively affected the sector, forcing the laundries to increase their list prices, leading to reduced workflows and therefore a reduced cash flow. In fact, while everything is increasing, there is no adequate wage adjustment, so the families are forced to reconsider their budgets, cutting their non-essential costs and services: and unfortunately, for many of them, the laundry services is one of them. Consequently, the sector is witnessing and withstanding a reduced number of passages, not compensated by the pricelist increase, making the management of an activity extremely difficult. We are speaking about an activity that is already suffering by its nature, with up-and-down tendencies linked to seasonality and weather vagaries. In this situation of extreme uncertainty, it becomes quite difficult to plan purchases and investments, and above all, it is nearly impossible for the micro-enterprises, which are representing 70% of the sector, to access a credit.<\/p>\n

\"\"<\/a><\/p>\n

C. Lunardon.<\/strong> We are currently passing through a very turbulent phase. After the pandemics, there has been a positive revival for the Italian economy, that was suddenly interrupted by the war outburst exactly at the borders of Europe. Skyrocketing energy costs, two-digit inflation and the consequent cost increase for accessing a credit, have been the most negative consequences for our sector. But the reaction of the national business network has been extraordinary. Despite the obstacles, our companies continued to provide their services, frequently absorbing a part of the price increases and consequently keeping the price increase under control, for not affecting the consumers. Even the more cumbersome access to credit didn\u2019t stop the investments. Our industry is moving towards a more professional and eco-friendly service: new machines, new products and lower consumption, these are the keys to success. Many colleagues are also making huge sacrifices.<\/p>\n

For the second half of 2023? We will try our best and we also expect the same from the Government, especially regarding the energy taxation, which today reaches 51% of the electricity bill and disadvantages the small businesses that pay most of the general system charges in the bill, destined, among other things, to finance the benefits for the high energyconsuming companies. Against the principle \u201cwho pollutes, pays\u201d, this unfair distribution of the tax burden increases the final energy cost of our laundry shops by 35%, so that they end up paying four times more for the electricity than a large company. For a long time, Confartigianato has been calling for a review to rebalance the tax burden on the different sizes of entrepreneursusers. This requires, first and foremost, the elimination of the system charges from the companies’ electricity bills. The reset in 2022 as a result of the emergency measures shows that this is possible and must be implemented in a structural manner. What most concerns me is the fact that it is simply not conceivable that a laundry owner, who has already passed from a \u20ac7.000 monthly bill in 2021 to \u20ac14.000 in 2022, must now also add about \u20ac2.000 per month for the general electricity costs for this year. The correct placement of the general electricity system charges is not in the electricity bill.<\/p>\n

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M. D\u2019Agostino.<\/strong> The business volume has generally increased for two reasons: first due to the fact that the number of laundries is dropping and second due to the price increase compensating the rising costs. The second half of the year will certainly have a growing trend for those activities that continue to operate after returning to normality, compared to the Covid times. We cannot say that it is an attractive job for the young ones, there are no shortcuts, you need experience, entrepreneurial skills, hard work and constant commitment. So those resisting on the market, are working but they have to deal with the constant increase of the raw material costs. While energy costs have dropped compared to the last year, it is also true that there has been a continuous price increase for all those daily use products, detergents, hangers and so on. It is still unclear whether the increases are real or partially due to a sort of ongoing speculation. In such a complex context, even laundries have to reconsider their market approach. The pandemic has changed the needs and requirements of the consumers and has created space for new types of services that we have never considered until now (collection and home delivery, to name the most obvious ones). We need to start thinking with a more entrepreneurial vision, for running a laundry it is not enough just to be professional, you need to know how to communicate with the customer, to know how to explain the value behind the dry-cleaning business, you need an accurate and sustainable assessment of the running costs of your activity, where technology is playing an increasingly impactful role.<\/p>\n

We are moving forward to the most essential aspect of labour and work organisation inside the business. At the end of this year, the national collective agreement of this sector, which is also linked to that of fashion and textiles, will expire, which are your demands and the most pressing issues to be discussed? Are you thinking about a common platform or do you plan to move in synergy with the other Associations?<\/span><\/p>\n

C. Lunardon.<\/strong> The contract renewal is one of the most important trade associations appointments for a sector, and the small laundries are no exception. Obviously, we will be sitting at the negotiation table for the renewal of the National Collective Labour Agreement (NCLA) and, and as usually, we will evaluate together with the other organisations the proposal that will arrive from the trade associations. We are approaching this topic with a particular interest as, for the handcrafts sector, in the renewal of the NCLA, a substantial part of the discussion will focus on Bilaterality, which involves exploring an integrated system of collective welfare of an inclusive and participative nature, fully part of the company’s remuneration policy as it is aimed to ensure higher employee satisfaction, increase their wellbeing and improve productivity. In this context, we will certainly talk about integrative health care, supplementary insurance and corporate welfare.<\/p>\n

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M. D\u2019Agostino.<\/strong> Obviously, as it has always been in the past, the contract renewal negotiations are always carried out in cooperation with the other trade associations, following a wellestablished procedure. As a first consideration, we would like to discuss some proposals: a) reducing the costs that the company has to pay in the case of repetitive, short-term sickness episodes of an individual worker; b) extending the time slots for the obligation to remain at home during the sickness leave, making it equal with the one applied to the public service sector; c) extension of fixed-term employment terms; d) structuring a tax-free company bonus on achieving certain parameters linked to individual worker productivity and company turnover, where there is no negotiation at regional level; e) foreseeing a leave\/holiday bonus for workers who are less absent. Obviously, these are all topics that we will have to discuss with the workers’ trade unions.<\/p>\n

F. Pirocchi.<\/strong> At the end of November, Assosecco had a meeting with Confartigianato Veneto to discuss how to revise our NCLA, expiring the next 31 December, regarding the reorganisation of the seasonal employment and the possible integration of on-call labour contracts (intermittent work – job on call). More specifically, this involves the need to detach the seasonal hiring from the fixedterm employment, with all the limitations of the Dignity Decree. The idea is to strengthen the current scenarios identified in our NCLA, for seasonal fixed-term contracts, in order to have access to limited recruitment only for the peak months, with no constraints or limitations regarding the seasonal requirements. Another proposal, is to introduce a regulation for on-call contracts, that would allow hiring staff for short-term periods, granting for a remuneration including additional monthly payments, holidays and permissions. As well known, in this sense, the only possibility that our sector had until last year was that of the \u201coccasional selfemployment\u201d (or \u201cservice agreement\u201d), an instrument of doubtful application and also subjected to endless disputes between the institutions and trade associations.<\/p>\n

Apart from the collective contracting issues, are there any other topics of concern or in any case undermining the development of this specific sector? For example, are the illegal activities and unfair competition still a worrying aspect? What are the other challenges but also the assets from which we can restart? <\/span><\/p>\n

M. D\u2019Agostino.<\/strong> Illegal activities are always a hot topic that harms especially those who work with professionalism and respect the rules, so we can never let our guard down. Undoubtedly, an element affecting the development of the dry-cleaning sector is the unfair competition being practised by many coin-operated laundries which, instead of providing washing machines and tumble dryers, offer customers full services such as direct assistance in washing, ironing services, tailoring, and home pick-up and delivery. Platforms offering online services at cheap prices are also proliferating, often using domestic staff (strictly illegal) for ironing and more. This situation is still present, especially in the big cities, but thanks to a certain market saturation (especially in the self-service sector) it is not currently taking alarming dimensions. The real problem is the lack of legal inspections, something over which we have very small power as it is not our job to make them.<\/p>\n

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What we can do instead as an association, is to invest in technical and business training. Industry development, and also combating illegal activities, requires constant cultural renewal, technological innovation, high professional skills, and the ability to adapt to the market changes. As CNA, we have made an important investment in training for our members through a course that covers the topics of highest interest for the businesses: fibres and fabrics, labelling, washing and chemistry elements, communication, and customer management. The course is carried out in e-learning mode, directly on our platform, and can be used in total flexibility, respecting the working times of the company. Other pitfalls, on which we have very little influence, are first and foremost the often-unjustified price increase of the raw materials. A good example is the tenfold increase in electricity costs from one year to the other. Last but not least is the difficulties in obtaining financing from bank institutions at sustainable costs. The arrival of new synthetic yarn types reduces the need for the customers to address themselves first to the laundries\u2019 services, as they can be easily washed at home.<\/p>\n

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C. Lunardon.<\/strong> Recently, the Minister of the Environment and Energy Safety, launched a consultation concerning the proposal for a decree introducing a system of Extended Producer Responsibility (EPR) for the textile and fashion industry. We are convinced that we have a key role to play. To ensure the long-life of the garments it will be necessary to ensure the possibility of a proper maintenance. A possibility that passes through the obligation to attach a care label – even a digital one (in Italy this is not compulsory yet, like in other European and non-European countries) that should not only be correct – there are still many cases of mislabelling causing garments to be ruined both at home but also by the professionals – that by law, cannot contain all types of washing crossed out. These cases, not so rare as one might think, can only be translated in one way: this garment is \u201cdisposable\u201d. But to be at the centre of this environmental revolution, it is necessary, on one side, to be professionally prepared and constantly updated and, on the other side, to have the latest generation machinery at your disposal. But, as mentioned earlier, the sector seems to be sensitive on this aspect.<\/p>\n

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F. Pirocchi.<\/strong> As it happens in all sectors, also in ours exists the phenomenon whereby those who find and adopt \u201cshortcuts\u201d practices are causing unacceptable and unfair competition to the activities that operate in a proper manner, in compliance with the laws and regulations. Unfortunately, the absence of adequate inspections carried out by the competent authorities does not support the good practices and causes peaks of abuse that are difficult to discover and eradicate. What, on the other hand, represents a barrier for the development and sector growth, in its entrepreneurial component, are the limitations that the large shopping centres are imposing for a sector that remains small and traditional, and its consequent constraints: the opening hours, the rental and operating costs that are a real problem for the balances that have a reduced margin, but also for the staff recruitment, reluctant to give up holidays or to work until late, or for maintenance workers who operate limited hours and rarely on holidays, etc. In this sense, in China, the US, as well as in the UK and other European countries, it is developing a network of real pick-up points that are managed almost fully automated by AI (Artificial Intelligence) software. As is usually happens, our country is a bit behind on this front, also due to the high average age of us, Italians, and the reluctance for dealing with such automations, but it is easily predictable that in few years the gap will be eliminated and we will be able to witness the development of these smart activities in many of our neighbourhoods.<\/p>\n

One of the pressing issues for Italian companies, but also for other European countries, is the decline of the labour force and the difficulty in finding qualified and professionally skilled young people. The demographic crisis caused by the low birth rate and the gradual population ageing, are a big challenge for the artisan manufacturing excellence. How can we stop this tendency and reverse its course? <\/span><\/p>\n

F. Pirocchi.<\/strong> The personnel training and research are both the cause and the consequence of the same problem, related to the development of new technologies, that the country system is still lagging behind. It must be said that most laundries, as microenterprises, or individual companies with a turnover of less than 65k do not have employees and neither could afford them: they mainly rely on the work and the presence of the owner, and\/or at most one of their family members. More structured companies, on the other hand, suffer on research and personnel management, which is predominantly female and therefore subject to maternity leave or family-related problems. There is only one way to overcome these difficulties, and that is to make work less and less specialised, standardising production processes as much as possible, thus reducing training to a minimum and allowing easier turnover.<\/p>\n

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Some industries in the sector are moving in this direction by offering machines capable to guarantee an excellent quality and production levels combined with a very user-friendly design: a good example are the shirts and outerwear finishers, the automatic presses ironing all types of trousers etc. Of course, such machines work best in large spaces, in fully equipped facilities, but if the future will be dominated by automation deliveries, even at the shopping centres, it will perfectly fit the characteristics of our sector, helping us to offer a good service while balancing our budgets. If future Italian politics will stop paying people for staying home, but instead, as it should be obvious in a manufacturing country, companies will be stimulated and helped to recruit workforce, in compliance with the national contracts, the situation can only improve and settle into a context of normality and this, of course, applies not only to our sector, but to the entire economic system of our country.<\/p>\n

M. D\u2019Agostino.<\/strong> In reality, the demographic decline in our sector does not have much impact as the activity of dry cleaning is not an activity of full interest to young people because it is very physically demanding. Moreover, the demographic decline is compensated by the increasing presence of the foreign workers. Perhaps we should go back to the vocational schools, demolished over the years, and explain the beauty of doing business and emphasise the artisan professions that nowadays are no longer attractive as they are little known and poorly described. Perhaps we should draw an input from what has happened in other equally tiring and demanding sectors which, thanks to media campaigns or reality shows (see the Cracco or Cannavacciuolo phenomenon) have acquired a new light and filled hotel management schools. We must focus on personal fulfilment, on the fact that a craftsman is his own entrepreneur and also an employer. A business where personal skills, creativity and resourcefulness play a decisive role and can make the difference. It would also be useful if there was also a focus from the political decision-makers to make life easier (with strict taxation, easy access to credit or other incentives) for those who decide to do business and bet on their future.<\/p>\n

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C. Lunardon.<\/strong> The so-called \u201cdemographic winter\u201d is double striking the small businesses like our small laundry shops. Young people are considered \u201cgold dust\u201d, as it is becoming more and more difficult to find young people willing to come and work with us and, moreover, fewer and fewer young people are approaching this profession with the intention of becoming entrepreneurs. It is our mission, as sector leaders, to identify the tools and solutions that make our businesses more attractive. It is certainly a question of environment -health, cleanliness, innovative machinery and processes- of possible professional growth, but above all to understand the new, indeed different, needs that young people have in terms of work: more free time, higher protection, noneconomic incentives, but welfare and services. Young people are demanding better conditions in the professional environment. Welfare, health, work-life balance, diversity and inclusion. Security, economic support for them and their families, training. It is through a reasoned balancing of these factors that a company creates a welfare dimension for its employees, for the community where it is located and, last but not least, for itself. As mentioned earlier, all of these, our companies can and will be able to offer even more after the NCLA bilateral renewal. \u2022<\/p>\n

by Marzio Nava
\nDETERGO Magazine # June 2023<\/p>\n","protected":false},"excerpt":{"rendered":"

A reportage, in fact a tour of horizons for this month, a comprehensive confrontation between the representatives of the trade Associations on the most important and crucial issues, under discussion. Partially common themes among the small and medium-sized businesses, but also closely related to the more specific activities of the small laundries. The round table […]<\/p>\n","protected":false},"author":3,"featured_media":24833,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[1351,455],"tags":[952,2756,1851,2748,1852,2467,2747,2754,1570,2757,2749,2755,2222,2751,2752,2750,2753],"class_list":{"0":"post-24618","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-close-up","8":"category-news-en","9":"tag-assosecco","10":"tag-carla-lunardon-en","11":"tag-cna-en","12":"tag-collective-negotiation","13":"tag-confartigianato-en","14":"tag-detergo-magazine-en","15":"tag-dry-cleaning-and-laundry-shops","16":"tag-environmental-revolution","17":"tag-expodetergo-international-en","18":"tag-franco-pirocchi-en","19":"tag-interest-rates","20":"tag-maurizia-dagostino-en","21":"tag-technological-innovation","22":"tag-trade-union-platform","23":"tag-training-and-research","24":"tag-turnover","25":"tag-unfair-competition"},"_links":{"self":[{"href":"https:\/\/www.staging.detergo.eu\/en\/wp-json\/wp\/v2\/posts\/24618","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.staging.detergo.eu\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.staging.detergo.eu\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.staging.detergo.eu\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.staging.detergo.eu\/en\/wp-json\/wp\/v2\/comments?post=24618"}],"version-history":[{"count":6,"href":"https:\/\/www.staging.detergo.eu\/en\/wp-json\/wp\/v2\/posts\/24618\/revisions"}],"predecessor-version":[{"id":24822,"href":"https:\/\/www.staging.detergo.eu\/en\/wp-json\/wp\/v2\/posts\/24618\/revisions\/24822"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.staging.detergo.eu\/en\/wp-json\/wp\/v2\/media\/24833"}],"wp:attachment":[{"href":"https:\/\/www.staging.detergo.eu\/en\/wp-json\/wp\/v2\/media?parent=24618"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.staging.detergo.eu\/en\/wp-json\/wp\/v2\/categories?post=24618"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.staging.detergo.eu\/en\/wp-json\/wp\/v2\/tags?post=24618"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}