Jim
Buik, Chairman of the Board of the Uniform and Textile
Service Association (UTSA), and David Rawlinson, Chairman
of the Board of the Textile Rental Services Association
of America (TRSA), have announced that the boards of
Directors of both associations have agreed in concept
to a plan to consolidate TRSA and UTSA into a single
association effective January 1, 2006.
In July, members of both groups were mailed documents
for use in deciding the issue, and were given the month
of July to submit their ballots. Each association will
conduct a proxy membership meeting August 15 to record
the vote’s outcome.
The idea to consolidate the two organizations isn’t
new, according to David Hobson, UTSA president. “There
has been talk about bringing the two groups together
since the ‘60s, but the discussions never went
anywhere for various reasons.” he noted. “Now,
a great many people want this, particularly the suppliers.“
TRSA and UTSA each serve corporations engaged predominantly
in textile service, e.g. providing commercial, industrial,
and institutional accounts with laundered uniforms, linens,
walk-off mats, and other workplace textiles through rental
agreements. TRSA represents more than 1,000 industrial
laundry facilities in 24 counties. The membership of
TRSA represents a cross-section of the industry, including
some of the world’s largest textile rental companies,
along with numerous mid-size and one-plant operations.
It was founded more than 90 years ago.
The Uniform and Textile Service Association is an international
trade organization representing textile supply and service
companies. UTSA members provide, clean, and maintain
reusable textile products, such as uniforms, sheets,
table linen, shop and print towels, floor mats, mops,
and other items to thousands of business in all industries.
These industries include light, heavy, and hi-tech manufacturing;
healthcare; restaurants; service, retail, construction
and transportation industries; and institutions. It represents
95 percent of the industry on the industrial side, and
has 60 members.
Associate members of UTSA (Arlington, Va.) and TRSA
(Alexandria, Va.) sell services, equipment, or supplies
to textile service members.
The decision to consolidate makes good business sense
for several reasons, according to Hobson. He noted that
in today’s corporate world, companies streamline
their operations and merge with others to ensure profitability
and survival. “This is the right thing to do at
the right time,” he said. “ The two groups
have been working together on various issues for many
years and we have reached a consensus that a consolidated
association would grow and serve the industry most effectively.” And
while TRSA and UTSA have been successful in bringing
the industry’s concerns to the forefront in Congress,
Hobson questioned the need for the duplicate effort. “Do
we really need two groups lobbying on the same legislative
agenda?” he said. “It’s time that we
truly speak with one voice.“
The merger could also help bolster industry sales in
the long run. The industry has been growing at a rate
of 5 to 7 percent a year and in 2004, it had sales in
excess of $11 billion and employed more than 110,000
workers. Hobson puts its potential size at $30 billion,
citing many untapped markets, most notably those in the
direct sales uniform business. “There is tremendous
potential, and a unified group may help realize this
potential,” he said.
Should members approve the plan, the new organization
will be led by Jim Buik, UTSA Chairman, as Chairman;
Michael Potack, Chair-Elect of TRSA, as Vice Chairman;
Douglas (Woody) Ostrow, Treasurer of TRSA, as Treasurer;
and Kevin Crotty, Vice Chairman of UTSA, as Secretary.
Mr. Buik and Mr. Rawlinson commended the work by UTSA
President David Hobson and TRSA President Roger Cocivera
in helping the two organizations make this historic decision.
Officers of the combined organizations will act as a
search committee and begin work to find a candidate to
serve as CEO and President of the new association. Both
Mr. Cocivera and Mr. Hobson have been given the opportunity
to apply for the position. A headquarters site and other
staff considerations have yet to be determined, but will
be discussed in the months to come.
UNIFORMMARKETNEWS
Made To Measure Magazine, Halper Publishing Company
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