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M A G A Z I N E
August 2005
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TRSA/UTSA Announce Plan to Consolidate


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.

For further info rmation, visit www.trsa.org or www.utsa.com

 

 

 


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