THE BIG KEEP GETTING BIGGER IN THE UNIFORM RENTAL INDUSTRY – GREAT OPPORTUNITY FOR SMALL MICHIGAN INDEPENDENTS LIKE MODEL
In 2016, two large, publicly-traded competitors gobbled up two competitors that had a very large presence in Michigan. Total new revenues for the buyers–$1 billion annually. Customers suffer, even today. Last week I received two calls from their customers asking for help: it’s taking 6 weeks to get uniforms for new employees. It takes Model 1 week. One was told that the delay was because they had to “special order” uniforms, but these were standard size in a standard color…..nothing “special order” about that. Excuses, excuses.
Now, Aramark, a giant $14 billion company, bought Ameripride Services, a $600 million company. Both are national, with a strong base here in the Midwest. They say it will give them “efficiencies” and “synergies”. They say it will help them service customers better. They say it will help them keep costs down and offerings up.
We know that just isn’t the reality for most of the customers of these types of mergers.
We get the calls from their unhappy customers. We get resumes from their unhappy and scared employees. Months and years after the mergers.
Frankly, Model benefits from these mergers and acquisitions. Our quality, caring, and uniqueness stands out even more in the sea of big, bland, impersonal service.
If you are/were a customer of Arrow Uniform, G&K, Grantex, Aramark, or Ameripride, watch out for your service contracts. They may automatically renew without your intent. If you’re unhappy with their service…and want to quit…then these large, public, lawyer-filled entities will send their “suits” to you to scare you and enforce small-print contracts.
Fortunately, in Michigan and Indiana, you still have good choices to select independent, good uniform rental companies. Michigan still has more good independent companies than most markets. Model Coverall Service remains the best of those, as evidence by our awards and recognition, longevity, and customer retention (www.modelcoverall.com).
The big guys are getting bigger. Not better. They are servants to investors on Wall Street. We are servants to our customers on Main Street. They define success by their stock price. We define success by the level of customer satisfaction and retention.
Feel free to contact me to discuss the industry, or your service needs. jons@modelcoverall.com or call 800-968-6491.
Wishing you a Clean, Safe and Happy Holiday Season Day!