Aussies and Kiwis go into bat on a good wicket

The Textile Care Market in Australia and New Zealand

Introduction

The textile care sector in Australia and New Zealand is rapidly developing this year, providing good opportunities for growth for major industry operators. The end of the Covid-19 pandemic and its consequences in the region have provided a significant impetus for growth in both Australia and New Zealand, as demand for the industry’s services has significantly increased.

Sustainable Development Goals (SDGs)

1. Goal 8: Decent Work and Economic Growth
2. Goal 9: Industry, Innovation, and Infrastructure
3. Goal 12: Responsible Consumption and Production

Industry Overview

The commercial laundry sector in Australia employs around 13,500 people and generates approximately $1.2 billion AUD for the Australian economy. It is considered one of the most important sectors in the country. Laundry/linen hire services are provided to various sectors, including health, aged care, tourism/accommodation, hospitality, and industrial businesses. Demand for these services remains strong, with most markets fully recovering to pre-Covid levels.

However, businesses in the industry face challenges such as significant cost increases in electricity and gas, fuel/transport costs, textile import costs, and equipment cost increases/delays. Government policies have also increased the cost of labor, leading to a stronger demand for automation and robotics to improve productivity. While labor shortages have stabilized in large cities, businesses in regional areas still struggle with labor shortages.

Main Challenges and Opportunities

• Low prices charged by the industry have long been a barrier to entry for new businesses due to unattractive return on investment (ROI).
• Laundry businesses are now demonstrating a better understanding of the true costs of their operations, leading to more realistic prices that improve ROI and lower barriers to entry.
• Government policies increasing the cost of labor create opportunities for automation and AI technologies.
• Population growth, urbanization, changing consumer lifestyles, and economic conditions contribute to the demand for laundry and drycleaning services.
• Increasing focus on sustainability and environmental concerns drives the demand for eco-friendly and efficient laundry services.

Global Players in the Market

Kannegiesser, a global player in the textile care industry, has significantly strengthened its position in the Australasia market. The company recently introduced a state-of-the-art turn-key project in Sydney, showcasing advanced systems that prioritize energy efficiency, streamline labor requirements, and increase production capacity. The facility is designed for future developments, including the integration of laundry robotics.

Jensen Group, another global player, has also seen success in Australia and New Zealand. The company emphasizes automation for labor-saving and energy-efficient machines. Christeyns Group focuses on sustainable concepts using green chemicals to reduce water, energy, and chemical usage in laundries. Miele Professional offers energy-efficient and intuitive products that allow businesses to service their laundry requirements onsite.

Market Specifics: New Zealand

The New Zealand market was slow to open its doors to international visitors due to the pandemic. However, with the start of 2023, there has been a realization that continued investment in the laundry industry is important. Auckland, the main city in New Zealand, has seen a boom in new hotels, driving the need for laundry capability. The market for drycleaning is diminishing, while wetcleaning and commercial laundry continue to grow.

Conclusion

The textile care market in Australia and New Zealand presents significant opportunities for growth. The industry is driven by factors such as population growth, urbanization, changing consumer lifestyles, and economic conditions. However, challenges such as high competition, labor shortages, and cost pressures related to labor, energy, and raw materials must be addressed. Emphasizing sustainability and aligning with the Sustainable Development Goals can contribute to the long-term success of the industry.

SDGs, Targets, and Indicators

1. SDG 8: Decent Work and Economic Growth

   • Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading, and innovation.
   • Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.

   The article discusses the growth opportunities in the textile care sector in Australia and New Zealand, highlighting the increased demand for laundry services. This aligns with SDG 8, which focuses on promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all. The targets mentioned are relevant to the issues discussed in the article as they emphasize the need for economic productivity, innovation, and equal employment opportunities.

2. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.2: Promote inclusive and sustainable industrialization and foster innovation.
   • Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable.

   The article mentions the increasing focus on automation, AI, and sustainability in the textile care industry. These align with SDG 9, which aims to build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation. The targets mentioned highlight the importance of sustainable industrialization and infrastructure upgrades.

3. SDG 12: Responsible Consumption and Production

   • Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources.
   • Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling, and reuse.

   The article mentions the increasing demand for eco-friendly and efficient laundry services, indicating a focus on responsible consumption and production. This aligns with SDG 12, which aims to ensure sustainable consumption and production patterns. The targets mentioned emphasize the need for sustainable resource management and waste reduction.

Table: SDGs, Targets, and Indicators

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Source: laundryandcleaningnews.com

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