Rentokil Initial plcLondon, England (Pink Sheets: RTOKY)

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Rentokil Initial Competition

Now Viewing Rentokil Initial's competition in: Linen and Uniform Supply Services

Recent Developments

Price of Dry Cleaner Hangers Doubles - The price of dry cleaning hangers more than doubled in April as a federal tariff imposed on Chinese manufacturers took effect. Prices went from about four cents per hanger to 10 cents. Most cleaners have absorbed the price increase, but will soon have to pass the price increase to consumers, according to the National Cleaners Association.

Probe of Cintas Intensifies - Congress is looking into safety procedures at Cintas Corporation, a large uniform supplier. The company had a fatality and was fined $2.8 million by OSHA, the largest service sector fine ever levied. Congress accused the company and OSHA of being aware of safety hazards at Cintas and other industrial laundries, but of failing to take appropriate remedial action.

Eco-Styling Fashionable - Hemp and burlap clothing are becoming more common as more consumers dress in environmentally friendly clothing. Eco-leather, made of cotton and synthetic fibers, and bamboo, which can be woven to make cashmere, are also becoming more common. Reworked fabrics are increasing in popularity as they use materials that already exist. The new fabrics may present opportunities for uniform suppliers.

Competitive Landscape

Demand is driven by employment trends, as swings in labor and service hiring impact uniform and garment needs. The profitability of individual companies depends on efficient operations and maintaining low labor costs. Large companies have advantages in centralized laundry plant operations. Small companies can compete effectively through excellent service and custom solutions. The industry is highly labor-intensive: average annual revenue per worker is $70,000.

Linen and Uniform Supply Services Industry Forecast

from Hoover's/D&B subsidiary First Research

US personal consumption expenditures for dry cleaning and laundry services, which are major indicators for linen supply services, are forecast to grow at an annual compounded rate of 4.4 percent between 2007 and 2012.

Dry Cleaning, Laundry Services Growth Steadies

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.

First Research Opportunity Rating

The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.

  • Demand: Depends on hotels, restaurants
  • Need efficient use of low-cost labor
  • Risk: Slowing economy limits spending on non-essentials

Industries Where Rentokil Initial Competes

  • Business Services
    • Commercial Cleaning & Facilities Management Services (primary)
    • Uniform Rental & Laundry Services
  • Transportation Services
    • Express Delivery Services