The Textile Care Allied Trades Association (TCATA) is an international trade association representing
manufacturers and distributors of drycleaning and laundry equipment and supplies.
It is the only trade association dedicated exclusively to the interests of the allied trades.
Congratulations to TCATA as it celebrates its 90th year of operation in 2010. It may be trite
to say but nevertheless it remains true that an association is only as strong as it members. While the challenges to the allied trades have changed over the years, the need for a strong, unified voice for the industry remains needed now as much as ever. Thank you to all members for your many years of support!
 
 

Valuable education right in the comfort of your own office. No travel. One low fee for as many participants as you wish. What could be easier? Welcome to "TCATA University"!
    
The first set of webinars that TCATA is co-sponsoring this year is the “sales series,” featuring different aspects of selling. Click the link to access these, which are being co-sponsored with several association partners. These can be purchased as a package at a discount or purchased individually. Remember that you can always purchase the recording of a webinar that you have missed.
    
Once you are directed to the MHEDA home page, click on the “Educational Webinars” box on the left – with the exception of the February 18 seminar, the rest are open to TCATA members.

 

Consulting Services - Ask any questions on OSHA, DOT, EPA or human resources issues. One member reports saving potentially thousands by having a comp review of his company’s personnel manual.

Payment Processing – If you accept credit cards, this benefit can save you hundreds of dollars. Several members report saving several times the cost of their annual dues on this benefit alone.

 
 

 

 

 

 

                   

Association & Industry News

  Shawn Martin Appointed 2011 Conference Chair july 13
TCATA Welcomes Cheryl Paglia As Newest Staff Member july 27
Webinar Series to Focus on New Economic Realities july 15
Clean 2011 Housing Opens july 17
Stella Retires From TCATA july 17
Jones Assumes Presidency of TCATA
DeStefano Offers Tips on Increasing the Value
    of Your Website

Annual Conference Receives High Marks
Article Focuses On Contributions Of Allied Trades
2010 College Scholarship Awarded
R. R. Street Prevails in Perc Contamination Case
David Cotter Addresses Cleaners On Surviving Recession
Streets Celebrates 75th Anniversary of TCATA Membership
PAC INDUSTRIES Celebrates 25th Anniversary of Membership
     in TCATA

Safety Revision Process Begins
TCATA to Increase Online Education Offerings in 2010
Coin Laundry Association Celebrates 50th Anniversary
TCATA Introduces New Benefit - Consulting Services At No Cost

TCATA Acknowledges Contributors to Scholarship Fund
In Memoriam
Welcome New Members

Legislative & Regulatory Updates

  New OSHA Proposal - Your Immediate Help Needed july 26
TCATA Continues Discussion With EPA On NESHAP Regs july 13

Fire Code Changes Survive Final Action Hearings
Repeal Of LIFO Back On Table - Action Needed
Paycheck Fairness Act Harmful To Business
   - Your Help Needed

Summary Of New Health Care Bill
New Law To Expand 1099 Form Reporting
   - Your Help Needed
july 26
Senate, House Of Representatives Proposals Would Aid
   Small Businesses

NAS Review Panel Supports EPA Categorization of PERC,
   Questions Some Methodology

Industry Fights For Cleaners In Philadelphia, Washington, DC
NAM Releases Study On Revitalizing American Manufacturing
President Obama Signs Tax Relief Into Law
TCATA Comments On New York City Council Proposals
Court Cases Of Note
 
 
Let Your Voice
Be Heard

It has been many years since businesses have seen so much potentially harmful legislation and regulation coming out of the federal government. TCATA urges all members to communicate regularly with your Congressman and Senators to express your views – it can and often does make a difference! We urge you to review this brief summary, compiled by the National Association of Wholesalers, on how to most effectively communicate with Congress.

Members In The News

  Alliance Laundry Expands In India july 13
R.W. Martin Receives Safety Award july 26
Gurtler Industries Acquires AuroraChem West july 13
Kannegiesser USA Receives Innovated Energy Solution Award july 13
Fitzgerald Inducted Into WFI Hall Of Fame
Wascomat/Electrolux Markets Under New Name
Consolidated Laundry Machinery Acquired by Carlin Capital Partners
Tingue, Brown & Co. Goes Solar

       

Shawn Martin Appointed 2011 Conference Chair

TCATA President Lawton Jones has appointed Shawn Martin of R.W. Martin & Sons, Inc., Kent, Ohio as general chairman of the 2011 Annual Management & Educational Conference, which will be held from August 3-6 at the Stein Eriksen Lodge in Park City, Utah.

Mr. Martin, a regular attendee at the Conference, has been an active member of the Association. He served on the conference business program committee for the 2005 TCATA Conference and served three terms on the Association’s Board of Directors. Shawn serves as president of R.W. Martin, where he has worked for nearly 30 years. “I cannot think of a better choice to serve as chairman than Shawn,” noted President Jones. “I’m confident he will provide excellent leadership in putting together another outstanding meeting.”
   

TCATA Welcomes Cheryl Paglia As Newest Staff Member

If you’ve called the TCATA office lately and heard a new voice on the phone, you are not imagining things. TCATA is very pleased to have recently hired Cheryl Paglia to replace Stella, who is retiring on July 30 after 46 years with TCATA. While we all know Stella will be very difficult to replace, Cheryl will be an outstanding addition to TCATA.

Cheryl is a seasoned professional and a self-proclaimed “jack of all trades”. She has worked in a wide variety of businesses, from banking software to engineering to desktop publishing. Born and raised in New Jersey, she spent seven years in Florida and then returned to her home state in 1986. Cheryl and her husband Mike have been married for more than 20 years. Welcome Cheryl, and goodbye Stella!
    

Webinar Series to Focus on New Economic Realities

Modern Distribution Management, in conjunction with The Indian River Consulting Group, is offering a three part webinar series beginning on July 29 on “Building an Effective Sales Organization for the Recovery.” These 90-minute sessions will walk distributors through the mechanics of aligning their sales organization to their current or evolving market strategy. Each session will cover concepts and practical guidelines and will include a self-evaluation tool between each session so that participants can apply the lessons from the webcasts to their own organization. TCATA members are eligible for a discounted flat rate of $85 each (discount available for purchasing all three) - you can have as many people from your company participate as you wish. Among the presenters is the highly-rated past TCATA Conference speaker Mike Marks. Click here for details.
    

Clean 2011 Housing Opens

Housing for the next Clean Show, to be held from June 6-9, 2011 will open by the end of this week. TCATA has obtained a block of rooms at the Las Vegas Hilton at an attractive rate of $125. This hotel has always been a popular choice with exhibitors because of the hotel's proximity to the Convention Center.

To obtain the show's special rates, reservations must be made through the Las Vegas Convention & Visitors Authority Housing Service. On the Clean Show website - www.cleanshow.com - click on either Attendees or Exhibitors, then scroll down to Travel & Hotels on the left side or call the Housing Bureau directly at 877-244-7386. Reservations require an arrival and departure date and a one-night deposit for each room. Those exhibitors who wish to reserve function space at the Hilton are urged not to delay in securing that space immediately.

As of now, approximately half of exhibit space for Clean 2011 has been sold. The theme for the show is "The Show That Works."

   

Stella Retires From TCATA

Long-time TCATA employee Stella Petrasek has announced that she is retiring effective August 1. Stella, who has served as office administrator and assistant to the CEO, began working at TCATA in 1964. To say that she has seen dramatic changes in the industry and the association during that time would be quite an understatement!

TCATA President Lawton Jones stated that "When an individual has been with any organization for as long as Stella has been with TCATA, there will always be a 'void' for some time. No matter how talented her replacement may be, they will not be able to be 'Stella' for a very long time. TCATA - Stella! They have just gone hand-in-hand for many a year.”

"Stella has been great to work with all these years," stated TCATA CEO David Cotter. "To come to the office and work side by side with someone who is competent, professional and just plain nice is something that many people would envy. I will miss her very much, and I know that many members who know Stella feel the same way." Stella and her husband Daniel plan to enjoy their retirement by staying in New Jersey, probably moving to the Jersey shore. Enjoy, Stella - you will be missed very much!
   

Jones Assumes Presidency of TCATA

Lawton Jones of Phenix Supply Company, Decatur, Georgia assumed the presidency of the Textile Care Allied Trades Association (TCATA) during the recent annual conference in Charleston, South Carolina. He takes over this position from retiring President Rick Kelly of Pellerin Milnor Corporation and will serve a two-year term. (photo shows Lawton & Laura-Hardin Jones on left, Rick & Angela Kelly on right)

Mr. Jones has been a contributor to TCATA in many areas. He has been a member of the TCATA Board since 2003, served as Vice President of the Distributors Group and was Business Program Chair for the 2002 TCATA Conference. He has been with Phenix Supply for 23 years, where he serves as Vice President and Operations Manager. He and his wife Laura have three children.

"As evidenced from our recent conference in Charleston, it appears to me that a resurgence is underway with TCATA," Mr. Jones stated. "Many of the attendees expressed their excitement at what turned out to be a very good conference on both the business side as well as the social side. It was wonderful to see the largest contingency of first timers in quite a number of years! My predecessor, Mr. Rick Kelly, has laid down a wonderful foundation and I believe, based on comments by many who attended the conference, that our future is bright. I look forward to seeing 'everyone plus one' in Park City, Utah next August!," he went on to say.

Officers, Board Members Elected for 2010-11

Also elected at the TCATA Conference to a one-year term were three Vice Presidents: Steve Mathews, R. R. Street & Co. representing the Supply Manufacturers Group; Bryant Dunivan, Energenics Corporation representing the Machinery Manufacturers Group and D'Arcy McConvey, Dalex Canada representing the Distributors Group.

Phil Hart of Kannegiesser USA, Grand Prairie, Texas assumed the position of Secretary-Treasurer, having been elected to that position last year. His term runs for two years.

The results of TCATA's recent Board elections were also announced:

Tony Regan, American Dryer Corporation and Kim Shady, Unimac - Alliance Laundry Systems to represent the Machinery Manufacturers Group.

Kevin Gavlak, Faultless Laundry Products, Steve Mathews, R. R. Street & Co. and David Tingue, Tingue, Brown & Co. to represent the Supply Manufacturers Group.

Steve Baker, Minnesota Chemical Co. to represent the Machinery Distributors Group.

Gerald Henke, Intex Distributing Co. and Roger Komins, Package Supply Corporation to represent the Supply Distributors Group.

There were five Board members whose terms ended at this Conference - Alex Atwater of A-1 Products, Steve Katz of Kay Industries, Matt Kool of Iowa Techniques, Lynn MacDonald of  N.S. Farrington & Co. and Dale Loomis of Loomis Bros.  Equipment. We thank them for their service.
   

DeStefano Offers Tips on Increasing the Value of Your Website

Members who attended the 2010 Conference in Charleston had the opportunity to hear an excellent presentation by Bob DeStefano on how to increase your online marketing presence. He outlined ways that even the smallest of companies can use the internet – and their website specifically – to market their company and obtain new customers.

TCATA has made arrangements with Bob, founder of SVM E-Business Solutions, to follow up that presentation with a few articles throughout the year that will further assist members to enhance their online presence. Click here to access a short article on "Five Ways to Increase the Effectiveness of Your Website.”
   

Annual Conference Receives High Marks

Attendees at the recent TCATA Annual Conference held at the Wild Dunes Resort in Charleston, South Carolina, were nearly unanimous in rating the meeting very highly on all counts. With attendance numbers almost back up to pre-recession levels, the conference offered the usual networking opportunities and outstanding business program that regular attendees have come to expect.

Keynote speaker Herb Meyer offered a tremendously insightful look into worldwide events, discussing in particular the implications of worldwide terrorism and demographic trends on American businesses. He pointed out that many people worldwide are moving from poverty into the middle class. One of the major implications for TCATA members is that, despite the economic downturn, there are many more potential customers for our products and services, but largely in other countries.

Bob DeStefano offered helpful ideas on how companies can use their website and their presence online to promote their products and find new customers. Several members took advantage of Bob's offer to conduct a complementary analysis of their website.

Bill Keene provided a brief overview of key current issues and pending issues related to DOT, EPA and OSHA. Bill was hired last year by TCATA to consult with members on these matters.

Two companies were honored for their consecutive years of membership: R. R. Street & Co. of Naperville, Illinois celebrated 75 years of membership - photo shows (l to r) Steve Mathews of R. R. Street, Rick Kelly of Pellerin Milnor and Dave Dawson of R. R. Street. PAC Industries of Harrisburg, Pennsylvania celebrated 25 years of membership. See below for a profile of both companies.”
   

Article Focuses On Contributions Of Allied Trades

A recent column by Kenney Slatten focused on the contributions made by the allied trades to the drycleaning and laundry industry. His column, which appeared in the May issue of Western Cleaner and Launderer magazine, (turn to page 8) outlined some of the efforts by both TCATA and individual manufacturers and distributors on behalf of cleaners everywhere. In his column, Kenney noted that these efforts are important to all but often go unnoticed or unappreciated. TCATA's recent efforts in successfully changing the IFC code requirements - which will benefit many cleaners - was cited as an example of this beneficial work. Members involved in their local association may want to pass this column on to their Board or membership.
   

2010 College Scholarship Awarded

Kara Ann Forsey of Morristown, Tennessee has been selected the recipient of TCATA's 2010 Dean Allen Education Scholarship. As such, she will receive $1,000 in college tuition assistance for the next four years. While taking honors and advanced placement courses, Kara demonstrated her intellectual ability by holding a 4.25 GPA - she will be graduating with First Honors. She has been involved in Beta Club, Key Club and French Club, and was named in the Who's Who in her high school. Kara's goal is to major in elementary education and become a teacher. She is the daughter of James Forsey of Forenta LP in Morristown, Tennessee. All of us at TCATA congratulate Kara and wish her much success in her college career.
   

R. R. Street Prevails in Perc Contamination Case

(March 2010) A San Francisco judge has ruled that R.R. Street & Co., one of several companies sued by the city of Modesto, California and its redevelopment agency in 1998 for perc contamination, is not a responsible party under the Polanco Revelopment Act. The judge found that Modesto’s redevelopment agency failed to prove that Streets published improper perc disposal instructions or that the company’s representatives discharged perc at the sites. The city of Modesto claimed in its lawsuit that several sites were contaminated with perc and were seeking a ruling to have the defendant companies pay for the clean-up.
   

David Cotter Addresses Cleaners On Surviving Recession

(April 2010) TCATA CEO David Cotter addressed cleaners at the recent Southwest Drycleaning Association trade show in Dallas on how they can survive tough economic times. In his presentation, Mr. Cotter delineated several factors that make for a successful drycleaning business, with particular emphasis on customer service. He said that performing simple things can often differentiate a cleaner from their competitors, giving them an advantage in challenging times. Mr. Cotter also discussed ways the relationship between a cleaner and their supplier can be improved to the benefit of both, including ways that the cleaner can determine the total value that their distributor brings to the drycleaning operation.
   

Streets Celebrates 75th Anniversary of TCATA Membership

Congratulations to R. R. Street and Co. as it celebrates its 75th anniversary of membership in TCATA this year! In 1876, the United States was celebrating its centennial, Ulysses S. Grant was serving his second term as President of the United States and Alexander Graham Bell invented the telephone. That same year, Robert R. Street founded R. R. Street & Company in Chicago, Illinois - 134 years later, the history of Street's reflects many of the significant process and product milestones that have occurred in the textile care industry over the past century:

In the late 1800's, Streets was selling dyes and supplies into Midwestern textile mills and became one of the first companies to import drycleaning soap from Europe for the nascent U.S. market. In the early 1900's, the company developed the first pressure filter system for drycleaning, changing the way solvent is maintained. During World War II, Streets led an industry-wide effort to recycle empty drums for the war effort and launched the first drycleaning agent with anti-static properties.

In the 1950's, Streets conducted ground breaking research studies that helped shape the industry and developed a school for distributors. During the 60's, the company sponsored the National Institute of Drycleaning (now DLI) scholarships. The next two decades saw cartridge filtration, backed by Streets research, become standard industry practice. In the last decade, Streets partnered with Exxon Mobil Chemical to market and support DF2000 fluid and introduced specialty products to fit modern hydrocarbon cleaning systems. Most recently, the company invented the eco-friendly Solvair Cleaning System.

Throughout many years of industry changes, Streets' overriding commitment has remained the same - to provide customers with high quality products and services to produce the best quality of fabric care, all while conducting its affairs with integrity.

"R. R. Street & Co. has been a proud member of the Association for 75 years largely because of all that TCATA brings to our industry, our business and our people" said David Dawson, company President. “A lot of change happens over 75 years, and TCATA has been such a great vehicle for helping its members navigate through that constant change. Whether it has been a need for collaboration on the development of standards, or safety programs, or regulation, or member and customer education, TCATA has done so much over the years to facilitate the activities that our businesses require. We are very pleased to have been affiliated for all of this time, and look forward to the next 75."
   

PAC INDUSTRIES Celebrates 25th Anniversary of Membership in TCATA

Congratulations to PAC Industries of Harrisburg, Pennsylvania as it celebrate its 25th anniversary of membership in TCATA!

A distributor of top-line laundry machinery equipment, the company was established in 1963 by Philip A. Costabile. At that time, the company served seven counties in central Pennsylvania but has since grown to serving customers in five northeastern states.

Sons Phil, Rocco and Frank bought PAC Industries from their father in 1972, then incorporated four years later. The company sells and services on-premise and industrial laundries, as well as coin-op laundries. In 2009, the company became an employee owned company, and now employs 51 people. “The foundation of PAC Industries has always been service,” noted Rocco Costabile, President. “We believe that the most successful relationship with customers is a long-term one based on trust and integrity.”

We wish PAC Industries many more years of success, and appreciate their long commitment to TCATA.
    

Safety Revision Process Begins

TCATA recently began the process of revising the standard for safety in drycleaning and laundry plants (ANSI Z8.1). The Safety Committee, headed by Jim Moran of Pellerin Milnor Corp., will make recommendations on changes to the standard. In particular, the revised standard will reflect technological changes in the industry. The Committee will then seek the input of TCATA members, end-users and government agencies on these proposed changes before the standard is presented for final approval.
    

TCATA to Increase Online Education Offerings in 2010

You spoke, we listened. Many members have provided feedback that they value the education TCATA has made available online - particularly via webinars - where all you need is a phone and a computer. No travel, no hotels and you can have as many people as you wish attend for one fee. TCATA is offering another comprehensive set of webinars throughout 2010 that will address areas that members are interested in - sales, marketing, economic conditions and social media. In conjunction with some sister associations, we'll be delivering education right to your office! Be sure to check the home page of the TCATA website periodically for details.
    

Coin Laundry Association Celebrates 50th Anniversary

Congratulations to the Coin Laundry Association (CLA),a sister association and Clean Show partner, as it celebrates a significant anniversary throughout 2010 – 50 years of service to the laundry industry. Celebratory events include an anniversary blog with contributions from early founders and association partners, photographs and a few surprises along the way. CLA members are invited to share their memories and photos on the anniversary blog, contribute to podcasts and register for the 50th Anniversary Celebration Cruise taking place in October.

“We’re excited to observe this momentous event with a year-long celebration,” said CLA President and CEO Brian Wallace. “Fifty years is a true testament to the leaders who not only formed the association, but also all of those who have guided its growth.”

The association was established by industry manufacturers and distributors in October 1960 and incorporated in Chicago as the National Automatic Laundry and Cleaning Council in January of 1961. The Coin Laundry Association is a not-for-profit trade organization with more than 2,500 members. The Coin Laundry Association’s mission is to ensure a profitable and growing retail, self-service laundry operation by providing superior education, products and services to laundry owners.
    

TCATA Introduces New Benefit - Consulting Services At No Cost

TCATA is excited to inform you of a brand new benefit that is available only to members of the Association, a benefit that will almost assuredly save your company money, perhaps even thousands of dollars. As a member, you may now consult with two top experts on issues concerning DOT, EPA, OSHA, human resources and personnel issues at no cost! You’ve worked hard to build your company and you also need to work hard to preserve your assets. TCATA can help you do that. Click here for details.
    

TCATA Acknowledges Contributors to Scholarship Fund

Participants in the golf tournament, which was held at the recent 2010 TCATA Conference in Charleston, raised $700 for the TCATA Scholarship Program. A special thanks to Jeff Allen of E.J. Thomas, Dave Dawson & Steve Mathews of R. R. Street for donating their golf winnings to the program.
    

In Memoriam

It is with sadness that we report on the passing of the following member:

Peter Hamlin, co-owner of Unipress Corporation based in Tampa, Florida. He succumbed to cancer after battling through operations and chemotherapy for two years. He was 71 years old.

Mr. Hamlin spent over a half a century working in the drycleaning and laundry industry. He was a true Brit, always sporting a stately and civil manner. Born in Beckenham, England in 1938, Mr. Hamlin first began his career with Weston Laundry Machine. He went on to become the managing director of BMM Weston, another UK company, before he eventually engineered the purchase of Unipress by BMM in 1978. Four years later, he moved to the United States where he became the full-time president of the Unipress Corporation, headquartered in Tampa, FL, for the next 28 years.

According to Gary Johnson, Hamlin’s long-time business partner at Unipress: “He was always a fine gentleman and a consummate professional.” He is survived by his son, John, and two grandchildren, Oliver and Sofia.

In lieu of flowers, donations in his name can be sent to Lifepath Hospice, 12973 N. Telcom Parkway, Tampa FL 33637, or the Humane Society of Tampa Bay 3607 N. Armenia Ave., Tampa, FL 33607.
    

Welcome New Members

TCATA is pleased to welcome the following companies as members of the Association:

ABS Laundry Business Solutions, Tucker, GA - Sell software for the laundry industry.

Angeline Group Ltd., Taipei, Taiwan - Manufacture industrial linens, fabrics and uniforms.

Felins USA, Milwaukee, WI (reinstatement) - Manufacture specialty and custom bundling machinery.

PONY S.p.A., Inzago, Italy - Manufacture presses, ironing tables, spotting cabinet and tables, finishing cabinets, steam generators, toppers for trousers, steam former for jackets and shirt finishing.

Wesvic Systems, Turlock, CA (reinstatement) - Manufacture automated piece counting and real-time feedback system.
    

       


     

New OSHA Proposal - Your Immediate Help Needed

(July 2010) Ghe Robert C. Byrd Miner Safety and Health Act of 2010 would enact the most sweeping changes to the Occupational Safety and Health Act (“OSH Act”) since it became law 40 years ago. These changes represent a radical shift in approach to workplace health and safety regulation and will adversely affect virtually every manufacturer and distributor in America by replacing cooperation with confrontation in what will become a newly adversarial relationship between OSHA and employers, generate expensive legislation, deprive employers of basic due process rights, and substantially drive up employer costs. That the total reportable workplace illness and injury case rate has been cut by more than half over the last 15 years and with workplace fatalities now at their lowest level ever, the OSH Act provisions in H.R. 5663 appear to be a classic “solution in search of a problem.” It is anticipated that the full House will take up H.R. 5663 the week of July 26th. The threat is real and time is of the essence: please contact your U.S. Representative to express your opposition to this bill. To find your Representative, click here: http://www.house.gov/ or visit: http://www.naw.org. Click on the “TELL CONGRESS” button in the top right corner of your screen. You will be linked to NAW’s “Take Action” E-Alert Program. Click on “Contact Congress: OPPOSE H.R. 5663, OSHA Reform.”
   

TCATA Continues Discussion With EPA On NESHAP Regs

(June 2010) Government Affairs Committee Chair David Dawson, R. R. Street & Co., was among several industry association representatives – including DLI, NCA, HSIA and industry consultant Mike Tatch – that met recently with representatives of the Environmental Protection Agency to continue discussions on revisions to the National Emissions Standards for Hazardous Air Pollutants (known as NESHAP) that affects all cleaners. As TCATA members may recall, TCATA and other industry associations filed suit against EPA several years ago over that agency’s proposal to phase out the use of perc used in cleaning facilities located in residential buildings, in response to pressure from activist groups. As a result of lawsuits filed in this matter by both industry and activist groups, the court has remanded the issue back to EPA for further work.

Mr. Dawson stated that the meeting with EPA representatives was productive and that the EPA welcomes, and is open to industry input on revising these proposed regulations. He said that EPA voiced reservations about the use of wetcleaning as a substitute for other solvents, and discussed their regulatory thnking on a wide range of existing technologies. Commenting on the original lawsuit, Mr. Dawson noted that “TCATA’s involvement in this lawsuit is not simply a defense of perc; rather, it is part of the larger issue of ensuring that regulations are based on good science rather than a political agenda, and defending a cleaner’s ability and right to use technologies that work best for them and their customers". As always, we will keep you updated on progress in this important matter.
   

Fire Code Changes Survive Final Action Hearings

(May 2010) The Drycleaning Industry's proposal to incorporate sprinkler expemptions into the International Fire Code's requirements for drycleaning occupancies has survived the International Code Council's public comment period and Final Action Hearing which took place in Dallas during the last week of May. The industry's effort, led by TCATA Government Affairs Committee Chair Dave Dawson accomplished the change through the ICC's Public Proposal mechanism and was first approved by the Code Council during their Code Development Hearing in November of 2009. Following a public comment period and a vote of the ICC membership, the industry's Proposal becomes part of the I-Codes with the April 2011 publication of the 2012 Codes. The code revisions are designed to more closely conform the IFC with the NFPA 32 Standard for Drycleaning Plants, which provides exemptions to the sprinkler requirement in plants using Class IIIa solvents when the drycleaning equipment meets defined standards for fire prevention. These changes will greatly simplify the permitting process for equipment dealers and drycleaners who wish to install new equipment using Class IIIa solvents. The IFC requirement for adding sprinkler systems with these installations made them cost prohibitive in many locales and prevented the adoption of newer technologies. TCATA will continue to work with other industry associations and equipment manufacturers to further modify both NFPA and IFC code requirements as fire prevention and safety technologies evolve.
   

Repeal Of LIFO Back On Table - Action Needed

(May 2010) President Obama has included LIFO repeal (the last in, first out method of accounting) again in his fiscal year 2011 budget, proposing full repeal for all businesses regardless of industry or size.

You may recall that we alerted you to this proposal last year, when a number of TCATA members stated that LIFO repeal would have a harmful effect on their business. With the help of many businesses across the country who wrote and met with their Congressmen to explain why LIFO is important to their business, the proposal was shelved last year – but it is back. We need your help in contacting members of the Ways and Means and Finance Committee –

http://www.naw.org/files/ListFinance.pdf

http://www.naw.org/files/ListWaysMeans.pdf

Please make contact with them over the Memorial Day weekend – if possible, a face-to-face meeting is best. If you wish to meet with someone but would prefer to attend a meeting already set up, contact TCATA immediately. We’ll see if there is a meeting already set that we can have you participate in.

For key talking points, click here.
      

Paycheck Fairness Act Harmful To Business - Your Help Needed

(May 2010) Proponents of the” Paycheck Fairness Act” are pushing hard to short-circuit the U.S. Senate’s regular legislative process and bring this bill straight to the Senate floor for consideration within the next several weeks. Similar legislation has already passed the House of Representatives. If they are successful and the “Paycheck Fairness Act” is enacted, the way you go about making employee compensation decisions in your own business may be fundamentally affected.

Your help is needed now to stop the Senate leadership from jamming this bill through the Senate. Please contact your U.S. Senators today and tell them to oppose the “Paycheck Fairness Act”. You can do this by utilizing the E-ALERT program provided by the National Association of Wholesaler Distributors:

Go to: http://www.naw.org

Click the “TELL CONGRESS” button in the top right corner of your screen. You will be linked to NAW’s “Take Action” E-Alert Program.

Click on “Contact Congress: OPPOSE S.182, Paycheck Fairness Act”

Easy to follow instructions, including updated talking points, will take you through the rest of the very quick process.
      

Summary of New Health Care Bill

(April 2010) Confused about the new health care reform bill recently passed by Congress and signed into law by President Obama? Join the club! While this massive bill is still - to a certain degree - a “work in progress,” we have attached a summary of some of the major provisions of the bill as well as a link to a recent webinar by the Grant Thornton company on this. TCATA will continue to provide members with information on the bill so that you can be prepared to make the necessary changes within your company to comply with these new provisions.
      

New Law to Expand 1099 Form Reporting – Your Help Needed

(July 2010) In an effort to raise money to help pay for the new health care reform bill, a new law has been passed that significantly expands requirements for 1099 form reporting. Beginning with payments made in 2010, all businesses will be required to issue a 1099 form to any vendor of services or property to which the business has paid more than $600 a year for those services or property. Under the existing law, businesses issue the form 1099 only to individuals who provide services to a business. The new law makes two changes: the form 1099 must be issued to corporations of all sizes and shapes as well as to individuals AND a form 1099 must also be issued to individuals and corporations that provide property to a business. There is no doubt that this will be a huge administrative burden on all businesses, particularly small ones, something verified by TCATA members in a survey we conducted last year on its potential impact.

TCATA is urging Congress to repeal this burdensome new requirement by supporting passage of the Small Business Paperwork Mandate Elimination Act both in the House, (H.R. 5141) and in the Senate (S. 3578). We urge members to contact their Representatives (www.house.gov) and Senators (www.senate.gov) to urge passage of these bills. Background on this issue can be found at http://www.stopform1099.org/.
      

Senate, House of Representatives Proposals Would Aid Small Businesses

(March 2010) An amendment to a tax extender bill that would create and expand small business tax incentives was recently introduced by Senator John Thune. The amendment would create new incentives for small businesses to pay off expenditures for equipment and other capital and would eliminate capital gains taxes. Senator Thune's amendment would redirect unspent portions of the 2009 stimulus bill to fund these proposals.

(March 2010) The U.S. House of Representatives has passed legislation (The Small Business and Infrastructure Tax Act) that provides nearly $20 billion in tax incentives designed to help small businesses obtain capital and it also eliminates capital gains on the sales of some small business stock. The measure now heads to the Senate.
      

NAS Review Panel Supports EPA Categorization of Perc, Questions Some Methodology

(February 2010) the National Academy of Sciences (NAS) recently completed its review of the Environmental Protection Agency’s (EPA) draft toxicological assessment of tetrachloroethylene (perc). In that report, the Academy agrees with the EPA’s classification of perc as a “likely human carcinogen,” something the EPA had previously proposed as part of its draft toxicological review of the chemical. It is likely that this will lead to stricter regulation of the solvent.

In its report, NAS also identified several serious concerns over some of EPA’s approaches to evaluating the data on perc and subjects about which inadequate information or rationales are used to suggest its risk assessment. Members can access the full report here.
   

Industry Fights for Cleaners in Philadelphia, Washington, DC

(February 2010) The future of more than 100 drycleaners in Philadelphia remains uncertain as the Philadelphia Air Pollution Control Board’s Ad Hoc committee continues to consider a possible phase-out of perc in co-commercial facilities. On January 20, several industry trade organizations aired their views on this proposal and challenged some of the data that is being presented by the committee prior to making its final recommendation to the Board. Most of the information being challenged by the drycleaning industry association representatives concerns interpretation of existing scientific data regarding exposure to perc. The Board is due to meet next in March.

Industry associations, including the Drycleaning and Laundry Institute, also testified at an initial hearing in Washington, DC on a proposed bill that would ban the use of perc in drycleaning plants.
   

NAM Releases Study on Revitalizing American Manufacturing

(February 2010) The National Association of Manufacturers has released a comprehensive study on why manufacturing must be revitalized in order for America to remain prosperous. Entitled "Manufacturing Resurgence: A Must for US Prosperity," the study presents the reasons why America must revitalize her manufacturing base and formulates recommendations for achieving that goal. Members can access the full report here.
   

President Obama Signs Tax Relief Into Law

(November 2009) President Obama signed a law which includes Net Operating Loss (NOL) tax relief. This temporary relief will allow struggling companies to get quick cash refunds from the IRS by using either their 2008 or 2009 losses to offset taxes paid in the past five years. This temporary tax relief is available to all size companies. There is a temporary limit in year 5 of the carryback: any refunds for taxes in the prior fifth year would be reduced by 50%. There is no limit in the refunds for taxes paid in the 4th, 3rd, 2nd or 1st year of carryback.

For more details about the New NOL tax law, including its impact on multinational companies, financial statements, consolidated returns, etc., see pages 3 and 4 of the Deloitte explanation of the new law.
      

TCATA Comments on New York City Council Proposals

(Update - March 2010) The Association has received and is reviewing a revised proposal, and will continue to work with city officials to ensure that any legislation reflects the interests of the allied trades. As always, we'll keep you updated and call upon members' assistance if needed.

(October 2009) The Sanitation Committee of New York City Council has proposed two bills that would have a significant impact on drycleaners and several TCATA members. The first would require that all plastic bags used by drycleaners contain a minimum amount of recycled content; the second would require that drycleaners take back hangers for recycling and reuse.

TCATA has been working with its partner organization the National Cleaners Association (NCA) in educating the staff and members of the Sanitation Committee concerning the impact this would have on cleaners and their suppliers. TCATA submitted written testimony to the Committee and attended the initial hearing on these proposals. Among key points made by TCATA and NCA were that both cleaners and the allied trades have made significant efforts over the years to initiate recycling programs, but that most consumers choose not to participate; reuse of hangers can be unsanitary; mandating a minimum amount of recycled content in bags is an inefficient way to achieve a reduction in the use of plastic, and this is not achievable if the plastic is to remain clear; and that any mandated recycled content would likely be unenforceable. Both TCATA and NCA emphasized that the industry supports efforts to “go green” but that these efforts often have detrimental, unintended consequences and must be thought through carefully.
      

Court Cases Of Note

Taxation of Out-of-State Businesses

(June 2009) The U.S. Supreme Court decided not to review a case involving state taxation and interstate business. In April, several business organizations supported an appeal to the U.S. Supreme Court regarding a Supreme Judicial Court of Massachusetts’ decision that would allow extensive taxation by states of out-of-state businesses that have no physical presence in the taxing state – meaning no employees and no operations.

This is the second case in two years that the Supreme Court has declined to hear regarding state taxation of out-of-state companies. In response, TCATA and others join with the National Association of Manufacturers in urging Congress to enact bipartisan legislation (H.R. 1083), the Business Activity Tax Simplification Act. The legislation would establish a bright-line test of physical presence to determine whether a state can impose business activity taxes, including state income taxes, on an out-of-state business engaged in interstate commerce. Click here for details on this issue.
   

Two Asbestos Cases

(June 2009) The state Supreme Courts of Washington and Pennsylvania have handed down adverse rulings in two asbestos cases. In the state of Washington, Lunsford v. Saberhagen Holdings, Inc., the National Association of Wholesaler-Distributors and other organizations argued that a state appeals court’s ruling that strict liability¹ may be retroactively applied should be overturned. (Lunsford involved a plaintiff’s claim of asbestos-related mesothelioma from household exposure to asbestos years before strict liability was recognized in Washington.) The Washington Supreme Court held that strict liability applies retroactively to all claims that occurred before the adoption of strict liability in that state. Strict liability was applied to manufacturers in 1969 and to non-manufacturer product sellers in 1975. Interestingly, in October of last year, the Ohio Supreme Court reached the opposite conclusion on a similar issue.

In Pennsylvania, the issue in the Bugosh v. I.U. North America case was whether to apply the old Restatement (Second) of Torts or the newer Restatement, Third of Torts: Product Liability, which would allow defendants to introduce state-of-the-art evidence as to what the defendant knew or should have known about the dangers of the product in question at the time of the sale/exposure. The Pennsylvania Supreme Court issued an opinion dismissing the appeal as “improvidently granted.” Contact TCATA if you wish more detail on either case.
¹ a doctrine which holds that a party may be held liable for damages regardless of the degree of culpability
    

Supreme Court Limits Liability In Pollution Case

(May 2009) In a very significant case for manufacturers, the Supreme Court recently limited the liability of two major railroads for chemical spills in California. The federal government wanted to apply joint and several liability (meaning a party can be charged 100 percent of the cleanup cost even it is only responsible for a small part of the problem) to several companies in this case, but the Supreme Court chose instead to overrule lower courts in holding companies responsible for only part of the clean up. The railroad companies were found to have a limited responsibility for clean up costs since only ten percent of the contamination was attributable to them. The justices also reasoned that while Shell Oil (one of the defendants, found to have no liability) was aware of minor, accidental spills, this knowledge was insufficient to conclude the company was an “arranger” of the disposal and hence responsible financially. This decision means that onerous joint and several liability may be avoided if a percentage of liability can be calculated.

Supreme Court Rules Asbestos Fears Must Be Serious

(June 2009) The U.S. Supreme Court overturned a Tennessee Court of Appeals Ruling that could have lead to a major wave of new, unwarranted asbestos lawsuits. In CSX Transportation v Hensley, the Tennessee court ruled that asbestos plaintiffs no longer need to demonstrate that their fear about incurring injury or illness from asbestos exposure is “genuine and serious,” contradicting previous Supreme Court rulings. In this particular case, the state court awarded the claimant $5 million in pain and suffering based on thin evidence of any genuine fear.

The U.S. Supreme Court ruled that the jury should have been given an instruction to find liability only if the plaintiff’s fear of getting cancer was genuine and serious. Juries, especially in emotional cases, should be given clear guidance on the law to provide the proper balance between plaintiffs and defendants. This is an important decision that prevents state courts from neglecting the rights of business to fair trials.

Illinois Allows Evidence Of Third Party Liability

(May 2009) The Illinois Supreme Court has overturned previous court decisions that prevented a jury from hearing evidence that parties other than the defendant manufacturer may have caused the plaintiff’s asbestos injuries. Previous rulings led the courts to prevent the defendant from submitting evidence that some other party caused the plaintiff's illness. Until this decision, Illinois law had been unique in excluding such evidence, and the decision will prevent lawyers from unfairly singling out one defendant for liability. The outcome is welcome relief because the previous rule invited claims against remote defendants, forcing unfair settlements and feeding the asbestos litigation crisis.

Delaware Rules Employer Not Liable For Secondhand Asbestos Exposure

(May 2009) The Delaware Supreme Court has issued a favorable ruling for business in Riedel v. ICI Americas, Inc., affirming the trial court’s ruling that an employer is not liable for secondhand asbestos exposure. The opinion follows the arguments made by several business organizations in an amicus brief filed last summer. In this case, the plaintiff alleged that she was exposed to asbestos that was brought home on her husband’s work clothes, which she laundered. The trial court assumed that she was injured by the asbestos, but rejected the claim anyway. The amicus brief argued that the mere foreseeability of harm to third parties is not enough to extend the employer’s duty of providing employees with a reasonably safe work environment to potential harm outside the workplace.

Supreme Court Rules On EPA Cost-Benefit Analysis

(April 2009) The U.S. Supreme Court has ruled that the U.S. Environmental Protection Agency may consider using a cost-benefit analysis in determining the level of required technology used in power plant cooling towers. While this ruling does not mandate the EPA use a cost-benefit analysis, it opens the door on using this in the future in other mandated environmental actions.
      

        

      

Alliance Laundry Expands in India

Alliance Laundry Systems announced earlier this summer that is has entered into an agreement with the Ramsons Garment Finishing Equipment, based in Bangalore, to provide products to the expanding laundry industry in India. Ramson has been a leader in India in manufacturing and distributing laundry equipment for many years. As part of the new agreement, Ramson will become the sole distribution of IPSO laundry equipment in the region.
    

R.W. Martin Receives Safety Award

The R.W. Martin Company of Kent, Ohio was named among several companies with an outstanding workplace safety performance record for 2009. General Manger Chip Ottman of R.W. Martin accepted an award, sponsored by the Portage County (Ohio) Safety Council, in recognition of employees at the company having worked a total of more that 40,000 hours with no injuries resulting in a day or more away from work.
    

Gurtler Industries Acquires AuroraChem West

Gurtler Industries of South Holland, Illinois recently acquired AuroraChem West, a regional manufacturer and supplier of specialty laundry chemicals and services based in Salt Lake City, Utah. “Our philosophy of putting the customer’s needs on top fits perfectly with Gurtler’s commitment to quality and service,” says Dave Hanson, president of AuroraChem West. AuroraChem West provides products, services and dispensing systems for the hospitality, healthcare, linen supply and industrial laundry market segments. These products and services will be integrated into the full Gurltler line and available across the country.
    

Kannegiesser USA Receives Innovated Energy Solution Award

Kannegiesser USA was recently presented with the Innovated Energy Solution Award from the Energy Solutions Center (ESC) at its Technology Forum. ESC hosted this event as part of their ongoing mission to accelerate the acceptance of and deployment of new energy-efficient, gas-fueled technologies that enhance the operations and productivity of commercial and industrial energy users. Kannegiesser was lauded for their technological advantages and energy saving operation in their PowerDry line of gas-fired dryers.
    

Fitzgerald Inducted Into WFI Hall Of Fame

Jim Fitzgerald, Jr., president of the Herb Fitzgerald Co., Butler, Wisconsin, was inducted into the Wisconsin Fabricare Institute (WFI) Hall of Fame during the association’s convention in March. He is a longtime member of WFI, and has served on its board since 1994. He was influential in the creation of Wisconsin’s Drycleaners Environmental Response Fund (DERF) and its administration, as well as in the launch of the Fitzgerald Scholarship Golf Classic. Jim is the third generation of his family to be inducted, following his grandfather and father.
    

Wascomat/Electrolux Markets Under New Name

Bermil Industries Corporation has consolidated its equipment brands under the Laundrylux trade name for marketing and communication purposes. The company distributes the Wascomat and Electrolux brands of commercial laundry equipment. CEO Neal Milch explains that the Laundrylux name illustrates the company’s roots in the laundry business, and the “lux” reflects the superior quality of its products. The laundry machinery will continue to carry either the Wascomat or Electrolux brand name.
    

Consolidated Laundry Machinery Acquired by Carlin Capital Partners

(May 2010) Carlin Capital Partners (CCP) announced that it has acquired the Consolidated Laundry Machinery Co. (CLM) from its President and Founder, Leonard Bernstein.

CLM is a leading manufacturer of industrial-grade dryers and related finishing equipment, primarily serving the textile services industry. Founded in 1962, the company has continuously provided its global customer base with high quality and efficient large-scale dryers. Bernstein, who founded the company in 1962, is retiring but will remain with CLM as a consultant.

"We are excited to be able to give CLM the resources it needs to achieve meaningful growth and better serve its customers," said Jason Farber, Principal of CCP. "CLM already has an excellent reputation for the quality and efficiency of its products and we want to build upon that reputation to provide even better products and customer service."

Carolyn Landsperg, Vice President and General Manager and an 18-year veteran of CLM, succeeds Leonard Bernstein as CLM's most senior executive.
    

Tingue, Brown & Co. Goes Solar

The Tingue, Brown & Co. recently installed solar panels to the roof of its headquarters in Saddle Brook, New Jersey. Company CFO John Hurst says that the move, which is partially funded by state aid, is expected to cut electricity costs by 50%. The company anticipates a payback on their investment in five years.
    

      
       

TCATA's mission is to increase professionalism through business operations and sales improvement education, provide forums where business challenges are discussed and solved, generate and apply business intelligence, and create a favorable business climate by seeking fair regulation and legislation.

 

 

Contact: David Cotter, CEO, info@tcata.org

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