Does Cotton Send Your Linen Price Skyhigh?

July 12th, 2011

The little things add up.  When commodity prices go up, it eventually affects our basic price (cost) level, and forces us to accommodate.  Recently, people have been conserving gasoline and watching coffee prices soar.

If you run a laundry, the cotton price is another one to watch.  The higher the cotton price, the more you want to preserve your linen supply to avoid having to buy new. Ozone laundry by DEL is one of your best options in this scenario because it is easy on linen even while it provides the cleaning power (and disinfection power) you need.

First the Good News

Cotton prices have dropped sharply since their March 2011 high point.  We are now slightly below December 2010 at (today) 124.34 cents/pound spot price in the US.  Stock up!

The Longer Trend is Not So Nice

Chart maps the trend of cotton commodity price over 5 years, from Index Mundi

Five-Year Cotton Commodity Price Trend

We copied the 5-year version of the Index Mundi cotton price trend for your information.  Cotton prices today are well over twice the level of just 5 years ago. This pattern holds across a wide range of commodities (as noted above) and it is likely to be a lasting trend. The issue is deeper than the unrest we’ve seen in Egypt or other cotton producing areas that probably produced a spike in prices.  It is fundamentally part of the rapid growth in demand from China and other fast expanding economies where billions of consumers live.

Conservation Goes to Your Bottom Line

Whether it’s energy or linen costs, ozone laundry helps you manage costs. An on premise laundry is like any other business process in that your ability to manage variable costs is a crucial part of success.

Ask DEL Ozone about how the guaranteed DEL Clean Ozone Laundry Program can help you manage a whole array of costs.  There is no reason not to try a DEL system, the best in the industry.



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