Job cuts leave uniform providers with anemic biz

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Bangalore, June 4: : many industries feeling the pinch of today's economy, some of our customers are downsizing and some may even be closing their doors."

TACKLING THE TURMOIL

In order to tide over the crisis, Cintas spokeswoman Heather Trainer said the company was looking at reducing costs by consolidating operations, limiting expenses and exploring opportunities with more cost-efficient suppliers.

The company has also introduced more retail-inspired garments such as cargo pants, a high-end polo shirt and executive wear.

Cintas also provides first-aid and safety products and services, including first-aid cabinets, safety glasses and gas detectors to companies like Wal-Mart Stores Inc and McDonald's Corp

Barrington Research analyst Alexander Peter Paris said G&K Services has introduced a line of uniform for the food industry designed to prevent food contamination.

Apart from providing branded apparel, G&K Services also provides the food industry with aprons, towels, butcher wraps, hats and wait staff apparel.

END IN SIGHT

Analysts do not believe the pain of job losses will last long.

"It is our economic forecast that the current economic conditions will not be long lasting. We expect some recovery from the second half of this fiscal year," Barrington's Paris said.

Until then, the healthcare sector, though not a traditional focus for Cintas, UniFirst and G&K, could provide a breather to the firms.

In April, when the manufacturing and construction sector saw a sharp decline, the healthcare sector saw an increase in jobs by about 37,000.

UniFirst, whose customers include oil major BP, supermarket operator Safeway and cable TV firm Comcast, said it had recently expanded its line of healthcare and also introduced specific apparel for patients. Cintas confirmed the healthcare sector was an area for future growth.