The jan/san sector continues to be a lucrative element of business supplies and healthy competition is brewing between seasoned facilities resellers and fresh-faced players.
Sales of facilities and jan/san products have naturally shifted in response to a series of global developments. This trend began with the COVID-19 pandemic, which led to a soaring interest in employee health and well-being, as well as new workplace dynamics as a result of work-from-home and hybrid working.
While all this has meant considerable volatility, jan/san remains an essential category in our sector. When it comes to healthcare, sanitation, infection control and food safety, these products will always be on purchase orders in some shape or form. Broadening their portfolios is therefore a popular path resellers are going down.
As S.P. Richards (SPR) Senior Director – Jan/San Distribution Raimey Whittle asserts: “Consolidation in the reseller community is going to force some players to speed up their jan/san sales strategy, while the early adopters or traditional resellers battle for business. This healthy competition will create opportunities for all if it’s viewed with a wide lens.”
SPR is confident its wholesale model helps resellers to sell outside their traditional base. Along with expanding product lines and adding new suppliers, it is also providing category-specific support which guides suppliers to become more comfortable selling jan/san products to new types of end users.
Solid numbers
Overall, sales for facilities and jan/san resellers have been solid for the past few years and are even balancing out declines in other categories. Whittle comments: “This sector will help dealers push through the current environment and is a key driver of growth.
“We need to remain aggressive and pursue new end-user business to offset the softening of existing business and overcome the deficit left by those not returning to the office. Fortunately also, many products in this category are somewhat resistant to economic pressures.”
Jan/san and foodservice redistributor RJ Schinner, meanwhile, has been engaged in supporting the traditional independent dealer channel (IDC) to secure further opportunities in the category. Says President Steve Schultz: “With the vast majority of foodservice, paper and janitorial purchases delivered to end users in full-case quantities by market share holders that largely stock product, the IDC will face an inevitable evolution of its business models to fully embrace the prospects. It’s in this evolution where RJ Schinner will create new partnerships and wholesale alternatives for dealers.”
Worldwide cleaning association ISSA anticipates the facilities and jan/san categories will grow over the next year. EVP Jon Adkins refers to two key growth areas in particular: equipment and dilution control systems.
US-based OEC Workplace Solutions CEO Tom Bramlett concurs, adding: “The use of concentrated cleaning products is increasing due to their cost and storage benefits. Concentrates can reduce packaging waste, lower transportation costs and offer an environmentally friendly option, thereby aligning with sustainability goals.”
Eliminating barriers
One category sub-segment that is part of a growing area of focus for resellers is feminine hygiene. In 2023, the US introduced the Menstrual Equity For All Act, which expanded access to menstrual products. It includes a requirement for employers with at least 100 employees to provide free sanitary products.
Pads-on-a-Roll by Egal Pads were created on the principle that period products should be where they’re needed – next to the toilet, as opposed to missing from vending machines or discreetly hidden in bags.
Founder and Chief Technology Officer Tom Devlin explains that more and more companies are responding to the need for these items: “Pads-on-a-Roll are easy to implement and the idea is spreading. We’re finding that once a town has installed the product in schools, it’s then implemented in offices and private companies are also starting to notice.
“The payback for workplace management is formidable. Traditionally, periods have been considered an individual’s problem, so pads have been manufactured in single packets; adding free period products where they’re most needed shows staff that employers care.”
The notion of employee well-being isn’t gender specific, of course. Businesses are increasingly aware that addressing distinct needs and differences is crucial to achieving an inclusive environment and the benefits which come with a truly diverse workforce.
Essity’s B2B cleaning and hygiene brand Tork conducted a survey in March 2024 to discover just how inclusive toilets are in the US. The results revealed that as many as 34% of respondents have concerns when it comes to washing their hands.
Jenny Turner, Communications Director at Essity Professional Hygiene, explains: “Our aim is to eliminate visible and invisible barriers to hygiene so everyone can have comfortable access to public restrooms, regardless of health conditions, disabilities, neurodiversities or general hygiene concerns.”
To this end, Essity has been involved with the Global Handwashing Partnership and Swedish Rheumatism Association to incorporate inclusive designs into its products. For example, auditory sensitivity such as tinnitus and hyperacusis can make some people more easily affected by loud noises. Offering paper hand towels can help ensure a quiet environment and reduce sensory overload. Similarly, the Tork Sensitive soap range is certified allergy-friendly, benefitting those with skin sensitivities.
Breathe easy
The pandemic highlighted the risk of illness from airborne contaminants and this remains to be a common concern today. People want to be as healthy as possible, it’s that simple. Additionally, pollution exacerbated by wildfires and smog has intensified the need for equipment which creates clean, healthy air.
A UK Health Security Agency study, Health Effects of Climate Change in the UK: 2023, stressed the impact of wildfires based on information from Europe, Canada, Australia and the US. Given wildfire smoke can travel thousands of miles, it can trigger cardiovascular problems, asthma and other breathing difficulties for countless individuals. Air purification solutions have become more refined as a result.
Fellowes Brands’ Global General Manager of Air Quality Management, Arti Lyde, notes: “The air quality solutions market is growing increasingly sophisticated, demanding not only effective purification but also advanced sensor and monitoring capabilities. Occupants and facilities managers want to feel confident in their indoor air quality and the intelligent utilization of real-time data for maximum effectiveness and efficiency.”
Earlier this year, ACCO Brands pulled its TruSens brand from the category, citing pricing pressures from the flood of cheaper alternatives on the market.
Fellowes notes similar difficulties and is not immune to the challenges. “The market is becoming saturated with cheaper alternatives,” Lyde acknowledges.
“However, there’s a growing segment of commercial customers who prioritize effective air purification solutions, reliability and value-added services such as complimentary site surveys, which Fellowes consistently delivers. Advanced sensors and intuitive displays with status information give occupants peace of mind and enable facility managers to monitor and maintain systems with ease.”
Sustainable outlook
A sustainable mindset has a myriad of benefits for more than just the planet. Tork’s new compressed option for the Tork Xpress Multifold Hand Towel Dispenser is an innovative solution that reduces packaging and emissions, yielding multiple advantages.
According to the brand, the compression technology for Tork Xpress reduces the air in hand towel bundles, resulting in up to 27% less packaging, reduced storage needs, increased stock per transport vehicle and fewer refills.
Egal Pads’ Devlin is mindful that Pads-on-a-Roll is a single-use product and therefore potentially damaging to the environment: “We’re committed to minimizing our impact. By the end of 2024, we will be switching to paper packaging instead of our existing PE plastic wrapper. Following this, we aim to offer a plant-based pad which uses crop by-product such as banana plant leaves.”
ITW Pro Brands Market Segment Manager Matthew Shepard believes sustainability is fast becoming a minimum expectation rather than a differentiator. He challenges vendors to look at the full range of chemicals, packaging and other product components to help customers meet their environmental goals.
Scott LeCalsey, National Accounts Manager at personal care product distributor Uplift Brands, concurs, adding: “Some of the biggest areas of opportunity are in reducing plastics as well as the weight and size of our products to lower carbon emissions from freight. We also participate in the Roundtable on Sustainable Palm Oil to develop global standards for sustainable palm oil.”
In the EU, customers and service partners in the Tork PaperCircle Program now have access to a new application that provides greater visibility of sustainability data. The self-service application offers site-specific information about the waste collected for recycling, allowing users to efficiently integrate waste reporting into their workflows.
ISSA’s Adkins agrees that sustainability reporting is a key opportunity to help its members: “It can be a complex issue and challenging for small- and medium-sized businesses to compete with larger companies that are subject to mandates.
“We have a chance to assist members in overcoming this with reporting tools and guidance that allow them to participate effectively in the sustainability movement.”
Catching up?
While there are no reporting regulations in the US, and no federal ban on single-use plastics, 12 states and around 500 municipalities have enacted their own regulations. Adkins is confident more plastic packaging bans will come as environmental concerns grow among the public and policymakers.
“One way to adapt is to implement closed-loop systems for packaging, where distributors and manufacturers reuse and recycle materials,” he advises. “The EU has more experience with this approach and could serve as a model for the US market.”
According to Aubrey Baumann, Director of Sales and Marketing at Durable in the US, the country is catching up with the EU in terms of prioritizing sustainability initiatives. She comments: “There will be an increased focus on recycling, waste separation and renewable materials. The challenge is cost. Consumers don’t want to pay more for environmental products but will choose them if they’re the same price.”
OEC’s Bramlett notes sustainability hasn’t fundamentally penetrated the southeast US market but sees more awareness in corporate and government customers. Although he acknowledges that sustainable solutions may not always benefit the immediate bottom line, the chance to expand into new customer bases that align with growing regulatory demands will be a positive in the long term.
From a dealer perspective, Schultz agrees that the heightened environmental focus creates a host of opportunities. For RJ Schinner and its partners to meet sustainability mandates with compliant product alternatives, he believes deeper knowledge on the part of sellers is required. They must appreciate which products work in any given case, which are cost-effective and whether these are readily available with a reliable supply source.
“In the US market, we have moved into a place where leading with alternative solutions, mandated or not, will create positive potential,” he says.
AI prospects
The facilities and jan/san sector has traditionally lagged behind other verticals in its adoption of digital technologies, but AI may present welcome solutions soon.
“A significant challenge in the cleaning sector is the shortage of workers and this is expected to worsen,” explains Greenspeed Marketing Executive Eva Meerts. “With too few cleaners available, AI and robotics offer opportunities to meet hygiene needs despite limited resources.”
Bramlett also sees potential in AI, particularly as regards inventory and stocking issues. For instance, he expects AI to accurately forecast disruption patterns and future customer needs to pre-emptively address supply chain issues, ensuring smoother operations and maintaining customer trust.
He continues: “We’re monitoring the early adopters of AI in industries like healthcare, finance and manufacturing. By analyzing the successes and strategies in these sectors, we can make quick but informed decisions on implementing AI solutions that drive competitive advantages for our business. As the saying goes, pioneers take the arrows, settlers take the land.”
Forward thinking
The supply chain is a crucial component of a category’s success – as was starkly demonstrated during the pandemic. Schultz is certainly keenly aware that manufacturers and wholesalers are never truly immune to variables in this regard, whether they concern import or domestic challenges. “I ask our suppliers to evidence robust systems that help insulate or mitigate the direct impact of any supply issue,” he says.
“I like the term ‘effective redundancy’ to describe how this should play out – in other words, don’t over or underengineer everything, but have systems to manage disruptions in the most important areas. Merchandising category offerings that provide realistic substitutes and cost-effective alternatives further create actual redundancies.”
On a positive note, recent supply chain disruptions have been less challenging than they were during COVID-19. Resellers have also learned from the past and are now better prepared for interference.
For example, LeCalsey explains that Uplift Brands has taken action to guarantee its services, including investing in forecasting tools, securing dual supply of key components and partnering with reliable carriers.
For Schinner, managing its own fleet is an integral part of its value proposition, affording some protection from both freight cost and capacity challenges.
Working environments continue to evolve and the jan/san segment with all it entails – products, equipment and entire cleaning schedules – has moved with the times.
And there’s likely further change to come in this dynamic environment. “The workspace is moving towards more flexible and activity-based layouts, effecting how employees navigate their space,” Essity’s Turner highlights. “It’s a demanding task to ensure consistent cleaning in this type of landscape but operating proactively rather than reactively is key.”
This story was originally published as premium content by our sister publication OPI.
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