Industrial Laundry and Linen Supply in the US Industry Market Research Report from IBISWorld has Been Updated

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Rebounding employment, particularly in the hospitality and food-service sectors, will be a boon to the industry: A greater number of employees means a greater need for uniform rental and laundering services. For this reason, industry research firm IBISWorld has updated a report on the Industrial Laundry and Linen Supply industry in its growing industry report collection.

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Recent employment gains in the hospitality and food-service sectors helped growth

The Industrial Laundry and Linen Supply industry supplies linen, dust-control items and uniforms to manufacturing, food-service and hospitality establishments, which have all faced declining employment and establishment numbers, curtailing demand for industry services. As such, revenue is expected to fall at an average annual rate of 1.9% to $11.7 billion in the five years to 2012. “Sustained demand from healthcare establishments has helped mitigate revenue declines over past five years, though,” says IBISWorld industry analyst Caitlin Moldvay. “In fact, hospital establishments increased their outsourcing of laundering services to industry operators during the five-year period.” With recent modest employment gains in the manufacturing, hospitality and food-service sectors, revenue performance has begun to improve.

Rising commodity prices, such as for cotton and fuel (particularly in 2008 and 2011), raised operating expenses for industry companies. Coupled with declining demand from clients, profit margins contracted. “Falling profit margins, combined with sustained merger and acquisition activity, reduced the number of companies operating in the industry,” says Moldvay. “As such, the level of concentration within the industry has increased over the past five years.” Decreased demand for industry services during the recession and resultant economic recovery period has caused competition to increase in the Industrial Laundry and Linen Supply industry. Sustained merger and acquisition activity on the part of major players in the industry is the primary reason for this trend. Over the past five years, major players have been concentrating on acquiring smaller regional players in new geographic regions. Current major companies include Cintas Corp., Aramark Corp., UniFirst Corp. and G&K Services Inc.

Conditions are expected to improve within the industry over the next five years. As the US unemployment rate edges down, demand for industry services is anticipated to increase. With a greater number of employees and establishments in the manufacturing, food-service and accommodation sectors, industry clients will require more uniforms, linens and dust-control items. Furthermore, the federal healthcare reform bill is expected to raise the number of patients served by healthcare establishments, increasing the demand for clean linens and uniforms. On the other hand, increasing environmental regulations are expected over the coming five years, pushing operators to use environmentally friendly detergents and facing them with increased fines and restrictions on greenhouse-gas emissions. For more information, visit IBISWorld’s Industrial Laundry and Linen Supply in the US industry report page.

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IBISWorld industry Report Key Topics

Companies in the industry supply laundered items, such as uniforms, gowns and coats, table linens, bed linens, towels, clean room apparel, and treated mops to various industries. These items are provided on a rental or contract basis. Typical clients include: industrial plants, healthcare, food service and hospitality establishments.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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Gavin Smith
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