Cleaning up: Laundries and Dry-Cleaners in Australia Industry Market Research Report Now Updated by IBISWorld

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After experiencing a washout during the global financial crisis, the Laundries and Dry-Cleaners industry is cleaning up. Strong growth in 2011-12 will result mainly from a stronger economy and greater demand for services, particularly for uniform hire and cleaning services. Environmental factors and government regulation are becoming increasingly important to the industry's performance, particularly in the areas of chemical, water and energy use. For these reasons, industry research firm IBISWorld has updated its report on the Laundries and Dry-Cleaners industry.

IBISWorld Market Research

IBISWorld Market Research

The hospitality and health sectors are the major markets for this industry's services

After experiencing a washout during the global financial crisis, the Laundries and Dry-Cleaners industry is cleaning up. Strong growth in 2010-11 and 2011-12 will result mainly from a stronger economy and greater demand for services, particularly for uniform hire and cleaning services. Over the five years through 2011-12, industry revenue is estimated to increase at an annualised 0.6%, including forecast growth of 2.6% in 2011-12 to total $1.11 billion for the year. According to IBISWorld industry analyst Alen Allday, ‘price-based competition on supply contracts will remain fierce due to the nature and structure of this industry, which includes many small and medium-size operators.’

There are two major companies operating within this industry, Spotless and Alsco, while the majority of operators are small business and franchised operators. Larger companies tend to have plants that are close to major clients to service their needs, for ease of access, to minimise transport costs and to take full advantage of potential savings from logistic-related improvements across their localised operations. Allday adds, ‘market share concentration is medium and has increased in recent years – a trend that is expected to continue.’

Employment trends in client industries, such as hospitality, health, government institutions, are important in influencing service demand for the industry's services, as well as client outsourcing levels. A large proportion of the industry's services are for laundering and dry-cleaning of bed linen, table linen and uniforms. Environmental factors and government regulations will become increasingly important to the Laundries and Dry-Cleaners industry's future performance. Particularly in the areas of chemical, water and energy use, and in relation to climate change factors and carbon emissions controls. In the five years through 2016-17, industry revenue is forecast to increase as client companies continue to outsource services and stable pricing levels result in steady revenue growth.

For more information, visit IBISWorld’s Laundries and Dry-Cleaners report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

This report relates to establishments that provide laundry or dry-cleaning services, including baby nappy, napkin or linen hire services.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & 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.
Recognised 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 Australian 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 Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
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