The hospitality and health sectors are the major markets for this industry's services
Melbourne, Australia (PRWEB) April 17, 2012
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.
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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.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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