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

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Recovery in the healthcare and food-service sectors will boost demand. 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 is in a spin cycle, with revenue expected to reach $11.5 billion in 2013. The 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. Therefore, revenue is expected to fall at an average annual rate of 1.7% from 2008 to 2013. Sustained demand from healthcare establishments has helped mitigate revenue declines over the five-year period, though; in fact, hospitals increased their outsourcing of laundering services to industry operators during the period. Despite recent modest employment gains in the manufacturing, hospitality and food-service sectors, revenue has yet to improve, falling 1.0% during 2013.

Profit margins have contracted slightly from 2008 to 2013. Rising commodity prices, such as cotton and fuel prices (particularly in 2008 and 2011), raised operating expenses for industry companies. In addition, operators faced declining demand from clients, specifically in the manufacturing sector. According to IBISWorld Industry Analyst Sally Leman, “Falling profit margins, combined with sustained merger and acquisition activity, reduced the number of companies operating in the industry.” Over the five years to 2013, the number of enterprises decreased slightly at an average annual rate of 0.5% to 3,011.

Conditions are expected to improve marginally within the Industrial Laundry and Linen Supply industry over the next five years, and revenue is forecast to increase during the period. As the US unemployment rate dwindles, demand for industry services is anticipated to increase. “With a greater number of employees and establishments in the manufacturing, food-service and accommodation sectors, these clients will require more uniforms, linens and dust-control items,” says Leman. Furthermore, federal healthcare reform through the Patient Protection and Affordable Care Act is expected to raise the number of patients that healthcare establishments serve, boosting the demand for clean linens and uniforms. On the other hand, environmental regulations are expected to increase over the coming five years, pushing operators to use environmentally friendly detergents and burdening them with higher 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 Industrial Laundry and Linene Supply industry supply laundered items, such as uniforms, gowns, coats, table linens, bed linens, towels, cleanroom apparel and treated mops to various industries. These items are provided on a rental or contract basis. Typical clients include industrial, 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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