Price for commercial dry-cleaning is forecast to grow more quickly as demand from the public sector strengthens
Los Angeles, CA (PRWEB) April 06, 2014
The commercial dry-cleaning and laundry services market has a buyer power score of 3.5 out of 5, reflecting rising buyer negotiating power. Over the three years to 2013, the price of these services has grown. While the price has trended upward, its growth has been slow due to weak demand from the public sector. Local government investment in police and fire departments, key users of commercial dry-cleaning services, has waned as other social costs have grown. “Price volatility has also been low, letting buyers more easily project laundry budgets for the year,” says IBISWorld business research analyst Nikoleta Panteva. These factors have contributed to the market’s above-average buyer power.
Moreover, the availability of different types of suppliers is beneficial to buyers. Buyers can solicit bids from multiline and specialist suppliers, giving them a wider scope of service, price, location and experience options when contracting a supplier. Some buyers may be limited in their choices due to their volume of laundry or specific needs, but, in general, the number of suppliers in this market is a positive component of buyer power. If a buyer does not like the supplier they have chosen, switching to another is a relatively low-cost and easy option; this is another factor that contributes to buyer power.
“However, buyers should be aware and plan for setbacks that exist in this market,” says Panteva. IBISWorld forecasts the price of commercial dry-cleaning and laundry services to increase more strongly over the next three years as demand from both private and public clients mounts. As states regain their financial footing, they will invest more heavily in public safety departments, giving them larger budgets for uniform maintenance and cleaning. Corporate profit is also projected to keep climbing, allowing food and hospitality establishments to more freely utilize professional laundry services.
Additionally, while alternatives to commercial dry-cleaning and laundry services exist, they are not viable and cost-effective options for all buyers. As such, buyers may be limited to using a local supplier, paying the fees set out by the vendor. Major vendors include Aramark Corporation, Cintas Corporation, G&K Services Inc. and United Laundry & Linen Corporation. For more information, visit IBISWorld’s Commercial Dry-Cleaning & Laundry Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of dry-cleaning and laundry services in a variety of industries, such as healthcare, public safety and hospitality. This report excludes other forms of laundering services, such as coin-operated and self-service laundries.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.