Commercial Laundries in Australia Industry Market Research Report Now Available from IBISWorld

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Commercial Laundries in Australia have cleaned up due to outsourcing trends following the global financial crisis. For this reason, industry research firm IBISWorld has added a report on the Commercial Laundries industry in Australia to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

While outsourcing during the downturn provided a platform for growth, improving economic conditions allowed this growth to come to fruition.

Commercial Laundries in Australia have cleaned up following the mess of the global financial crisis. Many businesses have sought to outsource their laundry operations, as part of a general trend towards outsourcing to more efficient operators. While outsourcing during the downturn provided a platform for growth, improving economic conditions allowed this growth to come to fruition. Downstream markets required more frequent laundering services, generating further demand for the industry. As a result, industry revenue is estimated to grow by a compound annual 3.1% over the five years through 2014-15, to reach $1.1 billion. Continued strong growth of 3.2% is forecast for 2014-15. Although outsourcing provided a platform for growth, improved conditions for accommodation and healthcare providers was the source of a large proportion of industry growth. While the high Australian dollar dampened local tourism and demand from traditional Western tourist markets, according to IBISWorld industry analyst David Whytcross, “the country's proximity to Asia resulted in a boom in tourism by China's burgeoning middle class.” Demand growth for hotels subsequently generated growth in demand for outsourced laundering of bed linen and towels.

Industry operators are projected to increase investment in technology such as batch washers over the next five years. The greater efficiency afforded by such machinery is expected to provide incentive for businesses to outsource laundry functions, although much of this demand is expected to be fulfilled by incumbent large-scale industry players. Industry demand is projected to grow as conditions in downstream markets improve. “Accommodation providers will benefit from continued tourist demand from Asia and a depreciation of the Australian dollar, making local travel more affordable,” says Whytcross. Healthcare and aged-care providers can also be expected to increase their demand for commercial laundries, as Australia's population continues to age.

The Commercial Laundries industry displays a medium level of market share concentration. The industry's two major players are Spotless Group Holdings and Alsco Pty Limited. These firms have the size and scope to provide a diversified range of commercial laundering services and are able to win contracts with extremely large customers. In contrast, the industry's remaining enterprises tend to be smaller, independent operators that target local and regional clients. Many smaller firms also run franchised laundry operations, which aids entry into the industry and provides an established customer base. Market share concentration has grown slightly over the past five years due to increasing consolidation, particularly for Spotless, the industry's largest company.

For more information, visit IBISWorld’s Commercial Laundries industry in Australia report page.

Industry operators are engaged in providing linen and other laundering services to commercial operators such as hotels, hospitals and aged-care facilities.

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IBISWorld Industry Report Key Topics

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
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
IBISWorld
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