Price is forecast to grow more quickly as demand from the public sector strengthens
Los Angeles, CA (PRWEB) November 25, 2014
The commercial dry-cleaning and laundry services market has a buyer power score of 3.3 out of 5, indicating market conditions that are currently favorable for buyers. Over the three years to 2014, the price of these services has grown. While 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, helping buyers to more easily project laundry budgets for the year. “These factors have contributed to the market's above-average buyer power,” according to IBISWorld business research analyst Kiera Outlaw.
Moreover, the availability of different types of suppliers is beneficial to buyers. Buyers can solicit bids from multiline and specialist suppliers, so they have a wider scope of services, prices, locations and experience levels from which to choose when contracting a supplier. Some buyers may have limited 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 simple option; this is another factor that contributes to buyer power,” says Outlaw.
However, buyers should plan for setbacks that may arise in this market. IBISWorld forecasts that the price of commercial dry-cleaning and laundry services will 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, increasing their budgets for uniform maintenance and cleaning. Corporate profit is also projected to keep climbing, so food and hospitality establishments will be able to more freely utilize professional laundry services. Additionally, while there are alternatives to commercial dry-cleaning and laundry services, they are not viable and cost-effective options for all buyers. As such, buyers may be forced to pay the fees set by local suppliers. Major vendors include Alsco Inc., AmeriPride Services Inc. and Angelica 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. Suppliers provide dry-cleaning and laundering services for motels, hospitals, clinics and other commercial businesses that already own their own linen or uniforms. Services include scheduled pick-up and delivery and linen or uniform replacement. This report excludes linen or uniform rental services as well as 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.