Dry Cleaning & Laundry Services NAICS 812320

Mar 20, 2026 - Ongoing Tariff Uncertainty Challenges Laundry Operators

• The Supreme Court’s 6–3 decision invalidating IEEPA tariffs, impacting roughly $134 billion in collected duties, creates significant uncertainty for the US dry cleaning and laundry services market, which depends on imported equipment and supplies. While tariff collections have stopped, refund eligibility remains unclear, with only importers of record guaranteed repayment and others potentially seeking recovery through contracts or litigation within a two-year window. At the same time, new tariffs are emerging, including a 10% duty under Section 122 and potential broader Section 301 actions. For laundry operators and suppliers, this creates ongoing cost volatility, complicates equipment investment and pricing decisions, and increases administrative burdens tied to documentation and claims, while prolonged legal and policy uncertainty continues to disrupt supply chain planning.
• According to the Consumer Price Index released by the US Bureau of Labor Statistics, the cost of dry cleaning and laundry services increased 5.7 % in February 2026 compared to a year ago. Employment for dry cleaning and laundry services, except coin-operated, fell 5% in November 2025 compared to a year ago, while wages were up 3.4% year over year. According to the latest ISM Services PMI Report, executives in the Other Services industry, which includes providers of laundry services, reported improving demand and activity but continued to face elevated costs, inventory imbalances, and labor constraints in February.

• At a recent Drycleaning & Laundry Institute webinar reported by American DryCleaner, Katelyn Kratz of the Heartland Fabricare Association presented survey data (529 respondents) revealing a generational perception crisis critical to the US dry cleaning industry’s future. Baby boomers, the core customer base, associate dry cleaning with professionalism and specialty care, but Gen X increasingly links it to “chemicals,” “toxic,” and inconvenience. The disconnect deepens with younger consumers: 74.7% of millennials and 80% of Gen Z report rarely or never using dry cleaning, often viewing it as a luxury service for formal wear or older generations. In fact, many Gen Z respondents questioned whether cleaners still exist. Nearly half of consumers are unaware of most services offered, and misconceptions about processes persist. The findings underscore that future industry growth depends on rebranding, education, and repositioning services as relevant to younger consumers’ lifestyles, including thrifted and investment garments.
• As 2026 begins, hybrid work remains the dominant model, shaping uneven demand for services tied to office attendance, including the US dry cleaning industry, according to a report by Built In. More than half of remote-capable US employees work in hybrid arrangements, while 26% remain fully remote and roughly 22% work fully on-site, according to Gallup. Even as some large employers moved to five-day office mandates in 2025, average office occupancy is only 50–60% on a typical weekday, based on badge data. This partial and inconsistent return limits a full rebound in demand for professional attire care, traditionally linked to daily commuting. While Gen Z workers show a higher propensity to come into the office for mentorship and connection, experts suggest companies are unlikely to broadly reverse hybrid policies. For dry cleaners, the data point to stabilized but structurally lower volumes than pre-pandemic levels, with demand closely tied to hybrid schedules rather than a full return to office norms.