Coin-operated Laundries

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 9,600 coin-operated laundries in the US operate facilities with coin-operated or similar self-service laundry and dry cleaning equipment or supply and service equipment in other locations, such as apartments and dormitories. Some operators offer drop-off laundry services and some facilities offer a snack bar, coffee shop, or Wi-Fi access to occupy customers as they wait. Coin-operated laundries are also known as coin-op laundries, self-service laundries, and laundromats.

Dependence on the Rental Market

The coin-operated laundry business is highly dependent on the apartment rental market and occupancy rates.

Capital-Intensive Operations

The coin-operated laundry business is capital intensive and requires firms to regularly invest to maintain and replace equipment and implement new technology.

Industry size & Structure

The average coin-operated laundry operates out of a single location, employs about 4 workers, and generates about $560,000 annually.

    • The coin-operated laundry industry consists of about 9,600 firms that employ about 40,000 workers and generate about $5.4 billion annually.
    • The industry is concentrated at the top and fragmented at the bottom; the top 50 companies account for about 41% of industry revenue.
    • Large firms, such as CSC ServiceWorks and Wash Multi-Family Laundry Systems, typically operate coin laundries in multi-unit housing settings, such as apartment complexes and dormitories.
                              Industry Forecast
                              Coin-operated Laundries Industry Growth
                              Source: Vertical IQ and Inforum

                              Recent Developments

                              May 13, 2024 - Slower Growth Forecast
                              • The US coin-operated laundry industry is projected to grow at a CAGR of 1.6% from 2024 to 2028, slower than the overall economy's growth, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The report noted that consumer confidence levels are expected to be higher in the forecast period, which bodes well for the various other services industries, which includes coin-operated laundries. Additionally, consumer sentiment has seen a degree of improvement following sustained lower levels. The recent rise in remote work has also impacted the dry cleaning and laundry services industry. The forecast notes that 30% of employees worked remotely in 2023, compared to less than 10% before the pandemic. Per the report, "Personal consumption spending for dry cleaning and laundry services may rise as more people return to traditional workplaces and seek a wider array of entertainment and recreational activities.”
                              • Consumer confidence levels fell in April 2024 from March 2024, marking a third consecutive month of weakness, according to data from The Conference Board. The Conference Board’s consumer confidence index was 97 in April 2024 from 103.1 in March 2024. According to Dana Peterson, Chief Economist at The Conference Board, “Confidence retreated further in April, reaching its lowest level since July 2022 as consumers became less positive about the current labor market situation, and more concerned about future business conditions, job availability, and income.” Peterson added that confidence declined among consumers of all age groups and for all income groups except those in the $25,000 to $49,999 range. Plans for vacations, home purchases, and large appliances decreased on a six-month basis.
                              • The National Federation of Independent Business (NFIB) monthly jobs report shows that unfilled job openings were up in April 2024, with a seasonally adjusted 40% of business owners reporting jobs they could not fill. The reading is up three points from March 2024, which had the lowest reading since January 2021. A seasonally adjusted net 12% of small business owners plan to create new jobs over the next three months, up one point since March. About 19% of owners reported labor quality as the most important problem facing the business. According to NFIB Chief Economist Bill Dunkelberg, “Hiring plans among small businesses once again in April, but open positions remain largely unfilled as owners struggle month after month to find employees. Overall, small businesses are not reporting net gains in employment as wage pressures and inflation keep the labor market tight.”
                              • According to the Institute for Supply Management, the ISM Services PMI showed contraction in April 2024, marking the first time since December 2022 that the index fell below the baseline for growth. The report tracked the performance of 18 service sectors, out of which 12 showed gains in April. These sectors include Accommodation & Food Services; Construction; Agriculture, Forestry, Fishing & Hunting; Utilities; Mining; Management of Companies & Support Services; Educational Services; Retail Trade; Finance & Insurance; Health Care & Social Assistance; Public Administration; and Wholesale Trade. Six sectors reported a decrease in April, including Other Services; Information; Arts, Entertainment & Recreation; Real Estate, Rental & Leasing; Professional, Scientific & Technical Services; and Transportation & Warehousing. The “Other Services” category contains a range of industries, including laundry and dry cleaning services. The Services PMI report is based on data from purchasing and supply executives nationwide compiled by the ISM.
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