Dry Cleaning & Laundry Services NAICS 812320

Jul 23, 2025 - Dry Cleaning Costs Up Year Over Year

• According to the Consumer Price Index released by the US Bureau of Labor Statistics (BLS), the cost of laundry and dry cleaning services increased 4.9% in June 2025 compared to a year ago and grew 1.6% from the previous month. Employment by dry cleaning and laundry services, except coin-operated, increased 1.2% in April 2025 compared to a year ago, per the BLS. In the past decade, industry employment was down 33.6%, lower than the 13.6% growth in overall private employment in the same period. Average wages for nonsupervisory employees at dry cleaning and laundry services, except coin-operated, rose 6.8% in April 2025 compared to a year ago, reaching $20.06 per hour.
• Consumer sentiment, an indicator of discretionary spending, increased slightly in July 2025, rising to 61.8 in preliminary July data from 60.7 in June, according to a report in the Wall Street Journal. The consumer sentiment index from the University of Michigan hit a recent peak in December of 74, buoyed following the presidential election, but dropped to 52.2 in April 2025 as consumers expressed uncertainty about tariff effects and rising inflation. In July, respondents’ inflation expectations for the coming year were an anticipated price increase of 4.4%, which was tracking higher than in January, when respondents expected prices to grow by 3.9%. However, July’s inflation expectation results were lower than June’s, when respondents expected a 5% price increase for the coming year. The index serves as a predictor of consumer spending as it indicates consumers’ perception of their financial prospects and the broader economy.

• According to the National Cleaners Association (NCA), all compliance dates related to the Environmental Protection Agency’s final rule on perchloroethylene (perc) under the Toxic Substances Control Act (TSCA) remain enforceable, including a June 2025 rule prohibiting perc in dry cleaning machines. The use of perc in any dry cleaning machine purchased or leased after June 16, 2025, is prohibited. Dry cleaning providers will have to instead use alternative solvents or wet-cleaning processes. When companies freeze their perc machine purchases, they may choose alternative replacements such as hydrocarbon, siloxane, liquid CO2, or professional wet cleaning. The article noted that industry groups are challenging several provisions, but any changes will require a court order or new EPA rulemaking. The EPA has provided a 10-year phase out plan for the use of PCE in dry cleaning and spot cleaning.
• According to a report in American Drycleaner, dry cleaners have an opportunity to tailor their message to attract younger consumers. Dry cleaners can develop messaging around thrifted finds popular with younger consumers, such as getting a “start fresh” with a secondhand purchase by dry cleaning it before wearing. Dry cleaning may also preserve an item’s future resale value, which is important to young people who often resell their clothes. Convenience is also expected by younger consumers, so offering self-service 24/7 drop boxes, delivery services, and wash-and-fold laundry services may help the business stand out. Using technology that a younger audience is comfortable with is key, including offering payment options such as Apple Pay, incorporating text notifications for communications, and using apps that have delivery integration with DoorDash. Younger consumers may also need an introduction to dry cleaning services since they have not had as much exposure as older generations.