Dry Cleaning & Laundry Services NAICS 812320

May 21, 2026 - Dry Cleaners Incorporate Automation With Service Focus

• The US dry cleaning and laundry services industry is increasingly balancing automation investments with personalized customer service as operators adapt to changing customer preferences and shifting garment demand, according to an American DryCleaner report. Cleaners interviewed in the report said technologies such as kiosks, customer apps, and upgraded POS systems are improving efficiency, but excessive automation can risk weakening customer trust and service quality. The industry’s customer mix is also evolving: operators reported declining baby boomer business volume but rising demand for wash-and-fold services, comforters, household goods, alterations, and high-end casual apparel. One cleaner noted that expensive jeans and polos are now being brought in for professional care more frequently since workplace attire became more casual after the pandemic. The report suggests successful operators are differentiating themselves through service quality, packaging, communication, and customer loyalty rather than competing on automation alone.
• Tide Services’ expansion efforts highlight accelerating consolidation and franchise growth across the US dry cleaning and laundry services sector, according to an American Coin-Op report. In 2025, the company expanded through multi-unit development agreements, acquisitions, and conversions, including a 50-unit Tide Laundromat deal across Texas and New Mexico and the acquisition and conversion of 19 legacy dry-cleaning locations in Florida, Ohio, and Los Angeles. The company also expanded its Tide Cleaners footprint in New York City through agreements tied to 75 total Tide-branded laundry and dry-cleaning locations. The activity reflects growing investment in scaled, branded operators as the industry seeks stability amid rising labor and operating costs. Tide also emphasized digital platform development and franchise support, signaling continued modernization across the sector. For independent dry cleaners and laundromats, the trend may increase competitive pressure as larger national brands expand market share through acquisitions and multi-location growth strategies.

• The cost of laundry and dry cleaning services rose 6.9% in April 2026 compared to a year ago, according to the Consumer Price Index released by the US Bureau of Labor Statistics. Employment for dry cleaning and laundry services, except coin-operated, was down 7.9% in March 2026 compared to a year ago. Employment fell nearly 40% in the industry over the past decade, much lower than the 11.3% growth in overall private employment. Average wages were up 6.4% year over year for non-supervisory employees, with an average wage of $21.46 per hour in March. The “Other Services” category, which includes laundry, pet care, personal care, and repair services, was one of the strongest-performing segments in the April 2026 ISM Services PMI report, outperforming much of the broader US services industry. While the overall Services PMI registered 53.6%, indicating continued but slowing expansion across the services economy, “Other Services” ranked first among all industries reporting growth and also led growth in new orders.
• The US dry cleaning industry is undergoing significant change as operators adapt to new technology, environmental standards, and customer expectations, according to a recent Newhouse report. The global market reached $74.4 billion in 2024 and is projected to grow to $116.4 billion by 2032 (5.76% CAGR), reflecting steady demand. In the US, businesses are investing in app-based services, smart lockers, and automation to improve convenience and efficiency. At the same time, the phase-out of traditional solvents is pushing adoption of greener alternatives, adding both cost and competitive differentiation. A growing shortage of skilled technicians is also creating operational challenges, per the report. Overall, operators that invest in technology, sustainability, and service quality are better positioned to compete as the industry evolves.