Dry Cleaning & Laundry Services NAICS 812320

Nov 17, 2025 - Dry Cleaning and Laundry Services Among Sectors Contracting in October: ISM

• While 11 services industries reported growth in October, six industries reported a contraction, including the Other Services industry, which includes providers of dry-cleaning and laundry services, according to the latest ISM Services PMI Report. Overall economic activity in the services sector returned to expansion in October, registering 52.4%. According to the Consumer Price Index released by the US Bureau of Labor Statistics, the cost of laundry and dry cleaning services increased 4.9% in September 2025 compared to a year ago and rose 0.3% from the previous month. Total revenue for dry cleaning and laundry services was 2.2% higher in Q2 2025 compared to a year ago and was 2.3% higher than the previous quarter, according to the US Census Bureau. Dry cleaning and laundry services industry employment fell 3.1% in July 2025 compared to a year ago, while wages were up 5.6% year over year.
• Declining consumer sentiment in October and November 2025 signals mounting pressure on discretionary spending, creating headwinds for dry cleaning and laundry services. The University of Michigan’s Index of Consumer Sentiment fell 6.2% month over month to 50.3, marking a 29.9% year over year decline. The Current Economic Conditions Index dropped to 52.3, while the Expectations Index slid to 49, down 36.3% annually. Inflation expectations rose to 4.7% for the year ahead, though long run expectations eased to 3.6%, reflecting heightened uncertainty. The Conference Board’s Consumer Confidence Index also edged down to 94.6 from 95.6 in October, as stronger current conditions (Present Situation Index up to 129.3) were offset by weaker short term expectations (71.5). Inflation expectations climbed to 5.9%, and more than half of consumers anticipated higher interest rates. With holiday spending projected to decline, promotions are expected to play a decisive role in driving purchases.

• The drycleaning industry is undergoing structural shifts driven by labor shortages, automation, and changing demographics, according to a report in American DryCleaner. Economist Chris Kuehl at the 2025 Clean Show forecasted that non-residential construction, which is key for commercial dry cleaners with its hotel, restaurant, and commercial clients, will rebound in 2026, fueled by transportation and energy infrastructure projects. With AI expected to require 44 additional terawatts of power, energy-efficient equipment will be vital for cost control. Migration to affordable cities presents growth opportunities in underserved markets. Labor constraints are pushing even small operators toward automation; Kuehl notes that 10-person shops are now adopting robotics to offset aging workforces. Domestic robots may shift laundry habits, but demand for professional garment care is likely to persist among affluent consumers. For dry cleaners, investing in automation and targeting emerging markets will be essential to remain competitive.
• According to WJHL.com, Tide Services, a Procter & Gamble subsidiary, has expanded its national footprint with the acquisition and rebranding of four former Flair Cleaners in Los Angeles, marking Tide Cleaners’ debut in Southern California. Operated by franchisees Jon and Megan Mut of Clean Rock Ventures, the stores in Santa Monica, Redondo Beach, Studio City, and Valencia reflect Tide’s strategy of modernizing legacy dry cleaners through local ownership and sustainable practices. This move complements Tide’s broader growth in Florida and other key markets, pushing its combined Tide Cleaners and Tide Laundromat presence beyond 200 locations nationwide. The acquisition underscores a pivotal shift in the dry cleaning industry, where aging independent operators are giving way to branded, tech-enabled franchises.