Linen Supply Services NAICS 812331

Mar 27, 2025 - Supply Costs Expected to Rise Amid Tariffs

• New Trump Administration tariffs on steel and aluminum imports and goods imported from China, Mexico, and Canada are expected to impact hangers and other essential supplies used in linen supply and dry cleaning operations, according to a report in American Drycleaner. Sam Monempour, a VP at supplier 3Hanger Supply, said the first areas he expects to be affected by the tariff cost increases are hangers and poly bags, which are loss leaders for distributors, followed by garment covers. He said the distribution model is very low margin, and they have to pass on the entirety of the cost increase from manufacturers. “End users should expect an increase of 25% to 30% on these items, possibly more if shipping costs go up as well,” he said. Businesses may navigate the uncertain landscape by temporarily increasing inventory to avoid any future supply issues, exploring domestic vendor alternatives, and making pricing adjustments as needed.
• Laundry services, included in the “Other Services” category, is one of the 14 services industries reporting growth in February’s Services ISM Report on Business. Executives in the Other Services industry reported increases in business activity, new services, and employment, while reporting decreased inventories, lower order backlogs, and higher prices paid for materials and services. Other industries reporting growth during the period included Finance & Insurance; Wholesale Trade; Utilities; Agriculture, Forestry, Fishing & Hunting; Mining; Real Estate, and Rental & Leasing. The three services industries reporting contraction during the period were Management of Companies & Support Services; Retail Trade; and Educational Services. Overall, economic activity in the services sector expanded in February, with the Services PMI registering 53.5%.

• The Textile Rental Services Association (TRSA) recently asked for a withdrawal of a new proposed rule from the US Department of Labor (DOL) designed to protect workers from extreme workplace heat. The proposed rule requires employers to develop an injury and illness prevention plan to control heat hazards in workplaces affected by excessive heat. The TRSA said the proposed rule does not account for regional differences in climate and creates unworkable requirements for small employers and certain industries. The comments came during an extended public comment period for the proposal. The proposed standard asks employers to evaluate heat risks and implement requirements for drinking water and taking rest breaks. Employers would also have to provide training, develop procedures to respond to workers who show signs of heat-related illness, and assist those experiencing a heat emergency. Linen supply companies would be impacted if the proposed rule is instituted.
• Consumer confidence levels, an indicator of discretionary spending, have fallen due to consumer anxiety about tariff effects and economic uncertainty, according to a report in CFO Dive. The consumer sentiment index from the University of Michigan dropped 11% in March 2025, marking the third straight month of declines and hitting the lowest level since November 2022. In addition, the Conference Board index of consumer confidence fell in March 2025. According to Stephanie Guichard, senior economist for global indicators at the Conference Board, “Consumer confidence declined for a fourth consecutive month in March, falling below the relatively narrow range that had prevailed since 2022.”