Linen Supply Services NAICS 812331

Jan 22, 2026 - Linen Services End 2025 Stable: TRSA

• Revenue results for health care and linen rental services remained mostly stable for Q4 compared to Q3, according to the Q4 2025 Uniform & Linen Rental Survey from the Textile Rental Services Association (TRSA) and Robert W. Baird & Co. The survey participants included executives at US linen, uniform, and facility services companies. About 41% of linen rental respondents cited rental revenue trends in line with expectations, with 32% above expectations, and 27% falling short. For uniform rental companies, 12% of respondents had revenue trending above expectations, with 65% as expected, and 24% falling short. The 12-month revenue forecast for linen rental companies was 3.8% growth, higher than 3.2% last quarter. The 12-month revenue forecast for uniform rental companies is growth of 3.6%, essentially unchanged from recent quarters.
• US consumer confidence declined for a fifth consecutive month in December 2025, signaling a more cautious demand environment for the US linen supply industry. The Conference Board Consumer Confidence Index fell 3.8 points to 89.1, while the Present Situation Index dropped sharply by 9.5 points to 116.8, reflecting weaker views of business and labor conditions. However, spending patterns continue to favor essential services, which supports baseline demand for commercial linen supply tied to healthcare, utilities, and everyday services. While consumers became more hesitant about big-ticket purchases and homebuying, planned spending on services remained healthy, and inflation expectations eased. Consumers’ views of their current financial situation turned negative for the first time in nearly four years, suggesting increased price sensitivity among end markets such as hospitality and foodservice. Overall, the data point to steady but pressured operating conditions for linen suppliers entering 2026, with volumes supported by necessity-driven demand rather than discretionary spending growth.

• Linen service providers may experience the ripple effects of 2025’s hotel industry slowdown, with US occupancy falling to 62.3%, according to Hotel News Resource. According to CoStar, this represents a 1.2% year over year decline, directly reducing demand for laundry and linen turnover across properties. While the average daily rate (ADR) rose 0.9% to $160.54, RevPAR slipped 0.3% to $100.02, signaling weaker room demand despite higher pricing. For linen suppliers, fewer occupied rooms mean lower order volumes and potential contract renegotiations, particularly in secondary markets. New York City remained the strongest performer at 84.1% occupancy (down 0.2%), while Houston and Las Vegas posted the largest declines in occupancy and ADR, respectively. With occupancy trending lower nationwide, linen providers face mounting pressure to protect margins and adjust operations to align with uneven hotel demand.
• According to the latest ISM Services PMI Report, executives in the Other Services industry, which includes providers of laundry services, reported decreases in business activity and order backlogs while reporting an increase in new orders and prices paid for materials and services in December. While five services industries reported contraction in December, 11 industries reported growth. Industries reporting growth during the period were Retail Trade; Finance & Insurance; Accommodation & Food Services; Transportation & Warehousing; Arts, Entertainment & Recreation; Mining; Health Care & Social Assistance; Information; Wholesale Trade; Public Administration; and Utilities. Industries reporting contraction during the period include Management of Companies & Support Services; Professional, Scientific & Technical Services; Agriculture, Forestry, Fishing & Hunting; Educational Services; and Construction. Overall economic activity in the services sector continued to expand in December, registering 54.4%.