Linen Supply Services
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 518 linen supply services companies in the US provide laundered items, such as table and bed linens; towels; diapers; and uniforms, gowns, or coats, on a rental or contract basis. Companies provide linen products and deliver cleaned and processed linens as replacements for soiled linens. Large firms may offer related products and services, such as washroom supplies or janitorial services. Firms may also process customer-owned linens. Large firms may manage on-premise laundries for customers or free-standing laundry cooperatives.
Capital-Intensive Operations
Industrial laundries are capital intensive, and the ongoing maintenance of machinery can be significant.
Government Regulation and Certifications
Linen supply service providers and industrial laundries are especially vulnerable to regulations that conserve water and protect the environment.
Industry size & Structure
The average linen supply service provider employs about 120 workers and generates $10 million annually.
- The linen supply service industry consists of about 518 firms that employ 63,000 workers and generate $5.2 billion annually.
- The industry is concentrated; the top 50 companies account for about 72% of industry revenue.
- Large firms typically offer both uniform and linen supply and include Cintas, Aramark, and Alsco.
- Large firms with a focus on healthcare linen supply include Core Linen Services, Ecotex Healthcare, and Mission Linen Supply. Several large firms in this sector are family-owned.
- Small firms typically operate within a limited geographical market.
Industry Forecast
Linen Supply Services Industry Growth
Recent Developments
Nov 20, 2024 - Growth Forecast, Labor Costs Up
- The global linen supply market is projected to grow at a CAGR of 3.1% from 2023 to 2032, reaching $10.5 billion, according to Business Research Insights. Growth can be attributed in part to higher healthcare and hospitality demand. Employment and labor costs at linen supply services were on the rise in September year over year. Employment by linen supply services grew 3.9% in September 2024 compared to a year ago. Average wages for nonsupervisory employees at linen and uniform supply services increased 4.2% in September 2024, reaching $20.62 per hour, per the BLS. Total revenue for dry cleaning and laundry services, including linen supply services, was $8.8 billion in Q2 2024, a 5.2% increase compared to a year ago and 2.2% higher from the previous quarter, according to the latest data from the Census Bureau.
- According to a new survey commissioned by American Hotel and Lodging Association (AHLA), more than half of Americans plan to travel overnight for leisure in the next four months, and hotels remain the top pick for both leisure (45%) and business travelers (59%). In similar results to last year, about a third of Americans are likely to travel overnight for Thanksgiving, and about a third are likely to travel overnight for Christmas. Inflation is having an impact on people’s travel decisions, according to the survey. Inflation is likely to reduce the chances of respondents staying in a hotel (56%) during the next four months, reduce the chance of traveling overnight (50%), reduce the chance of traveling by plane (44%), and reduce the chance of renting a car (42%). Activity in the leisure and hospitality segment is a driver for linen supply companies, which count hotels and restaurants as key customer segments.
- Major tech employer Amazon has ordered workers back to the office five days a week beginning in January 2025, a move which may spur other companies to curb remote work. Higher office occupancy rates can drive demand for food services and hospitality industries, which are key customers of linen supply services firms. Amazon CEO Andy Jassy made the announcement in September 2024, marking the company's latest shift in its office attendance policy. In 2023, Amazon asked workers to return to the office three days a week, a decision protested by many remote workers. Jassy said having Amazon employees back in the office full time will help improve collaboration, innovation, and the company's sense of culture. Amazon's decision comes as an increasing number of companies are giving their employees flexibility in their working arrangements, according to a new Flex Index report in ITPro. Per the report, 56% of surveyed businesses said they had an "employee's choice" model in 2024, allowing staff members to help shape their time in the office based on their personal needs, an increase over the 38% of firms with that model in 2023. Only 3% of companies have enforced full in-person return-to-office (RTO) mandates in 2024, compared to 8% in 2023.
- Consumer confidence levels increased in October 2024, improving in all five components of the Consumer Confidence Index, according to The Conference Board. The index was 108.7 in October 2024 from 99.2 in September 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those between the ages of 35 to 54 and those in the income category of over $100,000. Per Peterson, “Consumer confidence recorded the strongest monthly gain since March 2021, but still did not break free of the narrow range that has prevailed over the past two years.” Plans to purchase homes and new cars rose on a six-month average basis.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.