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
Jan 29, 2025 - Proposed Workplace Heat Rule Unreasonable: TRSA
- 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 declined in December 2024, falling by 8.1 points from the previous month, according to The Conference Board. The Consumer Confidence Index was 104.7 in December 2024 from 112.8 in November 2024. Dana Peterson, chief economist at The Conference Board, noted that those remaining most confident on a six-month moving average basis confidence were those aged under 35 and those in the income category of over $100,000. Per Peterson, “The recent rebound in consumer confidence was not sustained in December as the Index dropped back to the middle of the range that has prevailed over the past two years.” Purchasing plans for homes decreased while plans to buy new cars and big-ticket items rose in December 2024 on a six-month average basis.
- 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.
- Linen supply services could benefit from a continued push by companies to bring their employees back into the office full time, according to a report in Entrepreneur. Higher office occupancy rates can drive demand for food services and hospitality industries, which are key customers of linen supply services firms. The most recent company implementing a strict return-to-office (RTO) policy is the US's largest bank JPMorgan, which will require its over 300,000 global employees to work in the office five days a week from a three day a week hybrid schedule, as reported by Bloomberg. The move follows other large firms making RTO mandatory, such as Amazon and AT&T.
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