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 Crothall Laundry, 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
May 23, 2024 - Slower Growth Expected
- The US linen supply services industry is projected to grow at a CAGR of 1.6% between 2024 and 2028, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The anticipated growth rate is slower than the overall economy's projected growth. The report noted that improving consumer confidence levels in the forecast period bodes well for the various other services industries, which include linen supply services. Additionally, consumer sentiment has seen a degree of improvement following sustained lower levels. As preferences and habits continue to shift to pre-pandemic norms, personal and business travel will likely increase, which could benefit the hospitality industry, a key customer of linen supply companies. Per the report, "Personal consumption spending for dry cleaning and laundry services may rise as more people return to traditional workplaces and seek a wider array of entertainment and recreational activities.”
- US office vacancy rates reached a 30-year high of 19% in the first quarter of 2024 compared to 17.8% in the same quarter a year ago, according to real estate firm CBRE’s 1Q office report in Facilities Dive. High occupancy rates can drive demand for food services and hospitality industries, which are key customers of linen supply services firms. The majority of the 57 office markets tracked by CBRE in Q1 saw negative net absorption, meaning more space was vacated than leased. Still, tenant downsizing has slowed in the past 12 months as part of a gradual rebound, according to a JLL report on Q1 US Office Market Dynamics. The report expects office leasing to reach 85% of pre-pandemic levels in 2024.
- Consumer confidence levels fell in April 2024 from March 2024, marking a third consecutive month of weakness, according to data from The Conference Board. The Conference Board’s consumer confidence index was 97 in April 2024 from 103.1 in March 2024. According to Dana Peterson, Chief Economist at The Conference Board, “Confidence retreated further in April, reaching its lowest level since July 2022 as consumers became less positive about the current labor market situation, and more concerned about future business conditions, job availability, and income.” Peterson added that confidence declined among consumers of all age groups and for all income groups except those in the $25,000 to $49,999 range. Plans for vacations, home purchases, and large appliances decreased on a six-month basis.
- Linen supply companies will have to monitor minimum wage changes, as 22 states increased their minimum wages in January 2024, according to USA Today. About half of the increases are automatic adjustments linked to inflation. States that raised their minimum wages in January 2024 include Hawaii ($14), Maryland ($15), Nebraska ($12), and Washington ($16.28). Several states are set to boost their minimum wage levels later this year, including Florida (up to $13 in September) and Nevada (up to $12 in July). According to the Economic Policy Institute, nearly 40 US cities and counties will increase their minimum wage rates above state levels at the start of the new year. The federal minimum wage is $7.25 an hour, and more than 20 states, primarily located in the South and the Midwest, use the federal minimum as their wage floor.
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.