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
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Sep 27, 2024 - Growth in Employment, Labor Costs
                                  • Employment by linen supply services grew 4.1% in July 2024 compared to a year ago, according to the Bureau of Labor Statistics. Labor costs also increased in June 2024. Average wages for nonsupervisory employees at linen and uniform supply services increased almost 5% in July 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 Q1 2024, a 6.8% increase compared to a year ago and 1.6% higher from the previous quarter, according to the latest data from the Census Bureau.
                                  • 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 August 2024, according to data from The Conference Board. The Conference Board’s consumer confidence index was 103.3 in August 2024 from 101.9 in July 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those over age 35 and those in the income category of over $100,000. Plans for large appliances and smart phone purchases rose on a six-month average basis. Plans to buy a home dropped to a 12-year low while plans for car purchases improved on a six-month average basis.
                                  • 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.
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