Linen Supply Services NAICS 812331

May 28, 2025 - Slower Growth Forecast

• Sales for the US linen supply services industry are projected to grow at a CAGR of 0.97% between 2025 and 2029, slower than the overall economy‘s anticipated growth, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. Linen supply services are part of the “other services sector,” which is driven by consumer spending, along with expenditure by businesses. Consumer sentiment is expected to improve in the forecast period, which bodes well for the various services industries, including linen supply services. Many segments of the other services sector are recovering from a downturn during the pandemic. Remote work practices created lower demand for mass transit, parking lots and garages, office space, food services, and other personal and business needs related to commuting and working in corporate environments. Lodging and hospitality segments, which drive linen supply demand, also suffered during the pandemic. A factor that may limit consumer spending during the forecast period is higher tariffs on consumer goods.
• According to the Textile Rental Services Association (TRSA), a new study found that home washing machines are insufficient for cleaning healthcare textiles and may contribute to the spread of antibiotic-resistant infections in hospitals. The study, “Domestic laundering of healthcare textiles: Disinfection efficacy and risks of antibiotic resistance transmission,” was funded by De Monfort University, Textile Services Association (TSA-UK), and TRSA. In the study, the researchers tested washing fabric swatches with a bacteria that causes various health conditions. The result was that half of the machines did not disinfect the clothing during a rapid cycle, and one-third of the machines failed to clean sufficiently during a standard washing cycle. The investigation also revealed the presence of potentially pathogenic bacteria and antibiotic-resistant genes inside the biofilms from 12 washing machines. Bacteria can develop a resistance to domestic detergents, per the report. The study recommended new guidelines ensuring a worker’s home washing machine is cleaning effectively and industrial machines on site at healthcare facilities to launder uniforms and control the spread of antibiotic-resistant pathogens.

• New Trump administration tariffs on steel and aluminum imports and goods imported from China, Mexico, and Canada are expected to impact hangers and other essential supplies used in linen supply and dry cleaning operations, according to a report in American Drycleaner. Sam Monempour, a VP at supplier 3Hanger Supply, said the first areas he expects to be affected by the tariff cost increases are hangers and poly bags, which are loss leaders for distributors, followed by garment covers. He said the distribution model is very low margin, and they have to pass on the entirety of the cost increase from manufacturers. “End users should expect an increase of 25% to 30% on these items, possibly more if shipping costs go up as well,” he said. Businesses may navigate the uncertain landscape by temporarily increasing inventory to avoid any future supply issues, exploring domestic vendor alternatives, and making pricing adjustments as needed.
• Laundry services, included in the “Other Services” category, is one of the eight industries reporting employment growth in April’s Services ISM Report on Business. Executives in the industry also reported slower deliveries, a decrease in inventories, a decrease in order backlogs, and higher prices paid for materials and services. Industries reporting growth during the period included Accommodation & Food Services; Wholesale Trade; Mining; Real Estate, Rental & Leasing; Retail Trade; Art, Entertainment, and Recreation; Health Care & Social Assistance; Transportation & Warehousing; Information; Educational Services; and Utilities. The six services industries reporting contraction during the period were Agriculture, Forestry, Fishing & Hunting; Professional, Scientific & Technical Services; Finance & Insurance; Management of Companies & Support Services; Public Administration; and Construction. Overall, economic activity in the services sector expanded in April, with the Services PMI registering 51.6%.