Industry Analysis & Industry Trends
Rebounding employment, particularly in the hospitality and food-service sectors, will be a boon to the industry. A greater number of employees means a greater need for uniform rental and laundering services. Furthermore, an anticipated rise in the number of insured people under healthcare reform will increase patient traffic in hospitals, pushing them to outsource more of their laundering services. At the same time, rising environmental regulations will likely cause operating costs to rise... purchase to read more
Industry Report - Industry Key Buyers Chapter
The Industrial Laundry and Linen Supply industry has a medium level of market share concentration. Cintas Corporation and Aramark dominate the industry and together account for more than a third of revenue. The majority of the 2,978 companies are medium-sized operators with fewer than 20 employees. Operators typically locate close to their clients to minimize transportation costs, which make up a significant portion of operating expenses. Consequently, it is difficult for any one company to service a large portion of the entire market.
Consolidation has been occurring over the past decade, resulting in increasing concentration. In 2000, the top four players held only 39.5% of industry revenue. By 2009, that value had risen to 47.5% market share... purchase to read more