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 Investment Chapter
The Industrial Laundry and Linen Supply industry currently has a medium level of capital intensity. IBISWorld estimates that for every dollar spent on wages, operators will spend $0.14 on capital. Capital expenditures are primarily made for laundry equipment, computer systems, buildings, distribution trucks, shelving and equipment. Typical laundry equipment includes industrial washers and dryers, garment separators and sorters, flatwork irons and mechanical folding equipment.
Capital intensity has increased since 2011, with lower industry employment and wages' share of revenue offset by increased expenditures on capital. Industry operators significantly downsized their operations during the economic downturn when industry revenue was hit hard... purchase to read more