Washed out: Increased competition and a declining rental market will spin the industry into a decline

Increased disposable income has led to rising competition for the Laundromats industry from both household laundry machines and drop-off and pickup laundry and dry-cleaning services. As a result, industry revenue has decreased over the five years to 2018. Rentals represent a core target market for the industry, and many consumers have opted to rent apartments rather than purchase homes during the five-year period to 2018. Due to a combination of urban population growth, increased multifamily housing construction and rising urbanization, rental vacancy rates are anticipated to decline. Over the next five years, industry revenue is expected to decline as more consumers purchase personal laundry appliances...purchase to read more.

Industry Statistics & Market Size
Revenue
$5bn
Annual Growth 13-18
-0.1%
Forecast Growth 18-23
Profit
Employment
50,825
Businesses
22,260
Market Share of Companies

Industry Threats & Opportunities

  • Rental vacancy rates are expected to decline, boosting demand for industry services
  • Remaining industry operators have increasingly invested in energy-efficient washers and dryers
  • Rental vacancy rates are expected to rebound, driving down demand for industry services
  • Industry Report - Starting a New Business Chapter

    The Laundromats industry exhibits moderate barriers to entry. There is a low level of market share concentration among the top companies in the industry. Furthermore, there is a low level of regulation and only a medium level of capital intensity. Although the industry has entered into the decline stage of its industry life cycle, there is still a high degree of competition, with an estimated 21,309 companies currently operating in the industry.Start-up costs vary depending on location and the scale of operations. New businesses must secure a retail space if they are operating a laundromat or an operational facility to distribute and manage washers and dryers in apartment buildings, dormitories and other multi-unit accommodations. Sto...purchase to read more.

    Additional Insights for the Laundromats Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Laundromats Industry are

  • Must comply with government regulations
  • Effective cost controls
  • Ability to compete on tender
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Rental vacancy rates in the Laundromats industry impact industry performance..

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    What's in this report

    What is the Laundromats Industry?

    Companies in this industry primarily manage facilities with coin-operated or similar laundry and dry-cleaning equipment for customer use on the premises. Industry operators also supply and service coin-operated, smart card or similar self-service laundry and dry-cleaning equipment for customer use in other places of businesses, such as apartments and dormitories.

    Industry Products
  • Washer services
  • Dryer services
  • Self-service dry cleaning
  • Commercial laundry services
  • Industry Activities
  • Automatic laundries, coin-operated
  • Coin-operated dry cleaners and laundries
  • Coin-operated laundry and dry-cleaning routes (i.e. concession operators)
  • Dry-cleaning services, coin-operated or similar self-service
  • Laundries, coin-operated or similar self-service
  • Laundry services, coin-operated or similar self-service
  • Self-service dry cleaners and laundries
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Rental vacancy rates
  • Urban population
  • Poverty rate
  • Number of college students
  • Price of electric power

  • Current Performance
  • Residential renters
  • Colleges and universities
  • Increased profit
  • Location
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry demand
  • Increasing competition
  • Profitability and participation
  • Table: Laundromats Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Laundromats Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Bed & Breakfast & Hostel Accommodations
  • Room, Board & Dorm Housing
  • Colleges & Universities
  • For-Profit Universities
  • Consumers

  • Key Selling Industries
  • Electric Power Transmission
  • Major Household Appliance Manufacturing
  • Soap & Cleaning Compound Manufacturing
  • Water Supply & Irrigation Systems

  • Products & Services
  • Washer services
  • Dryer services
  • Other
  • Self-service dry cleaning
  • Commercial laundry services
  • Chart: Laundromats Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Renters using laundromats
  • Renters using on-site laundry facilities
  • Commercial, industrial, service industries and routes
  • Colleges and universities
  • Homeowners
  • Chart: Major Market Segmentation for the Laundromats Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent and utilitiesDepreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Laundromats

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Laundromats Industry

  • Industry Globalization
    CSC ServiceWorks,
  • Table: CSC ServiceWorks - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Laundromats Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Laundromats Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Rental Vacancy Rates (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Route Operator
  • Installs, services and maintains equipment in communal laundry facilities located in apartment blocks or colleges.
  • Top-Load
  • Washer in which clothes are placed in the top of the machine.
  • Wash-And-Fold Services
  • Services in which consumers drop off items to be laundered, dried and folded by attendants and then typically picked up that day.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Laundromats provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Laundromats:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Laundromats market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Laundromats, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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