Linen and Uniform Supply Services Industry Profile

The US linen and uniform supply services industry includes about 1,400 companies with combined annual revenue of more than $9 billion. Major companies include Alsco, ARAMARK, Cintas, and G&K Services. The industry is concentrated: the 50 largest companies account for about 75 percent of revenue.

The industry’s two main services are industrial laundry and linen supply. Industrial laundry services clean and supply heavy work garments, such as overalls, bib trousers, and protective gear; and laundered and unlaundered mats. Linen supply companies handle easier-to-clean, ironed items, such as aprons; hospital scrubs and gowns; and bedding, tableware, and cloth napkins ("flatwork"). Because the two cleaning processes use different washing techniques and machinery, few companies offer both services.

Dry cleaning and laundry facilities used primarily by consumers are covered in a separate industry profile.

COMPETITIVE LANDSCAPE

Demand is driven by employment trends, as swings in labor and service hiring impact uniform and garment needs. The profitability of individual companies depends on efficient operations and maintaining low labor costs. Large companies have advantages in centralized laundry plant operations. Small companies can compete effectively through excellent service and custom solutions. The industry is highly labor-intensive: average annual revenue per worker is $70,000.

Linen and uniform supply companies compete with makers of disposable supplies. Competition also comes from large institutions with on-premises laundries (OPL).

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services include cleaning and renting industrial garments (35 percent of the market); flatwork (20 percent); linens ...