Cleaning up: The rising prevalence of business outsourcing has boosted industry revenue

The Commercial Laundries industry has performed well over the past five years, as businesses have increasingly outsourced their laundry and linen supply operations. This is part of a general trend towards businesses outsourcing their non-core activities. Demand from downstream operators has increased over the period, boosting industry demand and pushing profit margins higher. As a result, industry revenue is projected to grow at an annualised 3.0% over the five years through 2018-19, to reach $1.3 billion. This includes forecast growth of 2.7% in the current year.Growth in the accommodation and healthcare sectors has increased industry revenue over the past five more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Rising demand from healthcare and accommodation providers has boosted industry revenue
  • Expansion in the health and hospitality sectors has increased industry demand
  • Greater demand for hospital and aged-care beds will boost demand for linen laundering and rental services
  • Industry Report - Industry SWOT Analysis Chapter

    The Commercial Laundries industry is in the growth phase of its economic life cycle. The industry has benefited from a growing economy-wide trend to outsource non-core business processes, and industry operators provide a specialised service that they can perform with greater efficiency than if these functions were performed in-house. Generally stable economic conditions have also benefited the industry as businesses require more frequent laundry services, particularly with a surging tourist market from Asian countries stimulating demand for hotels.Industry value added (IVA) measures an industry's contribution to the overall economy. The industry's IVA is forecast to grow at a compound annual rate of 2.8% over the 10 years through 2023-24. Thi...purchase to read more.

    Additional Insights for the Commercial Laundries Industry

    IBISWorld has determined the most important Key Success Factors for the Commercial Laundries are:

  • Proximity to key markets
  • Ability to control stock on hand
  • Use of specialist equipment or facilities
  • IBISWorld analysts also discuss how external factors such as Demand from hospitals and Demand from accommodation and food services in the Commercial Laundries industry impact industry performance..

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    What's in this report

    What is the Commercial Laundries Industry?

    Industry operators provide linen, uniform and other laundering services to businesses such as hotels, hospitals and aged-care facilities. Some industry companies also provide linen and uniform rental services.

    Industry Products
  • Bed linen laundering services
  • Bathroom linen laundering services
  • Table linen laundering services
  • Uniform laundering services
  • Other laundering services
  • Industry Activities
  • Commercial laundry services
  • Linen cleaning and rental services
  • Uniform cleaning and rental services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from hospitals
  • Demand from accommodation and food services
  • Demand from business process outsourcing in Australia
  • Road freight service price
  • Demand from residential care services
  • Total employees in the labour force

  • Current Performance
  • Participation and profit
  • Outsourcing trend
  • Healthcare market
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream markets
  • Participation and employment
  • Outsourcing and technology
  • Table: Commercial Laundries Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • General Hospitals
  • Nursing Homes
  • Accommodation for the Aged
  • Motels
  • Restaurants

  • Key Selling Industries
  • Basic Inorganic Chemical Manufacturing
  • Industrial Machinery Manufacturing
  • Mining and Industrial Machinery Wholesaling

  • Products & Services
  • Bed linen laundering services
  • Bathroom linen laundering services
  • Table linen laundering services
  • Uniform laundering services
  • Other laundering services
  • Chart: Commercial Laundries Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Healthcare providers
  • Accommodation providers
  • Food-service providers
  • Other industries
  • Chart: Major Market Segmentation for the Commercial Laundries Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Commercial Laundries

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Commercial Laundries Industry

  • Industry Globalization
    Downer EDI Limited, Alsco Pty Limited, South Pacific Laundry Holdings Pty Ltd,
  • Table: Downer EDI Limited - financial performance
  • Table: Alsco Pty Limited - financial performance
  • Table: South Pacific Laundry Holdings Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Commercial Laundries 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 Commercial Laundries Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Batch Washer
  • Also known as a tunnel washer, in which linen is pushed through a tunnel with water and chemicals moving in the opposite direction.
  • Outsourcing
  • Contracting services to a specialist supplier for tasks previously undertaken in-house.
  • Washer Extractor
  • Washing machines used in commercial settings with high load capacities, faster spin cycles and rapid water extraction.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Commercial Laundries market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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 Commercial Laundries:
    • 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 Commercial Laundries 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 Commercial Laundries, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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