SAN JOSE, Calif. — In spite of the recession, a new report from Global Industry Analysts Inc. says, the U.S. market for drycleaning plants and coin-operated laundries will recover and gain momentum in the next few years, reaching $3.5 billion by 2015.
The number of coin-op laundries and drycleaning plants rose until 2007, “Coin-Operated Laundries & Drycleaners: A U.S. Market Report” says, but suffered during the recession. As the economy improves and housing stabilizes, the market will gain traction and register “considerable” growth in revenues.
After witnessing growth from 2005 to 2007, coin laundries took a big hit in 2008 and 2009, the report adds. Since their fortunes are tied closely to condo and apartment occupancy rates and new immigrant populations, coin-ops' business dropped due to an exodus of customers.
Recessionary unemployment, reduced disposable incomes and reduced wealth are expected to continue to hurt drycleaners and coin-ops in the short term, the report adds. Many Americans have curtailed their spending by using home washers; rising energy costs and environmental pressures are also thwarting growth.
As in the past, demand will result from a need for convenience, reduced free time, expanded working hours, and rising single-person households and dual-income families, the report says. Sophisticated consumers will pay a premium for better performance and convenience.
Technological advances have spurred a number of product launches that help operators save energy, conserve water and improve turnover times. A key trend among manufacturers is to improve “up” times and energy efficiency, Global Industry Analysts says.
For more details about the report, click here.