This industry classification covers establishments primarily engaged in the operation of coin-operated or other self-service laundry and dry cleaning equipment either for use on the premises, or in apartments, dormitories, and similar locations. These include establishments known as laundromats, launderettes, and self-service dry cleaners. It also includes establishments primarily engaged in installing and operating coin-operated laundry equipment in apartments, dormitories, and similar locations.
812310 (Coin-Operated Laundries and Dry Cleaners)
The number of coin-operated laundries and dry cleaning establishments in the United States declined and leveled off to approximately 12,500 for much of the 1990s. This followed a one-year peak of 13,002 establishments in 1992, according to U.S. Census Bureau figures. Prior to 1992, the number of establishments hovered between 11,000 and 12,000. Of these, the overwhelming majority were primarily engaged in the operation of coin-operated or similar self-service laundry and/or dry cleaning equipment on their own premises; less than 1,000 were estimated as primarily engaged in installing and operating coin-operated laundry equipment in apartments, dormitories, and similar locations. These establishments employed more than 50,000 workers and had total revenues of $3.5 billion and higher as the century drew to a close. Revenue projections showed a consistent increase through the end of the decade, reaching 3.9 billion in 1998.
Although the coin-operated laundry and dry cleaning industry is highly fragmented, the clear industry leader is Roslyn, New York-based Coinmach Laundry Corporation, with more than 760,000 machines in the United States. In April of 1995, Coinmach acquired its former competitor and industry giant Solon Automated Services, Incorporated; and, in January of 1997, Coinmach acquired Dallas-based Kwik Wash Laundries, Incorporated, one of the largest companies in the industry. The 1997 combination of Kwik Wash and Coinmach earned total revenues of $248 million for the twelve months ending September 27, 1996. Prior to its acquisition of Kwik Wash, Coinmach's market share —with 245,000 units — was less than 10 percent; in fiscal year 1999, the company grew at a rate of 55.5 percent, with sales of $505.3 million, and 2,045 employees, which represented a growth of 10.5 percent.
This industry has been quick to embrace technological innovations. The former Solon Automated Services, Incorporated pioneered the use of IBM's Application System/400 Model B50 to link each of its sites to a centralized data bank. The system slashed accounting errors with the use of a bar-coding system that tracked the number of coins taken in by each machine and provided useful information about the machines — including usage and maintenance records.
Other new technologies include machine-readable cards that operate laundromat washers and dryers in lieu of coins. The cards, produced at Arthur D. Little, Incorporated's Center for Technology and Product Development, hold magnetically encoded data with patrons' monetary balances. Patrons use the cards to operate laundry machines, and the machines automatically read and deduct the charges from the card balance.
"Coinmach Laundries Corporation." Hoover's Online. Available from wysiwyg://20/ http://www.hoovers.com/co/capsule/1/0,2163,51271,00.html .
Darnay, Arsen J., ed. Service Industries USA. 3rd ed. Farmington Hills, MI: Gale Group, 1999.
Lazich, Robert S. Market Share Reporter. Farmington Hills, MI: Gale Group, 1999.
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