This category includes firms that primarily operate mechanical laundries powered with steam or other means. Companies that primarily supply laundered work clothing on a contract or fee basis are classified in SIC 7218: Industrial Launderers.
812321 (Power Laundries, Family and Commercial)
Projections based on U.S. Bureau of the Census County Business Patterns show a decline in the industry over the course of the late 1990s, with 1,422 establishments remaining by 1998, down from a peak of 1,853 in 1992. The industry grossed a high of $932 million and employed 26,700 workers in 1995, with a decline of $5.5 million projected by the end of the decade. Most of these businesses were sole proprietorships or family-operated. Employment averaged 13 workers per establishment.
The laundry industry grew steadily from 1990-1992 as it underwent significant change. New technology altered the way clothes were laundered, dried, and finished, and laundry automation made for greater speed, efficiency, and productivity. Two major industry areas currently getting attention are automation and environmental issues. The latter concerns the use of certain detergents deemed damaging to the environment—such as those containing phosphates—and the safe disposal of waste products. Phosphates, considered to be the most effective laundering compound, may accelerate algae growth in water and deprive it of oxygen. Attempts were made to restrict their use. The impetus came from within and outside the industry. Some laundry managers turned to alternative products, anticipating future regulations against phosphates.
As power laundries grew more automated, industry observers anticipated a reduction in labor requirements, and despite a 7 percent surge in the labor force in 1992 a pattern of workforce reduction persisted throughout the end the decade. Industry projections for 1998 indicated that employment levels would continue to decrease to 81 percent of 1992 figures, despite payroll and revenue growth. Automation increased productivity and reduced the need for workers by cutting down on the number of manual tasks. For instance, networking washers, dryers, and finishing machines eliminated manual handling of loads between different laundering phases. Computerization also reduced labor requirements for office tasks, such as data entry. According to Laundry News, "Computer systems and automated machinery allow laundries which might have previously operated two shifts with 100 people to operate one shift with 70 people." Automation may also reduce the number of accidents in power laundries and alleviate employees' health concerns. Laundry workers commonly suffer back injuries from heavy lifting, muscle strains from stretching, carpal tunnel syndrome from repetitive motions, skin diseases from contact with heavy duty detergents and chemicals, and heat stress conditions.
In the late 1990s, the leading family and commercial power laundry business in the United States was Unifirst Corporation of Wilmington, Massachusetts, a public company with annual sales of $419 million and an estimated 7,000 employees. Pride Cleaners Incorporated of Kansas City, Missouri was second, with $37 million in sales.
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.
U.S. Department of Commerce, 1992 Census of Service Industries. Washington: GPO, 1995.
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