October 25

Overview of the Commercial Laundry Industry in Australia

Blog insights


Within the commercial laundry industry of Australia, incredible growth opportunities are the name of the game. 

With a projected growth rate of 2.9% over five years through 2018-2019, the industry is expected to be valued at a whopping $1.3 billion. Owing to changes in the financial landscape, tourist patterns, technological advances, and other factors, commercial laundry services are, therefore, only at the start of a journey to the stars. 

Diving into a brief overview of the laundry industry, continue reading our post below for a look into the trends in the market at present! 

Demand for services is likely to increase in the future

As a result of the global financial crisis in 2008, many companies sought to make operations more efficient by outsourcing certain services to more qualified professionals. 

Here, the commercial laundry industry is one that witnessed a tremendous revival in the wake of this calamitous financial downfall. Downstream markets also required increasingly frequent laundering services, boosting the demand for commercial suppliers. 

Australia’s geographical proximity to China is also a decisive factor, in this regard. Given the burgeoning Chinese middle class, an influx of tourists into the country in recent years has led to an increased need for commercial laundering services. In addition to this, a greater demand for healthcare and in-house treatment has also skyrocketed the requirement for freshly laundered linen on a frequent basis. 

Investment in technological solutions will increase 

Another trend set to pervade the industry is the mass-scale investment into technological solutions and high-tech devices.  

Given that demand is set to increase, service providers will undoubtedly look to invest in top-of-the-line batch washers over the next five years. Owing to the improved efficiency of these newer models, it is only likely that operational costs will reduce, rendering commercial laundry services even more affordable. 

Such models will also prove a far cry from the clunky large-scale washers of the past, and will soon take the form of sleek high-tech machines.  

The Internet of Things (IoT) and smart technology are also likely to feature in future investments. In this regard, such solutions will improve the service delivery and efficiency within the commercial laundry industry, allowing companies to track and organise operations in an entirely seamless manner. This will even allow businesses to utilise a tagging system which connects to the cloud, keeping track of the status of each item as it’s being washed.  

A reduction in the use of non-renewable resources will take place 

Given the country-wide gravitation towards eco-friendly processes and businesses, commercial laundry services will also witness their operations becoming more sustainable in the immediate future. 

Owing to the extensive requirement of water and energy within the laundry industry, the introduction of green certificates has meant that service providers can no longer afford to be inefficient.  

In this context, the use of non-renewable energy systems and the use of products with high energy ratings will soon be a standard feature in every business. Beyond improved sustainability ratings, such moves are also likely to save companies a great deal of water, energy, and money in the long-run. 

New companies are likely to experience certain barriers to entry 

For new entrants who wish to capitalise on the growth opportunities within the commercial laundry industry, moderate barriers to entry will remain prevalent.  

In this regard, initial capital requirements, stiff competition, and emerging regulations may prove tough to overcome at the start of a commercial venture. In terms of upfront purchases, industrial washing machines, dryers, folding machines, transport equipment, and vehicles may prove to be prohibitive for certain startup companies. 

Key takeaways about the commercial laundry industry

Given the trends set out above, the commercial laundry industry is not just one that is set to enjoy massive growth, but also significant innovation. 

With the trend towards smart technology and eco-friendly practices, demand is only likely to increase, transforming the commercial laundry space into a profitable, multi-billion dollar industry.

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