Alsco - Competitors

Alsco Competition

Now Viewing Alsco's competition in: Linen and Uniform Supply Services (primary)

Recent Developments

Construction Spending Decline Continues - The total value of US construction put in place, a demand driver for uniform supply services, declined 5.1 percent in the first five months of 2008 compared to the same period in 2007. Residential construction declined 27 percent; nonresidential construction rose 14.5 percent. Many experts say that US economic weakness will prevent residential construction from rebounding in 2008.

Fuel Price Increase Continues - Rising fuel prices continue to drive up delivery costs for linen and uniform supply services. The average US retail price of diesel rose 63.3 percent in the third week of July 2008 compared to the same period in 2007. Many experts cite rising worldwide demand, the weak US dollar, and trader speculation as key causes of the fuel price increase.

Federal Government Contractors Must Use E-Verify - President Bush signed an executive order requiring contractors that do business with the federal government to use E-Verify, the Employment Eligibility Verification Program, to ensure that their employees are eligible to work in the US. The order is intended to reduce hiring of illegal immigrants and workers with expired visas. Linen and uniform supply services with government contracts may be impacted. At least 11 states also require contractors to use E-Verify.

Competitive Landscape

Demand is driven by employment trends, as swings in labor and service hiring impact uniform and garment needs. The profitability of individual companies depends on efficient operations and maintaining low labor costs. Large companies have advantages in centralized laundry plant operations. Small companies can compete effectively through excellent service and custom solutions. The industry is highly labor-intensive: average annual revenue per worker is $70,000.

Full Industry Overview For Linen and Uniform Supply Services

Linen and Uniform Supply Services Industry Forecast

from Hoover's/D&B subsidiary First Research

US personal consumption expenditures for dry cleaning and laundry services, which are major indicators for linen supply services, are forecast to grow at an annual compounded rate of 4.4 percent between 2008 and 2013.

Dry Cleaning, Laundry Services Growth Steadies

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.