Johnson Service Group - Competitors

Johnson Service Group Competition

Now Viewing Johnson Service Group's competition in: Linen and Uniform Supply Services (primary)

Recent Developments

Construction Outlook Not Encouraging - Industrial laundry services' fortunes are closely linked to those of the construction industry, and recent forecasts show construction industry weakness in 2009. According to McGraw-Hill Construction, spending on commercial buildings will be off 12 percent, and down 32 percent for manufacturing facilities, both compared to 2008 spending. Housing construction will also be weak in 2009.

Slow Economy Hurts G&K - The slowing global economy has caused G&K Services, a major uniform supplier and servicing company, to lay off staff and close plants. Though the number of jobs that will be lost is unclear, three of the company's plants will be closed, along with some of its branches. Rising unemployment among those who require uniforms and higher operating costs, such as for energy, are among other reasons G&K is making the moves.

Energy Costs Driving Prices - Linen and uniform supply services companies already face economic challenges in the current environment, but now they're facing price increases for chemicals and detergents used in cleaning uniforms. Companies such as Dow have raised prices as much as 20 percent recently, which will significantly impact costs for linen and uniform supply companies. In more positive energy cost news, diesel fuel prices, which impact companies' fleet costs, are projected to fall 2.5 percent in 2009 compared to 2008.

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.