Mac-Gray - Competitors

Mac-Gray Competition

Now Viewing Mac-Gray's competition in: Dry Cleaning and Laundry Facilities (primary)

Recent Developments

Trade Dispute Affects Cleaners - A trade dispute between the US and China over steel hangers is affecting dry cleaners nationwide. After the International Trade Commission ruled that US manufacturers were unfairly injured by Chinese trading practices, the US Commerce Department imposed a tariff averaging 46 percent, doubling hanger prices. Many dry cleaners are urging customers to recycle hangers to help reduce costs.

Laundry Cost Benchmarking Study Released - A study benchmarking the various input costs of laundry operations indicates a higher price to process laundry than was previously thought. The study is especially important for operations considering expansion, investing in new systems, or opening new facilities. The study also finds more consistency in costs across geographies. It estimates that the cost of laundry has risen to between 65 and 87 cents per pound, and predicts that the cost will rise to $1 per pound by 2010.

Small Businesses Benefit from Economic Stimulus Plan - Small businesses, including dry cleaning and laundry operations, may benefit from the 2008 Economic Stimulus Act. The Act increases the maximum amount of depreciation under section 179 of the tax code to $250,000 for 2008, benefiting any business that buys assets in 2008. The Act also reinstates a 50 percent special depreciation, which allows businesses to depreciate 50 percent of an asset's cost during 2008, and the remaining cost over the asset's normal life.

Competitive Landscape

Demand is related to growth in consumer income. The profitability of individual companies depends on efficient operations and favorable store locations. Large companies have efficiencies of scale in centralized cleaning operations. Small companies can compete successfully by owning favorable locations or providing special services. The industry is labor-intensive: average annual revenue per employee is just $60,000.

Full Industry Overview For Dry Cleaning and Laundry Facilities

Dry Cleaning and Laundry Facilities Industry Forecast

from Hoover's/D&B subsidiary First Research

US personal consumption expenditures for cleaning, laundering, and repair of clothing and shoes, major drivers for dry cleaning and laundry facilities, are forecast to grow at an annual compounded rate of 5.7 percent between 2007 and 2012.

Dry Cleaning, Laundry, Related Services Growth Slowly Declines

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.