CHICAGO — It’s been a long five years since the events of 2020 caused major and minor “hiccups” in the business of industrial laundries. Operators have been striving to regain their footing and to grow.
As 2025 ended, many challenges remained, but movement and vision toward positive pounds processed and financial growth were on an upward trajectory.
So, what can the industry expect in 2026?
American Laundry News heard from four operators who shared their thoughts on the coming year for the industry overall and their individual businesses.
INDUSTRY PERFORMANCE IN 2026
Randy Bartsch, executive chairman of Ecotex Healthcare Linen Service, headquartered near Toronto, sees 2026 shaping up to be a year of measured growth but real transition.
“Demand is stable across healthcare, hospitality, food and beverage, and industrial, but operators are navigating a period of accelerated transformation — automation, AI, workforce gaps and rising customer expectations are reshaping the operating model,” he says.
“Consolidation will continue, and larger operators will use scale to invest in technology and national accounts. I also see some of the industry’s private equity-backed companies trade hands or merge. Independent operators will feel the competitive pressure, but those who lean into specialization, service relationships and modernization will perform well.
“Overall, I would characterize 2026 as a strong but structurally shifting year for the industry.”
“This industry is one of the most resilient industries in the world and I see it continuing to grow and expand in 2026,” adds Ben Fox, vice president of sales and marketing for Salt Lake City-based Alsco Uniforms.
Curtis Nichols, CEO of HandCraft Linen and Uniform Specialists based in Richmond, Va., expects 2026 to be a year of stabilized growth for the industry.
“Hospitals are busy, and the outpatient market is expanding,” he points out. “Operators who have been investing in automation over the last few years will have an advantage.
“Overall, revenue will be up, but profitability will depend entirely on efficiency.”
Edward Arzouian, compliance and special projects coordinator for Bates Troy Healthcare Linen Services in Binghamton, N.Y., also expects good things in the coming year.
“From our perspective in the healthcare linen sector in our markets — Central New York, New York’s Southern Tier and northeastern Pennsylvania — we believe our laundry industry operation will perform well and see moderate increases in pounds processed and clients served,” he shares.
CHALLENGES IN THE NEXT YEAR
Arzouian believes the challenges Bates Troy will face are like those throughout the industry and the economy in general.
Mergers and acquisitions (M&A), both in the laundry industry and with healthcare providers (hospitals, clinics, nursing facilities), will lead to both challenges and opportunities.
“The M&As in the healthcare industry mean we have to renegotiate contracts and deal with different entities doing things in different ways,” he says. “We have to adapt to that changing business environment.
“We have found that the M&As in the laundry industry often present us with an opportunity to gain new business and increase our market share because many of the M&As do not lead to better service. We provide better service.
“To paraphrase Jerry Seinfeld, private equity firms know how to buy laundry operations, but they don’t necessarily know how to run laundries, and when you think about it, running the laundries is the most important part.”
The economy has been facing volatility for five or six years since the pandemic and a changing political environment, Arzouian points out.
“Where supply-chain issues used to be a problem, now tariffs have complicated things,” he says. “The tariffs could provide opportunities as well as complications and expense. We have seen our linen costs go up because many are made overseas.
“However, the cost of disposables has also gone up. In general, the economy is seeing more U.S. investment to sidestep the tariffs. Will we see more linens made in the U.S.? Will we see more disposables made here? It is too soon to tell.”
The recent government shutdown was focused on some fundamental healthcare and healthcare insurance changes, Arzouian points out.
“Both sides of the political spectrum have said there needs to be change,” he says. “Changes in the healthcare industry trickle down to changes in healthcare linen business.”
Finally, Arzouian says workforce challenges for production-floor employees and equipment operators have subsided since the immediate post-pandemic period.
“We are finding productive and enthusiastic employees for those spots,” he shares. “A major concern remains finding qualified and experienced maintenance technicians. Our skilled technicians are retiring and moving on. New, younger, talented recruits are difficult to find.
“With new equipment becoming more and more complex and old equipment wearing out faster in heavier production, that is not a formula for success but rather one of concern.”
Arzouian says that when challenges arise in the coming year, they will be addressed with Bates Troy’s cautious but quick approach.
“We believe we have a nimble and resilient operation,” he explains. “We have a management team with a wealth of experience. We apply a lean and risk-averse strategy to our business. We are better prepared to weather storms than most.
“After the employment woes of a few years ago, immediately post-pandemic, we have managed to secure a reliable and productive workforce that has now gained experience. There is much less disruption.”
Nichols says the biggest challenge for HandCraft continues to be labor availability and retention, specifically for skilled maintenance and engineering roles.
“We have been leaning heavily into automation and predictive maintenance,” he says. “We’re using tools to tell us when a machine needs service before it breaks. This allows our maintenance team to be proactive rather than reactive.”
“All operations will continue to face increased tariffs and labor pressure,” agrees Fox.
He adds that offering services like first aid and restroom supplies to build route density beyond core laundry services will help Alsco overcome this year’s challenges.
Bartsch says that his company — and broadly across the entire industry — will be up against four big pressures:
- Skilled labor shortages, especially in technical roles that are critical for uptime and modernization
- Customers demanding deeper cost savings, pushing all suppliers — laundry included — to deliver more with less
- The race to adopt automation and AI fast enough to counter labor costs while bringing our workforce along with the change
- Protecting the service culture as the industry modernizes, ensuring technology enhances — rather than erodes — the customer experience
“Our approach is centered on talent, technology and disciplined execution,” Bartsch shares about facing the challenges he mentions. “We are focused on structured change management to assure that these new technologies actually deliver the productivity gains expected.
“We are also continuing to strengthen resilience, which includes production redundancy, improved inventory management, and proactive sustainability investments.”
Check back Thursday for the conclusion about the expected successes of 2026 and closing thoughts.
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Have a question or comment? E-mail our editor Matt Poe at [email protected].
