The commercial and industrial laundry industry continues to evolve rapidly as we move through 2025, facing both challenges and exciting opportunities for innovation. Our comprehensive industry research of 90+ commercial laundry operators across North America (The State of Laundry) reveals that while digital transformation presents clear opportunities, many organizations struggle to leverage technology effectively to address their most pressing challenges.

In this article, we’ll explore some of the most pressing challenges facing commercial laundries today, including:

1. Rising operational costs
2. Labor shortages
3. Inventory management
4. Marketing and business growth

More importantly, we’ll provide actionable solutions to help your business thrive in this changing environment.

Challenge #1: Rising Operational Costs

It’s no surprise that rising operational costs top our list upon respondents, with an overwhelming 88% of laundries citing this as their biggest concern. From escalating utility bills to increasing material costs, the financial pressure on laundry operations continues to mount. 

Key Factors Increasing Costs:

• Increasing energy prices, particularly in states like California, New York, and Hawaii
• Rising water costs and usage requirements
• Growing labor expenses
• Equipment maintenance and replacement costs
• Raw material price increases

How to Reduce Operational Costs in Commercial Laundry?

Implementing cost-control measures has become critical for maintaining profitability. Our research shows that facilities implementing comprehensive cost management strategies can achieve 20-30% reductions in operational expenses. 

The following solutions, when implemented strategically, offer both immediate cost savings and long-term operational benefits:

• Leveraging energy-efficient systems and water reclamation technology can offer the biggest immediate impact but requires upfront investment
• Investing in preventive maintenance programs to extend equipment life provides consistent long-term savings with relatively low implementation costs
• Adopting smart monitoring systems to optimize resource usage creates a foundation for continuous improvement
• Considering sustainable practices that offer long-term cost benefits
• Implementing a laundry management software solution can help identify operational inefficiencies and increase profitability
• Exploring bulk purchasing agreements with suppliers can offer quick wins with minimal operational changes

Each strategy works best as part of an integrated approach. For example, smart monitoring systems can help identify where energy-efficient equipment would have the biggest impact, while preventive maintenance ensures new systems maintain their efficiency.

Challenge #2: Labor Shortages, and Finding and Retaining Talent

The second most significant challenge, affecting 70% of laundries, is the persistent struggle to find and retain qualified workers. This issue has become particularly acute as the industry becomes more technologically advanced, requiring skilled operators alongside traditional laundry workers.

Impact on Operations:

• Reduced productivity and efficiency
• Increased overtime costs
• Higher training, recruiting, and onboarding expenses
• Potential quality control issues

How to Solve Labor Shortages in the Laundry Industry?

The labor shortage requires a multi-faceted approach that goes beyond traditional hiring practices. Modern commercial laundries are finding success by combining automation technology with innovative workforce development strategies. 

While automation can reduce immediate labor pressures, creating an attractive work environment and clear growth opportunities has proven essential for long-term workforce stability. Our research shows facilities implementing these combined strategies have reduced turnover and improved worker satisfaction scores:

• Implement automated systems to reduce labor dependencies
• Develop comprehensive training programs
• Create clear career advancement pathways
• Offer competitive benefits packages
• Partner with local vocational schools and training programs
• Consider flexible scheduling options
• Focus on a culture-first workplace

Challenge #3: Inventory Management and Loss

With 49% of laundries reporting significant issues related to inventory loss or damage, effective inventory management remains a critical challenge. Surprisingly, only 42% of facilities currently use unique identifiers (such as RFID or barcodes) to track their linens, indicating a significant opportunity for improvement.

How Can You Prevent Inventory Loss in Commercial Laundry?

• RFID or barcode tracking systems for real-time inventory management
• Automated sorting systems
• Inventory management software, like LinenHelper
• AI-powered prediction tools for inventory optimization

Cost-Benefit Analysis

While implementing tracking systems requires initial investment, the potential savings are substantial:

• Reduced linen replacement costs
• Lower labor costs for inventory management
• Improved customer satisfaction through better service
• Enhanced ability to identify and address loss patterns
• More accurate billing and reporting

Challenge #4: Marketing and Business Growth

While 92% of laundries have a website, a surprising 35% don’t engage in any marketing activities. This represents a significant missed opportunity in an increasingly digital marketplace where clients are doing most of their research in advance of reaching out to linen or laundry service providers.

52% of commercial laundries who implement marketing strategies say that it’s their biggest driver of new business.

Current Marketing Landscape:

• Social media dominance (46% of laundries use social media)
• Email marketing effectiveness (31% of laundries do email marketing)
• Digital advertising (24% adoption)
• Traditional marketing decline (including ads in papers, tv commercials etc.)

Going all in on marketing can seem daunting, but it doesn’t need to be. With the right approach, even small efforts can drive big results. But for many commercial laundries, the biggest challenge isn’t just knowing what to do – it’s finding the time to do it.

That’s where working with a marketing agency partner can make all the difference. Instead of struggling to keep up with websites, social media, email campaigns, and digital ads on your own, an experienced agency can handle it for you – allowing you to focus on running your business while still growing your customer base.

For more actionable tips, check out our article in the American Laundry News about marketing strategies you can implement to start seeing results.

How Can Commercial Laundries Transform Their Operational Strategies?

As we move further into 2025, these challenges increasingly interconnect, requiring comprehensive solutions that address multiple issues simultaneously. Technology and innovation stand at the forefront of these solutions, offering new ways to optimize operations, reduce costs, and improve service quality.

7 Action Steps for Commercial Laundry Business Success:

1. Conduct a thorough assessment of your current operations
2. Prioritize technology investments based on potential ROI
3. Develop comprehensive training programs
4. Implement sustainable practices
5. Create a digital transformation roadmap
6. Build strong, diversified supplier relationships
7. Invest in marketing and customer retention

The future of commercial laundry lies in embracing innovation while maintaining operational excellence. By understanding and proactively addressing these challenges, laundry operators can position themselves for success in an evolving industry landscape.

Underpinning all these efforts is the strategic use of technologies, like laundry management systems, and modern payment tools. Laundries can help streamline their laundry management and operations through cloud-based software.

Using LinenMaster has significantly improved our efficiency. The biggest benefit for me has been accurate data recording—eliminating human errors and ensuring that every weight scanned is correctly saved. Instead of relying on multiple people to write and add numbers correctly, the system does it all for me.

Additionally, being able to track our linen through a reliable system has given me a solid foundation to work with. Now, when dealing with customers, I have clear data to reference, reducing uncertainties and giving me more confidence in our operations.

– David Casey, Director of Industrial Systems & Safety, Wiregrass Laundry & Linen Services

Want to learn more about how to address these challenges effectively? Download our comprehensive State of Commercial Laundry report or schedule a demo to see how our software solutions can help optimize your operations.