In considering today’s business environment, about the only thing you can count on is uncertainty. Granted, life in business inevitably includes a few surprises. But several laundry operators and consultants we contacted say that they expect an unusually high degree of unpredictability this year—on issues ranging from inflation to automation, labor availability/quality, supply-chain issues and more.
To thrive in this environment, operators must lay out and execute their business plans, while poised to pivot when conditions require it. That was the consensus view among the industry leaders we contacted. For example, Brandon Rosenblatt, CEO of Commercial Laundry Corp., a hospitality operator based in Baltimore, said that while planning is essential, the ability to shift as conditions evolve is equally critical. “Worry about the things you can control, but also do your best to ‘skate where the puck is going,’” he says, quoting hockey great Wayne Gretzky.
Market & Tech Shifts
For Lace House Linen Supply Inc., Petaluma, CA, adapting to shifting conditions has meant focusing more on the fast-growing banquet and high-end hotel market. Previously, fine-dining establishments were the primary focus of this San Francisco Bay area company, says owner Phoebe Ellis. Restaurants in this high-priced, heavily regulated market often close without notice, says Ellis. “Over the summer, we had probably 5-10 restaurants just close…with no notice,” she says. “We heard about it after the fact, like Saturday night was the last night. They just locked the doors.” The winery business in Napa Valley and other parts of Northern California is also off, she says, due to shifting tastes. “The wine industry is suffering,” she says. “People aren’t drinking as much. The younger people aren’t drinking wine. Not as many tourists are coming to visit the wineries.”
But on the plus side, Ellis added that—even with inflation—high-end hotels in the Bay area continue to thrive. “Prices are going up on food and lodging,” she says. “But we haven’t noticed a decline in our high-end properties and the occupancy at high-end hotels.” Lace House experienced a similar phenomenon during the 2008-’09 recession and the COVID-19 pandemic (2020-’23), she says. “People that have money are still traveling and staying at four- or five-star hotels. So that’s what our niche market is.”
In a related move, Lace House also is competing with catering companies for table linens used at weddings and similar events. “We have seen an uptick in party rentals,” she says. “We have increased our inventory of round tablecloths, white, ivory and black ‘rounds.’” Lace House offers quality linens for special events to restaurants and hotels at more-competitive prices than many party-rental companies, she adds. “Some of our restaurants that have an event space or a banquet room are ordering those tabletops from us,” she says. “We’ve really seen an increase in that area. We invested in that inventory purposely. So that’s been helpful. And a couple of our hotels that have ballrooms or banquet rooms, they’ve used us for those events, rather than outsourcing it.” To accommodate this growth, Lace House is upgrading its machinery. “We’ve definitely invested in finishing equipment,” Ellis says. “A new folder that really helps with tablecloths and napkins. Two new towel folders, which are much more efficient. We’re contemplating an expansion and adding equipment.”
Similarly, in healthcare, a company’s growth or decline could hinge on advances in plant technology and looking at shifting customer needs. “As I look toward 2026, I see the healthcare laundry sector at an inflection point,” says Randy Bartsch, executive chair of Ecotex Healthcare Linen Service in Vancouver, Canada, and chair of TRSA’s Board of Directors. “Shifts in healthcare delivery, tightening clinical expectations, workforce scarcity and the rapid advance of automation are all converging. At the same time, hospitals are under extraordinary financial pressure, and sustainability mandates are accelerating decisions around reusable textiles.”
Bartsch notes that these trends are reshaping how health systems operate and their expectations for service providers. “The last few years have demonstrated our industry’s resilience,” he says. “The next few years will demand that we convert that resilience into smarter, leaner, more data-driven and technology-enabled operations—while strengthening the reliability and infection-prevention performance that healthcare depends on.”
Automation is rapidly becoming a core lever for improving efficiency, consistency and workforce stability. “Robotics, automation and AI-driven production systems are shifting from isolated pilot projects to more routine capital upgrades,” Bartsch notes. “Automated sorting, AI vision-based quality inspection and predictive maintenance are advancing quickly and addressing long-standing labor constraints and reducing variability in plant performance.” While these technologies require investment, Bartsch emphasizes that they will become essential for operators facing chronic staffing shortages, rising safety expectations and pressure to increase throughput. “Looking ahead,” he adds, “the operators who win will be those that integrate automation in manageable phases, upskill their teams and generate clear, measurable ROI from every deployment.”
Rosenblatt adds that local issues can affect the pace at which companies like Commercial Laundry implement automation. “I believe this depends on your market, the competition and a host of other factors, including the regulatory environment and mandatory minimum wage,” he said. “We are in a highly competitive, high-wage market, so we have felt a sense of urgency to keep pace with market trends. Our response has generally been to invest further in technology and automation. We believe long-term that will be the winning strategy across most, if not all, markets.”
Automation and various tech-related upgrades are welcome improvements, says consultant Gerard O’Neill. But he also urges operator clients to improve internal operations to boost productivity and cut costs. “What I’m telling them is to make sure that their house is in order,” says O’Neill, president/CEO of American Laundry Systems. “So instead of looking at other buildings or expansions, there’s always internal improvements that can make you more efficient and able to handle the rough waters ahead. Many people overlook that because they don’t look inside.” This includes basic upkeep, such as fixing leaky steam traps. The problem is “They’re always looking outside and you know the faraway hills are greener.”
While upkeep is important, Chris Welch, president of Prudential Overall Supply, an Irvine, CA-based independent industrial launderer with a national footprint, says his company’s focus is on pioneering technological advances in partnership with suppliers. Their goal is to save labor while improving efficiency and throughput. “We are taking an ‘early adopter’ approach and looking for opportunities to ease or eliminate the need for human labor in every area of production,” he says. “Coupling this with AI (artificial intelligence) to reduce mundane tasks in a service or administrative role allows us to focus our talent on what drives value in the business.”
Welch shrugged off the issue of market uncertainty, saying that issues such as inflation or supply-chain disruptions won’t alter Prudential’s fundamental approach. “There’s no change from how we regularly manage our business,” he says. “The environment is always uncertain; you just may not be aware of that fact…Having solid cash flow, marginal or no-debt leverage and effective operations allows you to do many things without regard to underlying economic turbulence. Being faithful to core principles and your mission statement goes a long way in accomplishing this over distant horizons.”
Inflation & Tariffs
Another operator, Josh Wildman, CEO of the Wildman Business Group (WBG), Warsaw, IN, agreed that market uncertainty isn’t unusual. As for inflation, he says, “For Wildman, the impact on our cost structure was not as significant as we expected. But we are seeing the impact of uncertainty around tariffs and costs really starting to impact our customer base and specifically the RV and Bourbon industries.”
Consultant Steve Royals, president of Performance Matters, conceded that while he can’t predict prices, he anticipates a leveling off of inflation in the coming months. “The reality is, inflation—spanning fuel, textiles, machinery, parts and other inputs—isn’t about to magically revert to ‘business as usual’ in my opinion,” he says. “The U.S. printed a lot of money, and with that you see costs rise. I do expect inflation to settle in line with traditional numbers (i.e., roughly 3%), mainly because what we’ve seen isn’t sustainable.”
Ellis says she’d welcome relief from higher costs. This is especially true in the Golden State. With its harsh tax and regulatory policies—plus nationally imposed tariffs—almost everything costs more in California. “Yes, we always have the highest gas price (average $4.47 per gallon, as of Dec. 13, 2025),” she says, adding that natural gas is costly as well. This summer, a couple of linen vendors imposed temporary fees to help cover their tariff costs. Vendors have later waived these charges, she says. Other suppliers, such as Lace House’s chemical vendor, also added charges; then dropped them. Fortunately, Lace House is has an on-site well for its water. Nonetheless, the company’s water-pretreatment costs have risen , she says. “So that’s another cost,” she says. “Across the board, our costs have probably gone up 3%-5%.”
Andrew Wittmann, senior research analyst for Baird Equity Research, Industry Services, agreed that overall inflation is likely to ease in 2026. “Yes, certainly having energy costs falling is a great start—not just for the direct impact on natural gas and motor fuels, but behind the entire supply chain,” says Wittmann. He is a co-author of Baird’s quarterly surveys of the linen, uniform and facility services industry, produced with TRSA. “Textiles and machinery are harder to predict, especially with heightened tariff risks. Still, at the base, lower energy costs are great for the bottom line and stimulative for the economy as a whole.”
Bartsch says businesses always find ways to cope with higher costs and tightening customer budgets. He predicts the emergence of creative financing options to help healthcare laundry operators keep pace with rising demand for their services. “Tighter government and hospital budgets mean capital will remain scarce,” he says. “New plant builds will give way to retrofits and targeted modernization. The emphasis will be on clear financial returns—energy efficiency, labor savings and sustainability gains that improve the total cost of ownership. I see an evolution in leasing as ‘equipment-as-a-service,’ and new vendor-financing models as operators look for flexible ways to fund modernization.”
He also predicts continued consolidation. The remaining independents will have to differentiate themselves in the market. “Private capital and consolidation remain active in our space,” Bartsch says. “Larger regional operators have the advantage of scale and access to capital to fund their digital transformation, while independents can succeed by specializing, partnering or leading in service, quality and compliance.”
Speaking of regulations, few of the industry leaders we contacted expressed concerns that in 2026 they’ll face an expansion of costly enforcement actions related to environmental protection. That reflects the less-aggressive approach that the Trump administration has taken toward phasing out fossil fuels and restrictions on wastewater management. That of course doesn’t limit states and/or municipalities on environmental enforcement.
Sustainability Status
A concern for 2026 in one area of environmental compliance centers on per- and polyfluoroalkyl substances (PFAS). The U.S. Environmental Protection Agency (EPA) has already labeled two members of this family of chemicals, PFOA and PFOS, as hazardous. Developed in the 1940s, these chemicals are used across various applications, such as non-stick cookware. PFAS substances in some products used by linen, uniform and facility services companies include fluid-resistant isolation gowns and flame-resistant garments.
For better or worse, our sources expressed cautious optimism that PFAS enforcement—due in part to the administration’s less-restrictive approach—won’t pose significant challenges for the industry in 2026. “You know, I think it’s really gotten quiet in the last year,” says Wildman, whose company operates a plant in Holland, MI, a state that’s taken a keen interest in PFAS remediation. “Yes, I think since the change in Washington, it has really died off.” He adds that the situation regarding PFAS enforcement in Michigan, where WBG acquired WM Uniform in May 2023, has also remained quiet in recent months. “It’s been interesting because that was a concern as we broadened into Michigan, and actually dealing with the state of Michigan,” he says. “I think, while they certainly have different regulations than the rest of the country, we haven’t experienced it.”
California, another environmental-enforcement hotspot, also has seen little in the way of PFAS enforcement in recent months, Ellis says. “It continues to come up occasionally,” she says. “We’re always in contact with our chemical provider and what they’re hearing. But it doesn’t seem to be that relevant right now.” She remains cautious, noting that a revved-up enforcement effort could emerge at any time with little notice to businesses.
Separately, the EPA recently issued a revised rule on PFAS. At press time, TRSA was preparing comments on the revised rule, which includes an implementation delay beyond the April deadline, coupled with exemptions for imported items and those with trace amounts of PFAS (<0.1%).
PFAS aside, customer demands for hygiene and sustainable policies show no sign of easing, especially in healthcare, says Bartsch. “Hospitals and governments alike are setting sharper expectations around environmental performance and supply-chain accountability. Energy and water efficiency are not just sustainability goals—they are procurement criteria. Operators who can quantify and effectively communicate their environmental footprint reductions will be better positioned to compete.”
Regarding hygiene, healthcare providers are increasingly demanding that linen providers meet high cleanliness standards. “Infection control and resiliency remain central themes,” Bartsch says. “Hospitals are demanding greater documentation, validated processes and surge-capacity plans to ensure continuity of service in emergencies. Investing in data capture, process validation and contingency planning is both an operational necessity and a market differentiator.”
TRSA will remain active on both the hygiene and supply-chain accountability fronts in 2026 through its Hygienically Clean certification programs for Healthcare, Hospitality, Food Safety and Food Service. TRSA will also advocate in states such as New York and California, and at the federal level for legislation that would require a 50-50 mix of reusable and disposable isolation gowns and other personal protective equipment (PPE). This policy is aimed at advancing sustainability, while safeguarding supplies of PPE.
The industry has made progress on the issue of healthcare reusables—particularly since the shortages associated with the COVID-19 pandemic. But O’Neill says it remains an uphill battle, due to external and internal factors related to suppliers and hospital decision-makers. “The picture that the disposable guys painted with that is that this is much more environmentally clean,” O’Neill says, speaking of disposables. “It’s not true.” Sometimes doctors also prefer disposables, and they have clout with hospital management. O’Neill suggests working closely with all levels of hospital management, especially nurses. This could spur progress on the use of reusable PPE.
Another area where laundry operators face challenges in 2026 is staffing their plants and route services.
Hiring: What Matters
Bartsch notes that, due to technological developments, operators are reevaluating their hiring and training efforts. “Labor remains our industry’s greatest challenge—and opportunity,” he says. “While automation may reduce some manual tasks, it elevates the need for technically skilled maintenance and production teams. Investing in workforce training, ergonomics and clear career pathways will be key to attracting and retaining talent.”
O’Neill, who works with laundry operators across North America, says some fast-growing areas are more competitive for labor. However, the key to meeting staffing needs anywhere is to show in how you treat staff. “It’s a geographical thing,” he says. “Because I have a couple of customers now that I’m working with, and they have no problems with labor whatsoever. They’re a little outside the norm in the laundry business, which means they pay close attention to labor. They’re nicer to their staff. They have a nice break room, not a little shanty off to the side of the building somewhere. Stuff like that matters.”
As for retention, people are more likely to stay if they’re respected and valued. “I think you need to retain your employees by treating them really nice,” O’Neill says, adding that, “Look, you’re always going to have a competitor, or some other businesses that are trying to lure your employees away.” One way to respond to that is to boost pay. “Minimum wage doesn’t cut it anymore,” he says.
For Ellis, fair pay is a part of a broad-based drive to keep staff motivated. “Yes, we are able to get plenty of people, great people,” she says. “But we’ve really invested in our culture, our people, our environment. I mean, that has been a priority coming out of COVID. We want to keep you engaged. We want to keep you involved in our business.” Some companies may not embrace the “hands-on” nature of linen supply, particularly for a company like Lace House that places a high priority on quality. “We feel like we’re a ‘people business,’” Ellis says. “We need our people. We’re never going to be completely automated, right?” Ensuring high quality in a largely manual environment requires multiple textile inspections, she says. “We tend toward a lot of ‘touches,’ because we’re so focused on quality.”
Wildman says his company boosts employee engagement by focusing on helping people in need—locally, nationally and internationally—through aid programs that involve staff directly. For example, each October, WBG takes a group of employees—from top managers to hourly staff—on a mission trip to the Dominican Republic. While there, they assist with a nonprofit-education program developed and sponsored by WBG and local partners. “We had 27 people on this last trip,” Wildman says. “What we find is when somebody takes one of those trips with us, the engagement level goes up. We call it a ‘vision trip’ because people catch the vision for why we do what we do.” Culture is a key differentiator for labor, he says.
Welch adds that it’s not just about the number of job candidates but the quality of those who join his company. He sees a looser labor market in 2026. That could give Prudential a better shot at hiring/retaining qualified candidates. “The labor market looks like it will continue to soften, allowing for a better pool of labor to select from.”
Navigating the New Year
Meanwhile, another possible consequence of the labor crunch is the risk that shortages of engineering/technical staff could lengthen lead times on machinery orders from suppliers, says O’Neill. Typical deliveries of new machinery—“ironers, tunnels, you name it”—once were roughly 16 weeks—12 for manufacturing and four for delivery. Now it’s 32 weeks or longer, he says. In extreme cases, well-known companies can take up to 18 months to produce finished equipment. O’Neill suspects companies haven’t recovered from the pandemic. “When COVID hit, they went to skeleton crews,” he says, speaking of suppliers. “I don’t think that they revamped after COVID.” One operator told us anonymously that he’s waited 18 months for equipment.
Others downplay supply chain issues. Prudential hasn’t had difficulties with deliveries, noting that they are near their historical averages, Welch says. Wildman adds, “No, the supply chain’s been good,” particularly textiles. “I think now the headwind is just the uncertainty and how that’s affecting our customer base.”
Given today’s volatile environment—from inflation to labor and supply shortages—operators should assess how these trends impact customers, Wittmann says. “Ultimately, focusing on what your customers’ needs are has to be the guiding light. Where possible, look first at areas in central costs, supply chain and in the plant that don’t directly impact the customer experience.”
Bottom line? Linen, uniform and facility services operators that demonstrate resilience and the ability to adapt to changing conditions are poised for growth in 2026. TS
JACK MORGAN is senior editor of Textile Services. Contact him at 540.613.5070 or jmorgan@trsa.org.
