Baird Survey: Respondents Remain in Growth Mode

Posted March 20, 2024 at 10:41 pm



Robert W. Baird & Co. and TRSA recently released the results of their First-Quarter 2024 Uniform & Linen Rental Survey. Respondents to both the uniform rental and linen rental surveys remained optimistic about their growth prospects this year.

In addition to the uniform rental and linen rental surveys, Baird asked healthcare operators about their rental revenue growth trends during the past 90 days. Eighty-four percent of survey respondents indicated that their healthcare revenues remained steady or experienced growth in the past 90 days compared to last year’s (first quarter 2023) levels.

Key uniform rental survey findings include:

  • Revenue Trends. 19% of respondents beat their internal revenue expectations for the quarter versus 25% falling short (56% as expected).
  • Add/Stops. Employment-driven expansion at existing accounts (i.e., Add/Stop Diffusion Index) held in positive territory at 56.7 (up from 53.6 last quarter). This remains generally in line with recent quarters and parallels still strong employment data.
  • No-Programmers. The no-programmer diffusion index turned positive again in the first quarter of 2024 at 53.3. This index has vacillated between positive and negative for more than a year.
  • Growth Outlook. Respondents expect roughly 4% rental revenue growth in 2024, essentially unchanged and on par with historical industry growth rates (roughly 3-5%).

Key linen rental survey findings include:

  • Rental Revenue Trends. 39% of respondents cited rental revenue trends above expectations with 50% in-line and just 11% falling short. The 28% relative spread continues trends of revenue at and/or above expectations.
  • No-Programmers. No-programmer interest remained solidly positive at 55.6 but dipped from 63.9 last quarter. The index has been in expansionary territory since dipping negative in 2020.
  • Growth Outlook. Forecasted 12-month revenue outlook held at 4.4%, slightly above the outlook for uniform rental revenue growth rates.

Survey participants include senior executives at linen, uniform and facility services companies across the United States, with some operations in Canada and other international locations. The total response pool includes nearly 500 independent firms.

Click here to view the full report. If you have any questions or comments, or would like to participate in the survey moving forward, contact Baird Senior Analyst Andrew Wittmann at awittmann@rwbaird.com or Senior Research Associate Justin Hauke at jhauke@rwbaird.com.

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