Inflation Blitz: British Launderers Keep Calm, Carry On

The linen, uniform and facility services industry in the United Kingdom (UK) is growing and investing for its future, despite mounting pressures linked to spiking energy and other costs, plus the instability fueled by the Middle East conflict, according to industry leaders contacted by Textile Services Weekly.

While operators and association executives recognize the significance of these challenges, they’re nonetheless confident about their long-term prospects, which they see as buoyed by steady demand, sustainability initiatives and changing consumer habits.

The UK commercial laundry sector is facing cost pressures tied to the war in the Middle East that began in February, according to the UK Textile Services Association (TSA-UK). As fighting continues between Iran and the U.S. and its Persian Gulf allies, uncertainty is growing over the impact on global commodity markets. Disruptions to oil and natural gas production and transportation have pushed prices higher, raising energy, fuel and distribution costs for UK laundry operators. Natural gas prices remain above historic norms, creating ongoing challenges for an industry that depends heavily on energy-intensive processes.

David Stevens, CEO of the TSA-UK, said the conflict has raised concerns for the tourism sector, which is closely linked to demand for laundry services from hotels and other hospitality businesses. “There is uncertainty within the marketplace on the impact the Middle East war will have on overseas tourism, which may affect our market,” Stevens said. “This may be both positive or negative, as it may encourage more UK citizens to holiday within the UK, and there is some evidence that flight bookings from the UK are down. We also may see some overseas tourists avoiding the Middle East and see the UK as an attractive alternative.” Stevens believes any shifts in demand are likely to be limited, but he expects higher operating costs to fuel price hikes that ultimately impact customers.

Laundry operators agree that rising costs represent their most pressing challenge. Gary O’Malley, operations manager at Timpson Group in Manchester, England, said increases in electricity, natural gas and water prices have placed significant pressure on profit margins across the dry-cleaning and laundry sectors. “Utility charges, particularly electricity, gas and water, have risen substantially in recent years,” O’Malley said. “As textile care businesses are highly energy-intensive, these increases place considerable pressure on operating margins and limit the ability of companies to invest and expand as quickly as they would like.”

Alongside energy costs, businesses continue to face rising labor expenses, supply-chain inflation and challenges with staff recruiting. O’Malley also noted that broader economic uncertainty has affected public confidence. “Consumer spending patterns have also become more cautious due to broader economic uncertainty, which can affect demand for discretionary services,” he said.

Despite these obstacles, O’Malley emphasized that the industry has shown considerable resilience. Companies continue to invest in efficiency improvements, modern equipment and customer service enhancements to maintain competitiveness. Timpson has focused on improving operational efficiency, reducing energy and water consumption and expanding digital customer services. The company has also streamlined collection and delivery operations to meet growing demand for convenience.

Sustainability continues to shape investment decisions across the industry. CLEAN Linen & Workwear, one of the UK’s leading providers of textile rental services, has made emission reductions a key part of its strategy. The company, acquired by Alsco Uniforms in 2018, is working closely with suppliers and customers to align sustainability goals and identify actions that will maximize environmental benefits.

At the same time, CLEAN is pursuing growth opportunities across the UK. The company continues to expand its customer base, which already includes more than 2,000 organizations in various sectors. Management expects that number to continue increasing in the years ahead.

Elis UK, another major player in the sector and part of the France-based Elis Group, is also investing for future growth. Elis UK CEO Mark Franklin emphasized in an in-house interview that, despite an increasingly complex operating environment, the company performed well last year, expanding its presence in key markets and strengthening operational resilience. “At Elis UK, 2025 was not simply a year of progress – it was a year of acceleration and growth,” Franklin said. “Across our operations, partnerships and teams, we focused on driving meaningful change. This included expanding our capabilities, reinforcing our sustainability leadership and investing in the people and communities that help our business thrive. This year, we continued to expand our international footprint, strengthening our presence across key markets and enhancing the resilience of our network. By scaling responsibly and investing in innovation, we are ensuring that all our customers benefit from consistent quality, robust service continuity and forward-thinking solutions.

“We also launched new tools to help customers better understand and reduce their environmental impact. Our environmental workwear calculator is already enabling organizations to make more informed decisions about textile usage, water consumption and carbon emissions – reinforcing the measurable benefits of circular textile services over ownership models. Alongside this, we introduced new product ranges designed with durability, recyclability and lower environmental impact at their core.

“Internally, 2025 was marked by strengthened unity. The continued success of our employee-shareholding plan reflects the shared belief across Elis that long-term value is built collectively. When our employees are invested in the company’s future, it strengthens our culture, accountability, and ultimately, the service we deliver to customers. Every milestone achieved during this period reflects a single ambition: building a responsible future together – with our customers, partners and communities.”