Mixed Results in First-Quarter Baird Survey

Robert W. Baird & Co. and TRSA recently released the results of their First-Quarter 2025 Uniform & Linen Rental Survey. The results on the uniform side were slightly more optimistic than recent quarters, except for add/stop trends. Linen rental trends remained positive, with first-quarter revenue meeting or besting expectations at the majority of responding firms.

First-quarter 2025 uniform rental survey highlights include:

• Revenues mixed, equally better and worse than expected. 38% of respondents reported revenues ahead of expectations in the first quarter, with 38% reporting revenues falling short of expectations. 25% met expectations. These results are moving in the right direction, as more respondents have reported shortfalls in four of the past five quarters.
• Add/Stops remained negative, for the longest stretch since 2008-’09. Employment-driven expansion at existing accounts (i.e., Add/Stop Diffusion Index) remained negative at 46.9. This index has been negative for four consecutive quarters, the longest stretch since it was negative for seven quarters, running from March 2008-September 2009.
• Revenue growth expectations ticked higher. Respondents expect more than 4% rental revenue growth over the next 12 months, the strongest outlook since June 2024.
• New business interest still fairly muted. The no-programmer diffusion index (a measure of the amount of new business available in the marketplace) was neutral at 50, though a bit better than the slightly negative numbers of the last two quarters. This index has been moving between positive and negative over the past two years.

Key takeaways from the linen rental side include:

• Rental Revenue Trends. 33% of respondents cited rental revenue trends above expectations in the fourth quarter of 2024 versus 22% below (44% met expectations). Thus, more than two-thirds of respondents were at and/or above expectations.
• No-Programmers. No-programmer interest improved in the first quarter of 2025 to 58.3 after moving into positive territory last quarter.
• Growth Outlook. The forecasted 12-month revenue outlook improved, and is now expected to grow 4.6%, versus growth of 3.9% last quarter. Growth expectations were steadily in the 5-6% range during the post-COVID recovery period. These numbers have shown steady moderation during the last several quarters.

On the healthcare side of the business, 83% of respondents reported rental revenue growth rates that met or exceeded expectations in the first-quarter survey. A total of 22% experienced revenue growth greater than 5% compared to the same period last year.

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.