TRSA Urges Feds to Modernize Industrial Classification Codes

TRSA has submitted comments to the Office of Management and Budget (OMB) calling for a more accurate classification of the linen, uniform and facility services industry under the North American Industry Classification System (NAICS).

The comments address proposed updates to the 2027 edition of NAICS, the federal framework used to classify business establishments and collect economic data. TRSA is asking OMB and the Economic Classification Policy Committee (ECPC) to reconsider the continued placement of industrial reusable textile-processing establishments solely in Sector 81, “Other Services.”

Facilities in the industry are currently classified principally under NAICS 812331, Linen Supply, and NAICS 812332, Industrial Launderers. TRSA’s comments explain that this placement associates modern, capital-intensive processing plants with consumer laundries and personal services, despite substantial differences in equipment, production scale, workforce, environmental systems, quality controls and measurable output.

“Industrial reusable textile processing is not simply a large version of household laundry,” said Kevin Schwalb, TRSA’s vice president of government relations. “Our members operate sophisticated production facilities that use controlled chemistry, heat, water, steam, mechanical action, automated material handling and quality-assurance systems to produce hygienically clean, specification-compliant textiles for critical commercial markets.”

These facilities serve healthcare, hospitality, food processing, manufacturing, cleanroom, public-safety and other institutional customers. Their operations include sorting textiles by material and soil type, applying formula-controlled treatment, sanitizing or disinfecting where required, drying and finishing, inspecting and repairing products, managing reusable inventory, and preparing finished textiles for another commercial-use cycle.

The industry’s scale also supports the need for a more precise classification. Census Bureau data cited by TRSA identify 1,421 employer establishments under NAICS 812332 alone. A 2026 Oxford Economics analysis commissioned by TRSA found that the industry’s served market supports $37.3 billion in U.S. GDP, 304,000 jobs, $21 billion in labor income and $9 billion in tax revenue.

Correct NAICS placement is important because the codes affect more than how an industry is described. Federal agencies use NAICS classifications to measure employment, payroll, capital investment, productivity and economic output. The codes also may be incorporated into federal contracting requirements, regulatory programs, administrative safe harbors and eligibility standards. An outdated classification can therefore understate the industry’s economic contribution and cause industrial textile-processing plants to be viewed incorrectly as consumer-service establishments.

TRSA has asked OMB to consider creating a new Sector 31-33 classification titled “Industrial Reusable Textile Processing” or moving qualifying components of the existing linen-supply and industrial-launderer codes into an appropriate production classification. If OMB declines to place the activity in Manufacturing, TRSA supports establishing a distinct industrial-processing code separate from consumer laundry.

At a minimum, TRSA is requesting a formal ECPC study that includes facility visits, establishment-level data, stakeholder consultations, comparisons with international classification systems, and analysis of similar activities, such as textile finishing, reprocessing, remanufacturing, restoration and contamination-control processing.

If a structural change cannot be completed for the 2027 revision, TRSA is asking OMB to acknowledge the classification issue, improve applicable definitions and explanatory materials where possible, and designate industrial reusable textile processing as a priority for the next NAICS revision cycle.

TRSA’s complete comments were submitted to Docket USBC-2026-0133. Click here to see the full text.