The years to come look a little stormy due to the ongoing trade wars initiated by the Trump administration with so many nations which has led to a serious decline in the US economy and also created problems for Canada and other North American states.
For the US itself, the country’s economy had shown significant growth in recent years. However, the current trade policy has caused the gross domestic product (GDP), which had been experiencing strong growth, to contract in the first quarter for the first time in two years – even before most of the tariffs took effect.
Many local economists had already pointed at the existing risks of recession of the US this year, which may have a negative impact on the majority of its industrial sectors, including commercial laundry and drycleaning services. An almost similar situation can be observed in Canada and Mexico, whose laundries and drycleaners have always been dependent on the supplies of cleaning agents, detergents and other industry requisites from the US, supplies of which are now under serious question – at least in the same volumes as in the past.
The weakening US dollar and the existing risks of recession may also lead to the outflow of foreign investors, including some major laundry and drycleaning operators from the US market and the revision of their investment programmes there. But time will tell.
Traditionally, the North American market has been one of the priority markets for the large global players in the laundry and drycleaning sectors, but now there is a possibility that the situation in the near future may change.
One such company is the Spanish Onnera Group, which in recent years has significantly strengthened its position in the US market, where it operates via its subsidiary Domus Laundry.
As Dawn Nagle, head of Onnera’s marketing for North America told LCNi last year the company experienced record growth in the North American market. According to Nagle: “In the vended market, we worked with quite a number of investors who were new to the industry, as well as repeat customers. For on-premises laundry (OPL) businesses, this market has continued to grow for us, particularly in the hospitality sector. The beginning of 2025 has some challenges with tariffs and uncertainty in the market, but we have seen a growing interest in our high spin washers and our technology platform, DomusConnect. Customers are excited about the capabilities of DomusConnect and how it simplifies managing their businesses.”
Despite the generally cloudy forecast, Nagle remains optimistic regarding future prospects of the market. “We believe the laundry industry will continue to grow and be a viable investment for entrepreneurs in the vended sector. For both vended and on-premises laundry, our machines are designed to save water, time, and energy. The laundry manager or owner can program the machines, analyze water and utility usage, and make changes from wherever they are, at any time. The remote capabilities are very important to customers today. For the drycleaning industry, washers come ready and capable for wetcleaning, which can help drycleaners address the challenges they are experiencing.”
Particularly high hopes for the company are put on its ECOSMART Laundry, concept which was officially presented during Texcare International 2024 in Frankfurt, Germany.
In the meantime, representatives of another global player, Jensen, also believe that despite the current trade disputes and volatility of the US economics, its market, as well as the markets of other North American states will remain among the most priority markets in years to come.
Patrick Gittard, official spokesman for Kensen USA Inc hopes that the company will continue its development in the North American market within the next several years despite the existing challenges. Gittard comments: “Although we do see growing caution as a result of the market situation, we are still very optimistic about the future of the laundry industry. Jensen is very well positioned to service the market and help customers navigate many of the challenges ahead. In addition to a strong product portfolio and a dedication to delivering service to meet the highest expectations, our robotics solutions are gaining traction in the US market partially due to the continued labour pressures but also due to the change in the perception of the equipment as tested and reliable – and no longer a prototype. Additionally, we formed a team for helping advise customers on Automation, which we nickname the ‘A-Team’.”
Gittard adds that thanks to its managing policy, Jensen has avoided many of the challenges faced by other suppliers, like long lead times, for one. However he acknowledges the number of existing problems, which may prevent the more active development of the company.
“Of course the tariff situation is a challenge, but nobody can predict the longevity or severity of the impact. Lastly, one often overlooked but still important challenge is the aging personnel in the industry. The people who built the market over the last 40 years are going into retirement. Jensen is fully committed to the future of our customers by implementing succession planning as well as a robust training program for the next generation, and customers have commented that they appreciate this.” And, he also adds, energy issues are also attracting attention from the company.
The North American market has always been a target for German manufacturer and solutions provider Kannegiesser, which in recent years has significantly expanded its local portfolio and range. As the company points out, in 2024 and early 2025, it introduced the RFT Dry Work Line and eVue PRO software. The RFT system, with its cutting-edge robotics and 3D camera technology. The new technology tackles the labour shortages head-on, bringing on a new level of reliability and precision.
As an official spokesman of the company also adds, these innovations are not just about boosting productivity; they’re about transforming labour-intensive roles into tech-forward careers and future-proofing plants with intelligent systems. “We’ve learned a lot from our 65 successful installations across Europe, and now we’re bringing these solutions to North America.”
The company plans to showcase these advances at the Clean Show 2025 in Orlando, Florida this summer.
In regard to future market prospects, Kannegiesser anticipates growth in the demand for laundry and drycleaning services in North America due to increased hygiene awareness and sector growth.
The Kannegiesser spokesman continues: “Additionally, the US healthcare sector is moving towards increasing the use of hygienically clean reusable PPE instead of disposable textiles, which improves environmental sustainability and supplychain resiliency to protect frontline healthcare workers and patients. We are confident that our washing, extraction, and drying equipment provides our customers with the tools to meet and exceed hygienic standards and increase the life cycle of healthcare providers’ supply of personal protective equipment.”
As for major challenges, according to the company, they include labour shortages and rising operational costs. Kannegiesser ETECH in the USA is committed to addressing these challenges with is SMART laundry solutions and dedicated support.
The North American market has always been important for another major German laundry and drycleaning operator, Kreussler Inc.
As Richard Fitzpatrick, Kreussler Inc. vice president tells LCNi: “2024 marked the fourth consecutive year of substantial growth for Kreussler Inc. in North America, with annual revenue up more than 50% since the pre-COVID economy.”
To sustain this growth, he says, Kreussler continues to expand its skilled technical support staff, including the addition of five new technical sales representatives in 2024. At the same Fitzpatrick expects the company may face tough times in the North American market in years to come.
Fitzpatrick elaborates: “Drycleaning has and will continue to decline in the North American market. Consumer trends and the requirement for professional textile care are driving this decline. We continue to measure reductions in the number of garments taken into a PTC provider and the overall decrease of providers in every market. Many providers are trying to replace this lost revenue by expanding their offerings into traditional home laundry service, household bedding, linens, and personal garments. Home laundry tends to be labour-intensive with low margins, and for detergent manufacturers, not always the best fit for our products and solutions.”
Fitzpatrick adds the company is comfortable with its market position in professional textile care yet it is paying attention to the ever-growing importance of commercial laundry, for example, in the travel, hospitality and service sectors, as more people look to leave their homes and increase social activities in travel and leisure.
Fitzpatrick continues: “Currently, concerns about the economic and trade policies in the United States are slowing the markets. The extent and magnitude of this impact are unknown, but lessons learned from the pandemic and our overall focus on long-term goals will provide stability as we navigate the short-term effects.”
As for the effect on tariffs on the US itself, looking for enlightenment on what all this could mean to the US textile care industry, LCNi approached Joe Ricci, president and CEO of TRSA, the professional trade association for textile rental businesses across North America, covering not only the USA but also Canada and Mexico.
He said: “TRSA represents the $50 billion linen, uniform and facility services industry, which employs 200,000+ people at 2,500+ facilities in North America.
“A significant portion of linens and textiles in the United States are imported. Tariffs directly increase the cost of imported goods. For the linen and uniform rental industry, this means higher prices for imported linens and uniforms. In 2021, the US imported textiles and apparel worth approximately $144.6 billion,” said Ricci. “The majority of these imports come from overseas countries impacted by these tariffs. Overall, more than 98% of retail clothing sold in the United States is imported.”
“In addition to impacting textiles,” continued Ricci, “the tariffs will impact our equipment manufacturers, chemical suppliers and other essential products and services that require components not available in the US. These increased costs lead directly to higher prices for consumers and reduced profit margins for businesses along with other factors have also created a very high level of uncertainty that is just bad for business. Prices for domestically manufactured products will also increase due to greater demand.
“Whether these or other tariffs are implemented or just threatened to be implemented, economic uncertainty is causing companies to pause plans for growth forcing companies to hold back, directly impacting job creation. Even the threat of tariffs will also create supply chain delays and disruptions. Businesses will need to consider their sourcing strategies. While the United States would like more things made here, because that’s good for the economy, that’s good for jobs, new tariffs will drive up the cost of actually making those things here in the United States.
“The key to having a thriving US economy is having US companies that are investing and becoming more productive. And we can’t do that because we’re uncertain about immigration, tax and trade environment.
Meanwhile, Luci Ward, executive director, Textile Care Allied Trades Association (TCATA), which on 8 March held a useful webinar on tariffs, said: “Tariffs on imported goods have the potential to significantly disrupt the commercial laundry and drycleaning industry. With rising costs for essential equipment, chemicals, and supplies, businesses are faced with the challenge of balancing increased expenses while maintaining service quality and affordability for their customers. The ripple effect could ultimately impact not just manufacturers and distributors, but also the broader supply chain and the communities they serve.”
Directly after so-called Liberation Day back ijn March, Kyle E Nesbit, Southwest Drycleaner Association (SDA) president and Dry Cleaning and Laundry Institute International (DLI) chairman, told LCNi: “I know Tariff 232 Steel had already shot hanger prices from Mexico +17% and from China +24%.” It caused DLI members to pass on a price hike to the consumer of 2%.
It is the uncertainly and confusion, as much as the tariffs themselves, that are negatively impacting business and slowing potential growth, new hires, expansion and more.
