SIC 3582 Commercial Laundry Equipment

SIC 3582

The commercial laundry, dry cleaning, and pressing machine industry encompasses companies primarily engaged in manufacturing nonresidential laundry equipment. Coin-operated machines are classified in SIC 3633: Household Laundry Equipment.

NAICS CODE(S)

333312

Commercial Laundry, Dry Cleaning, and Pressing Machine Manufacturing

INDUSTRY SNAPSHOT

In 2002 shipment values in the commercial laundry, dry cleaning, and pressing machine manufacturing industry totaled $574 million. The largest product group in this industry was commercial drying tumblers, which accounted for $171 million, or 30 percent of the industry total, followed by commercial washers and extractors, with a shipment total of $142 million (25%). Parts and accessories was the third largest sector at $90 million (16%), followed by dry cleaning equipment, with $32 million in shipments (6%).

During the early 2000s the industry suffered from a recessive economy and a significant slowdown in commercial construction. As the economy began to rebound in the mid-2000s, manufacturers expected that business would improve as companies placed more money in capital investment projects to build new or upgrade existing facilities.

Hotels, hospitals, and contract laundry services that serve commercial and institutional customers were the biggest consumers of commercial laundry equipment in the mid-2000s. Dry cleaners represented approximately 15 percent of the market. Government institutions, including the armed services, prisons, schools, and hospitals, were among other major purchasers.

BACKGROUND AND DEVELOPMENT

Maytag Corporation introduced the first electric washing machine in 1907. However, it was not until the 1950s that commercial laundry equipment producers achieved widespread market penetration. The proliferation of hotels, hospitals, and government institutions during the post-World War II economic boom pushed industry revenues to almost $300 million per year by the end of the 1970s. Continued growth in demand during the 1980s, particularly in hotel and hospital markets, increased sales to $587 million by 1988.

The commercial laundry industry faltered in the late 1980s and early 1990s as recession gripped the U.S. economy. Sales plummeted to $480 million during 1989 and bobbed up to only $526 million in 1990. Commercial...