CHICAGO — The drycleaning industry is entering 2026 with more of a hard-fought sense of stability than perhaps in recent years, but challenges still remain. While operators have learned to adapt to post-pandemic realities, new pressures are constantly reshaping how cleaners do business.
Finally Finding Footing
After a few years of uncertainty, dry cleaners are finally getting their bearings, says Dawn Avery, executive director of the National Cleaners Association (NCA).
“I think we were just getting steady,” Avery says. “In the five previous years, you didn’t know where you were going. You didn’t know what was going to happen. I think during that time, cleaners were just trying to find their footing.”
This new sense of stability, Avery believes, comes with a shift in priorities. Many operators are reassessing what success looks like, seeking work-life balance after years of crisis management.
“A lot of dry cleaners are looking at their lives differently,” she says. “They don’t want to be there from 7 to 7 every day. They want to make the baseball game. They want to make the dance recital. They want to eat dinner with their family. So, what does that look like?”
Mary Scalco, CEO of the Drycleaning & Laundry Institute (DLI), has seen that successful operators have adapted by expanding beyond traditional drycleaning services.
“They’re positioning themselves more as a resource to the consumer for their wardrobe care,” she says, “and not just their dry-cleanable apparel.”
The Insurance Crisis
When asked about the biggest economic challenge coming in 2026, Avery says there’s a clear answer: “Business insurance has been one of the hardest industries to figure out for the dry cleaners for the past couple of years. It hasn’t really gotten better.”
The problem stems from a series of natural disasters that rocked insurance markets. Because of events such as California’s wildfires and hurricanes hitting Florida, New York and South Carolina, insurance companies dramatically raised rates or pulled out of certain markets entirely.
“The insurance companies are playing games,” Avery says. “If you have a claim, no one wants to insure you. But why are you paying for insurance if you can’t make a claim?”
The situation has become critical in some markets. Avery describes insurance companies sending renewal notices on a Friday afternoon for policies that expire Monday morning, with rate increases of 45-65%.
“They’re not giving them enough time to shop,” she says. “And I think they’re trying to pull out of the drycleaning industry. That’s fine, but say what you’re doing, because my members need help.”
Industry groups such as the NCA have been working to develop alternative insurance solutions, though Avery acknowledges the challenge remains significant. Even operators with good claims histories are facing steep premium increases.
“I think the cost of insurance is going to be a big challenge going into 2026,” she says.
Labor Remains Critical
While insurance may be the latest crisis, worker shortages continue to plague the industry.
“The labor market is going to continue to be a challenge,” Scalco says. “Even with the advances in technology, we’re still a labor-intensive industry. I don’t think the challenge of not only finding people in the workforce, but also of being able to keep up with payroll and wages, is going to go away.”
Christopher White, executive director of America’s Best Cleaners (ABC), is even more emphatic about the labor crisis.
“Labor is still the No. 1 biggest challenge — getting any type of help,” he says. “It is horrible to find people who are willing to work in the types of environments that we have in our industry.”
The problem extends beyond production staff. Finding customer-facing employees has become increasingly difficult, especially outside major metropolitan areas.
“The model that most operators ran with was hiring high school kids to work in the evenings and on the weekends, and that is no longer in existence,” White says. “The high school kids don’t want to deal with dirty clothes and customers. They’d rather work at Starbucks or do something online.”
The cost of this labor shortage goes beyond wages. White notes that turnover costs have also increased dramatically.
“The industry standard now is that onboarding and training a new employee typically runs the cost of 50% of their annual wage,” he says, “where it used to only be 30%, and that’s because of high turnover.”
The industry needs to change how it markets itself to potential workers, particularly younger generations, Avery emphasizes.
“For years now, it’s just been talked about as a dead-end job,” she says. “It’s not glamorous. Who wants to do that? We have to make it more appealing. As an industry, we need to look at how we’re going to educate younger people on what dry cleaning is, and the places they can move through the company. You may start at the counter, but you can end up being a manager.”
The solution, according to White, lies in active recruitment rather than passive job posting.
“The old ways of getting employees need to be thrown out the door,” he says. “You need to move from posting and hoping to active recruiting and looking for people.”
Successful operators are going into their communities, partnering with religious organizations and social services, and building strong workplace cultures that retain employees.
“Those that have built a strong culture, defend their culture and actively go recruit people to fit in that culture are the ones who are winning,” White says.
Come back Thursday for Part 2 of this series, where we’ll explore some unexpected growth opportunities and how consolidation is reshaping the industry.
Have a question or comment? E-mail our editor Dave Davis at [email protected].
