Economic Realities, Strategic Moves Going into 2026 (Conclusion)

CHARLOTTE, N.C. — Even in an era when the world seems perpetually “on fire,” business owners continue to adapt, persevere, and find ways to grow.

That was one of the reassuring takeaways from economist Alex Chausovsky, director of analytics and consulting for the Bundy Group. His recent presentation to the Textile Care Allied Trades Association, “Economic and Policy Update: What to Expect in Late 2025 and Beyond,” offered clarity for leaders trying to chart their course through a volatile global economy.

For owners and operators of laundromats, wash-dry-fold (WDF) services, and related manufacturers and distributors, the message was clear: the coming year will require planning for multiple scenarios, communicating constantly with partners, and controlling the controllables.

In Part 1, Chausovsky shared how the U.S. remains the world’s dominant economic force, and how much of the recent turbulence in U.S. commerce stems from the reemergence of tariffs and unilateral trade actions under the current administration. Let’s conclude:

DATA CENTERS RISE, TRADITIONAL CONSTRUCTION SLOWS

Nonresidential building overall is down by more than $50 billion, except in one booming segment: data centers, Chausovsky says. Driven by AI infrastructure and semiconductor production, data center construction has jumped over $15 billion year-over-year.

This bifurcation — some sectors surging, others shrinking — mirrors what many laundromat suppliers see firsthand: strong demand from select tech-driven or service-heavy customers, but softness in traditional retail and commercial builds.

CONFIDENCE AND SENTIMENT: SIDEWAYS, NOT DOWN

“Hard data” like GDP and industrial production isn’t the only indicator of business health. “Soft data” — how CEOs and consumers feel about the economy — tells an important part of the story. The Conference Board’s CEO Confidence Index, for example, fell sharply after “Liberation Day,” when tariff actions escalated, but has since stabilized at a neutral reading of 50.

Leading indicators, such as capacity utilization, copper prices, and the Purchasing Managers Index (PMI), also point toward a flat to modestly positive 2026. For now, that translates into a slow-growth environment — challenging but manageable for well-run small businesses.

LABOR AND RETENTION: THE NEXT PRESSURE POINT

While the labor market has cooled since early 2025, Chausovsky rejects the idea that job weakness signals a recession. Layoffs remain at pre-pandemic levels, and most people who want jobs can still find them.

The real issue isn’t the number of jobs, it’s the availability of skilled people. For key technical and managerial roles, unemployment is below 2%.

That means laundromat owners and suppliers alike should focus on retention.

“You don’t have to be the best paying employer in the industry,” he advises, “but you do have to know at least what competitive market rates are and make sure your people feel like they’re getting compensated fairly.”

He recommends cost-of-living raises of 3–4% for 2025 to keep pace with inflation and prevent employees from feeling like they’re falling behind.

Chausovsky also warns that labor shortages will worsen without immigration reform. A report he cites projected that by 2027, the U.S. could begin losing hundreds of thousands of workers annually unless legal immigration channels are expanded.

WHAT LAUNDRY OWNERS CAN DO NOW

For small-business operators — especially those in the service-based, locally anchored laundry industry — Chausovsky’s recommendations center on proactivity and partnership:

Increase communication frequency — If you talk to your top suppliers quarterly, make it monthly. If you check in with key customers monthly, move to bi-weekly. Build a moat around your relationships. When times get tough, they’ll cut someone else before they cut you.

Scenario-plan like the military — Know what you’ll do in scenario A, B, or C before the event occurs. Whether it’s a tariff shock, supply chain delay, or power-cost spike, reacting in real time is too late.

Control what you can — Shop around for better logistics, utility rates, or supply options. Don’t assume long-term vendors remain competitive. “Try to use other people’s pessimism to your advantage,” he suggests.

Protect your margins creatively — For businesses affected by input costs or tariffs, consider line-item surcharges instead of across-the-board price increases.

Invest where the return is clear — Use tax incentives like accelerated depreciation to modernize equipment or expand automation. For laundromats, that could mean energy-efficient dryers, point-of-sale upgrades, or digital management tools.

Focus on talent retention — Competitive pay, predictable scheduling, and strong communication go a long way toward keeping valued attendants and managers. Losing trained people in a tight labor market can be costlier than inflation itself.

A MEASURED OPTIMISM

In closing, Chausovsky returned to the same message he opened with: confidence matters. Leaders don’t need perfect clarity about the future, he says, but their teams and customers look to them for assurance that whatever happens, they’ll figure it out.

For an industry that’s already weathered COVID shutdowns, inflation shocks, and utility volatility, that perspective rings true.

The world is complex, but complexity is survivable for those who prepare. For laundromat owners and suppliers entering 2026, that may be the most practical — and empowering— forecast of all.

Miss Part 1? You can read it HERE