LG strikes major deal with CSC to dominate North America’s B2B laundry market

In a strategic move to expand its footprint in the high-growth B2B appliance sector, LG Electronics USA has signed a new commercial distribution agreement with CSC ServiceWorks, the largest provider of technology-enabled laundry solutions for multifamily housing, academic institutions, and hospitality properties in the U.S. and Canada. The partnership, announced on May 21, 2025, will see LG supply CSC with its advanced range of commercial washers and dryers, solidifying the South Korean conglomerate’s presence in the North American commercial laundry segment.

This distribution agreement represents a significant scaling opportunity for LG’s appliance division, particularly within the highly competitive U.S. commercial laundry equipment market. As part of the deal, CSC ServiceWorks will incorporate LG’s commercial laundry systems—renowned for their durability, energy efficiency, and innovative features—into its network of more than 1.5 million laundry units across North America.

What Does the LG-CSC Agreement Mean for the Commercial Laundry Market in North America?

The LG-CSC ServiceWorks partnership is positioned to reshape the commercial laundry solutions landscape by leveraging the unique strengths of both companies. For LG Electronics USA, the collaboration supports its B2B growth strategy by expanding distribution for its advanced commercial laundry products. The agreement enables LG to deliver its latest commercial washer and dryer innovations to a much wider market through CSC’s well-established infrastructure.

According to Sam Kim, president of LG Electronics USA’s appliance solutions business, the partnership will enhance value for both operators and end-users by combining LG’s proprietary technologies with CSC’s integrated service delivery platform. Kim described commercial laundry as a “priority category” for LG and stated that this deal reflects LG’s ambition to be a leading player in the commercial appliance segment.

For CSC, which is headquartered in Melville, New York, the agreement ensures a secure and high-quality supply of laundry machines amid growing demand across the multifamily, academic, and hospitality sectors. CSC CEO Rod Castellanos emphasized that LG’s focus on quality and technological innovation complements CSC’s mission of providing seamless user experiences and best-in-class service to property managers and customers alike.

How Does LG’s Commercial Laundry Technology Offer a Competitive Advantage?

LG’s commercial laundry units are equipped with proprietary features that distinguish them from other market offerings. Central to LG’s engineering is the Inverter Direct Drive™ motor, which enhances durability while lowering energy and water usage—factors critical in high-volume laundry environments.

LG machines also incorporate the 3D Gyro Sensor and advanced Balancing Systems that allow for real-time monitoring of drum movement. These systems reduce wear and tear by minimizing excessive vibrations and operational noise, a significant concern for facilities operating in residential or hospitality settings. The result is a longer machine life, smoother performance, and lower maintenance costs—key selling points for any commercial laundry operator managing large inventories.

In terms of product specifications, LG’s commercial washer range in the U.S. market spans from 3.7 to 5.2 cubic feet, while its dryers offer capacities from 7.3 to 9.0 cubic feet. Designed for environments with high throughput demands, the machines offer fast cycle speeds, quick spin initiation, and a front-access design. This front-facing configuration enables maintenance crews to service the units without extensive disassembly, reducing downtime and improving operational efficiency.

Why Is the B2B Laundry Segment a Strategic Growth Area for LG?

While LG is globally recognized for its consumer appliance portfolio, including ENERGY STAR® certified home appliances, its B2B segment—particularly commercial laundry—has emerged as a strategic focus area in North America. The commercial laundry category offers high-margin potential and recurring revenue opportunities via long-term contracts with institutional clients.

By aligning with CSC ServiceWorks, LG secures a major channel partner that not only distributes equipment but also manages entire laundry ecosystems for property managers, universities, and hospitality operators. This partnership structure allows LG to scale its presence in the commercial market without having to independently build a servicing or distribution network.

Moreover, the commercial laundry space has shown resilience and growth even during economic downturns, driven by the consistent demand for laundry solutions in shared living and hospitality environments. As urban living density increases and the multifamily housing market expands, so too does the need for robust, efficient, and serviceable laundry systems.

How Does This Deal Reflect Broader Industry Trends in the Commercial Laundry Sector?

The North American commercial laundry market has witnessed a shift toward digitalization, energy-efficient systems, and centralized service models. Operators increasingly prioritize machines that integrate seamlessly with property management systems, offer predictive maintenance, and reduce total cost of ownership.

CSC ServiceWorks is emblematic of this trend. The company leverages smart technology platforms to enable machine monitoring, mobile payment, and customer support, allowing for enhanced control and user satisfaction. LG’s machines, with their reliability and advanced diagnostics, are a strong fit for such an ecosystem.

Additionally, the commercial laundry industry is seeing consolidation and vertical integration as firms seek to bundle equipment sales, maintenance, and end-user experience under unified service agreements. The LG-CSC partnership mirrors this integrated model by coupling cutting-edge equipment with service-backed delivery at scale.

What Is the Broader Market Impact and Strategic Significance for LG and CSC?

This partnership could mark a pivotal shift in market share within the U.S. and Canadian commercial laundry equipment sectors. With LG’s manufacturing capabilities and technological strengths complementing CSC’s vast service footprint, the combined offering is poised to challenge traditional incumbents in the space such as Alliance Laundry Systems and Whirlpool Commercial.

The timing of the partnership is also notable. As energy regulations tighten and ESG considerations take center stage, LG’s efficient commercial washers and dryers offer an appealing value proposition for property managers aiming to reduce utility costs and meet sustainability targets. The combination of high-capacity, low-maintenance equipment with service-rich delivery gives CSC a strong competitive differentiator.

For LG, this partnership not only bolsters its B2B strategy but also reinforces its global brand positioning as a premium technology-driven appliance manufacturer. The North American market remains a key revenue driver for LG Electronics Inc., and this deal adds momentum to its push into sectors that promise long-term commercial growth.

A Forward-Looking Partnership in a Utility-Driven Sector

As LG Electronics USA deepens its commitment to the North American commercial appliance market, the collaboration with CSC ServiceWorks represents more than just a distribution agreement—it is a strategic alliance focused on reshaping service delivery in shared-use laundry environments. Both firms are betting on innovation, reliability, and customer-centric operations to drive adoption across sectors traditionally underserved by cutting-edge laundry technology.

Whether in high-density apartment complexes, college dormitories, or mid-range hospitality properties, the need for consistent, efficient laundry service remains constant. With LG’s advanced product portfolio and CSC’s expansive service network, this partnership is uniquely positioned to meet that need—while reshaping the future of commercial laundry across the continent.