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$117 Billion Commercial Cleaning Services Industry Takes On New Importance Due To Coronavirus

New Market Study
New Market Study

"Contract cleaning takes on increased importance."

April 14, 2020…  Marketdata LLC, a leading independent market research publisher of “off-the-shelf” studies about SERVICE industries since 1979, has released a 126-page market study entitled: The U.S. Commercial Cleaning Industry .   The study covers operating ratios, industry structure, size, major issues and trends, franchising, competitor profiles, and estimates national receipts from 1990s-2025 forecast.
“This $117 billion business, which encompasses basic janitorial services, pest control, building maintenance, etc. is huge but very competitive, comprised of mainly small operators, including 36,000 franchised outlets. Competitors run the gamut, from sole proprietors to giants such as ABM Industries with $6.5 billion in revenues. This is a low-investment business that’s easy to enter, and many do.”, according to Research Director, John LaRosa:

Major Findings

Revenues… Marketdata estimates that industry receipts will decline by 1.6% this year, due to Covid-19-related shutdowns and lost business, to a value of $117.3 billion.  However, we expect the recession to be sharp but short-lived, with a 7.4% gain and recovery forecast for 2021, and 5.4% annual gains thereafter to 2025.
Marketdata estimates that there was 92.8 billion sq. ft. of commercial floor space in the U.S. as of 2019, and the cost to clean it averages about $1.68 per sq. ft.

Within the industry, there are 60,219 janitorial service establishments, with total revenues of $50.4 billion, and average yearly revenues of $837,000.  Pest control establishments number 14,465, with receipts of $13 billion.
The industry employs 2.4 million workers. Salaries are low, there is high turnover, and there is no clear career path. Many workers, including recent immigrants, consider this to be temporary work until they find something better. Most workers earn less than $10/hr.
Competitors… The top 12 companies (mostly franchise systems) now operate 35,000+ U.S.-based units, and had combined systemwide sales of $13.5 billion.
Franchise total start-up costs vary widely, and royalty rates equal 8% of net sales.
Marketdata analysts think that the large and mid-sized cleaning contractors will be stimulated by the Coronavirus crisis—including disaster restoration firms. More facilities will need to be “deep cleaned” in the aftermath of the virus, and building managers will probably increase the frequency of cleaning to prevent future outbreaks. COVID-19 may well redefine the industry, with many small or heavily leveraged businesses closing.
End-user Demand… 90% of contract cleaners service office buildings.  Thanks to COVID-19, most office buildings across the larger cities are currently standing pretty much empty because employees are working from home. However, office space is typically leased for a longer period (usually five years), which means leases won’t be canceled just now because of the crisis.
Major industry issues include: a move to more certification and “green” cleaning, a shift to more science-based cleaning, high worker turnover, consolidation, and the bundling of services by large accounts (total service concept).
“It’s a mixed bag this year for this industry. Some contractors who serve retail outlets, schools, and even commercial office spaces are seeing steep declines, request for credits, withholding of payment, and facility closures, while others are booming.”, according to John LaRosa.

About The Report   

The U.S. Commercial Cleaning Industry, published in April 2020, is an independently researched “off-the-shelf” study.  The study is 126 pages in length and contains 68 detailed tables/charts. The study costs $1,295 and is also sold by individual chapters at lower cost.  A free table of contents is available by mail, email ( Contact: Marketdata LLC, 7210 Wareham Drive Tampa, FL  33647. Phone: 813-971-8080. Marketdata studies are also available online via commercial databases. John LaRosa is available for interviews. A 34-page Overview of major findings is available to the general public for $99.

About Marketdata

Marketdata is a 40-year old independent market research report publisher and consulting firm, with a specialty tracking service and healthcare sectors and emerging niche markets. The company performs custom studies, teleconferences and webinars, as well as business coaching.



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