This study examines the huge and mature but fragmented $117 billion U.S. commercial cleaning and maintenance services industry
Building service contractors employ 2.4 million nationwide. The business is very competitive, comprised of 1.4 million establishments - mainly small operators, including 36,000+ U.S.-based franchised outlets.
Competitors run the gamut from mom & pop cleaners, to giants such as ABM Industries with $6.5 billion in revenues. This study traces the industry's size, growth, trends, end-user demand, structure, operating ratios, and competitors - Receipts for 1990-2017 actual, 2018-2019 estimates, and 2020 and 2025 forecasts.
The cleaning and sanitizing of public buildings has taken on a new importance with the COVID-19 crisis. In fact, many contractors are now seeing a boom in business. Worker turnover is still high, franchising is still popular, and green cleaning and OSHA and ISO certification have become more important.
The report covers the impact of the COVID-19 crisis and a looming recession.
Includes in-depth findings and analyses of all the latest surveys by the Census Bureau, trade associations and trade magazines, as well as outlooks by other analysts and consultants. National and state ratios from the Census Bureau, BLS, NAR, BSCAI and other surveys.
Includes in-depth profiles and rankings of 13 top competitors (ABM, ServPro, Jani-King, Coverall, Vanguard, ServiceMaster, more).
Key Topics Covered:
Introduction - Study Scope, Sources Used, Methodology
Industry Nature & Definition: Description of the industry's major segments, services provided, NAICS codes
Executive Overview of Major Findings
Highlights & key findings of all report chapters: industry nature, analysis of major trends/issues affecting the industry (COVID-19 crisis, recession, staff pay/turnover, commercial office vacancy rates, commercial construction, franchising, green cleaning), outlooks by trade associations, analysts and consultants, industry size/growth: 1997-2017, 2020 & 2025 Forecast, industry structure, 2012 & 2017 Census key operating metrics (receipts, avg. per establishment, payroll labor costs, etc.), client mix, services provided, top competitors ranking (franchises & non-franchise firms). Values of education, commercial, healthcare, retail end-user segments.
Demand factors: Outlook For Office Space & Commercial Construction
Analysis of the amount of commercial floorspace nationwide
Outlook for commercial & office construction activity and indicators: value of non-residential construction, commercial office vacancy rates in major metro areas & nationwide
Outlooks by: Natl. Assn. of Realtors, CB Richard Ellis, Jones Lang LaSalle: 2019-2020 mkt. status
Findings of 2018 BOMA Experience Exchange Report: commercial office and industrial expense trends, occupancy
Industrial and commercial building outlook
Medical building construction outlook
Amount of existing commercial floor space by U.S. and by region (1979-2012) share of space by type activity (retail, education, healthcare)
Commercial office vacancy rates, by 10 largest cities, office mkts. with highest vacancy rates
Industry Size, Growth, Market Segments
Discussion/analysis of 3-tiered mkt. structure (large contractors vs. small independents, and franchise organizations vs. non-franchise cleaners), estimated share by top firms
Discussion of major factors affecting demand: growth drivers
Industry size estimates; rationale for estimates by various sources - based on amount of commercial
Floorspace, based on Census survey data - receipts of establishments nationwide, estimates/forecasts, factors affecting recent growth
Analysis of employer vs. non-employer estabs. and receipts: 2000-2020
Industry Segment growth: analysis of janitorial revenues vs. total building maint. industry.
2020 Outlook and probable effects of COVID-19 crisis: outlook for non-residential construction, office vacancy rates, effect on small vs. large contractors, cleaning methods needed
2021-2025 Forecast: discussion of long-term effect on the industry, post-recession changes
Value of major industry segments in 2019: commercial office, industrial, healthcare, education, retail, other.
Discussion and $ value of the Disaster Restoration Market
Discussion and $ value of the Termite & Pest Control Market.
Industry Economic Structure & Operating Ratios
All Building Maintenance Services
Explanation of how to interpret Census data, how the data is arranged/classified by
NAICS codes, and major market segments, 2017 Census
Summary: discussion of total building services receipts in 2017, breakdown by type (janitorial services, pest control, carpet cleaning, all other maint. services)
Outlook by Bureau of Labor Statistics for demand for janitors (number, wages): to 2020
Labor productivity ratios: 2017 vs. 2012
Discussion of Non-employer receipts (sole proprietorships without payrolls) IRS data 2012
Discussion of industry Financial health: composite income statement & balance sheet ratios, profitability trends, by size of cleaning contractor (janitorial services, pest control, other services: 2007-2011.
Major findings of 2019 CMM Magazine survey: type services provided by cleaning contractors,
Square footage cleaned, share of revenues by building type, contractors' gross revenue classes
Summary & analysis: no. of cleaning establishments in U.S. and for leading states; no. of firms; industry size; avg. receipts per office by top states; mkt. share top 50 firms ratios; summary findings of Census re: legal form of organization, firms & estabs. by sales size (in receipts & employment); single/multi-unit operations.
Summary statistics: 2007, 2012, 2017 - no. of estabs; total industry vs. disinfecting/pest control, other services; annual receipts; payroll costs; no. of workers; payroll per employee; receipts per employee, receipts per establishment.
Geographic analysis - share of national receipts, avg. receipts per estab., by state, top states' ranking: 2017.
Janitorial service firms, by legal form of organization - corporate, sole proprietorships, partnerships: 2012, 2007 (no. of firms, receipts, payroll as % receipts, no. of employees)
Single vs. multi-unit operations, by size (statistics as above) 2012, 2007
Concentration Ratios : ratios by top 4, 8, 20, 50 largest firms: 2012, 2007
Janitorial service firms, by receipts size (under $100,000 to $100+ mill.) (no. of firms, estabs., receipts, payroll, avg. receipts per firm): 2012, 2007
Competitor Profiles: Major Cleaning Franchise Organizations
Summary - how many exist? - Entrepreneur magazine's 2019 Franchise 500 ranking,
Discussion: how cleaning franchises work and differ, services typically provided by parent, master franchises,
Analysis of avg. initial franchise fees/royalty rates/start-up costs
The industry's leading franchisers: parent co. vs. system wide revenues, avg. estimated annual receipts, difficulties estimating revenues due to full-time vs. part-time workers; franchise investment pkgs. sold.
Discussion of past problems with franchises, misrepresentation of earnings, churning of accounts, territory encroachment, lawsuits and Atty. General actions
Profiles of The Leading Commercial Cleaning Franchises & Non-Franchise Firms