This new 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).
FREE with purchase: A "done-for-you" PowerPoint presentation covering the market's characteristics, structure, $ size, growth drivers, forecasts, and key operating metrics.
Table of Contents
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 floor space 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 market 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, by10 largest cities, office markets with highest vacancy rates
Tables:
- Amount of commercial floor space in the U.S. - 1989-2025 F (EIA survey)
- Distribution of floor space, by main building activity: 2012
- No. of buildings and % of total floor space by type activity (education, health care, lodging, retail, offices, warehouses, etc.), by region (1986, 1989, 1992, 1995, 1999, 2003, 2012)
- Distribution of commercial floor space, by size of building: 2012
- Distribution of commercial floor space, no. of buildings, by Census region: 2012
- Value of new construction of non-residential buildings, by type building/sector: 2008-2019
- Value of new construction of non-residential buildings: 1990-2019
- National office vacancy rates: 2007-2019 (NAR)
- Top 10 office markets with highest vacancy rates: Q4 2019
- U.S. healthcare expenditures & construction spending on structures: 1995-2020 projections.
Industry Size, Growth, Market Segments
- Discussion/analysis of 3-tiered market 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
- Floor space, based on Census survey data - receipts of establishments nationwide, analyst's estimates/forecasts, factors affecting recent growth
- Analysis of employer vs. non-employer establishments and receipts: 2000-2020
- Industry Segment growth: analysis of janitorial revenues vs. total building maintenance 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.
Tables:
- Total industry potential, $ value and % change (1992-2020)
- Total industry revenues forecast: 2020 - 2025
- Share of total receipts by exterminating/pest control, janitorial, carpet cleaning, "all other" building cleaning & maintenance services: 2000-2017
- Total industry receipts, by major segments, annual % change (2000-2017, Census Bureau): total Industry, pest control, janitorial, carpet cleaning, other services to buildings
- Amount of commercial floor space in U.S. - 1989-2025 Forecast
- Annual percent change in janitorial services receipts: 2001-2017
- Historical share of industry sales by pest control, carpet cleaning vs. janitorial/all other services: 2000-2017
- Employer vs. non-employer receipts: 2000-2020
- Historical industry receipts (1983-1998) - Census Bureau data
- Historical share of industry receipts: pest control vs. janitorial & other services: 1985-2012
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 maintenance 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; market share top 50 firms ratios; summary findings of Census re: legal form of organization, firms & establishments by sales size (in receipts & employment); single/multi-unit operations.
- Summary statistics: 2007, 2012, 2017 - no. of establishments 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 establishments by state, top states' ranking: 2017
Statistical Tables:
- Receipts of all services to buildings (excl. landscaping) - pest control, janitorial, carpet cleaning, all other services: 2000-2017 (no. of establishments, receipts, receipts per establishments)
- Industry snapshot: 2002, 2007, 2012, 2017: key ratios (payroll, no. establishments receipts, etc.)
- Annual % change in receipts of janitorial vs. ALL building services: 2001-2017 Est.
- Employer vs. non-employer establishments - no. of establishments and receipts
- Total cleaning industry firms, by legal form of organization - corporations, sole proprietorships, partnerships: 2012 (no. of firms, receipts, payroll as % receipts, no. of employees)
- Single vs. multi-unit operations, by size (statistics as above) 2012
- Concentration Ratios: ratios for top 4, 8, 20, 50 largest firms: 2012
- Total Commercial Cleaning Firms, by receipts size (under $100,000 to $100 + mill.); (no. of firms, establishments, receipts, payroll, avg. receipts per firm) 1997, 2002, 2007
- Receipts & avg. receipts per establishment, by state - 2016
Janitorial Services
- 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, establishments, 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
Tables:
- The major commercial cleaning franchises: 13 companies’ system-wide sales: 2019
- Top franchises (no. of units 2010-2019, initial franchise fee, royalty %, investment costs)
- The major commercial cleaning franchises, by no. of units: 2010-2019
Profiles of The Leading Commercial Cleaning Franchises & Non-Franchise Firms
(For each company below: discussion & analysis of services offered, divisions, franchise packages offered/cost, markets served; strategies, actual or estimated revenues to 2019, history & recent developments; acquisitions, number of franchises units; marketing strategies)
- ABM Industries
- Anago Cleaning Systems
- Bonus Building Care
- Clean Net USA
- Coverall North America
- Jan-Pro Intl.
- Jani-King Intl.
- Pritchard Industries
- Red Coats
- ServiceMaster Clean
- ServPro
- Stratus Building Solutions
- Vanguard Cleaning Systems
Reference Directory of Industry Information Sources
Companies Mentioned
- ABM Industries
- Anago Cleaning Systems
- Bonus Building Care
- Clean Net USA
- Coverall North America
- Jan-Pro Intl.
- Jani-King Intl.
- Pritchard Industries
- Red Coats
- ServiceMaster Clean
- ServPro
- Stratus Building Solutions
- Vanguard Cleaning Systems
Methodology
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