The Contract Cleaning Industry in South Africa 2022

Introduction

While the pandemic heightened the focus on cleanliness and hygiene, the contract cleaning services industry was affected by the significant decline in demand for office rental space as people worked remotely. Many companies vacated their offices for an extended period, had to downsize or even close over the past two years. The industry is slowly recovering, but revenue has not returned to pre-pandemic levels. Companies are increasingly moving towards sustainability, using environmentally-friendly products that reduce their impact on air quality and the general environment.

Cleaning companies are expanding their services and investing in new technologies to improve quality and efficiency.

Opportunities

Smart technology to help save costs.

Technology such as online platforms facilitates expansion and job opportunities.

Outlook

The outlook is mixed, with some companies reporting that they are struggling and others indicating they are busy. The return to workplaces means increased demand for regularly cleaning. Industry associations said the industry is still recovering, and it is unclear how long it will take to reach pre-pandemic revenue growth. Some universities that previously insourced cleaning staff, are now outsourcing again, which offers growth opportunities. There are few to no barriers to entry in the cleaning industry, but the increase in new entrants poses a challenge of non-compliance with quality standards and legislation. While the global contract cleaning industry is seeing an increase in the use of automation, artificial intelligence, and robotics, South African companies are not readily adopting these technologies due to the need to create and preserve jobs by keeping the industry labour intensive. Report Coverage

This report on the contract cleaning industry in South Africa and includes information on key factors influencing the sector including office vacancies, the state of the property market and environmental issues, notable players and developments.

There are profiles of 27 companies including Bidvest Services, Excellerate, Tsebo Solutions, Supercare, Servest, SweepSouth and SkitterBlink, and specialist cleaning companies such as NAS Colossal Aviation Services.

Strengths

Cleaning services skills are included in the skills development plan of the Services Sector Education and Training Authority.

Low barriers to entry encourage competition. The industry creates employment, especially for young people, and the unskilled as training is provided.

Threats

Advancements in technology and increased use of remotely-operated cleaning equipment might mean fewer employees required in the future.

Cleaning companies are water-sensitive and the drought in some areas affects service delivery and revenue. Continued weakening economy could lead to reductions in current and potential cleaning contracts. High office vacancy rates and decline in construction activity will constrain growth in the sector. Increasing operating costs. Unreliable power supply.

Weaknesses

Lack of best practice among companies that are not National Contract Cleaners Association members. No proper enforcement of legislation and regulation by some companies. Workers are often exploited by informal operators.