US Janitorial Industry-An In-depth Analysis

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Cleaning Franchises are on an increase

JanitorialThe cleaning industry includes several services and is top notch industry with high returns worldwide. Comparatively, it is in top gear as these services are high on demand in developed nations like the US. American janitorial sector is experiencing a constant upsurge and the increase in business; this is seen especially in the last few years have been explosive.

The US cleaning or janitor industry includes cleaning services, dry cleaning carpet and upholstery cleaning and other facilities.  Dry cleaning and laundry services up holds a major chunk of the overall industry as it is a regular major service used by majority of the nation.

Janitorial Industry Numbers from US-

As per a market research dedicated to the sector, around 50,000 cleaning agencies were  offering their services in 2010 with an additional 9,000 carpet and upholstery companies. These service providers together grossed an annual collection of around $40 billion. This income ratio wise were segregated as 90:10 within cleaning agencies and carpet and upholstery services.

The laundry services also have a notable contribution to the sector in the US as there are around 30,000 laundries operating out of which 70% are retail laundry and dry cleaning agencies and the remaining are cooperated laundry locations. Together this niche of the sector showed up a $10 billion per year.

Service-wise domination of business-

Dry cleaning and Laundry services-

Dry cleaning (laundry business) as mentioned above has dominated the janitorial industry in the US. Owning a franchise in the dry cleaning occupation in America opens the gates to business with giant organizations; this enables a centralized cleaning pattern which cuts down the expenses which is not possible at smaller independent facilities. Customer retention is the toughest in the business as it depends on the pricing policy, fabric that is to be washed and the dedicated service provided by the company. Additional complimentary services like free pick-up services provided by laundries and dry-cleaning agencies have been a positive method of expanding the client list and retaining them. Therefore, acquiring a market share in the industry is important to stay alive in the business.

Carpet and Upholstery Cleaning-

Use of wall and floor carpets sparked a hike in the 1950’s. According to the numbers from 2010 there were around 70,000 employees working under the segment. About 20,441 business agencies were working in carpet and upholstery cleaning; though the segment was dominated by small scale businesses employing an average of 5 employees per company the annual income contribution from it totaled to more than $3 billion in revenue.

Cleaning Services-

The cleaning services had around 824,394 workers by 2010 and the number has shot up since then. It is known for the tough competition as top 50 performing companies’ cover 30% of the business. There is a mixture of large and small scale companies under this category of janitorial sector and more than 7% of the total employees working for the cleaning sector are believed to be self employed. Although this part of the industry suffered a dull period during the 2008 economic depression; it was tided towards profit making quarters by the healthcare sector which grew considerably.