The U.S. Commercial & Residential Cleaning Services Industry

 Published On: Jun, 2012 |    No of Pages: 226 |  Published By: Marketdata Enterprises Inc | Format: PDF
Request Free Sample

This Marketdata study examines the huge $78 billion commercial contract cleaning and maintenance services market. The business, which encompasses janitorial services, pest control, window cleaning, carpet/floor cleaning, parking lot maintenance, security, HVAC/facilities management and more, is very competitive, comprised of 906,000 mainly small operators, including 48,400 franchised outlets. Competitors run the gamut from mom & pop cleaners, to giants such as ABM Industries with $2.4 billion in revenues and UGL UNICCO with $852 million in commercial maintenance sales. This study traces industry size, growth, segments, structure, end-user demand, and operating ratios — Receipts for 1987-2010 actual, 2011-2012 estimates, and 2016 forecasts.

Steady sales gains of 5-7% per year, and 10% in 2007 came to a halt in 2009 with the recession, real estate bust, rising office building vacancy rates, and cutbacks in the frequency of cleaning by clients. Some customers even shifted to in-house cleaning. Low-ball prices, discounts and rebates have become the norm, hurting profits. Green cleaning and certification has become more important.

This is a complete analysis of: competitor market share, major industry trends, industry franchising, office and industrial building vacancy rates, impact of the recession, cleaning worker pay/turnover, outsourcing, more. Includes highlights of latest surveys by trade journals, as well as comments and outlooks by top competitors, trade groups and industry consultants. Separate in-depth chapters analyze the Carpet Cleaning and Residential/Maid Services segments. National, state and city ratios from Census Bureau surveys. Includes in-depth profiles and rankings of all the top franchise and non-franchise competitors (ABM Industries, Anago, Bonus Building Care, ServiceMaster, Jani-King, Jan-Pro, Clean Net, Coverall, Pritchard Industries, Red Coats, Vanguard, UGL Unicco.)

Introduction - Study Scope, Sources Used, Methodology 1-6

* Industry Nature & Definition: Description of the industry's major segments, services provided, NAICS codes

Executive Overview of Major Findings ($300) 7-27

* Highlights & key findings of all report chapters: industry nature, analysis of major trends/issues affecting the industry (the
recession, outsourcing, pricing, commercial office vacancy rates, commercial construction, franchising, green cleaning), outlooks by managements of competitors & consultants, industry size/growth -1987-2016 Forecast, 2009-2011 performance, franchising’s importance, sales of top competitors (franchises & non-franchise firms). Analysis of educational, healthcare, other key end-user segments, industry structure, 2007 Census key operating ratios (no. of services in U.S., avg. sales, by: janitorial, pest control carpet cleaning, other building maintenance services), client mix.

The Outlook For Office Space and Commercial Construction ($200) 28-47

* Status report of commercial & office construction activity and indicators: value of non-residential construction, commercial office vacancy rates in major metro areas & nationwide, discussion of absorption rates
* Outlooks by: Natl. Assn. of Realtors, CB Richard Ellis, Jones Lang LaSalle: 2012-2013 projections
* Industrial building outlook
* Medical building construction outlook
* Amount of existing commercial floor space by U.S. and by region (1986-2003 – latest data 2003), share of space by type activity (retail, education, healthcare)
* Commercial office vacancy rates, by10 largest cities, office mkts. With highest vacancy rates
* Discussion of absorption rates, “shadow space”.

Tables:

- National office vacancy rates by: downtown, suburban, metropolitan
- Top office space markets, by million sq. ft.
- Value of new construction of non-residential buildings, by type: 2008-2011
- Value of new construction of non-residential buildings: 1990-2011
- Distribution of floor space, by main building activity: 1992-2003 (gov’t suvey)
- 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)
- Distribution of commercial floor space, no. of buildings, by Census region.
- U.S. healthcare expenditures & construction spending: 1990-2010, 2016 projections.

Industry Size, Growth, Market Segments ($250) 48-62

* Discussion/analysis of 2-tiered mkt. structure (large contractors vs. small independents, and franchise organizations vs. non-franchise cleaners), estd. share by top 9 firms
* Discussion of factors affecting demand, the recession, performance during last recession
* Industry size estimates; rationale for estimates by varying sources, historical values – Marketdata's 1992-2016 estimates/forecasts, factors affecting recent growth
* Indy. Segment growth: analysis of janitorial revenues (by company), pest control
* Discussion of market size, based on commercial floor space vs. Census survey receipts
* 2012 & 2016 forecasts & outlook: Marketdata projections, key factors affecting growth
* Discussion of why the industry is recession-resistant, historical performance

Tables:

- Total industry potential, $ value and % change (1992-2011)
- Share of total receipts by exterminating/pest control, janitorial, carpet cleaning, "all other" building cleaning & maintenance services (1983-1998) - Census Bureau data
- Total industry receipts, by major segments, annual % change (2000-2010, Census Bureau): total Industry, pest control, janitorial, carpet cleaning, other services to buildings
- Annual percent change in receipts: 1992-2011
- Historical share of industry sales by pest control vs. janitorial/all other services: 1985-2007
- Employer vs. non-employer receipts: 2000-2009
- The 20 largest commercial cleaning companies list: 2011 revenues.

Status Report of The Carpet Cleaning Industry ($300) 63-82

* Nature of the business, evolution of the industry, how carpet cleaning services operate, services performed, franchises vs. independents
* Major mkt. trends/developments of past several years: discussion
* Discussion of impact of alternative floor coverings, impact on carpet sales/usage
* 2010 carpet cleaning truckmount survey results (ICS Cleaning Specialist magazine)
* Historical size of the industry: Marketdata estimates of true size of the segment (1987-2011)
* Discussion of how market potential derived, avg. annual sales per service, forecast and outlook for the sector, effect of recessions/gas prices/housing starts, other indicators.
* Estimates of commercial/residential/disaster recovery segments, $ values (2004, 2008)
* Industry outlooks by: SEARS Carpet Cleaning, Heaven’s Best, other consultants.
* Franchising: analysis of no. of outlets, start-up costs, the top 6 carpet cleaning franchisers, estd. systemwide revenues (2007-2011), franchises by no. of units,
* Carpet cleaner contractor operating ratios: highlights of 2010 Contract Cleaner CMM Magazine survey (revenues, avg. fees, methods, etc.), 1992-2007 Census… no. of estabs., receipts, avg. receipts per estab., sources of receipts, multi-unit firms, legal form of firm, top 50 mkt. share, source of receipts.

The Residential Maid Services Market ($200) 83-95

* Summary: nature & estd. $ sales per franchise vs. commercial cleaning services, list of top franchise companies in the business, franchises vs. independent maids, reasons for demand and effects of the recession, 2008-2016F $ mkt. size.
* End-user household demographics: findings of Mediamark Research survey: major target age groups and usage of professional cleaning services
* How maid services operate, fees charged, bonding, pay methods, immigrants, etc.
* Market size estimates, by trade group ARSCI, competitors, Marketdata
* Merry Maids revenues, by co.-owned vs. franchised units: 2008-2011
* List of residential cleaning services franchises: (The Maids Intl., Maid Brigade; Merry Maids, Molly Maid, Cottage Care, Swisher Maids, Mini Maid, Home Cleaning Centers of America) - addresses.

Tables:

- Projected no. of U.S. households using a maid or housekeep, by age group
- Residential cleaning franchises: start-up costs, franchise fee, royalty rates
- Number of maid services franchises: 2008-2011
- Franchise fees, total start-up costs, royalty rates, by company

Industry Structure & Operating Ratios of the Industry ($400) 96-178

Total Industry Analysis - Discussion/Text p. 96-121

* Explanation of how to interpret Census data, how the data is arranged/classified by NAICS codes, and major market segments, 2007 Census
* Service Annual Survey: Industry receipts and % changes
* Non-employer receipts of 906,000 sole proprietorships without payrolls, IRS data
* 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 2007 Census & comparison to 2002 data… re: legal form of organization, firms & estabs. by sales size (in receipts & employment); single/multi-unit operations.
* Labor productivity ratios: by industry segment: 2007
* Summary statistics: 1997 vs. 2002 vs. 2007 - 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: 2002, 2007
* Industry Financial health: composite income statement & balance sheet ratios, profitabilitytrends, by size of cleaning contractor (janitorial services, pest control, other services: 2007-2011

Statistical Tables: p. 122-178

Total Industry- All Types of Commercial Cleaning Contractors Aggregated - Total cleaning industry firms, by legal form of organization -corporations, sole proprietorships, partnerships: 1997, 2002, 2007 (no. of firms, receipts, payroll as % receipts,no. of employees).

- Single vs. multi-unit operations, by size (statistics as above) 1997, 2002, 2007.
- Concentration Ratios: ratios for top 4, 8, 20, 50 largest firms 1997, 2002, 2007
- Total Commercial Cleaning Firms, by receipts size (under $100,000 to $100 + mill.); (no. of firms, estabs., receipts, payroll, avg. receipts per firm) 1997, 2002, 2007
- Receipts & avg. receipts per establishment, by state - 1997, 2002, 2007.

Janitorial-Building Cleaning & Maint. Services

- Janitorial service firms, by legal form of organization - corporate, sole proprietorships, partnerships: 1997 & 2002, (no. of firms, receipts, payroll as % receipts, no. of employees)
- Single vs. multi-unit operations, by size (statistics as above) 1997, 2002, 2007
- Concentration Ratios : ratios by top 4, 8, 20, 50 largest firms 1997, 2002, 2007
- Janitorial service firms, by receipts size (under $100,000 to $100+ mill.) (no. of firms, estabs., receipts, payroll, avg. receipts per firm), 1997, 2002, 2007.
- Receipts & avg. receipts per establishment, by state – 2002, 2007.

Exterminating & Pest Control Services

- Exterminating & pest control firms, by legal form of organization - corporate, sole proprietorships, partnerships: 1997 & 2002, (no. of firms, receipts, payroll as % receipts, no. of employees) - Single vs. multi-unit operations, by size (statistics as above) 1997, 2002, 2007- Concentration Ratios : ratios by top 4, 8, 20, 50 largest firms: 1997, 2002, 2007.- Disinfecting & pest control firms, by receipts size (under $100,000 to $100+ mill.) (no. of firms, estabs., receipts, payroll, avg. receipts per firm), 1997, 2002, 2007

- Receipts & avg. receipts per establishment, by state – 2002, 2007.

Carpet Cleaning Services

- (all tables , as above) – 1997, 2002, 2007

Miscellaneous Building Maintenance Services

- (all tables , as above) – 1997, 2002, 2007

Competitor Profiles: Major Cleaning Franchise Organizations ($350) 179-212

* Summary - how many exist? - Entrepreneur magazine’s 2011 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. systemwide revenues, avg. estimated annual receipts, difficulties estimating revenues due to full-time vs. part-time workers; franchise investment pkgs. sold.

Tables:

- The major commercial cleaning franchises: 10 companies’ systemwide sales: 2011.

- Top janitorial franchises (no. of units 2006-2008, franchise. fee, royalty %, start-up $)

- The major commercial cleaning franchises, by no. of units: 2008-2011.

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, UFOC financials; 2009-2011 sales when avail., history & recent developments; acquisitions, number of franchises; marketing strategies)

* ABM Industries

* Anago Cleaning Systems

* Bonus Building Care

* Clean Net USA

* Coverall North America

* Jan-Pro Intl.* Jani-King Intl.

* ServiceMaster (incl. ServiceMaster Clean)

* UGL UNICCO Services

Reference Directory of Industry Information Sources
 213-227

* Addresses, phones, contacts at major industry trade associations, trade journals, consulting firms: commercial cleaning and carpet cleaning segments

If the above report does not have the information suitable for your business, we can provide custom research that can be lucrative for your business or enhance your profession.