Table of Contents
AMA Research have published the 7th edition of the report 'Contract Cleaning Market Report – UK 2015-2019 Analysis'. This report incorporates original input and primary research, and represents an up-to-date and perceptive review of the market and its development. The report includes a detailed review of recent trends and developments in addition to the future prospects of the market, and should be of interest to companies currently operating in this market or considering entry.
Key areas covered:
Overall contract cleaning market - market size 2009-2014, key influences and trends.
Review of key cleaning sectors - including commercial offices, transport, healthcare, retail, entertainment/leisure and local & central government.
Review of the cleaning equipment and materials market - market size and trends 2009-2019, market overview, product mix, supply and distribution review.
Contractor review - overview of supply structure and recent corporate activity, trends in outsourcing, role of integrated FM providers, profiles of leading origanisations in the main supply channels.
Future Prospects - up to 2019. Key areas of insight include:
Review of contract cleaning market by size and sector - public sector, offices, education, healthcare, transport, retail etc – mix between in-house and contracted out/FM services.
Prospects for 2015-19 are relatively buoyant as economy recovers - but pressures on margins and rising input costs are resulting in a very competitive market. Potential impact of recently announced changes to Minimum Wage/National Living Wage.
Growth in outsourcing as organisations seek to reduce costs by focusing on key services – Leading FM contractors, profiles etc.
Trend towards powered cleaning equipment helping to underpin market for cleaning equipment and materials – potential impact of National Minimum Wage.
Some of the companies included:
Amey Group, Atlas Cleaning, Balfour Beatty WorkPlace, Carillion Facilities Management, Carlisle Support Services, Cofely, Consultant Services Cleaners, Devon Norse, Dublcheck, Ecocleen, Emcor Facilities Services, Eric Wright Facilities Management, G4S, GBM Support Services, Ideal Cleaning Services, Rentokil Initial, Integral, Integrated Cleaning Management (ICM), Interserve Support Services, ISS UK, Jani-King (GB), John Laing Integrated Services, Kier Services, Lancaster Cleaning & Services, Minster Cleaning Services, MITIE PLC, NIC Services Group, OCS Group, Resource Group, Serco Group, ServiceMaster Group, Skanska Facilities Services, Sodexo Facilities Management, TC Facilities Management (TCFM), Turner Facilities Management, Vinci Facilities, Voith Industrial Services.
Key areas covered in the report include:
Overview of contract cleaning market plus an analysis of underlying trends and key influences on the market in 2009-14.
Historical background - development of the market, influencing factors, economic influences, etc
Market size by value - 2009-2014 - market performance and prospects and factors influencing future growth potential with forecasts up to 2019.
Key influences and trends on the development of the market. Impact of the economy, legislation, environmental / sustainability issues, technological developments, changes to Minimum Wage/National Living Wage, price competition and trends within manufacturing and construction sectors.
END-USE SECTOR REVIEW
Review of key end-use sectors for the contract cleaning market - including market development since 2009 with forecasts to 2019, share of market by in-house/contracted services in 2014, key influencing factors.
Individual reviews for commercial offices, healthcare, transport, food hygiene, local authorities, central government, retail & distribution, entertainment & leisure and industrial sectors.
Contract cleaning market size by sector 2009-19 – key trends, factors influencing market, construction trends by sector.
Review of supply structure and corporate activity in recent years.
Role of Integrated FM providers, single-service contractors etc – key trends in outsourcing, impact of PFI contracts in public sector.
Profiles of leading organisations in the main supply channels – Multi-Service Providers, Contract Cleaning Companies and Franchise Networks.
CLEANING EQUIPMENT AND MATERIALS MARKET
Market size and forecasts for cleaninq equipment and materials 2009-19
Overview of market with recent developments, underlying trends and key influences on market with forecasts to 2019.
Product mix by value 2014 for powered cleaning equipment, manual cleaning equipment and cleaning chemicals.
Powered Cleaning equipment - product mix by carpet cleaning, hard floor machines, pressure washers/steam cleaners.
Key suppliers to the market and analysis of leading distribution channels.
REVIEW OF FUTURE PROSPECTS
Key influences on the contract cleaning and cleaning equipment markets including macro and micro economic issues.
Future developments in terms of the overall market - product trends, end use sectors and economic influences, in addition to other influences, growth of outsourcing and powered cleaning equipment, price and costs pressures, impact of introduction of National Living Wage, potential for further changes in the supply structure.
Contract cleaning is a mature and highly fragmented market, and is one of the most competitive of all the contracted-out sectors. Despite the difficult economic climate over the last 5 years, and continued cuts across budgets in both the private and public sectors, the market has performed reasonably well compared to the wider FM and construction industry. Though market was affected by the UK economic downturn, it has benefited by increased standards in cleanliness demanded by key areas like health and food hygiene. Many contract cleaning companies have reported relatively healthy levels of profitability and the market has seen steady growth with further modest growth forecast until 2019 reflecting ongoing recovery in the economy and rising costs.
One of the major issues facing the industry is the recent announcement in July 2015 of the Government’s Living Wage, which means that over 25’s will receive an hourly wage rate of £7.20 per hour from April 2016 rising to over £9.00 per hour by 2020. While some of these costs will be absorbed, the rise is substantial and will have a major impact on the contract cleaning industry where average pay rates are low and labour costs represent a high proportion of contract prices. As a result, this will inevitably drive the market upwards and is also likely to drive growth in the equipment sector as larger employers look to increase productivity levels to offset higher labour costs.
The provision of ‘one-stop shop’ solutions and bundled services has become an increasingly more attractive option, particularly for larger clients. The economic downturn also increased pressure on companies to improve their operational efficiencies and control costs. It seems likely that demand for bundled services contracts will continue to be a strong driving force in the market over the next few years. It has already become a key factor behind the number of acquisitions of single service providers by FM companies, particularly into specialist sectors such as energy management.
The UK market for non-domestic cleaning products, including equipment, materials and chemicals, has been largely flat in recent years and only modest growth is forecast for the 2015-2019 period. Key trends in this sector include; increasing development of antibacterial products, in particular in the healthcare, food preparation and hospitality sectors, growth in the powered cleaning machine sector, greater focus on improving efficiency and increased automation of cleaning processes, increase in daytime cleaning. The market continues to be strongly driven by legislation and higher standards for cleanliness, hygiene and health and safety.
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