US Contract Cleaning Services Market

  • June 2012
  • -
  • Freedonia
  • -
  • 286 pages

US demand to rise 4.7% annually through 2016

Revenues for contract cleaning services are forecast to advance 4.7 percent annually to $71.4 billion in 2016. Gains will be supported by a continued increase in the number of households and the number of business establishments rebounding from declines caused by the 2007-2009 economic recession. Furthermore, the recession motivated many cleaning companies to offer a wider range of services at more competitive prices, and the growing availability and affordability of these services will support revenue gains. However, the stronger price competition will hamper growth to some degree.

Favorable demographics, improving economy to boost demand

Changes in demographic trends will support increasing residential cleaning services revenues in several ways. For example, the oldest members of the baby boomer generation are reaching retirement age, and the number of dual-income households continues to increase. Both of these factors will create opportunities for residential cleaning service providers. Older citizens sometimes become unable to clean their own homes to the extent that they once did, and members of dualincome households often do not have the time or inclination to perform cleaning tasks. The economic recession had a strong effect on the residential market, and cleaning service revenue gains decelerated during the 2006-2011 period due in part to reduced demand for these services as consumers dealt with tighter budgets. Residential cleaning services revenue gains are projected to accelerate as the economy continues to improve through 2016.

Revenue growth in dominant interior cleaning market to accelerate

Interior building cleaning services are the largest contributor to cleaning services revenues, accounting for 74 percent of the total in 2011. Revenue gains are expected to accelerate slightly through 2016 for interior applications. Growth will derive from expansions in the number of business establishments and households, both of which will create more potential customers for cleaning service providers. Additionally, in both the residential and nonresidential markets, interior building cleaning services revenues will benefit from ongoing concerns regarding indoor air quality and cross-contamination. In the nonresidential market, companies are increasingly interested in preventing illnesses that can reduce productivity.

Outsourcing trends to benefit cleaning services

The nonresidential market is the main consumer of cleaning services, accounting for more than three-quarters of the total in 2011. Although this market for cleaning services is generally less volatile than the residential market, many companies reduced the frequency of cleaning functions or limited cleaning services to only areas visible to visitors in order to reduce expenses during the recession. However, efforts to cut costs also led to some nonresidential customers outsourcing cleaning tasks, which positively impacted revenues. Revenues will continue to benefit from the trend of outsourcing cleaning functions. Within the main nonresidential sector, revenues in the institutional segment are expected to rise the fastest through 2016.

Study coverage

This upcoming industry study, Contract Cleaning Services presents historical demand data for the years 2001, 2006 and 2011, plus forecasts for 2016 and 2021 by service, market and US region. The study also considers market environment factors, evaluates company market share and profiles 42 US industry players, such as Jani-King, COVERALL HEALTHBASED CLEANING SYSTEM, and JAN-PRO.

Table Of Contents


TABLE OF CONTENTS

INTRODUCTION XI

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4

General 4
Macroeconomic Environment 4
Demographic Trends 8
Employment Outlook 12
Consumer Spending Trends 14
Building Construction Trends 17
Residential 20
Housing Trends 22
Nonresidential 26
Nonresidential Building Stock 28
Office and Commercial Building Vacancy Rates 31
Business Formation Trends 32
Business Establishment Trends 35
Nonresidential Floor Space Trends 38
Service Sector Trends 40
Outsourcing 43
Regulatory Trends and Issues 44
Privacy Laws 44
Indoor Air Quality 45
Chemical Regulations 47
Ergonomic Safety Regulations 49
Training and Licensing Regulations 50
FTC Franchise Rule 50
Other Regulatory Issues 51
International Environment 52

III. SERVICES 55

General 55
Revenues by Service 56
Establishment and Employment Trends 58
Interior Cleaning Services 60
Industry Characteristics 63
Nonresidential Interior Cleaning Services 65
Business Type 66
Building Type 67
Residential Interior Cleaning Services 70
Transportation and Other 73
Business Type 73
Franchises and Corporations 74
Individual Proprietorships 77
Establishment and Employment Trends 79
Market Share 81
Floor and Fabric Cleaning 82
Carpet and Upholstery Cleaning 85
Industry Characteristics 88
Revenues by Type 90
Revenues by Market 90
Establishment and Employment Trends 93
Other Floor and Fabric Cleaning 95
Industry Characteristics 97
Establishment and Employment Trends 98
Market Share 100
Exterior Cleaning and Maintenance 103
Street and Parking Lot Cleaning and Maintenance 105
Window Cleaning 106
All Other Exterior Cleaning and Maintenance Services 107
Establishment and Employment Trends 108
Swimming Pool Cleaning and Maintenance 109
Industry Characteristics 112
Establishment and Employment Trends 113
Restoration and Remediation Services 114
Industry Characteristics 116
Establishment and Employment Trends 118
Other Commercial and Residential Cleaning Services 120
Commercial Vehicle Cleaning 122
Pet Waste Removal 123
All Other Cleaning Services 123
Establishment and Employment Trends 124

IV. MARKETS 126

General 126
Nonresidential 128
Institutional 130
Office 134
Commercial 137
Industrial 140
Other Nonresidential 143
Residential 146
Interior Cleaning 148
Floors and Fabrics 149
Swimming Pools 150
Restoration and Remediation 151
Exterior Cleaning and Maintenance 151
Other Cleaning Services 152
Transportation and Other 152

V. REGIONS 155

General 155
Regional Demographic and Economic Trends 155
Population Patterns 156
Economic Outlook 158
Nonresidential Floor Space 160
Housing Outlook 162
Regional Cleaning Service Revenues 165
Regional Market Profile 167
Northeast 169
Revenues by Type 171
Revenues by Subregion and Market 173
New England 175
Middle Atlantic 176
Midwest 177
Revenues by Type 179
Revenues by Subregion and Market 181
East North Central 182
West North Central 183
South 184
Revenues by Type 186
Revenues by Subregion and Market 188
South Atlantic 190
East South Central 192
West South Central 192
West 193
Revenues by Type 195
Revenues by Subregion and Market 197
Mountain 199
Pacific 201

VI. INDUSTRY STRUCTURE 203

General 203
Industry Composition 204
Market Share 207
Franchising 214
Competitive Strategies 218
Marketing 221
Mergers and Acquisitions 224
Cooperative Agreements 226
Company Profiles 228
ABM Industries Incorporated 229
Anago Franchising Incorporated 231
ARAMARK Corporation 232
BELFOR Holdings Incorporated 234
Bonus of America Incorporated 236
BW HLS Holdings, see Compass
Clean First Time Incorporated 238
Cleaning Authority LLC 239
CleanNet USA Incorporated 240
Compass Group plc 241
COVERALL HEALTH-BASED CLEANING SYSTEM 243
Crothall Services Group, see Compass
Disaster Kleenup International Incorporated 245
Diversco Integrated Services, see ABM Industries
DUCTZ International, see BELFOR Holdings
Duraclean International Incorporated 246
Dwyer Group Incorporated 248
EMCOR Group Incorporated 249
EMS Group 251
Executive Management Services, see EMS
FirstService Corporation 252
Fish Window Cleaning Incorporated 253
Grout Doctor Global Franchise Corporation 254
Harris Research Incorporated 255
Harvard Maintenance Incorporated 256
Healthcare Services Group Incorporated 257
Heaven’s Best Carpet Cleaning 258
ISS A/S 260
JAN-PRO Franchising International Incorporated 261
Jani-King International Incorporated 263
Maid to Perfection Global Incorporated 264
Maids International Incorporated 266
Merry Maids, see ServiceMaster
MilliCare Textile and Carpet Care, see Milliken
Milliken and Company 267
Molly Maid, see Service Brands International
MPW Industrial Services Group Incorporated 269
Paul Davis Restoration, see FirstService
Pet Butler Franchise Services Incorporated 270
Polygon AB 271
Pride Industries Incorporated 272
Professional Group, see BELFOR
Rainbow International Restoration and Cleaning, see
Dwyer Group
Roth Brothers, see Sodexo
Service Brands International LLC 273
ServiceMaster Company 274
Servpro Industries Incorporated 277
Sodexo 278
Southeast Service, see Compass
Stanley Steemer International Incorporated 280
Steamatic Incorporated 281
Temco Service Industries Incorporated 282
Transfield Services Limited 283
Triangle Services Incorporated 284
UGL Limited 285
United Group, see UGL
USM Service Holdings, see EMCOR

LIST OF TABLES

SECTION I -- EXECUTIVE SUMMARY

Summary Table 3

SECTION II -- MARKET ENVIRONMENT

1 Macroeconomic Indicators 8
2 Population and Households 12
3 Civilian Labor Force and Unemployment Rate 14
4 Personal Consumption Expenditures 17
5 Building Construction Expenditures 20
6 Residential Building Construction Expenditures 22
7 Housing Stock by Type 25
8 Nonresidential Building Construction Expenditures 28
9 Nonresidential Building Stock 30
10 Business Establishments 37
11 Nonresidential Floor Space 40
12 Services Income 43

SECTION III -- SERVICES

1 Contract Cleaning Service Revenues by Type 57
2 Contract Cleaning Service Establishments and Employment 60
3 Interior Cleaning Service Revenues by Business Type
and Market 63
4 Nonresidential Interior Cleaning Service Revenues
by Business and Building Type 66
5 Residential Interior Cleaning Service Revenues by Business
Type 72
6 Revenues for Interior Cleaning Service Franchises
and Corporations 76
7 Revenues for Interior Cleaning Service Individual
Proprietorships 78
8 Interior Cleaning Service Establishments and Employment 81
9 Floor and Fabric Cleaning Service Revenues by Type and Market 85
10 Carpet and Upholstery Cleaning Service Revenues by Type
and Market 88
11 Carpet and Upholstery Cleaning Service Establishments
and Employment 95
12 Other Floor and Fabric Cleaning Service Revenues by Market 97
13 Other Floor and Fabric Cleaning Service Establishments
and Employment 100
14 Exterior Cleaning and Maintenance Service Revenues by Type
and Market 104
15 Exterior Cleaning and Maintenance Service Establishments
and Employment 109
16 Swimming Pool Cleaning and Maintenance Service Revenues
by Market 112
17 Swimming Pool Cleaning and Maintenance Service
Establishments and Employment 114
18 Restoration and Remediation Service Revenues by Market 116
19 Restoration and Remediation Service Establishments
and Employment 120
20 Other Commercial and Residential Cleaning Service Revenues
by Type and Market 121
21 Other Contract Cleaning Service Establishments
and Employment 125

SECTION IV -- MARKETS

1 Contract Cleaning Service Revenues by Market 127
2 Nonresidential Cleaning Service Revenues by Market 130
3 Institutional Building Cleaning Service Revenues by Type 133
4 Office Building Cleaning Service Revenues by Type 136
5 Commercial Building Cleaning Service Revenues by Type 140
6 Industrial Building Cleaning Service Revenues by Type 143
7 Other Nonresidential Cleaning Service Revenues by Type 145
8 Residential Cleaning Service Revenues by Type 148
9 Transportation and Other Cleaning Service Revenues by Type
and Market 154

SECTION V -- REGIONS

1 Resident Population by Region 158
2 Gross Domestic Product by Region 160
3 Nonresidential Floor Space by Region 162
4 Existing Home Sales and Housing Stock by Region 164
5 Contract Cleaning Service Revenues by Region 166
6 Regional Commercial and Residential Cleaning Services
Market Profile, 2011 169
7 Northeast Cleaning Service Revenues 171
8 Northeast Cleaning Service Revenues by Type 173
9 Northeast Cleaning Service Revenues by Subregion and Market 175
10 Midwest Cleaning Service Revenues 179
11 Midwest Cleaning Service Revenues by Type 180
12 Midwest Cleaning Service Revenues by Subregion and Market 182
13 South Cleaning Service Revenues 186
14 South Cleaning Service Revenues by Type 188
15 South Cleaning Service Revenues by Subregion and Market 190
16 West Cleaning Service Revenues 195
17 West Cleaning Service Revenues by Type 197
18 West Cleaning Service Revenues by Subregion and Market 199

SECTION VI -- INDUSTRY STRUCTURE

1 Cleaning Service Revenues by Company, 2011 206
2 Selected Cleaning Service Franchises 217
3 Selected Acquisitions and Divestitures 225
4 Selected Cooperative Agreements 227

LIST OF CHARTS

SECTION II -- MARKET ENVIRONMENT
1 Year of Construction of Housing Stock, 2011 25
2 Office and Commercial Building Vacancy Rates, 2001-2011 32
3 US Business Formations and Dissolutions, 2000-2010 34
SECTION III -- SERVICES
1 Contract Cleaning Service Revenues by Type, 2011 58
2 Interior Cleaning Services Market Share, 2011 82
3 Floor and Fabric Cleaning Services Market Share, 2011 101
SECTION IV -- MARKETS
1 Contract Cleaning Service Revenues by Market, 2011 128
SECTION V -- REGIONS
1 Contract Cleaning Service Revenues by Region, 2011 167
SECTION VI -- INDUSTRY STRUCTURE
1 Contract Cleaning Services Market Share, 2011 209

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