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.
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
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 Heavenâs 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