The professional cleaning services industry is a labor intensive market and mainly thrives on the growth of the real estate sector. The industry faced downturn during post 2008 recession which hit the real estate sector badly. However, years of economic strength helped the industry bounce back, and in 2015, the industry generated $51 billion in revenue. Not just that, its market size is expected to grow at a CAGR of 6.2% to reach $74.3 billion by 2022.
What is Professional Cleaning?
The professional cleaning service industry broadly comprises all commercial as well as residential cleaning services that are involved in providing contract based cleaning, care-taking, or janitorial services to individuals, companies, and other entities. It is one of the most commonly outsourced services with clients ranging from schools, hospitals, offices, factories, warehouses, government facilities, residences, etc. The various types of cleaning services they provide to these clients can be:
- Carpet cleaning
- Window cleaning
- Cleaning and restocking bathrooms
- Floor cleaning
- Graffiti removal
- Street cleaning
- Roof cleaning
- Exterior cleaning of buildings
- Trash emptying and recycling
- Many more
Industry Description & Revenue Breakdown
Professional cleaning services can be roughly divided into residential cleaning services, commercial janitorial services, specialty cleaning, and laundry/dry cleaning services. This market segmentation is done based on their types, applications, products, and the technology they use. The industry was employing more than 3.5 million people through over 875,000 lac business units in 2015.
The revenue breakdown of cleaning industry (based on the Scott-Mason Business Services Investment Banking’s report):
- Standard commercial cleaning- 77.6%
- Residential cleaning- 7%
- Damage restoration (water damage repair, mold removal, etc.)- 4.6%
- Others– 10.5%
The majority of global revenue from the cleaning industry comes from commercial and retail sectors. Revenue from residences has also increased with the growth in affluent class of society, while educational and healthcare facilities are the fastest growing sectors.
Business Risk & Outlook
The industry as a whole is highly susceptible to economic downturns as we saw during the 2008 recession. The revenue fell by 5.3% in 2008 and by 6.1% in 2009. This happened not just in the commercial cleaning sector, but also in general cleaning services. Particularly, Residential Cleaning Services took a major blow. That’s because cleaning industry is a labor intensive market and the employability depends hugely on the growth of businesses and economy. A higher office vacancy during the recession gave a further blow to the industry.
However, the industry bounced back with a stronger growth in the economy around the world backed by a huge investment in the facility management by the companies. With the global facilities management industry expected to reach almost $395 billion this year, the demand for commercial cleaning services is on an all-time high. The industry, which is already growing at a compound annual growth rate (CAGR) of 4.3%, is now expected to grow at a CAGR of 6.2% to reach $74.3 billion by 2022, as estimated by Allied Market Research.
Key External Drivers of the Cleaning Industry
- Growth in the number of businesses develops a large potential client base for cleaning services.
- Low office vacancy rate gives rise to the need of having a cleaning service in place.
- Increased corporate profit that leads to business expansion with added business facilities like additional offices, retail stores, restaurants, and malls.
- Nonresidential construction is a major market for industry services and therefore serves as a leading indicator of demand.
- Households with highest income bracket and a greater amount of disposable income and larger estates.
5 Ways Hiring a Professional Cleaning Service Helps
A neat and clean workplace ensures a physically and mentally beneficial environment that benefits your business remarkably by decreasing your employee sickness and absence rate. There are many other ways a cleaning service can help your business. Some of them are:
- It gives a great first impression of your workplace to your employees, clients, delegates, and other visitors.
- The title quarter of your office is a breeding ground for viruses. But with professional cleaning services, you can eliminate the risk of passing of viruses from one employee to another, thereby keeping them more efficient.
- Professional cleaners or janitors ensure that your windows are spotless, floors are shiny, and everything looks as clean as possible.
- You can stay focused on working on your business plan and strategies while every cleaning aspect of your workplace will be taken care of in the most efficient and expected manner.
- You can have a customized cleaning service based on your establishment’s time, space, and property requirements.
Focused Office Cleaning and Janitorial is a popular choice among all Janitorial Companies in Anaheim. Call us at 714-462-1561 and we’ll come to your place to discuss more on your facility’s cleaning needs.