Janitorial & Carpet Cleaning Services
Companies in this industry clean building interiors, windows, carpets, and upholstery. Major US companies include divisions of companies such as ABM Industries and ServiceMaster, as well as Coverall North America, Jani-King, and Stanley Steemer; major companies based outside the US include divisions of Aeon Delight (Japan), CNS Consorzio Nazionale Servizi (Italy), ISS World Services (Denmark), Mitie Group (UK), and Wisag (Germany).
The global cleaning services market is expected to reach $74 billion by 2022, growing at a compound annual rate of more than 6%, according to Allied Market Research. North America is the largest cleaning services market, while the Asia/Pacific region is expected to grow at the fastest rate. Asia/Pacific will account for about 30% of the overall cleaning services market by 2022, with increasing demand coming from China, Japan, and India.
The US janitorial services and carpet cleaning industry consists of about 60,300 janitorial establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $50 billion and about 7,500 carpet and upholstery cleaning establishments with combined annual revenue of about $3.4 billion.
Commercial real estate occupancy drives demand for cleaning services. The profitability of individual companies depends on good marketing. Large companies have an advantage in serving customers with multiple locations. Small companies can compete effectively in local markets, especially for small business and residential customers.
The US janitorial services industry is fragmented: the 50 largest companies generate about 30% of revenue. The US carpet cleaning industry also is fragmented; the 50 largest companies account for about 25% of revenue. About 75% of janitorial companies have fewer than 10 employees; nearly 90% of companies that clean carpet and upholstery have fewer than 10 employees.
Janitorial services companies compete with entities that provide multi-function facilities management services, which may include including security, maintenance, and parking as well as cleaning services. Some building operators are choosing to establish in-house janitorial crews, eliminating the need for contract work. Low barriers to entry enable small startups to compete with established players in the industry. Providers of house cleaning services for residential customers compete with independent contractors.
Products, Operations & Technology
Janitorial services account for about 90% of industry revenue. Janitorial work includes general services, such as cleaning, trash pickup, and sanitizing,
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms