It’s spring cleaning time! And the nation’s 53,000 janitorial service providers are here to help. These crucial companies clean building interiors, windows, and the interiors of transportation equipment, such as aircrafts.

If you think you’d like to make a fresh start with janitorial service providers, here are a few key things to know about the industry.

A quick look at janitorial service providers

  • Major revenue categories include commercial cleaning, residential cleaning, damage restoration, floor care, and exterior window cleaning.
  • Companies clean office buildings, schools, hospitals, retail stores, hotels, government buildings, stadiums and arenas, and homes.
  • Specialized services include disaster recovery, medical cleaning, and mold clean up. Some companies provide outdoor services such as snow removal and lawn maintenance.
  • Large companies may provide comprehensive building management services, including security, parking management, and pest control.
  • Cleaning products and equipment are sourced from sanitary supply distributors (70 percent), directly from manufacturers (15 percent), and from retailers and wholesale clubs (8 percent).

The size of the industry

  • The janitorial services industry consists of about 53,000 companies that employ over 1 million workers and generate about $44 billion annually; the average provider operates out of a single location, employs about 20 workers, and generates over $827,000 annually.
  • The industry is highly fragmented; the top 50 firms account for just over a quarter of industry sales; it includes national and regional companies, franchises, and independent operators.
  • Non-residential customers, such as those in institutional, office, and commercial buildings, account for just over three-quarters of industry revenue.
  • Over two-thirds of janitorial services firms are female-owned and over half are minority-owned; of the 52,900 janitorial services firms that are veteran-owned, 8 percent have employees and 92 percent are owner-operated.

Trends within the janitorial services industry

The industry is growing

As economic conditions strengthen and employment levels and incomes rise, the janitorial services industry is experiencing growth. Revenue for the administrative and support services industry, which includes janitorial services, jumped 12 percent in 2014 and then grew another 7.3 percent in 2015, 6.8 percent in 2016, and 9.4 percent in 2017. Demand for contracted cleaning services is forecast to grow 3.2 percent annually through 2019.

The nation’s demographics are favorable

As the population of adults age 65 and older increases 44 percent between 2017 and 2030, demand for residential cleaning services should increase. Older adults sometimes lack the physical ability or struggle to perform cleaning tasks, and many affluent baby boomers have the financial resources to hire cleaning services. Growth in dual income households, with higher incomes and limited free time, can also help drive demand for cleaning services.

Green consciousness

Growing concern with the environment and sustainability issues has led to increased demand for the use of eco-friendly cleaning products and methods. Despite the high cost of “green cleaning,” both residential and commercial customers are expressing the desire for healthier indoor environments. Green cleaning is even a requirement for LEED certification of buildings.

Risks to janitorial service companies

  • Merger and failure rate: From the end of 2016 to the end of 2017, janitorial services companies merged or failed at 18.29 percent, a higher than the average for all U.S. businesses.
  • Vulnerability to economic conditions: Demand for janitorial services is vulnerable to weak economic conditions. Both businesses and consumers cut back during tough economic times.
  • Tough competition: Janitorial services providers face competition from numerous sources: facilities management companies, undocumented workers, and even their own customers.
  • Immigration laws: Most janitorial jobs don’t require workers with English-speaking skills, thus attracting immigrants (both legal and illegal) to keep costs low and maintain staffing levels.
  • Liability: Janitorial service providers incur liability for any damage, injury, or losses caused by services provided.

Vertical IQ will help you tidy up your portfolio with analysis on more than 350 industries!

All of the industry information in this post came directly from the Vertical IQ Industry Profile on Janitorial Service Providers. Reviewing this profile, or even doing a quick 5-minute review of the industry’s Call Prep Sheet, gives you valuable insights into your janitorial services prospect — their opportunities as well as the issues that may be keeping them up at night. You can use this industry information to create a more polished relationship with your clients in this niche.

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