Carpet and Upholstery Cleaners
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 6,900 firms in the US primarily clean rugs, carpets, and upholstered products, typically on-site at the customer’s premise. Residential customers account for 85% of sales, while commercial customers account for about 15% of sales. Firms may also offer damage restoration, janitorial and custodial, hard surface floor cleaning, water damage restoration, and auto detailing services.
Sensitivity to Economic Factors
Carpet and upholstery cleaning is a discretionary expense and a service that is easy to delay when finances are tight.
Industry Contraction
The carpet and upholstery cleaning industry has contracted over time, as has the size of the carpet market.
Industry size & Structure
The average carpet and upholstery cleaner operates out of a single location, employs about 5 workers, and generates about $710,000 annually.
- The carpet and upholstery cleaning industry consists of about 6,900 firms that employ about 37,400 workers and generate about $4.9 billion annually.
- The industry is fragmented; the top 50 companies account for about 23% of industry revenue.
- Franchises account for about 19% of the industry. Major franchise operators include Stanley Steamer, Chem-Dry, and ServiceMaster.
- Most firms operate within a limited geographical market; in an industry survey by Cleanfax, 95% of respondents serviced a region up to a 200-mile area.
- Carpet and area rugs account for a third of the US flooring market, according to Floor Covering News.
Industry Forecast
Carpet and Upholstery Cleaners Industry Growth
Recent Developments
Jan 14, 2025 - New Cleaning Work Inconsistent in Q3: Jobber
- Cleaning services providers – including residential and commercial cleaning, carpet cleaning, junk removal, and similar services - saw mixed results in the third quarter of 2024, according to the Home Service Economic Report released by Jobber, a job tracking and customer management software firm. New cleaning work scheduled rose in July, declined in August, and rose again in September year over year. However, median revenue growth for service providers stayed relatively stable in Q3 2024 compared to a year ago, attributed to higher prices and a focus on premium services. “The updated Q3 data reveals an ongoing trend of rising median prices alongside declining volume within the category,” noted the report. The outlook for the home services sector is promising as interest rate cuts are expected to encourage consumer spending, according to the Jobber report. The forecast for 2025 shows sustained expansion for the sector, as older housing stock and an increased focus on essential updates amid economic uncertainty drive demand.
- Consumer confidence levels declined in December 2024, falling by 8.1 points from the previous month, according to The Conference Board. The Consumer Confidence Index was 104.7 in December 2024 from 112.8 in November 2024. Dana Peterson, chief economist at The Conference Board, noted that those remaining most confident on a six-month moving average basis confidence were those aged under 35 and those in the income category of over $100,000. Per Peterson, “The recent rebound in consumer confidence was not sustained in December as the Index dropped back to the middle of the range that has prevailed over the past two years.” Purchasing plans for homes decreased while plans to buy new cars and big-ticket items rose in December 2024 on a six-month average basis.
- US office vacancy rates remained steady at 19% in the third quarter of 2024 compared to the previous quarter, according to real estate firm CBRE’s 3Q office report in Facilities Dive. The US office markets tracked by CBRE in Q3 saw positive net absorption, with 4.3 million square feet of net absorption. The net absorption was up 87% from the previous quarter, marking the second consecutive quarter of positive demand for office space. This follows six consecutive quarters of negative net absorption. The report cites a shift in patterns of office attendance and interest rate cuts by the US Federal Reserve creating more favorable conditions for commercial real estate. Workplace occupancy levels are a demand indicator for carpet and upholstery cleaning services.
- Carpet and upholstery cleaning services will want to monitor the progress of a new proposed rule from the US Department of Labor (DOL) designed to protect workers from extreme workplace heat. The proposed rule requires employers to form an injury and illness prevention plan to control heat hazards in workplaces affected by excessive heat, per the DOL. The public comment period for the proposal has been extended to mid-January 2025. The rule asks employers to evaluate heat risks and implement requirements for drinking water and taking rest breaks. In addition, employers will have to provide training, develop procedures to respond to employees who show signs of heat-related illness, and assist workers experiencing a heat emergency. The Occupational Safety and Health Administration (OSHA) currently conducts heat-related inspections under a program launched in 2022 to prevent worker injuries and illness. Cleaning crews can encounter extreme heat in commercial and residential buildings that are not properly ventilated or cooled.
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