Carpet and Upholstery Cleaners NAICS 561740

Jan 13, 2026 - Steady Growth, Slower Intake in Q3

• According to the Q3 2025 Jobber Home Service Economic Report, cleaning businesses, which includes carpet and upholstery cleaners, experienced a steady yet cautious third quarter. Industry data shows new work dipped 1% year over year, but average invoice size rose 4%, and median revenue increased 7%, signaling stronger value per job despite fewer new projects. The results suggest households leaning into reliability and consistency in the quarter. Across the home services business segments, median revenue is outpacing new bookings, as companies seek to upsell existing clients, improve retention, and promote recurring plans. Digital payments were about half of total payments in Q3, up 7% from a year ago.
• Rising minimum wages are expected to add labor pressure for the US carpet and upholstery cleaning industry in 2026, according to a report in CleanLink. A study by the Employment Policies Institute found that minimum wage increases were associated with a 2.6% overall decline in employment and a 3.4% decline among entry-level workers from 2011 to 2019. With nearly half of US states planning minimum wage adjustments in 2026 and some jurisdictions reaching $15 per hour by year-end, labor costs are set to rise. The increases come amid ongoing challenges from higher supply costs, compliance expenses, and labor shortages. The US unemployment rate stood at 4.6% in December 2025, intensifying competition for workers. While higher wages may strain budgets, they may also aid recruitment and retention if paired with operational efficiencies and investments in innovation.

• According to the 2025 Cleanfax Carpet and Floor Cleaning Benchmarking Survey, carpet and floor cleaning firms have identified their top challenges as customer retention, maintaining margins, cash flow/working capital, recruiting/retaining staff, and finding new customers. Respondents called inflation a major concern, with supplies, insurance, chemicals, and fuel all more expensive in 2025 than a year ago. One respondent stated it was a challenge to get customers to understand why price increases are necessary, while another said that national companies are operating on very small margins with margin pressure coming from every direction. About 54% of firms saw increased revenue this year, while half of the companies say three-quarters of customers are repeat customers. Half of the companies say they have not yet implemented AI technology in their company. Nearly 70% of respondents report spent less than $100,000 to start their carpet and floor cleaning business.
• The Conference Board’s December 2025 Consumer Confidence Survey points to a cautious demand environment for the US carpet and upholstery cleaning industry. Consumer confidence fell 3.8 points to 89.1, marking a fifth straight monthly decline, while the Present Situation Index dropped sharply by 9.5 points to 116.8, reflecting weaker views of business and labor conditions. The Expectations Index held at 70.7, below the recession signal threshold of 80 for 11 consecutive months, indicating continued economic uncertainty. Consumers are increasingly prioritizing necessities and value-oriented services, while pulling back on discretionary spending. Although overall planned spending on services remained relatively stable, household financial sentiment turned negative for the first time in nearly four years. For carpet and upholstery cleaning services providers, the results suggest steady but price-sensitive demand, heightened competition, and continued pressure to emphasize essential, cost-effective service offerings into early 2026.