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
Nov 13, 2024 - Services Sector Expansion
- Economic activity in the services sector expanded for the fourth consecutive month in October 2024, according to the Services ISM Report on Business. The Services PMI registered 56% in October, up 1.1 percentage points from September. Fourteen of the 18 services industries reported growth in October including Retail Trade; Information; Transportation & Warehousing; Accommodation & Food Services; Finance & Insurance; Construction; Mining; Public Administration; Utilities; Real Estate, Rental & Leasing; Educational Services; Professional, Scientific & Technical Services; Health Care & Social Assistance; and Wholesale Trade. Industries reporting a contraction in October were Other Services; and Management of Companies & Support Services. Carpet and upholstery cleaner industry employment rose 2.7% in September 2024 compared to a year ago, according to the US Bureau of Labor Statistics. Employment has increased YOY from March 2024 to September 2024.
- 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.
- The National Federation of Independent Business (NFIB) monthly jobs report shows that unfilled job openings grew in October 2024, with a seasonally adjusted 35% of small business owners reporting jobs they could not fill. The reading is up one point from September 2024. A seasonally adjusted net 15% of small business owners plan to create new jobs over the next three months, unchanged from September. About 20% of owners reported labor quality as the most important problem facing the business. According to NFIB Chief Economist Bill Dunkelberg, “On Main Street, the job market remains challenging. Although the labor market appears to be softening overall, small business owners reported little success filling their plentiful vacancies in October.”
- 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 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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