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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 7,200 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.

Industry Contraction

The carpet and upholstery cleaning industry has contracted over time, as has the size of the carpet market.

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 size & Structure

The average carpet and upholstery cleaner operates out of a single location, employs about 5 workers, and generates about $518,000 annually.

    • The carpet and upholstery cleaning industry consists of about 7,200 firms that employ about 37,000 workers and generate about $3.7 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, 87% of respondents serviced a 50-mile area.
    • Carpet accounts for 32% of the US flooring market, according to Floor Covering News.
                                  Industry Forecast
                                  Carpet and Upholstery Cleaners Industry Growth
                                  Source: Vertical IQ and Inforum

                                  Coronavirus Update

                                  May 9, 2022 - Office Occupancy Remains Low
                                  • Some carpet cleaning firms were hopeful demand would rebound once more businesses reopened their offices. However, office space utilization remains low. As of February 23, the average workplace occupancy was 36.8%, according to data gathered from the top 10 ten cities monitored by security firm Kastle Systems. By April 27, the average workplace occupancy rate was 43.4%. In an ADP Research Institute survey of 32,000 workers worldwide, more than two-thirds said they would consider leaving their job if asked to return to the office full-time. The sentiment was even stronger among younger workers. More than 70% of those aged 18 to 24 years said they would leave rather than work in the office full-time.
                                  • As offices reopen, tech companies are introducing cleaning scheduling apps to help office managers gather bids from qualified cleaning firms. The Onedesk Office Cleaning Platform allows cleaning firms to do a virtual walkthrough of office space and bid on the job without visiting the location. Carpet and upholstery cleaning firms may seek to become pre-vetted vendors for such apps.
                                  • Some carpet and upholstery cleaning firms quickly added new disinfecting services to meet the reopening needs of commercial customers. Some use disinfecting fogs and mists that can be efficiently applied with no wiping. However, cleaning companies that promote their services to disinfect against coronavirus can open themselves to liability if workers are without proper training, equipment, and chemicals. Additional guidance regarding COVID-19 issued in early April 2021 by the Centers for Disease Control and Prevention (CDC) suggests the virus primarily spreads through the air. The agency said, “It is possible for people to be infected through contact with contaminated surfaces or objects (fomites), but the risk is generally considered to be low.”
                                  • The Building Service Contractors Association International (BSCAI) has developed a COVID-19 protection training and certification course for cleaning professionals. The course covers proper cleaning procedures, infection control, worksite safety precautions, and documentation and communication protocols. It also follows all CDC, OSHA, and EPA guidelines. Carpet and upholstery cleaners may want their employees to complete third-party certifications to assure customers the company’s services follow accepted best practices.
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