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 7,000 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 200-mile area.
- Carpet and area rugs account for about 30% of the US flooring market, according to Floor Covering News.
Industry Forecast
Carpet and Upholstery Cleaners Industry Growth
Recent Developments
Jul 16, 2024 - Employment Up, Confidence Lower
- Carpet and upholstery cleaner industry employment increased modestly in the first five months of 2024, according to the US Bureau of Labor Statistics. However, consumer confidence levels fell in June 2024, after an uptick in May, according to data from The Conference Board. The Conference Board’s consumer confidence index was 100.4 in June 2024 from 101.3 in May 2024. Lower confidence levels can indicate a cautious environment where consumers decrease their discretionary spending levels, affecting consumers’ budgets for 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 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.
- US office vacancy rates reached a 30-year high of 19% in the first quarter of 2024 compared to 17.8% in the same quarter a year ago, according to real estate firm CBRE’s 1Q office report in Facilities Dive. The majority of the 57 office markets tracked by CBRE in Q1 saw negative net absorption, meaning more space was vacated than leased. Still, tenant downsizing has slowed in the past 12 months as part of a gradual rebound, according to a JLL report on Q1 US Office Market Dynamics. The report expects office leasing to reach 85% of pre-pandemic levels in 2024. 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 fell in June 2024, with a seasonally adjusted 37% of small business owners reporting jobs they could not fill. The reading is down five points from May 2024. A seasonally adjusted net 15% of small business owners plan to create new jobs over the next three months, unchanged from May. About 19% of owners reported labor quality as the most important problem facing the business. According to NFIB Chief Economist Bill Dunkelberg, “This summer, small business owners continue to try to hire and find qualified employees for their open positions. The number of small businesses with one or more job openings they can’t fill remains at exceptionally high levels. However, owners are raising compensation at historically high levels to attract and retain employees.”
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