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 7,200 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

                                  Recent Developments

                                  Nov 15, 2022 - Cleaning Services Revenue up, New Work Down
                                  • Cleaning services providers saw some mixed results in the third quarter of 2022, according to the Home Service Economic Report released in November 2022 by Jobber, a job tracking and customer management software firm. New cleaning work scheduled was flat in Q3 2022 amid a 16% year-over-year decline in contract jobs. One-off jobs were down 1.4%. New work scheduled was also flat in Q3 compared to a year earlier. However, Q3 median revenue was up between 5% and 7% compared to Q3 2021. While cleaning services firm revenues were up, growth was down significantly from the year-over-year growth posted in Q3 2021, which was elevated due to very weak market conditions resulting from the pandemic in 2020.
                                  • The global contract cleaning market is forecast to experience average annual growth of more than 6.8% through 2026, according to a recent report by Technavio. Over the forecast period, the worldwide contract cleaning market is expected to post value growth of nearly $151.3 billion. North America is projected to account for 34% of total growth, driven primarily by the US market. The increase in demand for contract cleaning services is being driven by increased construction activity and the rise in the number of dual-income households.
                                  • Some cleaning industry insiders suggest that the pandemic has resulted in less carpet being installed in commercial settings, according to CleanLink. In remodels and new constructions, more buildings are being floored with luxury vinyl tile (LVT). Using upright vacuum cleaning with traditional beater bars can damage the surface of LVT floors, so industry experts suggest that floor cleaning firms switch to backpack vacuums that only use suction to clean flooring surfaces.
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