Janitorial Services

The 63,000 janitorial service providers in the US clean building interiors, windows, and the interiors of transportation equipment, such as aircrafts. Specialized services include disaster recovery, medical cleaning, and mold clean up. Some companies provide outdoor services, such as snow removal and lawn maintenance. Non-residential customers, such as those in institutional, office, and commercial buildings, account for 80% of industry revenue.

Immigration Laws

Most janitorial jobs do not require workers with English-speaking skills, and tend to attract both legal and undocumented immigrants.

Green Cleaning

Growing concern with the environment and sustainability issues has led to increased demand for the use of eco-friendly cleaning products and methods.

Jul 20, 2026 - Janitorial Industry Grapples With Rising Costs, AI

• New cost pressures and shifting customer demand are reshaping the US janitorial services industry, according to an ISSA report on the June 2026 Altus Summit. Industry leaders at the summit said labor costs continue to squeeze margins, with wages rising 4.3% annually and labor accounting for 80% to 90% of operating expenses. Providers are also contending with a 9.7% year-over-year increase in producer prices for nonresidential cleaning, equipment tariff increases of 3% to 26%, supplies up 20%, and healthcare costs expected to rise 6.7%. At the same time, office downsizing continues to reduce cleaning demand, while healthcare facilities, growing 7.5%, present a key expansion opportunity. Companies are increasingly turning to technology to offset labor challenges, with 67 million square feet now cleaned by robots—a figure growing 22% annually—and AI emerging as a competitive tool for sales, operations, and customer service.
• Labor market conditions weakened in June 2026, intensifying hiring and wage pressures for the US janitorial services industry as businesses head into the summer slowdown, according to a CleanLink report. The US economy added just 57,000 jobs, about half of economists' expectations, while the labor force participation rate fell to 61.5% and unemployment held at 4.2% as more people exited the workforce. At the same time, average hourly earnings increased 0.3% to $37.64, and additional state minimum wage increases beginning in July will further raise labor costs. According to a CleanLink survey, 43% of facility managers and building service contractors said competitive wages aligned with local markets are essential for recruiting and retaining employees. The combination of a tighter labor pool and rising wages may increase operating costs and pressure profit margins for cleaning businesses.
• Existing-home sales rose 2.8% year over year despite a 2.4% monthly decline in June, supporting demand for the US janitorial services industry as home sales drive move-in, move-out, and post-renovation cleaning services, according to the National Association of Realtors The median existing-home price reached a record $440,600, up 2.0% from a year earlier, while first-time buyers accounted for 33% of sales, up from 30% a year ago, creating additional opportunities for residential cleaning providers. However, affordability challenges, limited inventory (up just 1.3% year over year), and elevated mortgage rates continue to restrain housing turnover, limiting growth in transaction-related cleaning demand. Strong homeowner equity and ongoing investment in home maintenance should help support recurring residential cleaning services despite slower sales activity.
• The cleaning segment remained one of the steadiest-performing areas of the home services economy in Q1 2026, supported by recurring demand and improving customer bookings, according to Jobber’s Home Service Economic Report. Cleaning businesses posted year-over-year median revenue growth every month during the quarter, with February revenue rising 13% from a year earlier. New work scheduled declined nearly 5% in January but returned to positive growth in both February and March, signaling recovering customer demand beyond recurring service contracts. Average invoice sizes also increased 5% year over year in January and March, reflecting modest pricing power and stable demand. Compared with more volatile segments such as contracting and construction, the cleaning category benefited from lower seasonality and more recurring revenue streams, helping operators maintain consistent performance despite inflation pressures, weaker consumer confidence, and a cautious housing market.

Industry size & Structure

The average janitorial services provider operates out of a single location, employs about 17 workers, and generates $1.2 million annually.

• The janitorial services industry consists of about 63,000 companies that employ over 1 million workers and generate about $73 billion annually.
• The industry is highly fragmented; the top 50 firms account for 32% of industry sales.
• The industry includes national and regional companies, franchises, and independent operators.
• Large companies include divisions of ABM, Authority Brands (The Cleaning Authority), Neighborly (Molly Maid), and ServiceMaster (Merry Maids).
• Non-residential customers, such as those in institutional, office, and commercial buildings, account for 80% of industry revenue.