Janitorial Services
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 62,100 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.
Industry size & Structure
The average janitorial services provider operates out of a single location, employs about 16 workers, and generates $1 million annually.
- The janitorial services industry consists of about 62,100 companies that employ over 1 million workers and generate about $73 billion annually.
- The industry is highly fragmented; the top 50 firms account for 28% 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.
Industry Forecast
Janitorial Services Industry Growth
Recent Developments
Jan 17, 2025 - More Companies Enact Return-to-Office Policies
- Janitorial services operators could benefit from a continued push by companies to bring their employees back into the office full time, according to a report in Entrepreneur. The most recent company implementing a strict return-to-office (RTO) policy is the US's largest bank JPMorgan, which will require its over 300,000 global employees to work in the office five days a week from a three-day-a-week hybrid schedule, as reported by Bloomberg. The move follows other large firms making RTO mandatory, such as Amazon and AT&T. Office occupancy levels are a demand indicator for janitorial services, which count businesses and commercial property managers as customers.
- Janitorial services operators will have to monitor minimum wage changes in 2025, as 21 states and 50 local jurisdictions increased their minimum wage levels, according to Chain Store Age. States with the highest minimum wage in the US are Washington ($16.66 per hour), California ($16.50), and New York ($16.50). Nearly 30 cities in California and seven towns in Washington will raise minimum wages in 2025, with Tukwila, Washington, offering the highest minimum hourly wage in the US at $21.10. According to the Economic Policy Institute, the minimum wage changes will affect more than $9 million workers and raise pay by a combined $5.7 billion. Unchanged since 2009, the federal minimum wage is $7.25 an hour, and some 20 states, primarily located in the South and the Midwest, use the federal minimum as their wage floor.
- Cleaning services providers – including residential and commercial cleaning, carpet cleaning, junk removal, and similar services - saw mixed results in the third quarter of 2024, according to the Home Service Economic Report released in November 2024 by Jobber, a job tracking and customer management software firm. New cleaning work scheduled rose in July, declined in August, and rose again in September year over year. However, median revenue growth for service providers stayed relatively stable in Q3 2024 compared to a year ago, attributed to higher prices and a focus on premium services. “The updated Q3 data reveals an ongoing trend of rising median prices alongside declining volume within the category,” noted the report. The outlook for the home services sector is promising as interest rate cuts are expected to encourage consumer spending, according to the Jobber report. The forecast for 2025 shows sustained expansion for the sector, as older housing stock and an increased focus on essential updates amid economic uncertainty drive demand.
- Consumer confidence levels declined in December 2024, falling by 8.1 points from the previous month, according to The Conference Board. The Consumer Confidence Index was 104.7 in December 2024 from 112.8 in November 2024. Dana Peterson, chief economist at The Conference Board, noted that those remaining most confident on a six-month moving average basis confidence were those aged under 35 and those in the income category of over $100,000. Per Peterson, “The recent rebound in consumer confidence was not sustained in December as the Index dropped back to the middle of the range that has prevailed over the past two years.” Purchasing plans for homes decreased while plans to buy new cars and big-ticket items rose in December 2024 on a six-month average basis.
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