Janitorial Services NAICS 561720

Aug 28, 2025 - Contraction in Q1 Cleaning and Hygiene Market: Precision

• According to the Precision Q1 2025 Cleaning and Hygiene Market Snapshot in ISSA, total portfolio sales were down 7% year over year and 4% quarter over quarter as nearly all categories and end-user segments declined. The categories of Janitorial Equipment, Dry Wipers, and Facial Tissue proved to be the exception with modest growth compared to Q4 2024. According to the report, “While not unexpected, the contraction is notable and signals a market that is still recalibrating in the wake of pandemic-era surges, price volatility, and shifting customer expectations.” The decline comes as organizations manage tighter budgets and inflationary fluctuations. One potential encouraging trend is that “high-traffic” end-users such as retail, hospitality, airports, entertainment, and travel may see growth as Gen Z’s spending power rises.
• Wage costs were up and employment was flat for janitorial providers in June 2025, year over year, according to recent data from the Bureau of Labor Statistics (BLS). Average wages at janitorial services increased 2.6% in June 2025 year over year, reaching $18.94 an hour for nonsupervisory employees. In the past decade, average wages in janitorial services increased 60%, higher than the 49.2% growth in overall private nonsupervisory employee wages. Employment by janitorial services grew 0.4% in June 2025 compared to a year ago. Janitorial businesses are monitoring pricing pressures resulting from an uncertain economic environment. Producer prices for janitorial services increased 6.4% in July 2025 compared to a year ago, per the BLS.

• Indicators measuring the collective mood of US consumers show mixed signals, with consumer confidence levels slightly up and consumer sentiment falling. Consumer confidence levels, an indicator of discretionary expenditures, improved in July 2025, month over month, rising by 2 points, according to the Consumer Confidence Index. Consumer confidence levels have stabilized since May but remain lower than last year’s, according to The Conference Board, which publishes the monthly index. July’s gain can be attributed to consumers over 35 years old and shared across all income groups, except the lowest income group earning below $15K. In addition, the consumer sentiment index from the University of Michigan dropped in August 2025 for the first time in four months. The index fell to 58.6 in preliminary August data from 61.7 in July. Year-ahead inflation expectation results were higher monthly, as consumers convey lingering anxiety about prices amid tariff impacts. The index serves as a predictor of consumer spending as it indicates consumers’ perception of their financial prospects and the broader economy.
• Cleaning services providers – including residential and commercial cleaning, carpet cleaning, junk removal, and similar services - saw mixed results in Q1 2025, according to the Home Service Economic Report released by Jobber, a job tracking and customer management software firm. New cleaning work scheduled fell 4% in Q1, while revenue grew 5% compared to a year ago, attributable to an increase in average invoice size, driven by upselling and recurring service models. The cleaning segment saw revenue stability in the quarter, driven by smaller, recurring jobs. “The Q1 data shows a sector in transition—stable, but still under pressure from high borrowing costs and cautious consumer behavior,” according to Abheek Dhawan, SVP of Strategy & Analytics at Jobber. Consumers continue to increase their adoption of digital payments. The report noted that digital payments were about 47% of total payments in Q1, up from 43% a year ago.