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
Mar 19, 2025 - Industry Tackles Labor Shortages
- The commercial janitorial industry is grappling with staffing challenges, with over 60% of janitorial companies identifying labor shortages as a major obstacle to achieving growth objectives, according to a report in CleanLink. Nearly 90% of these companies plan to increase wages to attract and retain qualified workers. The cleaning industry has high employee turnover rates, which can be as high as approximately 200% annually. Staffing problems can lead to inconsistent service quality, reduced productivity, and increased operational costs through frequent rehiring and training costs. On a positive note, a recent survey by GP PRO of maintenance workers in ISSA found that 41% of respondents had worked in the cleaning industry for more than 10 years and 82% of respondents said they were somewhat or very satisfied with their current roles. While a quarter of those surveyed said the work is messy and dirty, only 8% said the tasks were unenjoyable.
- According to Eptura’s 2025 Workplace Index, organizations are managing changing workplace environments as they increase office attendance; higher office attendance indicates demand for janitorial services. The report shows that 34% of businesses plan to increase in-office workdays in 2025, which puts pressure on leaders to balance space utilization with the staff member experience. The volume of visitors per location has nearly doubled in the past three years, according to Eptura. More organizations are turning to digital resources and AI to maximize facility and building resources. Data that provides better visibility to the people, buildings, and assets and their interactions can help best deploy the right resources at the appropriate time. The report noted that the average full-time hours required to perform reactive maintenance are significantly higher than those needed for preventative maintenance. Preventative maintenance schedules are more precise and easier to facilitate using predictive data analytics, and improved preventative schedules can reduce costs, per Eptura.
- Cleaning services providers – including residential and commercial cleaning, carpet cleaning, junk removal, and similar services - saw an improvement in the second half of 2024, according to the Home Service Economic Report released in February 2025 by Jobber, a job tracking and customer management software firm. New cleaning work scheduled continued to increase in Q4 year over year. Median revenue growth for service providers showed some upward movement during Q3 and Q4, compared to a year ago, attributed to higher prices. “While revenue dipped at times, the latter half of the year showed improvement,” noted the report. The outlook for the home services sector in 2025 is promising as inflation stabilizes, consumer demand grows, and the job market remains strong, according to the Jobber report. Consumers continue to increase their adoption of digital payments. The report noted that digital payments were about 47% of total payments in Q4 2024 with the expectation to reach 50% in 2025.
- According to a report in CFO Dive, consumer confidence levels, an indicator of discretionary spending, have fallen due to consumer anxiety about tariff effects and economic uncertainty. The consumer sentiment index from the University of Michigan dropped 11% in March 2025, marking the third straight month of declines and hitting the lowest level since November 2022. In addition, the Conference Board index of consumer sentiment in February 2025 marked the biggest decline since August 2021 and the third straight month of declines. According to Stephanie Guichard, senior economist for global indicators at the Conference Board, “There was a sharp increase in the mentions of trade and tariffs, back to a level unseen since 2019. Most notably, comments on the current administration and its policies dominated the responses.”
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