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
Dec 15, 2024 - New Work Scheduled Inconsistent in Q3: Jobber
- 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 increased in November 2024, improving by 2.1 points from the previous month, according to The Conference Board. The Consumer Confidence Index was 111.7 in November 2024 from 109.6 in October 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, “Consumer confidence continued to improve in November and reached the top of the range that has prevailed over the past two years.” Purchasing plans for homes stalled while plans to buy new cars rose slightly in November 2024 on a six-month average basis.
- US office vacancy rates remained steady at 19% in the third quarter of 2024 compared to the previous quarter, according to real estate firm CBRE’s 3Q office report in Facilities Dive. The US office markets tracked by CBRE in Q3 saw positive net absorption, with 4.3 million square feet of net absorption. The net absorption was up 87% from the previous quarter, marking the second consecutive quarter of positive demand for office space. This follows six consecutive quarters of negative net absorption. The report cites a shift in patterns of office attendance and interest rate cuts by the US Federal Reserve creating more favorable conditions for commercial real estate. Office occupancy levels are a demand indicator for janitorial services, which count businesses and commercial property managers as customers.
- The US janitorial services industry is projected to grow at a CAGR of 5.4% between 2024 and 2028, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The expected growth is faster than the overall economy‘s anticipated growth. According to the report, the management and administrative services sector is well along into recovery post pandemic. However, a lingering impact from the COVID-19 pandemic was a jump in remote work, rising from some 10% prior to the pandemic to approximately 30% of employees working remotely at least some of the time in June 2024. This suggests a continued lower demand for janitorial services as businesses and property managers have buildings not at full capacity. Factors that continue to limit spending are lower consumer sentiment levels, higher interest rate levels, and elevated price levels. Price growth, however, is diminishing and likely to stabilize soon near intended rates.
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