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 57,000 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 illegal 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 17-18 workers, and generates $1 million annually.
- The janitorial services industry consists of about 57,000 companies that employ over 1 million workers and generate about $59 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 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
Nov 16, 2022 - Cleaning Services Revenue up, New Work Down
- Cleaning services providers saw some mixed results in the third quarter of 2022, according to the Home Service Economic Report released in November 2022 by Jobber, a job tracking and customer management software firm. New cleaning work scheduled was flat in Q3 2022 amid a 16% year-over-year decline in contract jobs. One-off jobs were down 1.4%. New work scheduled was also flat in Q3 compared to a year earlier. However, Q3 median revenue was up between 5% and 7% compared to Q3 2021. While cleaning services firm revenues were up, growth was down significantly from the year-over-year growth posted in Q3 2021, which was elevated due to very weak market conditions resulting from the pandemic in 2020.
- A year ago, homeowners could expect multiple competing bids when they put their homes on the market, but rising mortgage rates have narrowed the field of potential buyers, which is prompting more sellers to fix up their homes before listing them, according to The Wall Street Journal. Deep cleaning can add more than $3,700 to the sale price of a home, according to HomeLight, a marketplace that connects home sellers with real estate agents.
- The global contract cleaning market is forecast to experience average annual growth of more than 6.8% through 2026, according to a recent report by Technavio. Over the forecast period, the worldwide contract cleaning market is expected to post value growth of nearly $151.3 billion. North America is projected to account for 34% of total growth, driven primarily by the US market. The increase in demand for contract cleaning services is being driven by increased construction activity and the rise in the number of dual-income households.
- Some cleaning industry insiders suggest that the pandemic has resulted in less carpet being installed in commercial settings, according to CleanLink. In remodels and new construction, more buildings are being floored with luxury vinyl tile (LVT). Using upright vacuum cleaning with traditional beater bars can damage the surface of LVT floors, so industry experts suggest that floor cleaning firms switch to backpack vacuums that only use suction to clean flooring surfaces.
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