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 59,000 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 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 20 workers, and generates $1 million annually.

    • The janitorial services industry consists of about 59,000 companies that employ over 1 million workers and generate about $70 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
                                Source: Vertical IQ and Inforum

                                Recent Developments

                                Apr 8, 2024 - Growth Expected for Janitorial Services
                                • The US janitorial services industry is projected to grow at a CAGR of over 5% between 2024 and 2028, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The growth rate is faster than the overall economy's growth. The report noted that consumer confidence levels have improved, which bodes well for the management, administrative and support, and waste management industries. Additionally, consumer sentiment has seen a degree of improvement following sustained lower levels. The recent rise in remote work has also impacted the janitorial services industry. The forecast notes that 30% of employees worked remotely in 2023, compared to less than 10% before the pandemic. Per the report, "This suggests persistently lower demand for office space, mass transit, dry cleaning, and other personal and business needs related to commuting and working in corporate environments."
                                • Eptura’s latest quarterly Workplace Index shows a nearly 35% increase in maintenance work orders from Q4 2022 to Q4 2023, as well as a consistent rise in workplace bookings and visitors across all regions and industry sectors. The index analyzes trends from 37,000 buildings, 440,000 floors, and 2.7 million desks across 8,000 companies and collects survey data for behavioral insights. Driving workers back to the office is the need for socialization and collaboration, the desire to be part of a community, and the isolation of working from home. The majority of workers are choosing Tuesday, Wednesday, and Thursday to come into the office. Facility and asset managers must work with workplace leaders for optimal facility management. The report said the ideal ratio of preventative to corrective maintenance is 80:20, while the Eptura Q4 data showed the ratio to be 50:50.
                                • A new report from Technavio found that the contract cleaning services market is expected to grow by over $164 million at an annual CAGR of nearly 7% from 2022 to 2027, according to Cleanlink.com. North America is projected to account for a 35% share of the global market growth, primarily due to increased construction activities and enhanced service offerings. Greater demand from the commercial sector, in particular the health care and hospitality segments, is expected to drive the growth of the contract cleaning services market.
                                • Consumer confidence levels were essentially unchanged in March 2024, after a dip in February 2024 following three consecutive months of growth, according to data from The Conference Board. The Conference Board’s consumer confidence index was 104.7 in March 2024 from 104.8 in February 2024. According to Dana Peterson, Chief Economist at The Conference Board, “Consumers’ assessment of the present situation improved in March, but they also became more pessimistic about the future.” Peterson added that confidence rose among householders 55 and over but fell for those under 55. Plans to purchase homes, autos, and large appliances decreased slightly on a six-month basis.
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