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
Feb 18, 2025 - Cleaning Services Show Improvement in Late 2024
- 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.
- Consumer confidence levels fell in January 2025, dropping by 5.4 points from the previous month, according to The Conference Board. The Consumer Confidence Index was 104.1 in January 2025 from 109.5 in December 2024. Dana Peterson, chief economist at The Conference Board, noted that the segment with the highest gains in confidence were those at the bottom of the income range while households earning over $125,000 showed the sharpest decline in confidence. Per Peterson, “Consumer confidence has been moving sideways in a relatively stable, narrow range since 2022. January was no exception. The Index weakened for a second straight month, but still remained in that range, even if in the lower part.” Purchasing plans for homes and new cars were flat while big-ticket purchases rose on a six-month moving average basis.
- Janitorial services operators could benefit from a continued push by companies to bring their employees back into the office full time, according to a report in Entrepreneur. The most recent company implementing a strict return-to-office (RTO) policy is the US's largest bank JPMorgan, which will require its over 300,000 global employees to work in the office five days a week from a three-day-a-week hybrid schedule, as reported by Bloomberg. The move follows other large firms making RTO mandatory, such as Amazon and AT&T. Office occupancy levels are a demand indicator for janitorial services, which count businesses and commercial property managers as customers.
- Janitorial services operators will have to monitor minimum wage changes in 2025, as 21 states and 50 local jurisdictions increased their minimum wage levels, according to Chain Store Age. States with the highest minimum wage in the US are Washington ($16.66 per hour), California ($16.50), and New York ($16.50). Nearly 30 cities in California and seven towns in Washington will raise minimum wages in 2025, with Tukwila, Washington, offering the highest minimum hourly wage in the US at $21.10. According to the Economic Policy Institute, the minimum wage changes will affect more than $9 million workers and raise pay by a combined $5.7 billion. Unchanged since 2009, the federal minimum wage is $7.25 an hour, and some 20 states, primarily located in the South and the Midwest, use the federal minimum as their wage floor.
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