Janitorial Services

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, 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
                                Source: Vertical IQ and Inforum

                                Coronavirus Update

                                Jun 14, 2022 - Office Occupancy Slow to Recover
                                • Even as pandemic conditions have eased since the peak of the Omicron wave, the return to offices has been slow. During the first week of December 2021, about 40% of workers had returned to offices in the ten cities monitored by security firm Kastle Systems. As of June 8, 2022 workplace occupancy was 44%. Hybrid working models are expected to be the new norm, with long-lasting impacts on office occupancy. The remote work trend could reduce office values in New York City by 28% by 2029, representing value destruction of $49 billion, according to a recent study by Columbia University and New York University researchers. Nationally, office values could drop by $500 billion by 2029.
                                • Many industries have struggled to hire and retain enough workers amid the Great Resignation that began earlier in the pandemic. In April 2022, 4.4 million people quit their jobs, down slightly from the record high of 4.5 million quits in March 2022. In the professional and business services sector, which includes janitorial services, more than 800,000 people quit their jobs in April. According to a recent survey by Quest Diagnostics, 50% of those surveyed said money was the reason they were considering quitting (money was the top reason for those considering leaving their job). Other leading reasons included better benefits (38%), better healthcare benefits, specifically (36%), and work/life balance (36%).
                                • Tech companies are introducing cleaning scheduling apps to help office managers gather bids from qualified cleaning firms. The Onedesk Office Cleaning Platform allows cleaning firms to do a virtual walkthrough of an office space and bid on the job without visiting the location. Carpet and upholstery cleaning firms may seek to become pre-vetted vendors for such apps.
                                • Industry insiders suggest prices for some types of cleaning products and equipment may be rising due to higher prices for plastic resins. Cleaning supplies and equipment that could be affected by resin shortages and higher prices include trash liners and trash cans, plastic spray bottles and other cleaning product containers, and cleaning equipment encased in plastic housings. US producer prices for plastics material and resins in May 2022 were 7.5% higher than they were a year earlier. Inflation may also increase janitorial firms’ costs for other inputs; producer prices for soap and cleaning compounds rose 12.6% year-over-year in May.
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