Industry Analysis & Industry Trends
In the five years to 2016, Carpet Cleaning industry revenue is expected to modestly increase, as growth in household formation rates expanded the available client base for industry operators. In the coming years, rising per capita disposable income will positively affect the industry because it will increase consumers' propensity to spend on carpet cleaning services that are typically performed every one to two years. Household formation rates are expected to rise as well, as more consumers will be able to afford their own units, thanks to projected improving employment rates... purchase to read more
Industry Report - Industry Investment Chapter
The Carpet Cleaning industry has a low level of capital intensity. In 2016, for every dollar spent on wages, industry operators typically spend an estimated $0.03 on capital investment. Capital investment is mainly in company vehicles, carpet cleaning equipment and vacuums. Capital intensity also varies among industry operators, as some franchise owners can choose to lease cleaning and other related equipment. As a result, franchisees that lease cleaning equipment have less upfront costs and lower rates of capital intensity and depreciation.
Capital intensity has increased during the past five years, mainly because industry operators increasingly purchased new equipment in the past few years as business conditions have improved... purchase to read more