Industry Analysis & Industry Trends
The Carpet Cleaning industry is expected to modestly increase as a result of a rise in per capita disposable income, which started to improve in 2011. Additionally, the number of businesses will increase, improving demand for commercial and residential cleaning services. In the five years to 2020, revenue is projected to increase, as per capita disposable income continues to rise and household formation rates increase as well. However, the continued adoption of hardwood and laminate flooring will mitigate demand for industry services... purchase to read more
Industry Report - Industry Investment Chapter
The Carpet Cleaning industry has a low level of capital intensity. In 2015, for every dollar spent on wages, industry operators typically spend an estimated $0.08 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 which, 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