Clean sweep: Increasing demand from businesses and households will strengthen revenue

The Janitorial Services industry has grown over the five years to 2018. Demand for commercial cleaning services, the industry's primary product segment, increased over the past five years, as rising corporate profit led to an increase in business cleaning expenditure. Additionally, declining office vacancy rates, increasing nonresidential construction activity and growth in the number of businesses over the past five years broadened operators' potential client base, as more office and retail space naturally increased demand for janitorial services. Furthermore, strong revenue expansion has encouraged many sole proprietors and small-business owners to enter this industry as it has relatively few barriers to entry...purchase to read more.

Industry Statistics & Market Size
Revenue
$61bn
Annual Growth 13-18
3.0%
Forecast Growth 18-23
Profit
Employment
2.0m
Businesses
936,017
Market Share of Companies

Industry Threats & Opportunities

  • A robust economy will lift demand for cleaning services from businesses and households
  • The influx of employer and nonemployer operators has meant that competition remained strong
  • Employment and wages are expected to rise due to the labor-intensive nature of janitorial work
  • Industry Report - Industry Investment Chapter

    The Janitorial Services industry has a low level of capital intensity similar to other service-based industries. In 2018, for every $1.00 spent on wages, industry operators will typically only spend $0.01 on capital investment. Capital intensity has remained stable over the five years to 2018. However, over the past decade, industry operators have invested in green cleaning products and equipment, such as floor scrubbers that use less chemical products and machines that ionize water to help lift dirt particles. These investments can help attract environmentally conscious clients and save industry operators chemical cleaning costs over time.Nevertheless, cleaning activities involve a high degree of direct labor input. Typ...purchase to read more.

    Additional Insights for the Janitorial Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Janitorial Services Industry are

  • Being part of a franchised chain
  • Ability to alter mix of inputs in line with cost
  • Use of a high volume/low margin strategy
  • IBISWorld analysts also discuss how external factors such as Number of businesses and Corporate profit in the Janitorial Services industry impact industry performance..

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    What's in this report

    What is the Janitorial Services Industry?

    Operators in this industry clean building interiors, the inner parts of transportation equipment (e.g. aircraft, railcars and ships) and windows. Industry activities include contract cleaning services for factories, retail outlets, shopping centers and malls, business and government offices, trains and airlines and house-cleaning services.

    Industry Products
  • Residential cleaning
  • Standard commercial cleaning (except medical and industrial)
  • Hospitals and medical offices
  • Exterior window cleaning
  • Floor care services
  • Industrial cleaning
  • Damage restoration cleaning
  • Industry Activities
  • Providing interior building cleaning services
  • Cleaning homes
  • Providing window cleaning services
  • Providing maid services
  • Providing aircraft janitorial services
  • Washroom sanitization and cleaning
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of businesses
  • Corporate profit
  • Households earning more than $100,000
  • Value of private nonresidential construction
  • Homeownership rate
  • Office rental vacancy

  • Current Performance
  • Nonresidential construction
  • Upper-income households boosts demand
  • Structural shifts
  • Green services
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry landscape
  • Tempered profit growth
  • Table: Janitorial Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Janitorial Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Department Stores
  • Professional, Scientific and Technical Services
  • Educational Services
  • Healthcare and Social Assistance
  • Arts, Entertainment and Recreation
  • Public Administration
  • Consumers

  • Key Selling Industries
  • Chemical Wholesaling

  • Products & Services
  • Standard commercial cleaning (except medical and industrial)
  • Residential cleaning
  • Industrial cleaning
  • Damage restoration cleaning
  • Other
  • Floor care services
  • Hospitals and medical offices
  • Exterior window cleaning
  • Chart: Janitorial Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Commercial
  • Residences
  • Educational facilities
  • Government and non government organizations
  • Chart: Major Market Segmentation for the Janitorial Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Depreciation, rent and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Janitorial Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Janitorial Services Industry

  • Industry Globalization
    ABM Industries Inc.,
  • Table: ABM Industries Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Janitorial Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Janitorial Services Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Number of Businesses (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Franchising
  • Franchising is a form of business by which the owner (franchisor) of a product, service or method obtains distribution through affiliated dealers (franchisees).
  • Maid Services
  • Cleaning services designed for domestic buildings (i.e. households).
  • Strategic Alliance
  • Agreement for cooperation among two or more independent operators to work together toward common objectives.
  • What Our Customers Say

    Why buy this report?

    The Janitorial Services industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Janitorial Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Janitorial Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Janitorial Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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