Squeaky clean: Though residential market demand will rise, revenue growth has been stymied by declining retailer demand

The Janitorial Services industry in California, which services markets in the institutional, municipal, commercial and industrial sectors, is expected to grow at an annualized rate of 0.5% to $6.3 billion over the five years to 2017, which is slower than the national average. This growth rate includes a 1.8% decrease in 2017. This projected growth is largely attributed to an increase in demand among residential consumers. At a slightly faster pace, revenue is anticipated to grow at an annualized rate of 0.7% to $6.5 billion over the five years to 2022. Strengthened demand will be primarily attributed to rising housing sales, which is expected to support demand for janitorial services...read more.

Industry Statistics & Market Size
Revenue
$6bn
Annual Growth 12-17
0.5%
Forecast Growth 17-22
Profit
Employment
199,693
Businesses
104,991

Industry Threats & Opportunities

  • Despite the rise in residential market demand, revenue growth has been stymied by the drop in retailer demand
  • Surging consumer spending levels have spurred commercial business expansion activity
  • Demand for industry services from homeowners will strengthen
  • Industry Report - Industry Investment Chapter

    This industry has a low level of capital intensity, which is similar to other service industries. In 2017, for every $1.00 spent on wages, industry operators will typically only spend $0.02 on capital investment. Capital intensity is roughly the same from 2012 through 2017. 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 in California Industry

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

  • Being part of a franchised chain
  • Ability to alter the 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 in California and Office rental vacancy in the Janitorial Services in California industry impact industry performance..

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    What's in this report

    What is the Janitorial Services in California 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
  • Carpet, Rug and Upholstery Cleaning Services
  • Parking Lot Sweeping Services
  • Drain and Gutter Cleaning Services
  • Ventilation Duct and Hood Cleaning Services
  • Other Cleaning Services for Buildings and Dwellings
  • Other Cleaning Services
  • 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 in California
  • Office rental vacancy
  • Housing Starts in California
  • Corporate Profit in California
  • World price of crude oil

  • Current Performance
  • Shifting demand dynamics
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Enhanced focus on the residential market
  • Profit stabilizes
  • Table: Janitorial Services in California Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Janitorial Services in California 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
  • Carpet, Rug and Upholstery Cleaning Services
  • Other Cleaning Services for Buildings and Dwellings
  • Parking Lot Sweeping Services
  • Other Cleaning Services
  • Drain and Gutter Cleaning Services
  • Ventilation Duct and Hood Cleaning Services
  • Chart: Janitorial Services in California Industry Products and Services Segmentation

  • Major Markets
  • Residential & Nonresidential Buildings
  • Elementary & Secondary Schools
  • Colleges & Universities
  • Government
  • Hospitals
  • Chart: Major Market Segmentation for the Janitorial Services in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesDepreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Janitorial Services in California

  • Basis of Competition
  • Internal competition
  • External competition

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

  • ABM Industries Inc., Jan-Pro Franchising International Inc., MaidPro Franchise Corporation, Anago Cleaning Systems, Jani-King International, Inc.,
  • Table: ABM Industries Inc. - financial performance
  • Table: Jan-Pro Franchising International Inc. - financial performance
  • Table: MaidPro Franchise Corporation - financial performance
  • Table: Anago Cleaning Systems - financial performance
  • Table: Jani-King International, Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Janitorial Services in California 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 in California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Number of Businesses (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    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).
  • Tag Work
  • Extra service work that is performed on an as-needed basis and that is not predefined by an existing contract.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Janitorial Services in California contains five-year forecasts and data analysis that can help you identify and mitigate risks in potential new markets. Position yourself as an expert with internal stakeholders by using our comprehensive industry research to inform your reports, proposals and presentations. Our business information will save you money by helping you make better decisions, faster.

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    This report on Janitorial Services in California:
    • 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 in California 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 in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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