The U.S. Janitorial Services Industry
This Marketdata study examines the huge and mature $52 billion U.S. commercial janitorial services market that employs nearly 1 million. The business is very competitive, comprised of 765,000 mainly small operators, including 44,000 franchised outlets. Competitors run the gamut from mom & pop cleaners, to giants such as ABM Industries with $2.4 billion in revenues and ServiceMaster Clean with $2.1 billion. This study traces the industry’s size, growth, end-user segments, structure, factors affecting demand, and operating ratios — Receipts for 1987-2012 actual, 2013-2014 estimates, and 2018 forecasts.
Steady sales gains came to a halt in 2009 with the Great Recession, real estate bust, rising office building construction and vacancy rates, and cutbacks in the frequency of cleaning by clients. Some customers even shifted to in-house cleaning. The industry has rebounded since 2011 but has been undergoing significant change. Worker turnover is still high, there’s pressure to raise wages, franchise sellers are under fire for unscrupulous practices, consolidation is speeding up as the older generation of owners/managers retires, there is uncertainty over the effects of Obamacare, and “green cleaning” and OSHA and ISO certification has become more important. However, cleaning contractors that are adept at specialized niches can still do well.
This is a complete analysis of: industry size and structure, competitors, major industry trends, franchising, office and industrial building vacancy rates, impact of the last recession, cleaning worker pay/turnover, outsourcing, and more. Includes highlights of latest surveys by trade journals, as well as comments and outlooks by top competitors, trade groups and industry consultants. National, state and city ratios from Census Bureau, BLS, NAR, BSCAI and other surveys. Includes in-depth profiles and rankings of all the top franchises and non-franchise competitors.
Steady sales gains came to a halt in 2009 with the Great Recession, real estate bust, rising office building construction and vacancy rates, and cutbacks in the frequency of cleaning by clients. Some customers even shifted to in-house cleaning. The industry has rebounded since 2011 but has been undergoing significant change. Worker turnover is still high, there’s pressure to raise wages, franchise sellers are under fire for unscrupulous practices, consolidation is speeding up as the older generation of owners/managers retires, there is uncertainty over the effects of Obamacare, and “green cleaning” and OSHA and ISO certification has become more important. However, cleaning contractors that are adept at specialized niches can still do well.
This is a complete analysis of: industry size and structure, competitors, major industry trends, franchising, office and industrial building vacancy rates, impact of the last recession, cleaning worker pay/turnover, outsourcing, and more. Includes highlights of latest surveys by trade journals, as well as comments and outlooks by top competitors, trade groups and industry consultants. National, state and city ratios from Census Bureau, BLS, NAR, BSCAI and other surveys. Includes in-depth profiles and rankings of all the top franchises and non-franchise competitors.
Introduction Study Scope, Sources Used, Methodology 1-5
Industry Nature & Definition: Description of the industry's major segments, services provided, NAICS codes
Executive Overview of Major Findings ($300) 6-28
Highlights & key findings of all report chapters: industry nature, analysis of major trends/issues affecting the industry (the recession, turnover, commercial office vacancy rates, commercial construction, franchising, green cleaning), outlooks by managements of competitors & consultants, industry size/growth: 1997-2018 Forecast, 2012-2014 performance, franchising problems, sales/ranking of top competitors (franchises & non-franchise firms). Values of education, commercial, healthcare, retail end-user segments, industry structure, 2012 Census key operating ratios (receipts, avg. per establishment, payroll/labor costs, etc.), client mix, services provided.
Demand factors: Outlook For Office Space & Commercial Construction ($150) 29-47
Status report of commercial & office construction activity and indicators: value of non-residential construction, commercial office vacancy rates in major metro areas & nationwide, discussion of absorption rates
Outlooks by: Natl. Assn. of Realtors, CB Richard Ellis, Jones Lang LaSalle: 2012-2013 projections
BOMA 2014 report major findings: commercial real estate rental income/expense trends, occupancy
Industrial and commercial building outlook
Medical building construction outlook
Amount of existing commercial floor space by U.S. and by region (1979-2012) share of space by type activity (retail, education, healthcare)
Commercial office vacancy rates, by10 largest cities, office mkts. with highest vacancy rates
Discussion of absorption rates, “shadow space”.
Tables:
Amount of commercial floorspace in the U.S. – 1979-2012 (gov’t survey)
Distribution of floor space, by main building activity: 2012
No. of buildings and % of total floor space by type activity (education, health care, lodging, retail, offices, warehouses, etc.), by region (1986, 1989, 1992, 1995, 1999, 2003, 2012)
Distribution of commercial floor space, by size of building: 2012
Distribution of commercial floor space, no. of buildings, by Census region: 2012
Value of new construction of non-residential buildings, by type building/sector: 2008-2013
Value of new construction of non-residential buildings: 1990-2013
National office vacancy rates, net absorption, completions, rent growth: 2007-2016F (NAR)
Top 10 office space markets: Q3 2014: inventory, YTD net absorption, total vacancy
Top 10 office markets with highest vacancy rates: Q3 2014
U.S. healthcare expenditures & construction spending on structures: 1995-2020 projections.
Industry Size, Growth, Market Segments ($200) 48-63
Discussion/analysis of 2-tiered mkt. structure (large contractors vs. small independents, and franchise organizations vs. non-franchise cleaners), estimated share by top firms
Discussion of major factors affecting demand: performance during last recession
Industry size estimates; rationale for estimates by various sources – by amount of commercial floorspace x cost per sq. ft., based on Census data – receipts of establishments, Marketdata's estimates/forecasts, factors affecting recent growth
Analysis of employer vs. non-employer estabs. and receipts
Industry Segment growth: analysis of janitorial revenues vs. total building maint. industry.
2014-2018 forecasts & outlook: Marketdata projections, key factors affecting growth
Growth outlooks by other industry analysts
Value of major industry segments in 2014: commercial/office, industrial, healthcare, education, retail, other.
Tables:
The 20 largest commercial cleaning companies list: 2011 & 2013 revenues.
Total industry potential, $ value and % change (1992-2012)
Share of total receipts by exterminating/pest control, janitorial, carpet cleaning, all other building cleaning & maintenance services
Total industry receipts, by major segments, annual % change (2000-2012, Census Bureau): total Industry, pest control, janitorial, carpet cleaning, other services to buildings
Annual percent change in janitorial services receipts: 200014 Est.
Historical share of industry sales by pest control, carpet cleaning vs. janitorial/all other services: 2000-2012
Employer vs. non-employer receipts: 2000-2012
Historical industry receipts (1983-1998) Census Bureau data.
Historical share of industry receipts: pest control vs. janitorial & other services: 1985-2012
Industry Economic Structure & Operating Ratios ($350) 64-104
Total Industry Analysis p. 64-84
Explanation of how to interpret Census data, how the data is arranged/classified by NAICS codes, and major market segments, 2012 Census
Summary: discussion of total building services receipts in 2012, breakdown by type
Outlook by Bureau of Labor Statistics for demand for janitors (number, wages): to 2020
Labor productivity ratios: 2012
Discussion of Non-employer receipts (sole proprietorships without payrolls) IRS data 2012
Discussion of industry Financial health: composite income statement & balance sheet ratios, profitability trends, by size of cleaning contractor (janitorial services, pest control, other services: 2007-2011.
Major findings of 2014 CMM Magazine survey: type services provided by cleaning contractors, labor costs, profit margins, share of revenues by building type.
Summary & analysis: no. of cleaning establishments in U.S. and for leading states; no. of firms; industry size; avg. receipts per office by top states; mkt. share top 50 firms ratios; summary findings of 2007 Census re: legal form of organization, firms & estabs. by sales size (in receipts & employment); single/multi-unit operations.
Summary statistics: 1997, 2002, 2007, 2012 no. of estabs; total industry vs. disinfecting/pest control, other services; annual receipts; payroll costs; no. of workers; payroll per employee; receipts per employee, receipts per establishment.
Geographic analysis share of national receipts, avg. receipts per estab., by state, top states' ranking: 2002, 2007.
Statistical Tables:
Total Industry All Types of Commercial Cleaning Contractors
Receipts of all services to buildings (excl. landscaping) – pest control, janitorial, carpet cleaning, All other services: 2000-2012
Industry snapshot: 1997, 2002, 2007, 2012: key ratios (payroll, no. estabs., receipts, etc.)
Annual % change in receipts of janitorial vs. ALL building services: 200014 Est.
Employer vs. nonemployer estabs. – no. of estabs. and receipts
Total cleaning industry firms, by legal form of organization -corporations, sole proprietorships, partnerships: 1997, 2002, 2007 (no. of firms, receipts, payroll as % receipts, no. of employees).
Single vs. multi-unit operations, by size (statistics as above) 1997, 2002, 2007.
Concentration Ratios: ratios for top 4, 8, 20, 50 largest firms 1997, 2002, 2007
Total Commercial Cleaning Firms, by receipts size (under $100,000 to $100 + mill.); (no. of firms, estabs., receipts, payroll, avg. receipts per firm) 1997, 2002, 2007
Receipts & avg. receipts per establishment, by state 1997, 2002, 2007.
Janitorial Services p. 88-104
Janitorial service firms, by legal form of organization corporate, sole proprietorships, partnerships: 1997 & 2002, (no. of firms, receipts, payroll as % receipts, no. of employees)
Single vs. multi-unit operations, by size (statistics as above) 1997, 2002, 2007
Concentration Ratios: ratios by top 4, 8, 20, 50 largest firms 1997, 2002, 2007
Janitorial service firms, by receipts size (under $100,000 to $100+ mill.) (no. of firms, estabs., receipts, payroll, avg. receipts per firm), 1997, 2002, 2007.
Receipts & avg. receipts per establishment, by state – 2011 (County Business Patterns), 2002, 2007 (Census).
Competitor Profiles: Major Cleaning Franchise Organizations ($350) 105-143
Summary how many exist? Entrepreneur magazine’s 2013 Franchise 500 ranking, Discussion: how cleaning franchises work and differ, services typically provided by parent, master franchises, Analysis of avg. initial franchise fees/royalty rates/start-up costs
The industry's leading franchisers: parent co. vs. systemwide revenues, avg. estimated annual receipts, difficulties estimating revenues due to full-time vs. part-time workers; franchise investment pkgs. sold.
Discussion of recent problems with franchises, misrepresentation of earnings, churning of accounts, territory encroachment, lawsuits and Atty. General actions against Jani-King, Coverall, Bonus Bldg. Care, Stratus Building Solutions. Why franchises are not as popular vs. several years ago as a career option.
Tables:
The major commercial cleaning franchises: 10 companies’ systemwide sales: 2013.
Top janitorial franchises (no. of units 2006-2013, franchise. fee, royalty %, start-up costs)
The major commercial cleaning franchises, by no. of units: 2008-2013.
Profiles of The Leading Commercial Cleaning Franchises & Non-Franchise Firms
(For each company below: discussion & analysis of services offered, divisions, franchise packages offered/cost, markets served; strategies, 2010-2013 sales when avail., history & recent developments; acquisitions, number of franchises active; marketing strategies)
ABM Industries
Anago Cleaning Systems
Bonus Building Care
Clean Net USA
Coverall North America
Jan-Pro Intl.
Continued:
Jani-King Intl.
Pritchard Industries
Red Coats
ServiceMaster (incl. ServiceMaster Clean)
Stratus Building Solutions
UGL UNICCO Services
Reference Directory of Industry Information Sources 144-155
Addresses, phones, contacts at major cleaning industry trade associations, trade journals, consulting firms, stock analysts.
Industry Nature & Definition: Description of the industry's major segments, services provided, NAICS codes
Executive Overview of Major Findings ($300) 6-28
Highlights & key findings of all report chapters: industry nature, analysis of major trends/issues affecting the industry (the recession, turnover, commercial office vacancy rates, commercial construction, franchising, green cleaning), outlooks by managements of competitors & consultants, industry size/growth: 1997-2018 Forecast, 2012-2014 performance, franchising problems, sales/ranking of top competitors (franchises & non-franchise firms). Values of education, commercial, healthcare, retail end-user segments, industry structure, 2012 Census key operating ratios (receipts, avg. per establishment, payroll/labor costs, etc.), client mix, services provided.
Demand factors: Outlook For Office Space & Commercial Construction ($150) 29-47
Status report of commercial & office construction activity and indicators: value of non-residential construction, commercial office vacancy rates in major metro areas & nationwide, discussion of absorption rates
Outlooks by: Natl. Assn. of Realtors, CB Richard Ellis, Jones Lang LaSalle: 2012-2013 projections
BOMA 2014 report major findings: commercial real estate rental income/expense trends, occupancy
Industrial and commercial building outlook
Medical building construction outlook
Amount of existing commercial floor space by U.S. and by region (1979-2012) share of space by type activity (retail, education, healthcare)
Commercial office vacancy rates, by10 largest cities, office mkts. with highest vacancy rates
Discussion of absorption rates, “shadow space”.
Tables:
Amount of commercial floorspace in the U.S. – 1979-2012 (gov’t survey)
Distribution of floor space, by main building activity: 2012
No. of buildings and % of total floor space by type activity (education, health care, lodging, retail, offices, warehouses, etc.), by region (1986, 1989, 1992, 1995, 1999, 2003, 2012)
Distribution of commercial floor space, by size of building: 2012
Distribution of commercial floor space, no. of buildings, by Census region: 2012
Value of new construction of non-residential buildings, by type building/sector: 2008-2013
Value of new construction of non-residential buildings: 1990-2013
National office vacancy rates, net absorption, completions, rent growth: 2007-2016F (NAR)
Top 10 office space markets: Q3 2014: inventory, YTD net absorption, total vacancy
Top 10 office markets with highest vacancy rates: Q3 2014
U.S. healthcare expenditures & construction spending on structures: 1995-2020 projections.
Industry Size, Growth, Market Segments ($200) 48-63
Discussion/analysis of 2-tiered mkt. structure (large contractors vs. small independents, and franchise organizations vs. non-franchise cleaners), estimated share by top firms
Discussion of major factors affecting demand: performance during last recession
Industry size estimates; rationale for estimates by various sources – by amount of commercial floorspace x cost per sq. ft., based on Census data – receipts of establishments, Marketdata's estimates/forecasts, factors affecting recent growth
Analysis of employer vs. non-employer estabs. and receipts
Industry Segment growth: analysis of janitorial revenues vs. total building maint. industry.
2014-2018 forecasts & outlook: Marketdata projections, key factors affecting growth
Growth outlooks by other industry analysts
Value of major industry segments in 2014: commercial/office, industrial, healthcare, education, retail, other.
Tables:
The 20 largest commercial cleaning companies list: 2011 & 2013 revenues.
Total industry potential, $ value and % change (1992-2012)
Share of total receipts by exterminating/pest control, janitorial, carpet cleaning, all other building cleaning & maintenance services
Total industry receipts, by major segments, annual % change (2000-2012, Census Bureau): total Industry, pest control, janitorial, carpet cleaning, other services to buildings
Annual percent change in janitorial services receipts: 200014 Est.
Historical share of industry sales by pest control, carpet cleaning vs. janitorial/all other services: 2000-2012
Employer vs. non-employer receipts: 2000-2012
Historical industry receipts (1983-1998) Census Bureau data.
Historical share of industry receipts: pest control vs. janitorial & other services: 1985-2012
Industry Economic Structure & Operating Ratios ($350) 64-104
Total Industry Analysis p. 64-84
Explanation of how to interpret Census data, how the data is arranged/classified by NAICS codes, and major market segments, 2012 Census
Summary: discussion of total building services receipts in 2012, breakdown by type
Outlook by Bureau of Labor Statistics for demand for janitors (number, wages): to 2020
Labor productivity ratios: 2012
Discussion of Non-employer receipts (sole proprietorships without payrolls) IRS data 2012
Discussion of industry Financial health: composite income statement & balance sheet ratios, profitability trends, by size of cleaning contractor (janitorial services, pest control, other services: 2007-2011.
Major findings of 2014 CMM Magazine survey: type services provided by cleaning contractors, labor costs, profit margins, share of revenues by building type.
Summary & analysis: no. of cleaning establishments in U.S. and for leading states; no. of firms; industry size; avg. receipts per office by top states; mkt. share top 50 firms ratios; summary findings of 2007 Census re: legal form of organization, firms & estabs. by sales size (in receipts & employment); single/multi-unit operations.
Summary statistics: 1997, 2002, 2007, 2012 no. of estabs; total industry vs. disinfecting/pest control, other services; annual receipts; payroll costs; no. of workers; payroll per employee; receipts per employee, receipts per establishment.
Geographic analysis share of national receipts, avg. receipts per estab., by state, top states' ranking: 2002, 2007.
Statistical Tables:
Total Industry All Types of Commercial Cleaning Contractors
Receipts of all services to buildings (excl. landscaping) – pest control, janitorial, carpet cleaning, All other services: 2000-2012
Industry snapshot: 1997, 2002, 2007, 2012: key ratios (payroll, no. estabs., receipts, etc.)
Annual % change in receipts of janitorial vs. ALL building services: 200014 Est.
Employer vs. nonemployer estabs. – no. of estabs. and receipts
Total cleaning industry firms, by legal form of organization -corporations, sole proprietorships, partnerships: 1997, 2002, 2007 (no. of firms, receipts, payroll as % receipts, no. of employees).
Single vs. multi-unit operations, by size (statistics as above) 1997, 2002, 2007.
Concentration Ratios: ratios for top 4, 8, 20, 50 largest firms 1997, 2002, 2007
Total Commercial Cleaning Firms, by receipts size (under $100,000 to $100 + mill.); (no. of firms, estabs., receipts, payroll, avg. receipts per firm) 1997, 2002, 2007
Receipts & avg. receipts per establishment, by state 1997, 2002, 2007.
Janitorial Services p. 88-104
Janitorial service firms, by legal form of organization corporate, sole proprietorships, partnerships: 1997 & 2002, (no. of firms, receipts, payroll as % receipts, no. of employees)
Single vs. multi-unit operations, by size (statistics as above) 1997, 2002, 2007
Concentration Ratios: ratios by top 4, 8, 20, 50 largest firms 1997, 2002, 2007
Janitorial service firms, by receipts size (under $100,000 to $100+ mill.) (no. of firms, estabs., receipts, payroll, avg. receipts per firm), 1997, 2002, 2007.
Receipts & avg. receipts per establishment, by state – 2011 (County Business Patterns), 2002, 2007 (Census).
Competitor Profiles: Major Cleaning Franchise Organizations ($350) 105-143
Summary how many exist? Entrepreneur magazine’s 2013 Franchise 500 ranking, Discussion: how cleaning franchises work and differ, services typically provided by parent, master franchises, Analysis of avg. initial franchise fees/royalty rates/start-up costs
The industry's leading franchisers: parent co. vs. systemwide revenues, avg. estimated annual receipts, difficulties estimating revenues due to full-time vs. part-time workers; franchise investment pkgs. sold.
Discussion of recent problems with franchises, misrepresentation of earnings, churning of accounts, territory encroachment, lawsuits and Atty. General actions against Jani-King, Coverall, Bonus Bldg. Care, Stratus Building Solutions. Why franchises are not as popular vs. several years ago as a career option.
Tables:
The major commercial cleaning franchises: 10 companies’ systemwide sales: 2013.
Top janitorial franchises (no. of units 2006-2013, franchise. fee, royalty %, start-up costs)
The major commercial cleaning franchises, by no. of units: 2008-2013.
Profiles of The Leading Commercial Cleaning Franchises & Non-Franchise Firms
(For each company below: discussion & analysis of services offered, divisions, franchise packages offered/cost, markets served; strategies, 2010-2013 sales when avail., history & recent developments; acquisitions, number of franchises active; marketing strategies)
ABM Industries
Anago Cleaning Systems
Bonus Building Care
Clean Net USA
Coverall North America
Jan-Pro Intl.
Continued:
Jani-King Intl.
Pritchard Industries
Red Coats
ServiceMaster (incl. ServiceMaster Clean)
Stratus Building Solutions
UGL UNICCO Services
Reference Directory of Industry Information Sources 144-155
Addresses, phones, contacts at major cleaning industry trade associations, trade journals, consulting firms, stock analysts.
