Market Research Report
Contract Cleaning Services (US Market & Forecast)
|Published by||Freedonia Group||Product code||243607|
|Published||Content info||295 Pages
Delivery time: 1-2 business days
|Contract Cleaning Services (US Market & Forecast)|
|Published: December 31, 2015||Content info: 295 Pages||
Revenues for contract (non-proprietary) cleaning services are forecast to grow by 3.1 percent annually to $65.1 billion in 2019. In general, the main impetus to hire a contract cleaner is to save money and time. Increases in construction spending, disposable personal income, and business establishments are expected to support advances in cleaning service revenue. However, the outsourcing trend has been maturing in some markets, and while the high level of price competition helps make these services affordable to more potential users, it also will restrain further gains in market value.
Nonresidential markets account for the vast majority of cleaning service revenues, making up almost 80 percent of the total in 2014. In general, demand for cleaning services in the nonresidential market is more inelastic than in the residential market because cleaning functions are often essential to presenting a safe and clean facility for customers and employees. However, in many cases these operations are outside the core capabilities of the business and so are contracted out. In addition, the 2010 Affordable Care Act's insurance mandate has raised the cost of maintaining an in-house staff, prompting some companies to outsource services. Companies continue outsourcing cleaning activities rather than spend their resources hiring, training, and maintaining an in-house cleaning staff. In addition, ongoing expansion in both the amount of nonresidential floor space and the number of businesses will spur demand for contract cleaning services.
Demand for contract cleaning services in the residential market will accelerate through 2019 due to an increased number of households, an aging population, and the growing number of dual-income households. Members of dual-income households often do not have the time or the inclination to perform cleaning tasks. Additionally, older citizens are sometimes less able to perform cleaning tasks than they once were, particularly as a growing share choose to stay in their homes and age in place. Accelerating growth in disposable personal income levels will also benefit residential cleaning services.
Although larger contract cleaning companies are expanding their services into several markets, becoming a one-stop shop for all of a client's cleaning needs, most businesses still specialize in a limited number of cleaning services. Interior cleaning services are the largest contributor to revenues, accounting for nearly three-quarters of the total in 2014. Growth in revenues will derive from expansions in both the number of business establishments and the number of dual-income households. Although maturing, outsourcing as a means of reducing operating costs will continue to support the utilization of contract interior cleaning services in nonresidential markets. Along with interior cleaning services, exterior cleaning and swimming pool cleaning services will also exhibit above average growth in 2019. Flooring and fabric cleaning demand will grow the slowest due to a shift away from carpeting and a number of potential customers opting to clean these surfaces themselves.
This Freedonia industry study, Contract Cleaning Services, presents historical demand data (2004, 2009, 2014) plus forecasts (2019, 2024) by service, market and region. The study also considers market environment factors, examines the industry structure, evaluates company market share data and profiles 44 major competitors in the US industry.