Revenues for contract (non-proprietary) cleaning services in the US are forecast to advance 3.2 percent annually to $65 billion in 2019. Improvements in construction spending, disposable personal incomes, and the formation of business establishments are expected to support gains in cleaning service revenue. In general, the main impetus to hire a contract cleaner is to save money and time. 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. These and other trends are presented in Contract Cleaning Services, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
The nonresidential market accounts for the vast majority of cleaning service revenues, and ongoing expansion in both the amount of nonresidential floor space and the number of businesses will bolster demand for contract cleaning services. According to analyst Joseph Kocian, “Demand for cleaning services in the nonresidential market is more inelastic than in the residential market because cleaning functions are often essential to providing a safe and clean facility for customers and employees.”
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 high number of dual-income households. 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.
Interior building cleaning services are the largest contributor to cleaning service revenues, accounting for nearly three-quarters of the total in 2014. Growth in revenues will be bolstered by 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 use of contract interior cleaning services in nonresidential markets. While revenues for most types of cleaning sources will expand at a near average pace, flooring and fabric cleaning revenues will grow more slowly as a growing number of potential customers shift away from carpeting or opt to clean their surfaces themselves.
US CONTRACT CLEANING SERVICE REVENUES (million dollars)
In 2009…
Contract Cleaning Service Revenues = 48525
Interior Cleaning = 35590
Floors & Fabrics = 5160
Exterior Cleaning = 2260
Swimming Pools = 2000
Restoration & Remediation = 1200
Other Cleaning Services = 2315
In 2014…
Contract Cleaning Service Revenues = 55650
Interior Cleaning = 41000
Floors & Fabrics = 5665
Exterior Cleaning = 2660
Swimming Pools = 2180
Restoration & Remediation = 1445
Other Cleaning Services = 2700
In 2019…
Contract Cleaning Service Revenues = 65050
Interior Cleaning = 48200
Floors & Fabrics = 6295
Exterior Cleaning = 3160
Swimming Pools = 2555
Restoration & Remediation = 1710
Other Cleaning Services = 3130