Cleveland 7/10/2012 5:30:00 AM
News / Business

Revenues for Cleaning Services to Exceed $68 Billion in 2016

Revenues for contract commercial and residential cleaning services are forecast to advance 4.8 percent annually to $68.3 billion in 2016.  Growth will be driven by customers returning to more frequent cleaning schedules as the economy continues to improve, especially those who reduced their use of cleaning services in order to minimize expenses in response to the effects of the 2007-2009 recession.  Gains will also be supported by faster growth in the number of households and a rebound in the number of business establishments.  Furthermore, the recession motivated many cleaning companies to diversify and offer a wider range of services at more competitive prices, and the growing affordability and use of cleaning services will support revenue gains.  These and other trends, including market share and product segmentation, are presented in Contract Cleaning Services, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.  

Nonresidential markets account for the vast majority of cleaning service revenues, making up almost 80 percent of the total in 2011.  In addition, many companies that previously employed in-house cleaning staff reduced operating expenses by outsourcing cleaning services as the economy worsened.  Demand for cleaning services in the nonresidential market is more inelastic than in the residential market due to the sizable existing base of nonresidential floor space and the need to keep this space clean.  Due to the poor economic climate, nonresidential cleaning service revenue growth decelerated over the 2006-2011 period.  Going forward, revenues will benefit from the continued trend of outsourcing cleaning functions to cut costs.  Rebounding nonresidential construction activity and growth in the number of business establishments will also aid revenue gains.

In the residential market, the increasing use of cleaning services by an aging population and the growing number of dual-income households will support revenue gains.  These trends, coupled with accelerating growth in personal disposable income levels, will 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 2011.  Growth in revenues will derive from expansions in the number of business establishments and the number of households, both of which will create more opportunities for interior cleaning services.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.