Revenues for contract (non-proprietary) building maintenance services are projected to grow 4.3 percent per year through 2017 to $176.5 billion. This rate will be an improvement over that posted during the 2007-2012 period, as growth was hampered by the recession and subsequent slow recovery. Going forward, improvement in construction spending, disposable personal income, and business establishments is expected to renew interest in outsourcing building maintenance or “do-it-for-me” services. However, the outsourcing trend has been maturing in some markets, and while the high level of price competition in the industry helps make these services affordable to more potential users, it also will restrain further gains in market value. These and other trends, including market share and product segmentation, are presented in Building Maintenance Services, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
In 2012, landscaping accounted for nearly half of all building maintenance service revenues. This segment benefits from the availability of these services at a variety of frequency and price levels, from weekly lawn mowing and seasonal fertilization to more intensive services such as tree installation or removal. Through 2017, pest control is projected to achieve the fastest growth, as an increase in certain pest populations (particularly bed bugs), growing concern for environmental health and safety, and more stringent regulations regarding the handling and storage of pesticides promote the hiring of contracted extermination professionals. Interior building cleaning services, which accounted for the second largest share of revenues in 2012 with 34 percent, will generate above average gains due to a return to more frequent cleaning schedules.
Virtually every segment of the economy uses building maintenance services to some degree. In the nonresidential market, building maintenance functions are often essential to presenting a safe, clean, and well-maintained facility for customers and employees. However, in many cases these operations are outside the core capabilities of the business and so are contracted out. Growth in the residential market will be driven by a rebound in new residential construction and accelerating growth in disposable income. Additional gains will stem from a number of demographic trends, including the graying of the population and a rising number of dual-income families.
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.