The cleaning industry is a broad collection of many

different companies and specialties, from commercial

janitorial services to housecleaning companies. In this

presentation, we’ll take a look at some of the

trends in the industry, and how they will affect

the types of companies mentioned above in 2016.

According to a study by

the investment bank

Scott-Macon, the cleaning

and janitorial industry is

expected to grow faster

between 2014 and 2020,

at 4.3%, than it did in

previous years (2.7%

growth per year between

2010 and 2013).

As a result, the market

sector is expected to be

worth nearly $60 billion

in 2016, and to surpass

that amount by 2017.

One of the reasons the cleaning services

industry can undergo such growth is because

of the low barrier of entry to start a successful

cleaning company. In fact, the 4 largest

companies in the industry account for

less than 10% of the available market,

with much of the rest taken up by smaller,

often independent companies.

Why does the cleaning

industry have such a low

barrier for entry? There are

several reasons, including:

• A low level of market share

concentration

• Relatively low capital

investment requirements

• Few training requirements

for employees

• High demand for cleaning

services in the commercial

sector and private homes

There are an estimated

829,522 cleaning and

janitorial services

companies currently

operating in the US.

Because of the broad

spectrum of services this

includes, many companies

specialize in one particular

element of professional

janitorial and cleaning work.

The cleaning industry can be broken down

into the following sectors:

• Standard commercial cleaning – 77.6%

• Residential cleaning – 7.0%

• Damage restoration (water damage

repair, mold removal, etc.) – 4.6%

• Other – 10.5%

The majority of cleaning

industry revenue is generated

from the commercial and retail

sectors (42.3% combined),

with educational and healthcare

facilities representing the fastest

growing sectors (31.7% and

4.7%, respectively).

Residences account

for 7.0% of revenue

for the industry.

All in all, the cleaning industry is

expected to have a good year in 2016.

Both commercial and residential business

is expected to increase, thanks to the

expected upswing in the economy and an

increase in disposable household income.

The number of cleaning companies is

expected to grow 1.7% per year.

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All statistics and industry predictions used in this presentation are sourced from the Scott-Macon Janitorial Industry Review. The report in its entirety can be found here:

http://www.scott-macon.com/announcements/scott-macon-janitorial-industry-review

Summary

The cleaning and janitorial industry encompasses a wide variety of subsectors, serving both the commercial and residential markets. The industry is expected to grow for the next few years, both in revenue and the number of companies.