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INDUSTRYREPORT56172
JanitorialServicesintheUS
Cleansweep:Economicgrowthmovingforwardwilllikelysupportrevenuegrowth
VladKhaustovich | August2022
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Contents
COVID-19(Coronavirus)ImpactUpdate.............................3
ABOUTTHISINDUSTRY..................................5
IndustryDefinition................................................................5
MajorPlayers......................................................................5
MainActivities.....................................................................5
SupplyChain.......................................................................6
INDUSTRYATAGLANCE................................7
ExecutiveSummary............................................................9
INDUSTRYPERFORMANCE..........................10
KeyExternalDrivers.........................................................10
CurrentPerformance........................................................11
INDUSTRYOUTLOOK....................................14
Outlook..............................................................................14
IndustryLifeCycle.............................................................16
PRODUCTS&MARKETS...............................17
SupplyChain.....................................................................17
Products&Services..........................................................17
DemandDeterminants......................................................18
MajorMarkets....................................................................19
BusinessLocations...........................................................21
COMPETITIVELANDSCAPE..........................23
MarketShareConcentration.............................................23
KeySuccessFactors........................................................23
CostStructureBenchmarks.............................................24
BasisofCompetition.........................................................26
BarrierstoEntry...............................................................27
IndustryGlobalization........................................................28
MAJORCOMPANIES......................................29
MarketShareOverview.....................................................29
RelatedCompanies...........................................................29
AbmIndustriesInc.............................................................30
RedCoatsInc....................................................................32
ISSA.................................................................................34
AnagoCleaningSystems..................................................36
MarsdenHoldingLLC........................................................38
OPERATINGCONDITIONS............................40
CapitalIntensity.................................................................40
Technology&Systems......................................................41
RevenueVolatility..............................................................42
Regulation&Policy...........................................................42
IndustryAssistance...........................................................42
KEYSTATISTICS............................................44
IndustryData.....................................................................44
AnnualChange..................................................................44
KeyRatios.........................................................................44
IndustryFinancialStatement.............................................45
ADDITIONALRESOURCES............................47
AdditionalResources........................................................47
IndustryJargon..................................................................47
Glossary............................................................................47
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IBISWorld'sanalystsconstantlymonitortheindustryimpactsofcurrenteventsinreal-time–hereisanupdateof
howthisindustryislikelytobeimpactedasaresultoftheglobalCOVID-19pandemic:
·ServicesrelatedtoCOVID-19(coronavirus)cleaningcontinuetorepresentapotentialopportunityfortheindustry
asbusinessesandofficesreopen.Thistrendmightbeaffectedasmorevariantsarediscovered.Formoredetail,
refertotheCurrentPerformancechapter.
·Theindustryisexpectedtobecomemoretechnologicallyintensiveoverthefiveyearsto2026,withrobotics
amongthetechnologiesanticipatedtobeadoptedbyoperators.Formoredetail,refertotheIndustryOutlook
chapter.
·Favorableconditionsastheeconomyreopensandstricthealthandsafetyprotocolsspurringdemandhave
enablednewoperatorstoentertheindustry.Coupledwithstronginnovationinadigitalpresence,thesemetrics
signalthattheindustryhasenteredthegrowthphaseofitslifecycle.
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AboutIBISWorld
IBISWorldspecializesinindustryresearchwithcoverageonthousandsofglobalindustries.Ourcomprehensivedataandin-depthanalysishelp
businessesofalltypesgainquickandactionableinsightsonindustriesaroundtheworld.Busyprofessionalscanspendlesstimeresearching
andpreparingformeetings,andmoretimefocusedonmakingstrategicbusinessdecisionsthatbenefityou,yourcompanyandyourclients.We
offerresearchonindustriesintheUS,Canada,Australia,NewZealand,Germany,theUK,Ireland,ChinaandMexico,aswellasindustriesthat
aretrulyglobalinnature.
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AboutThisIndustry
OperatorsintheJanitorialServicesindustrycleanbuildinginteriors,theinnerpartsoftransportationequipment,
includingaircraft,railcarsandships,andwindows.Industryactivitiesincludecontractcleaningservicesforfactories,
retailoutlets,shoppingcentersandmalls,businessandgovernmentoffices,trainsandairlinesandhouse-cleaning
services.
AbmIndustriesInc.
RedCoatsInc.
ISSA
AnagoCleaningSystems
MarsdenHoldingLLC
Jani-KingInternational,Inc.
KellermeyerBergensonsServices,Llc
VixxoInc.
IHServicesInc.
MaidProFranchiseCorporation
UnitedBuildingMaintenanceInc.
Theprimaryactivitiesofthisindustryare:
Providinginteriorbuildingcleaningservices
Cleaninghomes
Providingwindowcleaningservices
Providingmaidservices
Providingaircraftjanitorialservices
Washroomsanitizationandcleaning
Themajorproductsandservicesinthisindustryare:
Residentialcleaning
Generalcommercialcleaning
Othercleaningservices
Exteriorcleaning
Industrialcleaning
Damagerestoration
Educationalinstitutioncleaning
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SupplyChain
SIMILARINDUSTRIES
PaintersintheUS
Fence&SwimmingPool
ConstructionintheUS
LandscapingServicesintheUS
CarpetCleaningintheUS
RELATEDINTERNATIONALINDUSTRIES
CommercialCleaningServicesin
Australia
GeneralBuildingCleaninginthe
UK
JanitorialServicesinCanada
CommercialCleaningServicesin
NewZealand
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IndustryataGlance
KeyStatistics
$97.6bn
Revenue
AnnualGrowth
2017–2022
6.7%
AnnualGrowth
2022–2027
3.3%
AnnualGrowth
2017–2027
$6.6bn
Profit
AnnualGrowth
2017–2022
9.8%
AnnualGrowth
2017–2022
6.8%
ProfitMargin
AnnualGrowth
2017–2022
0.9pp
AnnualGrowth
2017–2022
1m
Businesses
AnnualGrowth
2017–2022
7.7%
AnnualGrowth
2022–2027
6.3%
AnnualGrowth
2017–2027
2m
Employment
AnnualGrowth
2017–2022
5.7%
AnnualGrowth
2022–2027
4.2%
AnnualGrowth
2017–2027
$40.8bn
Wages
AnnualGrowth
2017–2022
5.0%
AnnualGrowth
2022–2027
4.0%
AnnualGrowth
2017–2027
KeyExternalDrivers
%=2017–22AnnualGrowth
1.7%
Percapitadisposableincome
1.1%
Industrialproductionindex
0.3%
Numberofbusinesses
4.3%
Corporateprofit
1.9%
Governmentfundingforprimary
andsecondaryeducation
4.7pp
Officerentalvacancy
IndustryStructure
POSITIVEIMPACT
LifeCycle
Growth
CapitalIntensity
Low
Concentration
Low
Regulation&Policy
Light/Steady
TechnologyChange
Low
IndustryGlobalization
Low/Increasing
MIXEDIMPACT
RevenueVolatility
Medium
NEGATIVEIMPACT
IndustryAssistance
None/Steady
BarrierstoEntry
Low/Steady
Competition
High/Steady
KeyTrends
Anincreaseinindustrialoutputisexpectedtoincrease
industryemployment
Industrialclientshavebecomeanincreasinglyimportant
sourceofrevenue
Theindustryishighlyfragmentedduetoalargenumberof
nonemployerbusinesses
Education,healthcareandmedical-relatedindustrieswill
likelyprovidesustaineddemand
MorebusinessesintheUnitedStateswilllikelyboost
commercialdemand
Greencleaningtechnologiesandmaterialsareexpectedto
maintaintheirimportance
Industryoperatorshavebenefitedfromahigherprofit
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Products&ServicesSegmentation
MajorPlayers
SWOT
STRENGTHS
GrowthLifeCycleStage
LowImports
LowCustomerClassConcentration
LowCapitalRequirements
WEAKNESSES
Low&SteadyBarrierstoEntry
None&SteadyLevelofAssistance
HighCompetition
LowProfitvs.SectorAverage
HighProduct/ServiceConcentration
LowRevenueperEmployee
OPPORTUNITIES
HighRevenueGrowth(2017-2022)
HighRevenueGrowth(2022-2027)
HighPerformanceDrivers
Corporateprofit
THREATS
LowRevenueGrowth(2005-2022)
LowOutlierGrowth
Percapitadisposableincome
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Cleansweep:Economicgrowthmovingforwardwilllikelysupport
revenuegrowth
OperatorsintheJanitorialServicesindustrycleanbuildinginteriorsandexteriors,theinnerpartsoftransportation
equipmentandotherspaces,suchaseventstadiums.Overall,demandforindustryserviceshasgrownoverthefive
yearsto2022.WhiletheoutbreakoftheCOVID-19(coronavirus)pandemicledmanybusinessestopausetheir
operations,shrinkingthetotaladdressablemarket,strongdemandforsanitationservicesledtohigherrevenueper
customerin2020.Asaresult,industryrevenueincreased2.2%in2020.Asbusinessesbegantoreopenin2021,
demandforindustryservicesgrewstrongly,resultinginan8.7%increaseinrevenue.In2022,demandforjanitorial
servicesisexpectedtoremainstrongasmoreworkerschoosetoworkfromtheoffice.Thus,industryrevenueis
projectedtogrow6.6%in2022.
Priorto2020,theindustryexperiencedgrowthinlinewiththeoveralleconomy.Inparticular,thegrowingeconomy
ledtoasurgeofnonemployersenteringtheindustry,whichcontributedtostronggrowthinthenumberofindustry
enterprises.In2020,however,thepatternshiftedsomewhat,withorganizationspayingmoreattentiontosanitizing
andcleaningtheirofficespace.Asaresult,theindustryhasexperiencedahigher-than-expectedgrowthinrevenue
duringthesecondhalfofthecurrentperiod.Overall,industryrevenueisexpectedtogrowatanannualizedrateof
6.7%to$97.6billionoverthefiveyearsto2022.Industryoperatorshavealsobenefitedfromahigherprofitduring
thecurrentperiod.
Overthefiveyearsto2027,industryrevenueisexpectedtogrowatanannualizedrateof3.3%to$114.7billion.
Themaindriveofindustrygrowthinthenextfiveyearswillbegrowthintheeconomyoverall.IBISWorldanticipates
theUSeconomytogrowatanannualizedrateof1.6%duringtheoutlookperiod.However,ascompaniesperceive
sanitationandcleaningmoreseriouslyfollowingtheoutbreakofthepandemic,growthinindustryrevenuewilllikely
beslightlyhigherthantheeconomicgrowthinthenextfiveyears.Moreover,asmorecompaniesmovetheir
operationsbacktotheofficespace,thetotaladdressablemarketwilllikelyexpand,leadingtomoreopportunities.
Consequently,thenumberofindustryoperatorsisexpectedtogrowanannualized6.3%to1.6millioncompanies
overthefiveyearsto2027.
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IndustryPerformance
Corporateprofit
Businessesoftenexpandwhencorporateprofitgrows,leadingtogreaterdemandforjanitorialservices.Incontrast,
shrinkingcorporateprofitreducesdemandforjanitorialservicesasbusinessesclosefacilitiesanddecreasethe
frequencyofoutsourcedcleaningtoreducecosts.Corporateprofitisexpectedtoincreasein2022,representinga
potentialopportunityfortheindustry.
Percapitadisposableincome
Percapitadisposableincomeishighlycorrelatedwiththesuccessofmanyindustries.Ashouseholdincomes
increase,consumerspendingtendstoincrease,generatingtherevenuebusinessesusetopayforoperating
expenses,suchascleaningservices.Percapitadisposableincomeisexpectedtodecreasein2022,posinga
potentialthreattotheindustry.
Industrialproductionindex
Theindustrialproductionindexmeasureseconomicactivitywithinthemanufacturing,electricandgasindustries.
Manufacturingandotherindustrialactivityrepresentsignificantdownstreammarketsfortheindustry,asindustrial
companiesrequirehighvalue-addedspecialtycleaningservices.Theindustrialproductionindexisexpectedto
increasein2022.
Numberofbusinesses
ThetotalnumberofbusinessesintheUnitedStatesispositivelycorrelatedwithdemandforjanitorialservices.
Growthinthenumberofbusinessoperatorscreatesalargerclientbaseforindustryoperators.Therefore,whenthe
numberofUSbusinessesincreases,demandforcleaningservicesgenerallyrises.Thenumberofbusinessesis
expectedtoincreasein2022.
Governmentfundingforprimaryandsecondaryeducation
Educationalinstitutionsandgovernmentcontractsrepresentasignificantshareofindustryrevenue,andgovernment
spendingoneducationisaproxyforthelevelofdemandfromtheseimportantsegments.Governmentfundingfor
primaryandsecondaryschoolsisexpectedtoincreasein2022.
Officerentalvacancy
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Officerentalvacancyratesareinverselycorrelatedwithdemandforjanitorialservices.Whentheofficevacancyrate
islow,thereisgreaterdemandforjanitorialcleaningservices.Conversely,risingofficerentalvacancyrates
representreduceddownstreamdemandfromcorporateclients.Officerentalvacancyisexpectedtoincreasein
2022.
TheJanitorialServicesindustryhasexperiencedgrowthoverthefive
yearsto2022.
Theindustryderivesthemajorityofitsrevenuefromthecommercialmarketbecauseoutsourcedcleaningservices
areprimarilycontractedbycorporateoffices,industrialandretailclients.Priorto2020,agrowingoveralleconomy,
steadyratesofbusinessformationandrisingpercapitadisposableincomedroverevenuegrowthfortheindustry.In
2020,theCOVID-19(coronavirus)pandemicthrusttheeconomyintorecessionanddeceleratedgrowthinindustry
revenueduetoadecliningaddressablemarketasmanybusinessesandeducationalinstitutionsclosed.Thiswas
somewhatoffsetbyanincreaseindemandforspecialdisinfectioncleaningservicesmeanttoslowthespreadofthe
novelcoronavirus.Asaresult,industryrevenueincreasedonly2.2%in2020.However,demandforindustry
servicesgrewstronglyin2021asmanyorganizationsinvestedheavilyinsanitationanddisinfectionactivities.In
2022,revenueisexpectedtogrowanadditional6.6%duetotheongoingeffortstoreducethespreadofthe
disease.Overall,industryrevenuehasgrownduringthecurrentperiod,risingatanannualizedrateof6.7%to$97.6
billionin2022.
DOWNSTREAMDYNAMICS
Bothprivateandpubliceconomicactivitieshavebolstereddemandfor
industryservicesoverthefiveyearsto2022.
Steadybusinessformationhelpedboostdemandforindustryservicesduringthepastfiveyears.Government
spendingalsosupportedrevenuegrowthviadownstreammarkets.Forexample,governmentspendingonprimary
andsecondaryeducation,whichemploysindustryservices,increasedanannualized2.1%overthefiveyearsto
2022;governmentfundingforuniversitiesincreasedanannualized1.8%duringthesameperiod;anddirect
governmentcontractsforindustryserviceshavealsoincreasedoverthepastfiveyears.In2020,growthinindustry
revenuedeceleratedduetoadeclineinthenumberofbusinesses,increasedofficevacancyrates,lackoftax
revenuethatfundsmunicipalbudgets,andmanyeducationalinstitutionstransitioningtoonlinelearning.However,
amongbusinessesthatstayedafloatandschoolsthathaveremainedopen,increaseddemandforcleaningservices
tocombatthespreadofthenovelcoronaviruskeptrevenuefromthesesegmentsfromdeclininginabsolutevalues.
Duetotheeconomicrecovery,demandforindustryservicesgrewstronglyin2021.Whiletheofficerentalvacancy
remainsbelowthepre-pandemiclevelin2022,averagerevenuepercommercialclientincreasedsubstantially,
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leadingtohigherrevenuefollowingtheinitialshockcausedbythepandemic.Asworkerscontinuetoreturnto
offices,theseshiftswilllikelyengenderincreaseddownstreamdemandinthelongerterm.Anincreaseinindustrial
outputisalsoexpectedtobringemploymenttoagreaternumberofworkersinthemanufacturingandother
industrialsectors,whichwouldlikelyincreasedemandfrombusinessesinthosesectors.
ENHANCEDCLEANINGPROTOCOLS
Inrecentyears,industrialclients,suchasmanufacturers,havebecomean
increasinglyimportantsourceofrevenuefortheindustry,asmaintaining
cleanplantandequipmentisimportantforemployeeproductivityand
productquality.
In2020,thistrendacceleratedasmanufacturingandhigh-techplantsrequiredenhancedcleaningprotocolsto
continueoperationsamidthecoronaviruspandemic.Specializeddeepcleaningsandgeneralizeddisinfectionshave
becomeroutineoperationsatmanufacturingplants,andarenowstandardprotocolwhenanemployeetestspositive
forcoronavirus.Otherindustriesandsectorsoftheeconomywilllikelyemployenhancedcleaningprotocolsas
employeesreturntoofficesandretailtrafficpicksup.Forexample,disinfectant-sprayingdroneshavebeen
developedforuseinconcertvenuesandotherlargespaces,whichwilllikelyexperienceincreasedusethroughout
2022.
STRUCTURALSHIFTS
Theindustryishighlyfragmentedduetoalargenumberofnonemployer
businesses.
Theshareofnonemployersintheindustryhasgrownduringthepasttwodecades,reachinganestimated94.2%in
2022.Overall,thenumberofindustryestablishmentshasincreasedatanannualizedrateof7.7%to1.2million
operators.Mostofthisgrowthhasbeendrivenbygrowthinnonemployerestablishments.Employerbusinesses
havealsogrownduringthepastfiveyears,althoughatamoremoderaterate.Theinfluxofnewoperatorshas
resultedinstrongcompetitionoverthepastfiveyears.Inadditiontoprice-basedcompetition,companiesattemptto
differentiateoperationsorcompeteonthebasisofreputationforqualityservice.Forexample,majorplayerABM
IndustriesInc.(ABM)hasdevelopedintoanintegratedprovideroffacilitysolutions,offeringlandscaping,security,
electrical,engineeringandotherservices,inadditiontojanitorialservices.Thisdiversificationenableslargeindustry
operatorstoestablishstrategicallianceswithcommercialpropertyownersandmanagers.
Otheroperatorsserviceindustrieswithmorestringentcleaningrequirements,suchasthoserelatedtohealthcare,
pharmaceuticals,electronicequipmentandfoodproductmanufacturing,inanefforttogainentranceintoaspace
withhigherbarrierstoentry,andthus,higherprofit.Overthefiveyearsto2022,profit,measuredasearningsbefore
interestandtaxes,hasincreasedto6.8%ofrevenue,upfrom5.9%in2017.Whiletotalwagecostshaverisenatan
annualizedrateof5.0%to$40.8billionoverthefiveyearsto2022,duetogrowthinindustryemployment,thewage
shareofrevenuehasdeclined,contributingtohigherprofitduringthecurrentperiod.
GREENSERVICES
Overthepastfiveyears,companiesintheindustryhaveattemptedto
differentiatethemselvesfromtheircompetitorsbyfocusingoneco-
friendlycleaningsolutions.
Someindustryoperatorsoffergreencleaningservices,whichincludetheuseofhigh-filtrationvacuums,microfiber
clothsformoreefficientdirtandparticlecapture,coursesprayernozzlestohelpreduceatomizedchemicalreleases
andothercertifiedenvironmentallyfriendlycleaningproducts.Forexample,majorplayerABMhasanenhanced
GreenCareprogram,whichcurrentlyuseseco-friendlyproductsandmethods.Greencleaningservices,especially
forfranchisedandlargeroperators,haveincreasinglybecomeanecessityforsurvivalintheindustry.
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HistoricalPerformanceData
Year
Revenue
($m)
IVA
($m)
Establishments
(Units)
Enterprises
(Units)
Employment
(Units)
Exports
($m)
Imports
($m)
Wages
($m)
Domestic
Demand
($m)
Numberof
Businesses
(Million)
2013
59,167
31,566
786,688
783,686
1,697,639
N/A
N/A
28,253
N/A
7.49
2014
62,263
32,860
807,631
804,724
1,747,301
N/A
N/A
28,813
N/A
7.56
2015
65,012
34,613
805,865
802,957
1,761,456
N/A
N/A
29,607
N/A
7.66
2016
69,128
35,525
809,203
805,807
1,782,190
N/A
N/A
30,687
N/A
7.76
2017
70,648
36,683
836,962
832,297
1,840,320
N/A
N/A
31,879
N/A
7.86
2018
78,624
39,458
1,012,566
1,007,990
2,031,428
N/A
N/A
33,483
N/A
7.91
2019
82,438
41,182
1,048,268
1,043,687
2,081,820
N/A
N/A
34,851
N/A
8.01
2020
84,279
42,295
1,093,115
1,092,542
2,142,047
N/A
N/A
35,856
N/A
7.82
2021
91,584
45,521
1,149,085
1,146,748
2,290,034
N/A
N/A
38,459
N/A
7.93
2022
97,586
48,316
1,211,105
1,207,299
2,423,066
N/A
N/A
40,750
N/A
8.02
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IndustryOutlook
Overthefiveyearsto2027,revenuefortheJanitorialServicesindustryis
forecasttogrowatanannualizedrateof3.3%to$114.7billion.
Industryrevenuegrowthisexpectedtofollowthetrajectoryoftheoveralleconomy.Moreover,itwilllikelybedriven
byincreaseddemandfordisinfectionandspecializedcleaningservicesduetotheCOVID-19(coronavirus)
pandemic.Otherindustriesareexpectedtocontinueoutsourcingcleaningactivitiestojanitorialandcleaningservice
specialists.Inparticular,education,healthcareandmedical-relatedindustries,whichoutsourcethemajorityoftheir
cleaningrequirements,willlikelyprovidesustaineddemandforindustryservices.Recoveryfromotherdownstream
markets,suchastheaviationindustriesandcorporateoffices,arealsoexpectedtocontributetorevenuegrowth.
Moreover,anagingpopulationandgreaterdemandforhealthcareserviceswilllikelybolsterdemandforcleaning
servicesatmedicalandsurgicalhospitals,urgentcareclinicsandretirementfacilities.
Significantly,theeffectofthecoronaviruspandemicontheindustryisnotexpectedtobetemporary.Heightened
awarenessofthepotentialfornewcoronavirusvariantstospreadgloballywilllikelytransformcleaningstandards
andtheirimportanceacrossallsectors.Newtypesofcleaningregimensandproductshavealreadybecome
widespreadinresponsetothepandemic.Industrialcompanieswilllikelymaintainheightenedcleaningstandardsto
continueoperationsintheabsenceoftheabilitytoworkremotely.Airlineshavealreadyshiftedtheircleaning
routinesandtechnologiestostimulatedemandforflightsandmakeflightssaferforpassengers.Forexample,
electrostaticdisinfectantsprayershavebeenadoptedbymultipleairlinestorigorouslydisinfectplanesinbetween
flights.Janitorialservicescompaniesnowroutinelyusethesametypeofdevicestodisinfectofficesinbetween
shifts.Newstandardsofairventilationandfiltrationhaveevenbeendiscussed.Personalprotectiveequipment
standardsareexpectedtoincreaseforindustryemployees,potentiallyraisingcosts.Disinfectant-sprayingdrones
willlikelybeusedtodisinfectlargearenas,concerthalls,parksandotherlargeareasthataredifficulttocover
manually.Asaresult,thesechangeswilllikelybelastingandongoing,evolvinganydemandforindustryservices.
Overthenextfiveyears,demandforcleaningservicesisexpectedtoriseaskeydemanddeterminantsrecover.For
example,percapitadisposableincomeisanticipatedtoincreaseanannualized0.8%overthefiveyearsto2027.As
moreconsumersattainhighincomes,morewilllikelydemandresidentialcleaningservicesandsupportcleaning
servicesdemandfrombusinessesthroughconsumerspending.ThenumberofbusinessesintheUnitedStatesis
expectedtoriseatanannualizedrateof1.0%duringtheoutlookperiod,boostingthecommercialdemandfor
industryservices.Corporateprofitisalsoexpectedtorise,increasinganannualized3.0%overthenextfiveyears.
Ascorporateprofitincreasesandofficerentalvacancyratesdeclineduetoalowerprevalenceofremotework
arrangements,demandforcleaningservicesfromcorporateofficeswilllikelygrow.
INDUSTRYLANDSCAPE
Duetotheexpandingmarketforindustryservices,thenumberofindustry
operatorsisexpectedtoincreaseatanannualizedrateof6.3%to1.6
millionenterprisesoverthefiveyearsto2027.
Increasingdemandforindustryserviceswilllikelydrawentrantsintothemarket.Asaresult,industryemploymentis
expectedtoexpandasthemarketgrows.Industryemploymentisexpectedtogrowatanannualizedrateof4.2%to
3.0millionworkersduringthesameperiod.Thisinfluxofindustryentrantswilllikelyleadtoincreasingprice
pressuresoverthenextfiveyears.Consequently,industryoperatorsareexpectedtoincreasinglyfocusonproviding
eco-friendlycleaningservicesandservicesthatcombatthespreadofdiseasestodifferentiatethemselvesfrom
competitors.Procuringtherightequipmentforthesetasks,suchaselectrostaticdisinfectantsprayersandmicrofiber
JanitorialServicesintheUS
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materials,willlikelyleadtoaslightriseinpurchasecosts.Moreover,operatorswilllikelyoffergreaterdigital
integrationoverthenextfiveyears.Agreaterdigitalpresencewilllikelybeofferedthroughwebsitesandapps,with
onlinereputationmanagementbecomingincreasinglyimportantasaconsequence.Increaseduseofsmartcleaning
equipmentisalsoanticipatedtodriveuppurchasecosts;examplesincluderobotvacuums,smartairsystems,
garment-sanitizingappliancesandartificialintelligence-poweredwindowcleaners.Additionally,greencleaning
technologiesandmaterialsareexpectedtomaintaintheirimportancewithintheindustry.Asaresultofrisingcosts
andheightenedcompetition,profitgrowthisanticipatedtobesomewhatconstrainedoverthefiveyearsto2027.
Overall,industryprofit,measuredasearningsbeforeinterestandtaxes,isforecasttoaccountfor6.6%ofrevenue
in2027.
Toexpandservicesregionallyandnationally,majoroperatorswilllikelycontinuetomergewithotherindustry
operators,buildingservicesandmaintenancecompanies.Consolidationisexpectedtoenableindustryoperatorsto
providebundledservicestoclients,whichincludesecurity,parking,buildingmaintenanceandlandscapingservices.
Thebundlingofpropertymanagementserviceshasthepotentialtoboostprofit,aslargerindustryoperatorsbenefit
fromlowerper-unitpurchasingandinsurancecostsduetoeconomiesofscale.Thecontinuedtrendofoutsourcing
janitorialcleaningservicesisexpectedtoalsocontributetothistrend.Additionally,domesticoperatorsand
franchiserswilllikelycontinuetoexpandinternationally,increasingtheglobalfootprintofthedomesticindustry.
PerformanceOutlookData
Year
Revenue
($m)
IVA
($m)
Establishments
(Units)
Enterprises
(Units)
Employment
(Units)
Exports
($m)
Imports
($m)
Wages
($m)
Domestic
Demand
($m)
Numberof
Businesses
(Million)
2022
97,586
48,316
1,211,105
1,207,299
2,423,066
N/A
N/A
40,750
N/A
8.02
2023
101,186
50,284
1,284,858
1,280,343
2,529,002
N/A
N/A
42,476
N/A
8.11
2024
104,515
52,248
1,373,052
1,368,015
2,639,732
N/A
N/A
44,244
N/A
8.19
2025
107,877
54,299
1,473,804
1,468,509
2,757,491
N/A
N/A
46,107
N/A
8.27
2026
111,332
56,258
1,554,079
1,548,089
2,865,183
N/A
N/A
47,843
N/A
8.35
2027
114,711
58,241
1,642,785
1,636,051
2,976,869
N/A
N/A
49,626
N/A
8.43
2028
117,560
60,069
1,739,536
1,731,304
3,084,969
N/A
N/A
51,314
N/A
8.51
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Thelifecyclestageofthisindustryis Growth
LIFECYCLEREASONS
IVAisexpectedtogrowfasterthanUSGDP
Improvementsinthegeneraleconomywilldrivefuturegrowth
Companiesareincreasinglybundlingcleaningservices,butitwillnotdramaticallyincrease
revenue
TheJanitorialServicesindustryisinthematurephaseofitsindustrylifecycle.Industryvalueadded(IVA),a
measureofanindustry'scontributiontotheoveralleconomy,isforecasttoincreaseatanannualizedrateof4.7%
overthe10yearsto2027.ThisishigherthantheUSGDP,whichisexpectedtoincreaseatanannualizedrateof
1.8%duringthesameperiod.Typically,anindustryisconsideredtobeinthegrowthphaseofitslifecyclewhenan
industryisgrowingaboveoratasimilarratetotheoveralleconomy,indicatingnewoperatorsenteringand
innovationfortheindustry'sproductsorservices.Whilemergerandacquisitionactivityhasincreasedoverthefive
yearsto2022,newhealthandsafetyguidelineshavealteredtheindustry'slandscape,contributingtostronggrowth
inindustryvalueadded.Industryoperatorsareexpandingtoofferbundledservicesaswellasintroducing
technologicalchangessuchasdronestoremaincompetitive.
Thisindustry'soverallperformancefluctuatesinlinewithgeneraleconomicactivity.Duringperiodsofstrong
economicgrowth,newbusinessesemerge,companiesexpandoperationsandconstructionactivityincreases,allof
whichincreasesdemandforcleaningservices.Bycontrast,demandforcleaningservicesfaltersduringeconomic
downturns.Asthenumberofbusinessesdeclines,remainingcompaniescutbackonoperationalcostsby
consolidatingoperationsanddecreasingofficeorretailspace.Moreover,householdsoftentightentheirbeltsand
spendlessondiscretionarygoodsandservices,suchascleaningservices.AmidtheCOVID-19(coronavirus)
pandemic,manybusinessesclosed,resultinginaloweraddressablemarket.However,demandfordisinfection
serviceshasgrown,resultinginhigherrevenueperclient.Asaresult,industryrevenueincreasedin2020.As
coronavirusinfectionratesremainhigh,demandforindustryservicesisexpectedtopersistin2022.
IBISWorldanticipatesthattheindustrywillbenefitfromfurthergrowthintheeconomyoverthefiveyearsto2027.
Thisgrowthisexpectedtobebolsteredbyavarietyoffactors.Municipalities,includingschoolsandhealthcare
buildings,areexpectedtoincreasetheoutsourcingofcleaningservicesandincreasetheirtaxrevenue.Major
operatorshaveincreasinglybundledtheircleaningservicesintocomprehensivefacilitiesmanagementcontractsthat
includesecurity,parkingandmaintenance.Industryfranchisingcontinuestoincreaseconsumers'confidencein
operatorsandtheircleaningstandards,andmanyfranchisedandlargeoperatorscontinuetoexpandinternationally
atafasterratethanwithintheUnitedStatesmarket.Perhapsmostsignificantly,permanentlyheightenedstandards
ofcleaningservicesinthewakeofthecoronaviruspandemicwilllikelysupportindustrygrowthoverthefiveyearsto
2027,asoffices,manufacturingplants,educationalfacilitiesandotherdownstreamclientsadapttotheelevatedrisk
andawarenessofdiseasetransmissionandthehealthbenefitsofcleanworkandrecreationalenvironments.
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Products&Markets
KeyBuyingIndustries
1stTier
EducationalServicesintheUS
HospitalsintheUS
PsychiatricHospitalsintheUS
2ndTier
PublicAdministrationintheUS
Arts,EntertainmentandRecreationintheUS
Professional,ScientificandTechnicalServicesintheUS
DepartmentStoresintheUS
KeySellingIndustries
1stTier
ChemicalWholesalingintheUS
JanitorialEquipmentSupplyWholesalingintheUS
PaperProductManufacturingintheUS
SanitaryPaperProductManufacturingintheUS
2ndTier
Soap&CleaningCompoundManufacturingintheUS
TheJanitorialServicesindustryprovidesawidevarietyofcleaningand
janitorialservices,rangingfromsimplecarpet-cleaningactivitiestofull-
scaleindustrialcleaningservices.
COMMERCIALANDINDUSTRIALCLEANING
Byrevenue,commercialcleaningisthelargestservicesegmentprovided
bytheindustry.
Commercialcleaningservicescanbefurtherseparatedintostandardjanitorialservices,whicharedonenightlyor
weekly;andmajorjanitorialactivities,whichareconductedmonthly,quarterlyorevenyearly.Standardservices
includecleaningbathrooms,floors,kitchens,desks,tablesandfloors.Standardservicesmayalsoincludedusting,
wateringplantsandothermiscellaneousactivities.Incontrast,othercommercialcleaningservicesincludestripping
andwaxingfloors,carpetcleaningsandexteriorbuildingcleaning.
Generalcommercialcleaningservicesareexpectedtoaccountfor47.4%ofindustryrevenuein2022.Such
servicesareprovidedtoarangeofclienttypes,includinghospitals,corporateofficebuildings,entertainmentvenues
andretailers.Generalcommercialcleaningserviceshavedeclinedslightlyasashareofindustryrevenueoverthe
fiveyearsto2022asretailers,entertainmentvenuesandcorporateofficeshavetemporarilyreduceddemandfor
industryservicesamidtheCOVID-19(coronavirus)pandemic.Whilethistrendreversedin2021asmanyofthese
businessesexperiencedhigherfoottrafficandemployeesbegantoworkinoffice,thelatestvariantmaytemper
improvementoverthecomingmonths.
Specializedindustrialcleaningservicesareestimatedtoaccountfor23.5%ofindustryrevenue.Industrialcleaning
servicesinvolvespecialcleaningprotocolsforhigh-techfacilities,manufacturingplantsandotherkindsofindustrial
businesses.Revenuefromthissegmenthasincreasedslightlyoverthepastfiveyears,asenhancedcleaning
protocolsweredemandedbythesedownstreambusinesses;incontrasttobusinessesthatonlyrequiregeneral
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commercialcleaningservices,thesebusinesseshavehadtokeepworkerson-siteamidthecoronaviruspandemic
tocontinueoperations,makingenhancedcleaningprotocolsmoreofanecessity.
Mostcommercialcleanersoperateunderone-yearcontractswithclients,withrelativelyshortcontracttermination
periods.Thispracticeencouragesprice-basedcompetition,whichcanplacedownwardpressureonindustry
revenueandprofit.However,higher-profitdisinfectioncleaningservicesrelatedtothecoronaviruspandemichave
helpedtomaintainindustryprofitin2020,andisanticipatedtocontinueashealthprotocolsremaininplace.
EDUCATIONALINSTITUTIONCLEANING
Cleaningservicesprovidedspecificallytoeducationalfacilitiesare
estimatedtoaccountfor11.9%ofindustryrevenuein2022.
Educationalfacilitiesareamajorsourceofindustryrevenuebecausetherearemanyofthem,theyareusedbya
largenumberofstudentsandfacultyonadailybasis,andmanyarefundedbytaxrevenue.Asaresult,this
cleaningservicesegmentincludesbothprivateandpublicsourcesoffunding.Thissegmentisexpectedtohave
declinedasashareoftotalrevenueoverthepastfiveyearssincemanyschoolsclosedin2020andearly2021due
tothecoronaviruspandemic.However,revenuefromthissegmentwilllikelyexperiencegrowthin2022.
RESIDENTIALCLEANING
Standardresidentialcleaningservicesaccountforanestimated7.3%of
industryrevenuein2022.
Thissegment'sshareofrevenuehasremainedfairlystableoverthepastfiveyears.Whiledemandforthisservice
segmentwastemporarilydisruptedin2020duetosocialdistancingprotocolsandhesitationbyhouseholdstohave
cleanerscomeintotheirhomes,theoveralleffectondemandforthissegmentwasrelativelysmall.Moreover,as
economicconditionsimprovedthroughout2021,thissegmentisexpectedtoexperienceincreaseddemandas
consumerspendingrecoversfromadipin2020.
DAMAGERESTORATION
Theindustryalsogeneratesaportionofrevenuefromspecialtyservices,
suchasdamagerestorationcleaning.
Damagerestorationserviceshaveincreasedslightlyasashareofrevenueoverthepastfiveyears.Theseservices
generallyencompasswaterextractiondehumidification,moldandmildewremediation,debrisremovalandsite
reconstruction.Theseservicesaregenerallyprovidedfollowingafire,floodorothernaturalorman-madedisaster.
In2022,damagerestorationisexpectedtoaccountfor5.4%ofindustryrevenue.
EXTERIORCLEANING
IBISWorldestimatesthatexteriorcleaning,includingexteriorwindow
cleaning,accountsfor1.2%ofindustryrevenuein2022.
Theseservicesoftentakedaystocompleteandrequirespecialequipmentormachinery,althoughtheyare
performedinfrequentlyandthereforedonotconstituteamajorsourceofindustryrevenue.Asaresult,exterior
cleaningserviceshaveremainedsteadyasashareofindustryrevenueoverthefiveyearsto2022.
OTHERCLEANINGSERVICES
Industryoperatorsprovideotherspecialtycleaningservices,suchas
ventilationsystemcleaning,carpetandupholsterycleaning,gutterand
draincleaning,floorcleaning,inadditiontoothernichecleaningservices.
Furthermore,majoroperatorshaveincreasinglyofferedclientstotalbundledservicecontracts,whichinclude
maintenance,securityandothercleaningservices.Theseothercleaningservicescanbeprovidedbyonecompany
orthroughstrategicalliancesbetweenacompanyanditspartners.In2022,othercleaningservicesareexpectedto
accountfor3.3%ofindustryrevenue.Thissegment'sshareofindustryrevenuehasremainedstableoverthepast
fiveyears.
JanitorialServicesindustrydemandislargelyderivedfromthe
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commercialmarket.
Cleaningservicesarerequiredforoffices,commercialandindustrialbuildings,airportsandhigh-techfacilities.
Consequently,industryrevenueissensitivetochangesinvacancyratesforofficesandothercommercialand
industrialproperties,whichareinturninfluencedbymacroeconomictrends.In2020,theCOVID-19(coronavirus)
pandemicledtoincreaseduncertaintyinthemacroeconomicenvironment,anincreaseinunemploymentand
declinesincorporateprofitandconsumerspending,whichdeceleratedgrowthindemandforindustryservices.
Conversely,thefactthatthecoronaviruspandemicisnotacyclicaldownturnorfinancialcrisishasimportant
ramificationsfortheindustry.SincethecoronaviruspandemicbecamewidespreadintheUnitedStates,industry
demandhasbeenbolsteredbytheexpandedneedforthecleaningofeducationalinstitutions,manufacturingplants,
airplanesandotherimportantdownstreammarketsduetohealthconcerns.Forexample,airlinesnowroutinely
requiretheirairplanestobedisinfectedinbetweenflightstoreducethepotentialforspreadingthenovelcoronavirus
amongpassengers.Furthermore,someinnovationsincleaningservicesappeartobepermanent,inthatcertain
augmentedcleaningstandardswilllikelybecomethenorminthefuture,alteringthelandscapeoftheindustryin
importantways.
Residentialpropertiesaccountforasmallerportionofindustryrevenuethanthecommercialmarket.Demandfor
residentialcleaningserviceshasincreasedoverthefiveyearsto2022duetogrowingemploymentanddisposable
income,aswellasanagingpopulation.Ingeneral,demandforresidentialcleaningservicestendstobestable,
althoughduringrecessionshouseholdsmayseverelyrestrictspendingoncleaningservicesaspartofageneral
reductionofdiscretionaryspending.
Theindustryalsogeneratesrevenuefromdamagerestorationservices.Therefore,severestorms,floodsorother
naturalorman-madedisastersleadtoaboostindemandforjanitorialservicessuchasmoldremediationandwater
damagerepair.Thissegmentisexpectedtobecomemoresignificantasasourceofindustryrevenueinthefuture
assevereweatherbecomesincreasinglycommon.
Industryoperatorsalsocompeteheavilyonthebasisofprice,soanystrategicreductionsinoperatingexpensescan
netoperatorssignificantmarketsharethroughreduced-pricecontracts.Higher-profitcoronavirus-relatedspecialty
cleaninganddisinfectingserviceshelpedsomeoperatorstoachieveahigherprofitin2020.However,duetoheavy
competition,lowconcentrationandlowcapitalintensityintheindustry,thereisgenerallynotmuchspacefor
obtainingsignificantcostadvantagesovercompetitors,asmostcompaniesarestructuredsimilarly.Inthefuture,this
maychangeasroboticsandothertechnologiesevolveandbecomemorefeasibletoimplement.
ThedownstreammarketsfortheJanitorialServicesindustrylargely
consistofcommercial,residentialandgovernmentcleaningclients.
RelevantdataissourcedfromtheUnitedStatesCensusBureau,industryoperatorfinancialstatementsandinternal
IBISWorldestimatesandforecasts.Thecommercialsegment,whichisthelargestsourceofindustryrevenue,
mainlyincludescorporateclients.Theresidentialsegmentconsistspredominatelyofhouseholds,whileeducational
andmunicipalandfederalgovernmentclientsarealsosignificantsourcesofrevenue.
COMMERCIAL
Thelargestshareofindustryrevenueisderivedfromcommercialclients,
includingcorporateoffices,retailers,hospitals,restaurantsand
entertainmentcenters.
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Officecleaningisthelargestcomponentofthissegment,andwinningthesecontractsisextremelycompetitive.
Revenuegeneratedfromtheofficecleaningmarkethasdecreasedoverthefiveyearsto2022.AmidtheCOVID-19
(coronavirus)pandemic,work-from-homeordersreducedtheneedforofficecleaningservicesinparticular.Thishas
beenpartiallyoffsetbyanincreaseddemandforspecialdisinfectingandcleaningservicesbymanybusinessesto
combatthespreadofthenovelcoronavirus.Thissegmentexperiencedgrowthin2021astheeconomyreopened
andisanticipatedtocontinuegrowingascommercialclientscontinuetobeinneedofcleaningprotocolsintroduced
becauseofthecoronavirusandnewvariantsthatarediscovered.Thissegmentisexpectedtoaccountfor42.1%of
industryrevenuein2022.
INDUSTRIALANDOTHERCOMMERCIAL
Theindustrialcleaningservicessegmentiscomposedofcleaningfor
businessesthatareeithernoncommercialornonbuilding.
Thisencompassescleaningforhigh-techfacilities,manufacturingplantsandaviationclients.Asthecoronavirus
pandemicinducedtheneedformorerigorousandextensivecleaningprotocolsforthesebusinessestostayopen,
safeandviable,thissegment'sshareofindustryrevenuehasincreasedduringtheperiod,accountingforan
estimated31.3%ofindustryrevenuein2022.Demandfromairlinesincreasedfollowingtheoutbreakofthe
pandemicin2020astravelrestrictionsloosened,requiringelectrostaticdisinfectantsprayinginbetweenflightsto
enhancesafetyprotocols.
RESIDENTIAL
Incontrasttoothersegments,theresidentialsegmentisprimarily
servicedbynonemployersandothersmalloperators.
Themainclientgroupsinthissegmentarehouseholdswithhigherdisposableincomesandelderlyindividualsthat
arephysicallyindisposed.Inadditiontointeriorcleaningservices,janitorialservicescompaniesfrequentlyofferpest
exterminationservices,exteriorbuildingcleaning,windowcleaningandchimneyanddrainmaintenanceservices.
Theresidentialmarkethasremainedstableasashareofrevenueduringthecurrentperiod,accountingfor14.3%of
industryrevenuein2022.
GOVERNMENTANDNONPROFITORGANIZATIONS
Thegovernmentandnonprofitorganizationsarealsosignificantsources
ofindustryrevenue.
Federal,stateandmunicipalgovernmentclientsoutsourcecleaningforpublicbuildings,facilitiesandother
institutions,suchasprisonsandpublicschools.Overthepastfiveyears,stabledemandfromgovernmentmarkets
hasslightlycontributedtotheindustry'soverallgrowth.In2020,demandfromthissegmentdeclinedslightlydueto
remoteeducationarrangementsamidthecoronaviruspandemic,withchildrenstayinglargelystayinghomefrom
schoolandtakingclassesovervideoconferencingsoftware.Moreover,decliningtaxrevenueforstateandmunicipal
governmentsreducedtheirabilitytopayforcleaningservices.Municipalandstategovernmentscontinuetocontend
withbudgetaryrestrictionsin2022,decreasingdemandforindustryoperatorsinthissegment.In2022,the
governmentandnonprofitorganizationmarketsareexpectedtoaccountfor12.3%ofindustryrevenue.
Exportsinthisindustryare LowandSteady
Importsinthisindustryare LowandSteady
TheJanitorialServicesindustryprimarilyoperatesinthedomesticmarket,giventhatitisservice-based.Asaresult,
thereisnointernationaltraderecordedwithinthisindustry.Formoreinformationontheinternationaloperationsof
businesseswithintheindustry,pleaserefertotheIndustryGlobalizationchapter.
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Business
Locations
TheregionswiththegreatestconcentrationsofcompaniesoperatingintheJanitorialServicesindustryincludetheSoutheast,
West,Mid-AtlanticandGreatLakes.Thedistributionofindustryestablishmentslargelyreflectsbusinessandpopulationdensity
levelsacrossthecountry.
Southeast
TheSoutheasthasthegreatestshareofindustryestablishments,accountingforanestimated27.7%ofbusinesslocationsin
2022.Withintheregion,Floridahasthehighestshareofestablishments,at9.8%in2022.Migrationflowstourbanareasinthe
Southeastregionoverthefiveyearsto2022,especiallyFlorida,haveresultedinagreaterconcentrationofindustry
establishmentsthere.Inaddition,Florida'shighershareofretireesmakesitaparticularlylucrativemarketforindustryoperators,
astheelderlyrequireagreatershareofcleaningtaskstobeperformedbyothers.
West
In2022,theWestregionisexpectedtoaccountfor16.5%ofindustryestablishments.Theregion'shighpopulationandbusiness
concentrationcontributetoitshighshareofestablishmentsandrevenue.Californiadominatestheregion,holdinganestimatedat
9.7%ofindustryestablishmentsin2022,thehighestpercentageofanyindividualstate.However,unlikeotherregionsandstates
withhighconcentrationsofindustryestablishment,theWestregionandCaliforniabothhavepopulationdensitiesthatexceedtheir
industryestablishmentdensities.Moreover,thehighregionalconcentrationofindustryestablishmentsisexpectedtochangeover
thecomingyearsaslesspeoplehavemigratedtoCaliforniathanhavemovedawaythestateinrecentyears.
Mid-AtlanticandGreatLakes
TheMid-Atlantic,thethird-mostpopulousregionintheUnitedStates,hasthethird-highestshareofindustryestablishments,
accountingfor15.4%ofbusinesslocationsin2022.Additionally,5.7%ofindustryestablishmentsarelocatedinNewYorkalone
duetoitshighbusinessandpopulationdensities.TheGreatLakesregioncontains12.8%ofindustryestablishmentsin2022,the
fourth-highestregionalshare.Illinoishasthehighestshareofestablishmentsintheregion,accountingfor3.9%oflocationsin
2022.
Other
AmongtheremainingregionsintheUnitesStates,namelytheSouthwest,Plains(7.3%),NewEngland(5.5%)andRocky
Mountainsregions(5.6%),theSouthwesthasthehighestpercentageofindustryestablishments,at9.0%in2022.Withinthe
Southwest,Texasaccountsforamajorityoftheregion'sindustryestablishmentsduetoitssizableeconomyandpopulation,home
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to5.8%ofindustryestablishmentsin2022.
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CompetitiveLandscape
Concentrationinthisindustryis Low
TheJanitorialServicesindustryischaracterizedbyalowlevelofmarketshareconcentration,withthetopthree
operatorsexpectedtoaccountforlessthan10.0%ofindustryrevenuein2022.Despitethislowlevelof
concentration,thetopindustryoperator,ABMIndustriesInc.,hasbeengraduallyincreasingitsmarketshareover
thefiveyearsto2022throughstrategicacquisitionsandintensifyingcompetitionwithregionalplayers.Overall,the
industryisrelativelyfragmentedduetolowbarrierstoentryandstart-upcosts.Largerindustryoperatorstendto
franchiseandofferadiversearrayofhighcalibercleaningservices,whilesmalleroperatorstendtospecializein
morespecific,nichemarkets.However,franchisingfeesarenottechnicallyindustry-relevant,contributingtothe
fragmentationoftheindustry.AccordingtoIBISWorldestimates,29.3%ofindustryrevenuewasderivedfromsole
proprietorshipsornonemployingbusinessesin2022.Overthefiveyearsto2027,theindustryisexpectedto
continuetohavealowlevelofconcentrationasbarrierstoentryremainlow,anddemandforjanitorialservices
remainshigh.
IBISWorldidentifies250KeySuccessFactorsforabusiness.Themostimportantforthisindustryare:
Beingpartofafranchisedchain:
Beingpartofafranchisechainmayassistwithobtainingaccesstolargernationalandregionalcontracts.
Abilitytoaltermixofinputsinlinewithcost:
Duetopricecompetitionwithintheindustry,theabilitytoalterlabor,materialandcleaninginputsinlinewiththe
contractpriceandagreedqualitystandardsisimportantforsuccess.
Useofahighvolume/lowmarginstrategy:
Providersofjanitorialservicesmustbeabletooperateinanenvironmentwithhighvolumeandlownetprofitas
fiercecompetitionamongplayerskeepsservicepriceslow.
Abilitytocarryoutcreditchecksonclients:
Tocontaindebtlevels,operatorsmustbeabletoperformcreditchecksonclients.
Accesstonichemarkets:
Overtime,operatorsmusttrytomoveawayfromaclientbaseconsistingonlyofprice-sensitiveclientsand
contracts.
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Profit
Profit,measuredasearningsbeforeinterestandtaxes,isexpectedto
accountfor6.8%ofindustryrevenuein2022,upfrom5.9%in2017.
Whileindustryprofithasgrownconsistentoverthemajorityoffive
yearsto2022,itdeceleratedin2020amidtheCOVID-19(coronavirus)
pandemic.In2021,theprofitmarginreachedthepre-pandemiclevel
andisexpectedtostayunchangedin2022.
Wages
Wagesandassociatedemployeebenefitcostsaretheindustry's
largestexpense,accountingforanestimated41.8%oftotalrevenuein
2022.Managingwagecostsisimportantsinceindustryoperators
primarilycompetebasedonthepriceofcontracts.Theaverage
industrywagehasslightlydecreasedoverthepastfiveyears.Asmore
nonemployersenteredtheindustryduetoaneconomicexpansion
beforethecoronaviruspandemicin2020,thelowerwagesthey
commandbroughtdowntheaverageindustrywage.Accordingly,labor
costsasashareofindustryrevenuehavedecreasedduringthecurrent
period.
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Purchases
Purchasecostsaccountforanestimated22.7%ofindustryrevenuein
2022.Thesecostsarelargelyrelatedtocleaningsuppliesusedin
standardcleaningjobs.Duetothevolumeofcleaningsuppliesneeded
forjanitorialservices,purchasesconstituteasignificantexpensefor
industryoperators.Additionally,gasolineandothertransportation
expensesarekeypurchasecostsforindustryoperators.
Marketing
Duetohighlevelsofcompetition,industryoperatorsINVESTin
marketingtohelpdifferentiatethemselvesfromtheircompetitors.
Marketingexpensesareexpectedtoaccountfor1.8%ofindustry
revenuein2022.
Depreciation
Depreciationcostsaregeneratedfromthewearandtearon
transportationvehiclesandcleaningequipment,andareestimatedto
accountfor0.9%ofindustryrevenuein2022.
Rent
Rentalcostscompriseanestimated2.2%ofindustryrevenuein2022.
Rentcostsareassociatedwithoperatingleasesontransportation
equipmentandtherentalofwarehouseandofficespace.
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Utilities
Utilitycostsareestimatedtoaccountfor0.4%ofindustryrevenuein
2022.
OtherCosts
Otheroperatingexpensesaccountfor23.5%ofindustryrevenuein
2022,withmostofthesecostsbeingassociatedwithcommunication
charges,licensingfees,interestandbankcharges,outsourcedlegal
andaccountingfeesandadministrationexpenses.
Competitioninthisindustryis HighandthetrendisSteady
INTERNALCOMPETITION
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CompetitionwithintheJanitorialServicesindustryishigh,butsteady,
consideringmostindustrycompaniescommandasmallshareofthe
market.
Asaresult,price-basedcompetitionisparticularlyintensewithintheindustrysincethereareanestimated1.2million
enterprisesoperatingwithinitin2022.Industryoperatorsalsocompetebasedonthequalityoftheserviceprovided,
inadditiontoefficiencyenhancementsandadaptivitytovariousworkplaceconditions.Moreover,evenlarge
operatorscompetewithsmaller,localbusinesses.
Commercialcleaningcontractsaretypicallyforoneyearandcanbeterminatedbytheoperatororclientbetween30
and90days'notice.Companiestypicallybidoncontracts,whichisafactorthatmakesprice-basedcompetition
importantforthisindustry.Thisisespeciallytrueforlargercommercialcontracts,whicharesubjecttoamore
extensivebiddingprocess.However,therearesomecontractsinthehealthcare,foodprocessing,pharmaceutical
manufacturingandelectronicsindustriesthatrequirehigherguaranteedcleaningstandards,includingthecleaning
ofareasinwhichdust-freeenvironmentsarenecessary.Inthesecases,highercleaningfeescanusuallybe
negotiated.
Contractsaretypicallystructuredasfixedpriceagreements,cost-plusagreementsortagwork.Underfixedprice
agreements,clientsarechargedstandardmonthlyfeesdependingonthesquarefootageofthestructure.Under
cost-plusarrangements,clientsreimburseindustryoperatorsforwages,benefits,payrolltaxes,insurancecharges
andotherexpensesaswellasanagreeduponprofitmargin.Asaresult,itisimportantforoperatorstobeableto
accuratelyforecasttheircosts;otherwise,theymaybeforcedtochargeclientsmorethananticipated,whichcan
costoperatorstheclient'sbusinessinthefuture.However,janitorialservicecompaniesmayalsochargeadditional
feesfor"tag"workorextraserviceworkforsupplementalservicesoutsideofthestandardcontractterms.These
extraservicestypicallygeneratehigherprofitforcompaniesandoftenincludeservicessuchascleaningfollowing
tenantmoves,snowremoval,exterminationservicesandotherspecialtyservices.
Industryoperatorsarealsoincreasinglycompetingonthebasisofenvironmentallyfriendlycleaningproducts.These
includecleaningproductsthathaveaGreenSeallabel,whichconfirmsthattheyadheretorequirementssetforthby
theEnvironmentalProtectionAgency.
EXTERNALCOMPETITION
Externalcompetitionisrelatedtopersonsandcompaniesthatperform
theirowncleaningorhiretheirownemployeestoperformthesetasks,
includingonacash-onlybasis.
Duringeconomicdownturns,externalcompetitionfromin-housecleaningservicestendstoincrease,ascompanies
seektodecreaseoperatingexpenses.AmidtheCOVID-19(coronavirus)pandemic,thecyclicaldownturnhasbeen
attenuatedduetoagreaterneedfrombusinessestodisinfecttheirestablishmentstoreducethespreadofthenovel
coronavirus.
BarrierstoEntryinthisindustryare LowandthetrendisSteady
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TheJanitorialServicesindustryhasfewbarrierstoentry,
duetoalowlevelofmarketshareconcentrationandlow
capitalinvestmentrequirements.Thetopthreeplayersin
theindustryaccountforlessthan10.0%oftheavailable
marketin2022,andthereforeexertlittlemarketpower
individually.Start-upcostsvarydependingonthescaleof
operations.Newbusinessesmayneedtosecurea
warehouseoroperationalfacilityandvehicles.
Additionally,newentrantswilllikelyneedtopurchase
suppliessuchasvacuums,mops,cleaningagentsand
otherspecializedcleaningequipment.Commercial
cleaningoperatorsencounterhigherstart-upcoststhan
nonemployersorresidentialcleaningbusinesses,asa
greatersupplyofmorepowerfulandexpensivecleaning
equipmentisrequired.Moreover,operatorsthatservice
commercialbusinessesmayrequiremoresophisticated
internalinformationtechnologyinfrastructure,inaddition
tomorestringentsecurityprotocolsforinterfacingwith
clients.
Thereisalsoalowleveloftrainingrequiredforindustry
employees,whichkeepslaborfrombeingasignificant
barriertoentry.Theaveragewageforworkersinthis
industryis$16,818in2022.Therearenolicensesor
regulationsexclusivetothisindustry,apartfrommeeting
variousmunicipalguidelinesandoccupationalhealthand
safetyregulations,includingthoserelatingtotheuseand
safestorageofcleaningchemicalsandcompounds.
Nonetheless,wagecostsaresignificantforindustry
operatorssincemanyworkersareoftenrequiredfora
givencleaningoperation,andotherexpensesremain
comparativelylow.
Onceabusinesshasenteredtheindustry,barriersto
successaremuchhigher.Employeeturnoveris
particularlyhighintheindustry,whichcanmakeitdifficult
tomaintainahighlytrainedandeffectivestaff.
Furthermore,consideringthehighlevelofcompetition,
newoperatorswilllikelyhavetodevotesubstantialtime
andresourcestonewcustomers.Akeysuccessfactorfor
newbusinessesistheabilitytotakeadvantageoflocation
benefits.Iftherearefewoperatorsinparticularregions,
entrantscantakeadvantageofdecreasedlevelsof
competition.Furthermore,companiescanalsoenterthe
industryasfranchiseestotakeadvantageofthe
establishedbrandingandoperationalsupportfrom
existingcompanies.
BarrierstoEntryChecklist
Competition
High
Concentration
Low
LifeCycleStage
Growth
TechnologyChange
Low
Regulation&Policy
Light
IndustryAssistance
None
Globalizationinthisindustryis LowandthetrendisIncreasing
TheJanitorialServicesindustryhasalowlevelofglobalization,givenitsservice-orientednature.However,inrecent
years,companieshavebecomeincreasinglyglobalized.TheratioofUnitedStateslocationstointernational
locationsofABMIndustriesInc.andvariouslargejanitorialservicesfranchisecompanieshasdecreasedoverthe
fiveyearsto2022,andmosthaveoperationsinupwardof10countries.Globalizedindustrycompanieshave
operationsincountriesincludingEngland,SaudiArabia,Iraq,Canada,Holland,Scotlandandmore.Theexpansion
infranchisingsystemsisthemainavenueforinternationalexpansionbyoperators.Additionalstrategicpartnership
agreementswithexistingmajorcleaningcompaniesacrossdenselypopulatedcountries,suchasChinaandIndia,
areexpectedtoemergeoverthefiveyearsto2027,asUnitedStatesoperatorsseektogainafootholdinthese
rapidlyexpandingeconomies.
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MajorCompanies
MarketShareOverview
RelatedCompanies
Competitors
CompanyType
EmployeeSegment
Revenue($m)
MarketShare(%)
Profit($m)
AbmIndustriesInc.
Incumbent
500+Employees
3,306.0
3.75
83.2
RedCoatsInc.
AllStar
500+Employees
182.9
0.19
12.3
ISSA
AllStar
500+Employees
68.5
0.07
4.6
AnagoCleaningSystems
AllStar
100–499Employees
62.0
0.06
4.2
MarsdenHoldingLLC
Disruptor
500+Employees
60.9
0.06
4.1
Jani-KingInternational,Inc.
Disruptor
100–499Employees
51.5
0.05
3.4
KellermeyerBergensonsServices,Llc
GoldenGoose
500+Employees
39.7
0.04
2.7
VixxoInc.
Laggard
500+Employees
29.0
0.03
1.9
IHServicesInc.
Laggard
100–499Employees
10.5
0.01
0.7
MaidProFranchiseCorporation
Laggard
20–99Employees
2.6
0
0.2
UnitedBuildingMaintenanceInc.
Laggard
10–19Employees
1.0
0
0.1
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Companieswith5.0%industrymarketsharearedisplayedinthePDFversionofthisreport.Youcanviewinsightsforallcompaniesassociated
withthisindustryonmy.ibisworld.com
AbmIndustriesInc.
CompanyOverview
ABMAviation,Inc. ABMFacilityServicesCo ABMIndustryGroups,LLC ABMJanitorialServicesInc. Ampco
SystemAirportParking AmpcoSystemParking HealthcareParkingSystemsofAmerica
AbmIndustriesInc.isapubliccompanyheadquarteredinNewYorkwithanestimated114,000employees.Inthe
US,thecompanyhasanotablemarketshareinatleastoneindustry:BuildingExteriorCleaners,wherethey
accountforanestimated6.5%oftotalindustryrevenueandareconsideredaLaggardbecausetheydisplaylower
marketsharealongsideslowerprofitandrevenuegrowththantheirpeers.
COMPANYTYPE
PublicCompany
TOTALCOMPANY
REVENUE
$3.3bn
EMPLOYEES
114,000
ParkingLots&GaragesintheUS
BuildingExteriorCleaners
ABMrolledoutnewfacilitiescleaningservicesinresponsetoCOVID-19
InAprilof2020,ABMIndustries(ABM)announcedtheir“EnhancedClean”programinresponsetotheCOVID-19
(coronavirus)pandemic.Theprogrammainlyconsistsofdisinfectinghigh-touchsurfaces,usingPPE,andusing
signagetocommunicatesurfaceshavebeencleaned.Floorsignagealsoaidssocialdistancing.
COVID M&A NewActivity
ABMhasexpandeditsbusinessthroughtheacquisitionofAble
ABMIndustries(ABM)acquiredCrownBuildingMaintenanceCo.andCrownEnergyServices,Inc(collectivelyknow
as“Able”)in2021.AblewasafacilitiesmanagementcompanyheadquarteredinSanFrancisco,CA.The
acquisitionhasgrownABM’sjanitorialandfacilitiesservicelinesandisconsistentwiththecompany’sstrategyof
expandingthroughacquisition.
M&A NewActivity
ABMhasannouncedanewstrategyforgrowth
ABMIndustries(ABM)announcedanewstrategyforgrowthinDecemberof2021.Theplan,referredtoas
“ELEVATE”,includes$150to$175millionininvestmentsaimedatelevatingclientexperience,employee
experience,andthecompany’suseoftechnologyanddata.
NewActivity
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AbmIndustriesInc.
CompanyOverview
MarketShare
3.75%Strong
-2.2%
CurrentYear
(2021)
AnnualGrowth
(2017–21)
IndustryRevenue
$3.3bnStrong
-2.6%
CurrentYear
(2021)
AnnualGrowth
(2017–21)
ProfitMargin
2.52%Weak
0.4%
CurrentYear
(2021)
AnnualGrowth
(2017–21)
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RedCoatsInc.
CompanyOverview
RedCoatsInc.isaprivatecompanywithanestimated7,550employees.IntheUS,thecompanyhasanotable
marketshareinatleastoneindustry:JanitorialServices,wheretheyaccountforanestimated0.2%oftotal
industryrevenueandareconsideredanAllStarbecausetheydisplaystrongermarketshare,profitandrevenue
growthcomparedtotheirpeers.
COMPANYTYPE
PrivateCompany
TOTALCOMPANY
REVENUE
$182.9m
EMPLOYEES
7,550
RedCoatsInc.-financialperformance*
Year
Revenue
$m
Growth
%change
OperatingIncome
$m
Growth
%change
2017
89.2
18.8
6
20
2018
107.3
20.3
7.2
20
2019
150.4
40.2
10.1
40.3
2020
157.2
4.5
10.5
4
2021
151.3
-3.8
10.1
-3.8
2022
182.9
20.9
12.3
21.8
Source: IBISWorld
Note: *Estimates
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RedCoatsInc.
CompanyOverview
EstimatedIndustryMarketShare
0.19%Strong
CurrentYear
(2022)
EstimatedIndustryRevenue
$182.9mStrong
CurrentYear
(2022)
EstimatedProfitMargin
6.7%Weak
CurrentYear
(2022)
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ISSA
CompanyOverview
ISSAisapubliccompanyheadquarteredinDenmarkwithanestimated494,233employees.IntheUS,the
companyhasanotablemarketshareinatleastthreeindustries:Caterers,FoodServiceContractorsandJanitorial
Services.TheirlargestmarketshareisintheCaterersindustry,wheretheyaccountforanestimated1.0%oftotal
industryrevenueandareconsideredaGoldenGoosebecausetheydisplaymediumtostrongmarketshareand
strongprofit,butslowerrevenuegrowththansomeoftheirpeers.
COMPANYTYPE
PublicCompany
TOTALCOMPANY
REVENUE
$68.5m
EMPLOYEES
46,840
CaterersintheUS
FoodServiceContractorsintheUS
ISSA-financialperformance*
Year
Revenue
$m
Growth
%change
OperatingIncome
$m
Growth
%change
2017
16
119.2
1.1
120
2018
21.1
31.9
1.4
27.3
2019
55.6
163.5
3.7
164.3
2020
63.4
14
4.2
13.5
2021
45.4
-28.4
3
-28.6
2022
68.5
50.9
4.6
53.3
Source: IBISWorld
Note: *Estimates
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ISSA
CompanyOverview
MarketShare
0.07%Strong
0.0%
CurrentYear
(2022)
AnnualGrowth
(2018–22)
IndustryRevenue
$68.5mStrong
34.2%
CurrentYear
(2022)
AnnualGrowth
(2018–22)
ProfitMargin
6.7%Weak
0.0%
CurrentYear
(2022)
AnnualGrowth
-
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AnagoCleaningSystems
CompanyOverview
AnagoCleaningSystemsisaprivatecompanywithanestimated214employees.IntheUS,thecompanyhasa
notablemarketshareinatleastoneindustry:JanitorialServices,wheretheyaccountforanestimated0.1%oftotal
industryrevenueandareconsideredanAllStarbecausetheydisplaystrongermarketshare,profitandrevenue
growthcomparedtotheirpeers.
COMPANYTYPE
PrivateCompany
TOTALCOMPANY
REVENUE
$62.0m
EMPLOYEES
214
AnagoCleaningSystemsopenedanewheadquarterstosupportcorporategrowth
In2019,AnagoCleaningSystems(Anago)announcedthatitofficiallyopeneditsnewheadquartersinPompano
Beach,FL.Thisnewfacilitywasreflectiveofthecompany’sneedtoaccommodatecorporategrowthand
increasinglyefficientoperations.Whileaccommodatingrecentgrowth,thenewfacilitywillalsoenablethe
companytocontinuetogrowwithoutrelocating.Thisspacewillalsoprovidetrainingsessionsforfranchisees.
Structural
Anagoearnedthehighestratingforbioriskprotocols
AnagoearnedthehighestratingissuedbytheGlobalBioriskAdvisoryCouncil(GBAC)forensuringfacilities
implementstrictbioriskprotocolsin2021.TheGBACStarawardisthecleaningindustry’sonlyaccreditationfor
outbreakprevention,responseandrecoverytominimizerisksassociatedwithinfectiousagents.Thishasbecome
particularlyprevalentamidtheCOVID-19(coronavirus)pandemic,particularlyasthecompanyneedtolauncha
newspecializedcleaningservicetoaddresstherisksassociatedwiththenovelvirus.Anagowasthefirst
commercialcleaningfranchisecompanyintheUnitedStatestoearnthisrating.
COVID ProductInnovation Structural
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AnagoCleaningSystems
CompanyOverview
EstimatedIndustryMarketShare
0.06%Moderate
CurrentYear
(2022)
EstimatedIndustryRevenue
$62.0mModerate
CurrentYear
(2022)
EstimatedProfitMargin
6.7%Moderate
CurrentYear
(2022)
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MarsdenHoldingLLC
CompanyOverview
MarsdenHoldingLLCisaprivatecompanywithanestimated10,000employees.IntheUS,thecompanyhasa
notablemarketshareinatleastoneindustry:JanitorialServices,wheretheyaccountforanestimated0.1%oftotal
industryrevenueandareconsideredaDisruptorbecausetheydisplaylowertomediummarketsharethat'srising
rapidly,butweakerprofitscomparedtosomeoftheirpeers.
COMPANYTYPE
PrivateCompany
TOTALCOMPANY
REVENUE
$60.9m
EMPLOYEES
10,000
MarsdenHoldingLLC-financialperformance*
Year
Revenue
$m
Growth
%change
OperatingIncome
$m
Growth
%change
2017
11.2
300
0.7
250
2018
15.4
37.5
1
42.9
2019
49.3
220.1
3.3
230
2020
57.2
16
3.8
15.2
2021
38.3
-33
2.6
-31.6
2022
60.9
59
4.1
57.7
Source: IBISWorld
Note: *Estimates
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MarsdenHoldingLLC
CompanyOverview
EstimatedIndustryMarketShare
0.06%Moderate
CurrentYear
(2022)
EstimatedIndustryRevenue
$60.9mModerate
CurrentYear
(2022)
EstimatedProfitMargin
6.7%Strong
CurrentYear
(2022)
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OperatingConditions
Capital
Intensity
Thelevelofcapitalintensityis Low
TheJanitorialServicesindustryhasalowlevelofcapital
intensity,whichmakesitsimilartootherservice-based
industriesinthisrespect.In2022,forevery$1.00spenton
wages,industryoperatorswillspendanestimated$0.02on
capital.Capitalintensityhasremainedstableoverthefive
yearsto2022.However,overthepastdecade,industry
operatorshaveinvestedingreencleaningproductsand
equipment,suchasfloorscrubbersthatusefewer
chemicalproductsandmachinesthationizewatertohelp
liftdirtparticles.Theseinvestmentscanhelpattract
environmentallyconsciousclientsandsaveindustry
operatorschemicalcleaningcostsovertime.
Nevertheless,cleaningactivitiesinvolveahighdegreeof
directlaborinput.Typically,capitalinvestmentinthis
industryislow.Whileoperatorsneedtosecurea
warehouse,operationalfacilityandcompanyvehicles,
theseitemscanbeleased,sparingoperatorstheburdenof
highstart-upcosts.Asaresult,theindustryfeaturesmany
nonemployersthatoperatesmall,localizedresidentialor
commercialcleaningbusinesses.However,duetorecent
advancementsinrobotics,morecleaningtasksarelikelyto
becomeautomated,especiallydangerousandrelatively
repetitiveones,suchasexteriorwindowcleaning.In
addition,companiespurchasecleaningagents,vacuums,
mopsandtowels,aswellasspecializedequipmentfor
landscapemaintenanceandventilation,airductandcarpet
cleaning.Theseproductsaregenerallyindustrial-strength
versionsofstandardhouseholdcleaningtools,especially
foroperatorsthatoffercommercialcleaningservices.
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Technology&
Systems
PotentialDisruptiveInnovation:FactorsDrivingThreatofChange
Level
Factor
Disruptive
Effect
Description
Low
Rateof
Innovation
Unlikely
Arankedmeasureforthenumberofpatents
assignedtoanindustry.Afasterrateofnew
patentadditionstotheindustryincreasesthe
likelihoodofadisruptiveinnovationoccurring.
VeryHigh
Innovation
Concentration
VeryLikely
Ameasureforthemixofpatentclasses
assignedtotheindustry.Agreater
concentrationofpatentsinoneareaincreases
thelikelihoodoftechnologicaldisruptionof
incumbentoperators.
High
EaseofEntry
Likely
Aqualitativemeasureofbarrierstoentry.
Fewerbarrierstoentryincreasesthe
likelihoodthatnewentrantscandisrupt
incumbentsbyputtingnewtechnologiesto
use.
VeryHigh
RateofEntry
VeryLikely
Annualizedgrowthinthenumberof
enterprisesintheindustry,rankedagainstall
otherindustries.Agreaterintensityof
companiesenteringanindustryincreasesthe
poolofpotentialdisruptors.
Medium
Market
Concentration
Potential
Arankedmeasureofthelargestcoremarket
fortheindustry.Concentratedcoremarkets
presentalow-endmarketornewmarketentry
pointfordisruptivetechnologiestocapture
marketshare.
Therateofnewpatenttechnologiesenteringtheindustryislow,whichlimitsthepotentialforinnovations.Alowratedoes
notmeanthatinnovationscannotoccur,justthatthelikelihoodofsomeinnovationmaterializingasathreatislower.
However,theconcentrationoftechnologiesishighinthisindustry.Thissuggeststhatindustryoperatorshaveexposureto
potentiallyunforeseenareasofinnovation.
Thistechnologytrendisunderscoredbystructuralfactorsthatsupportnewentrants.Anaccommodativestructurecan
createasituationwheresmallentrantscanfocusonlessprofitablealbeitinnovativeindustryentrypoints.Or,large
operatorsinotherindustriescanleverageexpertiseinotherareastoentertheindustryfromanewangle.
TheJanitorialServicesindustryisnotsubjecttosignificanttechnological
disruption.
Theindustry'sservicesdependdirectlyonhumanlabor.Somecompaniesoutsidetheindustryaredevelopingcleaning
robots,however,whichmaydisplacepartoftheindustry'sworkforceandraisecapitalintensityinthefuture.Mobile
applications,suchasTaskRabbitandHandy,havecreatedsomeexternalcompetitionfortheindustry,althoughthese
companiesprimarilyserviceanichemarketofconsumersthatrequireinfrequentcleaningjobs.Inparticular,these
applicationsdonotcompetewithcommercialcleaningservices,whichcomprisethebulkofindustryrevenue.Asaresult,
theydonotdirectlycompetewithindustryservices,limitingtheamountoftechnologicaldisruption.
Theleveloftechnologychangeis Low
ThetechnologyusedintheJanitorialServicesindustryrelatesmainlytothe
useofcleaningequipmentandchemicals,onlinetoolsandservicesforclients
andtheuseofdata-drivenoperationalenhancement.
Forexample,majorplayerABMIndustriesInc.(ABM)introducedseveralinnovationsandsystemstoassistinits
operations.ABM'sSurveysMadeAvailableRealTime(SMART)programenablesclientstoaccessonlineinspection
reportsthatprovideinformationsuchasspecificationsforcleaningschedulesandthestatusofworkorders.Inaddition,
ABMdevelopedtheOnePassmethod,whichimprovesthequalityandefficiencyofcleaningthroughdata-drivenanalysisof
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operationalprocessesandprocess-orientedoptimization.Similarly,othercompaniesintheindustryhaveexploited
developmentsininternetofthingstechnologiestoenhancetheircleaningprocessesandstaffproductivity.Forexample,
internet-connectedtrashbinscancommunicatefilllevels,whichsavestime,preventsunnecessarypick-upsandreduces
costs.
Franchisedcommercialanddomesticcleaningserviceshavebeenagrowingsegmentofthisindustry.Cleaningservices
formajorclientsarenowincreasinglybeingprovidedonatotalfacilitiesmanagementbasis;suchcomprehensiveservice
offeringsmayincludepestcontrol,securityservicesandsomebuildingmaintenanceactivities.Furthermore,advancements
ingreencleaningmethodsareasourceofgrowthforindustryoperators.Therehavebeensignificantadvancementsin
cleaningequipmenttechnologiesthathavemadeproductsmoreeffective,safeandenvironmentallyfriendly.Theseinclude
specialfiltersonvacuumcleaners,microfiberclothsonmopheadsandlowmaintenancelavatoryamenities.
Revenue
Volatility
Thelevelofvolatilityis Medium
Overthefiveyearsto2022,theJanitorialServicesindustryhasexhibitedalow
tomoderatelevelofrevenuevolatility.
Industryrevenuehassteadilyimprovedduetoincreaseddemandfromconsumers.Industryrevenueincreasedasmuchas
11.3%in2018andaslittleas2.2%in2020.Sincedemandforindustryservicesstemsprimarilyfromcommercial,industrial
andofficebuildings,rentalvacanciesareinverselycorrelatedwithindustryrevenue.Relevantly,officerentalvacancy
remainedunchangedin2018andincreased2.2%in2020.Inaddition,theindustryremainssensitivetofluctuationsinthe
businesscycle,asfallingcorporateprofitcanleadtoreductionsinordersforcommercialcleaningservices.Corporateprofit
declined6.4%in2020amidthecoronaviruspandemicandreducedconsumerspending.Overthefiveyearsto2027,the
industryisanticipatedtoexperiencestablegrowth,resultinginreducedrevenuevolatility.
Regulation&
Policy
Thelevelofregulationis LightandthetrendisSteady
TheJanitorialServicesindustrydoesnotexperienceanyindustry-specific
regulations.
Similartoallotherindustries,however,operatorsmustabidebyallrelevantoccupationalhealthandsafetyprovisions.This
especiallyappliestotheuseandstorageofcleaningcompounds.Industryoperatorsaresubjecttovariousfederalstate
andlocallawsregulatingthedischargeofharmfulchemicalsandmaterialsintotheenvironment.Theseregulationsrelate
totheuse,storage,transportationanddisposalofwasteandhazardoussubstances.Moreover,suchregulationsvaryby
stateandmaybemoreorlessstringentaccordingly.In2020,amidthecoronaviruspandemic,socialdistancingprotocols
enforcedbystateandlocalgovernmentsreducedconsumerspendingonkeydownstreammarkets,suchasentertainment
venuesandaviation.Moreover,socialdistancingprotocolsresultedinremoteworkarrangementsandincreasedtheoffice
rentalvacancyrate.
Industry
Thelevelofindustryassistanceis NoneandthetrendisSteady
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Assistance
ThereisnospecialassistanceprovidedtooperatorsintheJanitorialServices
industry.
However,theInternationalSanitarySupplyAssociation(ISSA),alsoknownastheWorldwideCleaningIndustry
Association,hasamembershipofmorethan9,200members,includingnearly600residentialcleaningserviceproviders.
ISSAfacilitatesnetworking,communicationsandcommercialopportunitiesformembers;providesmemberswithrelevant
researchandinformationregardingprofessionalstandardsintheindustry;andadvocatesforregulatoryagendasthatare
beneficialtotheindustry.TheassociationoffersaCleaningIndustryManagementStandard(CIMS)certificationandCIMS-
Greenbuildingcertificationdesignation;CIMSstandardsapplytoanentirecleaningorganization.Asidefromaseriesof
application,certificationandassessmentfees,acleaningservicecompanymustdemonstrateacommitmenttoqualityto
qualifyforthesecertifications.
COVID-19(coronavirus)
InApril2020,inresponsetothecoronaviruspandemic,thefederalgovernmentpassedtheCoronavirusAid,Relief,and
EconomicSecurity(CARES)Act,whichincludedanumberofmeasuresintendedtoprovideeconomicreliefamidthe
recession.OnemeasureincludedintheCARESActwasthePaycheckProtectionProgram(PPP),whichdistributed
forgivableloanstoindustryoperatorsthathelpedtocoveroperatingexpensesandkeepbusinessesafloat.Theindustry
hasreceivedanestimated$1.0billioninforgivableloanstosmallbusinessesandlargecorporationssuchasABM
IndustriesInc.AdditionalfundingforPPPwasappropriatedbyCongressinDecember2020.TheAmericanRescuePlan
(ARP)wassignedintolawinMarch2021,providingadditionalrelieftosmallbusinessesastheeconomybeginstorecover.
TheARPprovidedanotherroundofPPPaswellasextendedtheemployeeretentiontaxcreditthroughDecember31,
2021.Theemployeeretentiontaxcreditenabledsmallbusinessestooffsettheircurrentpayrolltaxliabilitiesbyupto
$28,000peremployeefor2021.
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KeyStatistics
IndustryData
Year
Revenue
($m)
IVA
($m)
Establishments
(Units)
Enterprises
(Units)
Employment
(Units)
Exports
($m)
Imports
($m)
Wages
($m)
Domestic
Demand
($m)
Numberof
Businesses
(Million)
2013
59,167
31,566
786,688
783,686
1,697,639
N/A
N/A
28,253
N/A
7.49
2014
62,263
32,860
807,631
804,724
1,747,301
N/A
N/A
28,813
N/A
7.56
2015
65,012
34,613
805,865
802,957
1,761,456
N/A
N/A
29,607
N/A
7.66
2016
69,128
35,525
809,203
805,807
1,782,190
N/A
N/A
30,687
N/A
7.76
2017
70,648
36,683
836,962
832,297
1,840,320
N/A
N/A
31,879
N/A
7.86
2018
78,624
39,458
1,012,566
1,007,990
2,031,428
N/A
N/A
33,483
N/A
7.91
2019
82,438
41,182
1,048,268
1,043,687
2,081,820
N/A
N/A
34,851
N/A
8.01
2020
84,279
42,295
1,093,115
1,092,542
2,142,047
N/A
N/A
35,856
N/A
7.82
2021
91,584
45,521
1,149,085
1,146,748
2,290,034
N/A
N/A
38,459
N/A
7.93
2022
97,586
48,316
1,211,105
1,207,299
2,423,066
N/A
N/A
40,750
N/A
8.02
2023
101,186
50,284
1,284,858
1,280,343
2,529,002
N/A
N/A
42,476
N/A
8.11
2024
104,515
52,248
1,373,052
1,368,015
2,639,732
N/A
N/A
44,244
N/A
8.19
2025
107,877
54,299
1,473,804
1,468,509
2,757,491
N/A
N/A
46,107
N/A
8.27
2026
111,332
56,258
1,554,079
1,548,089
2,865,183
N/A
N/A
47,843
N/A
8.35
2027
114,711
58,241
1,642,785
1,636,051
2,976,869
N/A
N/A
49,626
N/A
8.43
AnnualChange
Year
Revenue
(%)
IVA
(%)
Establishments
(%)
Enterprises
(%)
Employment
(%)
Exports
(%)
Imports
(%)
Wages
(%)
Domestic
Demand
(%)
Numberof
Businesses
(%)
2013
2.99
-2.00
2.55
2.67
1.31
N/A
N/A
-2.36
N/A
0.76
2014
5.23
4.09
2.66
2.68
2.92
N/A
N/A
1.98
N/A
0.99
2015
4.41
5.33
-0.22
-0.22
0.81
N/A
N/A
2.75
N/A
1.33
2016
6.33
2.63
0.41
0.35
1.17
N/A
N/A
3.64
N/A
1.22
2017
2.19
3.25
3.43
3.28
3.26
N/A
N/A
3.88
N/A
1.32
2018
11.3
7.56
21.0
21.1
10.4
N/A
N/A
5.02
N/A
0.65
2019
4.85
4.36
3.52
3.54
2.48
N/A
N/A
4.08
N/A
1.22
2020
2.23
2.70
4.27
4.68
2.89
N/A
N/A
2.88
N/A
-2.38
2021
8.66
7.62
5.12
4.96
6.90
N/A
N/A
7.26
N/A
1.45
2022
6.55
6.13
5.39
5.28
5.80
N/A
N/A
5.95
N/A
1.06
2023
3.68
4.07
6.08
6.05
4.37
N/A
N/A
4.23
N/A
1.10
2024
3.28
3.90
6.86
6.84
4.37
N/A
N/A
4.16
N/A
1.05
2025
3.21
3.92
7.33
7.34
4.46
N/A
N/A
4.21
N/A
1.01
2026
3.20
3.60
5.44
5.41
3.90
N/A
N/A
3.76
N/A
0.97
2027
3.03
3.52
5.70
5.68
3.89
N/A
N/A
3.72
N/A
0.92
KeyRatios
Year
IVA/Revenue
(%)
Imports/
Demand
(%)
Exports/
Revenue
(%)
Revenueper
Employee
($'000)
Wages/
Revenue
(%)
Employeesper
estab.
(Units)
AverageWage ($)
2013
53.4
N/A
N/A
34.9
47.8
2.16
16,642
2014
52.8
N/A
N/A
35.6
46.3
2.16
16,490
2015
53.2
N/A
N/A
36.9
45.5
2.19
16,808
2016
51.4
N/A
N/A
38.8
44.4
2.20
17,218
2017
51.9
N/A
N/A
38.4
45.1
2.20
17,323
2018
50.2
N/A
N/A
38.7
42.6
2.01
16,482
2019
50.0
N/A
N/A
39.6
42.3
1.99
16,740
2020
50.2
N/A
N/A
39.3
42.5
1.96
16,739
2021
49.7
N/A
N/A
40.0
42.0
1.99
16,794
2022
49.5
N/A
N/A
40.3
41.8
2.00
16,818
2023
49.7
N/A
N/A
40.0
42.0
1.97
16,796
2024
50.0
N/A
N/A
39.6
42.3
1.92
16,761
2025
50.3
N/A
N/A
39.1
42.7
1.87
16,721
2026
50.5
N/A
N/A
38.9
43.0
1.84
16,698
2027
50.8
N/A
N/A
38.5
43.3
1.81
16,670
Figuresareinflationadjustedto2022
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IndustryFinancialStatement
HistoricalAverage
2017
2018
2019
2020
3-Year
5-Year
10-Year
18.0
16.2
17.1
17.6
17.0
17.6
17.9
21.7
20.8
21.9
22.6
21.7
21.9
21.7
4.5
4.7
4.5
4.3
4.5
4.5
4.5
2017
2018
2019
2020
3-Year
5-Year
10-Year
4.9
3.9
4.3
4.7
4.3
4.6
4.6
2017
2018
2019
2020
3-Year
5-Year
10-Year
100.0
100.0
100.0
100.0
100.0
100.0
100.0
87.6
86.8
86.7
86.9
86.8
87.8
86.7
28.8
25.0
24.2
23.1
24.1
26.4
27.3
71.2
75.0
75.8
76.9
75.9
73.6
72.7
18.5
20.5
20.1
20.1
20.2
19.5
18.7
4.4
4.4
4.5
4.5
4.5
4.5
4.4
0.8
1.3
1.4
1.6
1.4
1.1
0.8
0.0
0.0
0.0
0.0
0.0
0.0
0.0
2.9
3.3
3.4
3.4
3.3
3.2
3.0
3.9
4.4
4.1
4.0
4.2
4.1
3.9
0.9
0.5
0.4
0.4
0.4
0.6
0.7
2.9
3.2
3.1
3.1
3.1
3.1
3.0
2.1
2.1
2.1
2.1
2.1
2.1
2.0
1.6
1.7
1.8
1.9
1.8
1.7
1.5
4.9
3.9
4.3
4.7
4.3
4.6
4.6
1.1
1.1
1.2
1.2
1.2
1.2
1.1
0.1
0.5
0.5
0.6
0.5
0.4
0.3
0.0
0.0
0.0
0.0
0.0
0.0
0.0
9.3
9.0
9.1
9.2
9.1
9.4
9.7
2017
2018
2019
2020
3-Year
5-Year
10-Year
8.7
8.8
8.9
9.1
8.9
8.9
9.4
18.0
18.3
18.2
18.2
18.2
17.7
17.1
0.5
0.5
0.5
0.5
0.5
0.5
0.5
1.4
1.1
0.9
0.8
0.9
1.1
1.4
6.9
5.5
5.6
5.6
5.6
6.0
6.4
20.0
19.9
19.9
19.9
19.9
19.5
17.7
33.6
32.9
32.2
31.5
32.2
33.4
36.7
22.6
22.6
22.4
22.4
22.4
22.9
24.9
31.7
32.6
33.3
33.9
33.3
32.9
34.3
6.5
5.8
5.9
6.0
5.9
6.1
7.2
7.3
7.0
7.1
7.2
7.1
7.3
6.9
100.0
100.0
100.0
100.0
100.0
100.0
100.0
8.5
8.1
8.2
8.2
8.2
7.9
7.3
4.7
6.0
5.9
5.8
5.9
5.4
5.1
11.0
11.0
11.2
11.5
11.2
11.3
11.2
3.5
4.5
4.5
4.4
4.5
4.1
4.4
32.3
30.8
30.3
29.8
30.3
31.5
32.7
9.8
10.0
10.3
10.6
10.3
9.9
9.1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
3.7
5.2
5.3
5.3
5.3
4.6
4.5
28.2
28.3
28.1
28.0
28.1
27.9
27.8
0.1
0.1
0.1
0.1
0.1
0.1
0.1
2.1
0.7
0.8
0.9
0.8
1.3
2.0
6.2
5.9
6.1
6.2
6.1
6.2
6.2
30.1
29.6
29.7
29.8
29.7
29.9
30.2
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2017
2018
2019
2020
3-Year
5-Year
10-Year
1.5
1.4
1.4
1.3
1.4
1.4
1.5
1.4
1.3
1.3
1.3
1.3
1.4
1.4
5.7
5.6
5.6
5.6
5.6
5.8
6.0
64.2
65.2
65.0
65.0
65.0
63.1
61.1
17.8
15.1
13.3
12.0
13.5
15.2
17.9
20.5
24.2
27.5
30.3
27.3
24.6
21.3
3.5
3.1
3.0
2.9
3.0
3.5
3.9
105.5
116.1
120.6
127.1
121.2
108.6
97.0
7.9
7.6
7.8
7.9
7.8
7.8
7.6
2017
2018
2019
2020
3-Year
5-Year
10-Year
480.0
478.6
473.9
469.4
474.0
481.3
496.1
0.8
0.8
1.8
0.8
1.1
1.0
0.8
2017
2018
2019
2020
3-Year
5-Year
10-Year
3.2
3.2
3.2
3.2
3.2
3.2
3.4
3.3
3.4
3.4
3.4
3.4
3.3
3.3
0.3
0.3
0.3
0.3
0.3
0.3
0.3
2017
2018
2019
2020
3-Year
5-Year
10-Year
61.1
56.1
58.9
60.6
58.5
60.4
60.7
18.4
16.6
17.5
18.0
17.4
18.1
18.3
1.0
1.0
1.0
1.0
1.0
1.0
1.0
21.7
20.8
21.9
22.6
21.7
21.9
21.7
18.0
16.2
17.1
17.6
17.0
17.6
17.9
2017
2018
2019
2020
3-Year
5-Year
10-Year
28.2
28.2
-43.7
28.2
4.2
13.8
30.8
-20.6
-20.6
-62.3
-20.6
-34.5
-29.0
-21.1
-1.4
-1.4
-61.9
-1.4
-21.5
-13.5
-2.2
1.4
1.4
-26.7
1.4
-8.0
-4.2
-0.2
0.1
0.1
-0.5
0.1
-0.1
0.0
0.1
Source:IRSSOITaxStats;USCensusBureau;IBISWorld
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AdditionalResources
CleanLink
http://www.cleanlink.com
USBureauofLaborStatistics
http://www.bls.gov
USCensusBureau
http://www.census.gov
InternationalSanitarySupplyAssociation
http://www.issa.com
FRANCHISING
Franchisingisaformofbusinessbywhichtheowner(franchisor)ofaproduct,serviceormethodobtainsdistribution
throughaffiliateddealers(franchisees).
MAIDSERVICES
Cleaningservicesdesignedfordomesticbuildings,suchashouseholds.
STRATEGICALLIANCE
Agreementforcooperationamongtwoormoreindependentoperatorstoworktogethertowardcommonobjectives.
BARRIERSTOENTRY
Highbarrierstoentrymeanthatnewcompaniesstruggletoenteranindustry,whilelowbarriersmeanitiseasyfor
newcompaniestoenteranindustry.
CAPITALINTENSITY
Comparestheamountofmoneyspentoncapital(plant,machineryandequipment)withthatspentonlabor.
IBISWorldusestheratioofdepreciationtowagesasaproxyforcapitalintensity.Highcapitalintensityismorethan
$0.333ofcapitalto$1oflabor;mediumis$0.125to$0.333ofcapitalto$1oflabor;lowislessthan$0.125of
capitalforevery$1oflabor.
CONSTANTPRICES
ThedollarfiguresintheKeyStatisticstable,includingforecasts,areadjustedforinflationusingthecurrentyear(i.e.
yearpublished)asthebaseyear.Thisremovestheimpactofchangesinthepurchasingpowerofthedollar,leaving
onlythe"real"growthordeclineinindustrymetrics.TheinflationadjustmentsinIBISWorld’sreportsaremadeusing
theUSBureauofEconomicAnalysis’implicitGDPpricedeflator.
DOMESTICDEMAND
SpendingonindustrygoodsandserviceswithintheUnitedStates,regardlessoftheircountryoforigin.Itisderived
byaddingimportstoindustryrevenue,andthensubtractingexports.
EMPLOYMENT
Thenumberofpermanent,part-time,temporaryandseasonalemployees,workingproprietors,partners,managers
andexecutiveswithintheindustry.
ENTERPRISE
Adivisionthatisseparatelymanagedandkeepsmanagementaccounts.Eachenterpriseconsistsofoneormore
establishmentsthatareundercommonownershiporcontrol.
ESTABLISHMENT
Thesmallesttypeofaccountingunitwithinanenterprise,anestablishmentisasinglephysicallocationwhere
businessisconductedorwhereservicesorindustrialoperationsareperformed.Multipleestablishmentsunder
commoncontrolmakeupanenterprise.
EXPORTS
TotalvalueofindustrygoodsandservicessoldbyUScompaniestocustomersabroad.
IMPORTS
TotalvalueofindustrygoodsandservicesbroughtinfromforeigncountriestobesoldintheUnitedStates.
INDUSTRYCONCENTRATION
Anindicatorofthedominanceofthetopfourplayersinanindustry.Concentrationisconsideredhighifthetop
playersaccountformorethan70%ofindustryrevenue.Mediumis40%to70%ofindustryrevenue.Lowisless
JanitorialServicesintheUS
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IBISWorld.com
than40%.
INDUSTRYREVENUE
Thetotalsalesofindustrygoodsandservices(exclusiveofexciseandsalestax);subsidiesonproduction;allother
operatingincomefromoutsidethefirm(suchascommissionincome,repairandserviceincome,andrent,leasing
andhiringincome);andcapitalworkdonebyrentalorlease.Receiptsfrominterestroyalties,dividendsandthesale
offixedtangibleassetsareexcluded.
INDUSTRYVALUEADDED(IVA)
Themarketvalueofgoodsandservicesproducedbytheindustryminusthecostofgoodsandservicesusedin
production.IVAisalsodescribedastheindustry'scontributiontoGDP,orprofitpluswagesanddepreciation.
INTERNATIONALTRADE
Thelevelofinternationaltradeisdeterminedbyratiosofexportstorevenueandimportstodomesticdemand.For
exports/revenue:lowislessthan5%,mediumis5%to20%,andhighismorethan20%.Imports/domesticdemand:
lowislessthan5%,mediumis5%to35%,andhighismorethan35%.
LIFECYCLE
Allindustriesgothroughperiodsofgrowth,maturityanddecline.IBISWorlddeterminesanindustry'slifecycleby
consideringitsgrowthrate(measuredbyIVA)comparedwithGDP;thegrowthrateofthenumberofestablishments;
theamountofchangetheindustry'sproductsareundergoing;therateoftechnologicalchange;andthelevelof
customeracceptanceofindustryproductsandservices.
NONEMPLOYINGESTABLISHMENT
Businesseswithnopaidemploymentorpayroll,alsoknownasnonemployers.Thesearemostlysetupbyself-
employedindividuals.
PROFIT
IBISWorldusesearningsbeforeinterestandtax(EBIT)asanindicatorofacompany’sprofitability.Itiscalculatedas
revenueminusexpenses,excludinginterestandtax.
REGIONS
West|CA,NV,OR,WA,HI,AK
GreatLakes|OH,IN,IL,WI,MI
Mid-Atlantic|NY,NJ,PA,DE,MD
NewEngland|ME,NH,VT,MA,CT,RI
Plains|MN,IA,MO,KS,NE,SD,ND
RockyMountains|CO,UT,WY,ID,MT
Southeast|VA,WV,KY,TN,AR,LA,MS,AL,GA,FL,SC,NC
Southwest|OK,TX,NM,AZ
VOLATILITY
Thelevelofvolatilityisdeterminedbyaveragingtheabsolutechangeinrevenueineachofthepastfiveyears.
Volatilitylevels:veryhighismorethan±20%;highvolatilityis±10%to±20%;moderatevolatilityis±3%to±10%;
andlowvolatilityislessthan±3%.
WAGES
Thegrosstotalwagesandsalariesofallemployeesintheindustry.
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informationyouneed–fast.
Withourtrustedresearchcoveringthousandsofglobalindustries,you’llgetaquickandintelligent
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actionableinsights,comprehensivedataandin-depthanalysistohelpyoumakesmarter,faster
businessdecisions.Ifyou’renotyetamemberofIBISWorld,contactusat1-800-330-3772or
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