Cleanlink News February 3 2010
BSC Revenue Forecast Approaches $67 Billion in 2013
Revenues
for contract commercial and residential cleaning services in the US are
forecast to advance 4.5 percent annually to $66.8 billion in 2013. Gains
will be driven by ongoing increases in both the number of households and the
number of business establishments, coupled with growing availability and
affordability of cleaning services. The recession that began in late 2007 and persisted through 2008 had no
discernable short-term effect on cleaning services revenues; in fact, many
companies reduced operating expenses by outsourcing cleaning services as the
economy worsened. Longer-term
growth in cleaning services revenues, however, will require economic recovery
to expand the potential pool of customers. These and other trends are presented in Commercial
& Residential Cleaning Services, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.
Nonresidential
markets are the main consumers of cleaning services, accounting for more than three-quarters of the
total in 2008. Revenues will
benefit from the trend to outsourcing cleaning functions to cut costs. While some nonresidential markets have
already seen much of this outsourcing take place (the office market, for
example, and to a lesser extent some portions of the institutional market),
there remain opportunities for growth. However, little to no growth is expected in nonresidential floor space,
particularly in the office, commercial and industrial markets, which will
moderate growth prospects. Through
2013, growth in cleaning services revenues in nonresidential markets will range
from 3.7 percent annually in the relatively mature office market to 4.7 percent
per year in the institutional market.
Interior
building cleaning services are the largest contributor to cleaning services
revenues, accounting for 74 percent of the total in 2008. Growth in revenues will derive from
expansions in the number of business establishments and the total inventory of
the US housing stock, both of which will create more potential customers for cleaning
service providers. Also,
specialized services such as special event clean-up and seasonal cleaning will
continue to offer niche opportunities to cleaning companies.
