2019 Building Service Contractor Market Report
Contracting Profits and Building Service Contractors Association International (BSCAI) surveyed building service contractors to determine industry averages for market share, service offerings, employee retention and overall business conditions.
BSCs correctly predicted that 2018 would be a good year. Sixty-five percent of contractors experienced higher sales in 2018 over 2017. In addition, profits were higher last year for 62 percent of contractors.
Fueled by this strong performance, BSCs are optimistic that the favorable business conditions will continue in 2019. Three-quarters of BSCs are anticipating higher sales in 2019 over last year and nearly the same number are predicting higher profits this year.
Commercial office buildings remain the strongest market for BSCs by an overwhelming majority. Healthcare is the second strongest market, with these facilities also being the biggest target for growth. This is similar findings to last year’s survey, which is not surprising, as an aging population increases the need for both acute care and non-acute care facilities.
It’s smarter to grow profits through existing customers than search out new ones. BSCs continue to increase the scope of their services and become a one-stop shop for their clients. The most popular add-on services continue to be floor stripping and finishing, carpet extraction, exterior window cleaning, exterior pressure washing and specialty floor care. Modest gains were seen in the number of BSCs offering grounds care as a diversified service.
This year, the “2019 Report On The Building Service Contractor Market” added questions about employee pay and retention. Most frontline janitors stay an average of three to five years. Those that don’t stay are most likely to leave a company for more pay elsewhere, despite the fact that more than 40 percent of BSCs pay higher than minimum and living wages.