2020 Building Service Contractor Market Report
Contracting Profits magazine and Building Service Contractors Association International (BSCAI) surveyed building service contractors to determine industry averages for market share, service offerings, employee statistics and overall business conditions.
The results are now available in the “2020 Report On The Building Service Contractor Market.”
The findings from this year's survey show continued growth for BSCs. For most in the cleaning industry, 2018 was a strong year, showing higher sales than the year prior. In 2019, sales continued to grow for 76 percent of contractors. That momentum is expected to extend into 2020.
With sales performance on the rise, it makes sense that profits will follow suit. In fact, 73 percent of BSCs saw profit growth in 2019 and more than three-quarters project growth again this year.
These favorable business conditions can be attributed to a strong presence in varying facility sectors, while also continuing to target growth opportunities. Commercial office buildings remain the strongest market for BSCs, followed by healthcare and industrial facilities. With a strong handle on the commercial sector, 38 percent of contractors are focusing their attention on education as an emerging business segment. The number of BSCs targeting healthcare facilities is also growing at a steady clip.
Adding special services to existing contracts has proved beneficial for the BSC bottom line. Carpet cleaning and floor finishing/stripping continue as strong add-ons for contractors. However, the biggest growth has been in exterior window cleaning and snow/ice removal. As manufacturers make these services safer and easier to complete, BSCs will continue to profit off of them.
Although the first half of 2020 proved challenging for much of the economy, BSCs continue to thrive as the focus on cleaning grows. In fact, 60 percent of contractors believe cleaning frequencies will increase over the next 12 months, a staggering jump from just 37 percent in 2019. Where cleaning for appearance once took center stage, it now takes a back seat to cleaning for a healthy and sanitary environment for building occupants.
These are a few of the highlights from the “2020 Report On The Building Service Contractor Market.”
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