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The U.S. Commercial & Residential Cleaning

Product Type: Market Research Report
Published by: Marketdata Enterprises Inc.
Published: June 2004
Product Code: R237-205
Description
This Marketdata study examines the huge $94 billion commercial contract cleaning and maintenance services market. The business is very competitive, comprised of 507,000 mainly small operators, including 25,000 franchised units. Study traces industry size, growth, segments, structure, end-user demand, operating performance — 1987-2002 actual receipts, 2003 estimates, 2004 & 2008 forecasts. Analysis of… market share, emerging trends, industry franchising, office vacancy rates, impact of last recession, cleaning worker pay/turnover/unionizing efforts, outsourcing, more. Includes extensive private sector and Census survey contractor operating ratios, pricing, profit margins. Includes highlights of latest surveys by trade journals, as well as comments and outlooks by top competitors, trade groups and industry consultants. Discusses janitorial services, pest control, other niches. State and city statistics/market potential included. Separate chapters analyze the Carpet Cleaning and Residential/Maid Services segments. Includes 14 in-depth profiles and rankings of all the top franchise/non-franchise competitors (ABM, ServiceMaster, Jani-King, OneSource, SERVPRO, UNICCO, Coverall, etc.). 120 Tables & charts.
Table of Contents
Introduction - Study Scope, Sources Used, Methodology

* Industry Nature & Definition: Description of the industry's major segments, services provided, NAICS codes



Executive Overview of Major Findings ($300)

* Highlights & key findings of all report chapters: analysis of major trends/issues affecting

the industry (impact of recession, profit margins, worker pay/turnover, outsourcing, commercial vacancy rates, franchising, unions, etc.), outlooks/results of phone interviews of industry leaders, industry size/growth -1989-2008 Forecast,

franchising’s importance, profile/size of the carpet cleaning mkt. segment, 2002-2003 sales of top competitors (franchises, non-franchise firms). Analysis of educational, healthcare, other key end-user segments, industry structure, 1997-2002

key operating ratios (no. of services in U.S., single/multi-unit firms, top 50 mkt. share, etc.).




The Outlook For Office Space and Commercial Construction

* Summary & discussion of commercial/office construction activity and indicators: value of

construction contracts, 2001-2003 commercial office vacancy rates in major metro

areas/nationwide, amount of existing commercial floor space by U.S. and by region

(1986-1999), share of space by type activity (retail, education, healthcare : 1989-1999)

* Commercial vacancy rates, by top cities, urban vs. suburban markets

* Discussion of absorption rates, “shadow space”



Tables:

- Increase in vacant square footage, by major city: 2003 vs. 2002

- Top 10 office space markets, by mill. of sq. ft.

- Commercial construction trends, value, floor space: 1980-1998

- Value of new construction of nonresidential buildings: 1990-2001

- Markets (cities) with highest/lowest vacancy rates: 2003

- Distribution of floor space, by main building activity: 1999

- No. of bldgs. and percent of total floor space by type activity (education, health care, lodging, retail, offices, warehouses, etc.), by region (1986, 1989, 1992, 1995, 1999)

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- Vacancy rates by top metro areas: 2002, mkt. size in sq. ft., vacancy rate

- No. of commercial bldgs., total floor space, mean sq. ft. per bldg., by no. of workers and hrs. of operation: 1999 vs. 1995 (main bldg. activity, year constructed, by region etc.)




Industry Size, Growth, Market Segments

* Discussion/analysis of 2-tiered mkt. structure (large contractors vs. small independents, and

franchise organizations vs. non-franchise cleaners), estd. share by top 12 firms in the industry

* Industry size estimates; rationale for estimates by varying sources, historical values - Marketdata's

1989-2008 estimates/forecasts, factors affecting recent growth

* Discussion of estimates based on commercial floor space vs. based on Census data

* 2001, 2002, 2003 actual industry performance

* Sales growth of the leaders, composite average

* 2004 & 2008 forecasts & outlook: Marketdata projections, opinions of industry leaders

interviewed, key factors affecting future growth

* Discussion of why the industry is recession-resistant, effects of last recession



Tables:

- Total industry potential, $ value and % change (1989-2008 F), for contract cleaners

- Share of total receipts by exterminating/pest control, janitorial, "all other" building cleaning

& maintenance services (1983-1998) - Census Bureau data

- Total industry receipts, by major segments, annual % change (1998-2002: Census Bureau): total

Industry, pest control, janitorial, carpet cleaning, other services to buildings

- Historical share of industry sales by pest control vs. janitorial/all other services: 1985-2002




Status Report of The Carpet Cleaning Industry

* Nature of the business, evolution of the industry, how carpet cleaning services operate,

services performed, franchises vs. independents

* Major mkt. trends/developments of past several years: discussion

* Discussion of impact of alternative floor coverings, impact on carpet sales/usage

* Discussion of attempts by mills and retailers to enter carpet cleaning - why it failed.

* Historical size/growth of the industry: Marketdata estimates of true size of the segment (1986-

2007 F)

* Discussion/analysis of how market potential derived, avg. annual sales per service, 2007 forecast

and outlook for the sector, effect of recessions/gas prices/housing starts, other indicators.

* Estimates of commercial vs. residential segments of the industry, $ values.

* Current industry outlooks by: ServiceMaster, Chem-Dry, Servpro, Mohawk, Duraclean, IICRC,

ASCR, Stanley Steemer, consultants.

* Franchising: analysis of no. of outlets, start-up costs, the top 8 carpet cleaning franchisers,

estd. systemwide revenues (1997, 1999, 2002), franchises by no. of units, franchise fees, royalty

rates, start-up costs

* Carpet cleaner contractor operating ratios: highlights of 1997 Census… sources of receipts,

multi-unit firms, legal form of firm,, top 50 mkt. share, carpets cleaners’ major sources of receipts




The Residential Maid Services Market

* Summary: nature & estd.2003 size of the market, estd. $ sales per franchise vs. commercial

cleaning services, list of top franchise companies in the business, franchises vs. independent

maids, reasons why demand is booming (tax laws, 2-worker households, etc.)

* End-user household demographics: results of Mediamark Research survey: major target age

groups and usage of professional cleaning services

* List of residential cleaning services franchises: (The Maids Intl., Maid Brigade; Merry Maids,

Molly Maid, Cottage Care, Swisher Maids, Mini Maid, Home Cleaning Centers of America) -

addresses.



Tables:

- Projected no. of U.S. households using a maid or housekeep, by age group: 2000 & 2006 F

- Residential cleaning franchises: no. of units 1997-2003

- Residential cleaning franchises: start-up costs, franchise fee, royalty rates: 2003




Commercial Cleaning Contractor Operating Ratios (CMM Surveys)

* Discussion of data collected via Cleaning & Maintenance Management magazine’s

Benchmarking Survey”, survey highlights and major findings

Tables & analysis covers following topics:

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- 2002 sales volume mix, % of respondents

- Customer mix: % of contractors servicing offices, industrial accts., hospitals, etc. 1993-2002)

- Surfaces cleaned/areas that contractors clean by type: 1993-2002

- Most frequent customer complaints (restrooms, dusting, etc. - by area): 1993-2002

- Worker productivity measures: square footage cleaned per hr., avg. labor costs: 1993-2002

- Cleaning worker wages, by region: starting worker wages & average wages (1993-2002)




Industry Structure & Operating Ratios of the Industry

Total Industry Analysis - Discussion/Text

* Explanation of how to interpret Census data, how the data is arranged/classified by

NAICS codes, and major market segments.

* New 2002 Census data available: receipts, schedule for release of other data in 2004, 2001

data from County Business Patterns: receipts and % change, no. of employees, by type cleaning

services

* Non-employer receipts of 427,000 sole proprietorships without payrolls, IRS data

* Summary & analysis: no. of cleaning establishments in U.S. and for leading states; no. of firms;

industry size; avg. receipts per office by top states; mkt. share top 50 firms ratios; summary

findings of 1997 Census & comparison to 1992 data… re: legal form of organization, firms &

estabs. by sales size (in receipts & employment); single/multi-unit operations.

* Summary statistics: 1997 vs. 1992 - no. of estabs; total industry vs. disinfecting/pest control,

other services; annual receipts; payroll costs; no. of workers; payroll per employee; receipts per

employee, receipts per establishment.

* Geographic analysis - share of national receipts, avg. receipts per estab., by state, top states'

ranking

* Financial health of the industry: composite income statement & balance sheet ratios,

profitability trends, by size of cleaning contractor (janitorial services, pest control: 1998-20002)



Statistical Tables:

Total Industry- All Types of Commercial Cleaning Contractors Aggregated

- Total cleaning industry firms, by legal form of organization -corporations, sole proprietorships,

partnerships: 1997 & 1992, (no. of firms, receipts, payroll as % receipts, no. of employees).

- Single vs. multi-unit operations, by size (statistics as above) 1997 & 1992.

- Concentration Ratios: ratios for top 4, 8, 20, 50 largest firms 1997 & 1992

- Total Commercial Cleaning Firms, by receipts size (under $100,000 to $100 + mill.);

(no. of firms, estabs., receipts, payroll, avg. receipts per firm) 1997 & 1992

#NAME?

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- All cleaning contractors’ receipts and no. of estabs., by major city: 1997




Industry Structure & Operating Ratios of the Industry (chapter continued)

Janitorial-Building Cleaning & Maint. Services

- Janitorial service firms, by legal form of organization - corporate, sole proprietorships,

partnerships: 1997 & 1992, (no. of firms, receipts, payroll as % receipts, no. of employees)

- Single vs. multi-unit operations, by size (statistics as above) 1997 & 1992.

- Concentration Ratios : ratios by top 4, 8, 20, 50 largest firms 1997 & 1992

- Janitorial service firms, by receipts size (under $100,000 to $100+ mill.) (no. of firms,

estabs., receipts, payroll, avg. receipts per firm), 1997 & 1992.

#NAME?

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- Janitorial service contractors’ receipts and no. of estabs., by major city: 1997

Exterminating & Pest Control Services

- Exterminating & pest control firms, by legal form of organization - corporate, sole proprietor-

ships, partnerships: 1997 & 1992, (no. of firms, receipts, payroll as % receipts, no. of employees) -

Single vs. multi-unit operations, by size (statistics as above) 1997 & 1992.

- Concentration Ratios : ratios by top 4, 8, 20, 50 largest firms 1997 & 1992

- Disinfecting & pest control firms, by receipts size (under $100,000 to $100+ mill.) (no. of firms,

estabs., receipts, payroll, avg. receipts per firm), 1997 & 1992.

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- Composite balance sheet & income statement: 1991-2000 disinfecting & pest control services.




The Commercial Cleaning Franchise Organizations


* Summary - how many exist? - Entrepreneur magazine;s 2004 Franchise 500 ranking,

Discussion: how cleaning franchises work and differ, services typically provided by parent,

master franchises,

* Analysis of avg. initial franchise fees/royalty rates/start-up costs in 2003 vs. 2001

* The industry's leading franchisers: parent co. vs. systemwide revenues, 2003 avg. estimated

annual receipts, difficulties estimating revenues due to full-time vs. part-time workers; franchise

investment pkgs. sold.

* Estimated or actual revenues of the largest non-franchise contractors (2002, 2003 sales: ABM,

OneSource, Unicco, Temco)



Tables:

- Top janitorial cleaning franchises (no. of units 1998-2003, franchise. fee, royalty %, start-up $)

- Top residential cleaning franchises (no. of units 1998-2003, franchise fee, royalty %, start-up $)

- Top pest control franchises (no. of units 1998-2003, franchise fee, royalty %, start-up $)

- Top restroom cleaning franchises (no. of units 1998-2003, franchise fee, royalty %, start-up $)

- Top window washing franchises (no. of units 1998-2003, franchise fee, royalty %, start-up $)



Profiles of The Leading Commercial Cleaning Franchises & Non-Franchise Firms

(For each company below: discussion & analysis of services offered, divisions, franchise packages offered/cost, performance; markets served; strategies, financial analysis (sales); history & recent developments; acquisitions, number of franchises; marketing strategies)



* ABM Industries

* Anago Franchising

* Clean net USA

* Coverall Cleaning Concepts

* Jan-Pro

* Jani-King Intl.

* OneSource

* O.P.E.N. America

* Servpro

* ServiceMaster

* Swisher Intl.

* Tower Cleaning Systems

* UNICCO Service Co.

* Vanguard Cleaning Systems




Reference Directory of Industry Information Sources

* Addresses, phones, contacts at major industry trade associations, trade journals,

consulting firms: commercial cleaning and carpet cleaning segments.
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