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Janitorial Services and Carpet Cleaning Industry Profile Excerpt
| SIC Codes: 7349 NAICS Codes: 56172, 56174 Page Length: 10-12 Last Quarterly Update: 9/15/2008 View Sample Industry Profile |
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The US commercial janitorial industry consists of about 40,000 companies with combined annual revenue of $30 billion. The industry includes divisions of larger service companies like ServiceMaster, ABM Industries, and UNICCO. Only 150 companies have annual revenue over $10 million. The industry is highly fragmented: the 50 largest companies control less than 30 percent of the market. A large local operation may have 100 employees and annual revenue of $3 million, but most companies are smaller.
COMPETITIVE LANDSCAPE
The level of commercial business activity and income growth drive demand for cleaning services. The profitability of individual companies depends on good marketing. Large companies have an advantage in serving large customers. Small companies can compete effectively in local markets, especially for small business and residential customers. The industry is highly labor-intensive: average annual revenue per employee is only $20,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
Janitorial services include general services of cleaning, trash pickup, floor polishing, and the specialty services of cleaning carpet and ducts and washing windows. Operations consist of crews cleaning buildings and houses by hand or with the help of basic equipment like floor polishers. Operations are highly labor-intensive.
Carpet cleaning firms account for about 10 percent of industry revenue. This work uses specialty equipment and is less labor-intensive than regular janitorial work. Water, steam, and/or various chemicals are injected into a carpet and removed by vacuum along with dirt and stains. Some companies use proprietary application/extraction systems. The ...
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