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Market & Industry

The Commercial Cleaning Industry. Quality, Value, Performance.
Since the demand for qualified commercial cleaning system services outstrips the supply, there is unlimited growth potential for anyone entering the commercial cleaning industry.

The reasons for this strong growth are obvious:

  • The commercial cleaning industry is viewed by many financial analysts as recession resistant and highly stable.
  • The franchise commercial cleaning industry is valued at nearly $50 billion and has grown by over 66% in the past ten years.
  • According to the U.S. Bureau of Labor Statistics, the fastest growing occupation for the next decade is that of a professional cleaning specialist.

As long as there are commercial buildings, office complexes, banks, retail shopping centers, industrial facilities and medical centers, there will always be a need for quality-minded cleaning professionals, regardless of economic conditions. As new buildings are completed and new businesses open, there will be more commercial cleaning opportunities.

The result is a significant increase in the demand for janitorial services... and JAN-PRO is meeting those needs.

The Market and Industry
Commercial cleaning is a very fragmented industry with no one company owning more than 6 percent of any given market. Franchise cleaning companies account for 10 percent of the total market while conventional and private companies account for 90 percent. Although there is a massive demand for efficient, dependable cleaning services, traditional and conventional cleaning companies experience the largest turnover, losing up to 55 percent of their cleaning contracts annually due to lack of quality service and non-performance. This large turnover offers a tremendous opportunity for growth in the franchise segment of the industry.

Master franchise cleaning companies, on the other hand, have enthusiastic unit franchisees that have a vested interest in their business and -- "pride of ownership" – providing consistent above average quality service, which is evident by the small account turnover rate of less than 2 percent.

Furthermore, as a result of corporate downsizing, the master franchise concept is very attractive to educated professionals who can combine their corporate business experience with the desire to own their own business. This results in a highly qualified, highly motivated, business owner who is out-producing traditional janitorial cleaning companies at a consistent rate.

Growth and Demand
Most economists and analysts agree that commercial cleaning is a recession-resistant business, with the demand now in excess of  $160 billion annually and is expected to grow to $175 billion over the next three years. That growth is predicted to come as a result of the rising pace in new business formation and expansion activity as well as new end user markets, which should spur a cyclical rebound in building construction and a reduction in office vacancy rates. Health care, education and other private facilities will provide the best growth opportunities for cleaning services, however, office buildings will continue to comprise the largest commercial cleaning segment (31.6% worldwide) through 2012, followed by government buildings, institutions, retail/wholesale establishments and industrial facilities.