Learn about the Cleaning Services industry and find more information on how to start a Cleaning Services business or janitorial services. Don’t forget you can receive free or low-cost training and free professional business advice, from your local Small Business Development Center!
View our related business reports here: Landscaping Services Business
Get a free Cleaning Services business plan template on our Business Plans page.
Cleaning Services COVID-19 Resources
In response to the global COVID-19 pandemic, shelter-in-place orders and physical distancing measures affected many businesses; here is a look at the impact to the janitorial services industry. Job postings for cleaners experienced a 75 % surge in March 2020, compared to the same time last year, according to a report by the ISSA. Precautions to prevent contamination, provided by the CDC, pose a challenge for cleaning businesses, as adequate training and personal protective equipment are critical. Here are additional COVID-19 business resources specific to this industry:
- SBDCNet’s COVID-19 Small Business Resources
- SBDCNet’s COVID-19 Industry Resources
- Cleaning and Disinfecting for the Coronavirus – ISSA Worldwide Cleaning Industry Association
- Coronavirus Resources – American Cleaning Institute
- International’s Coronavirus Resource Center – BOMA International
- Franchise Reopening Blueprint, including Cleaning Services – International Franchise Association
Cleaning Services Business Overview & Trends
NAICS Code: 561720; SIC Code: 7349
This janitorial services industry summary is from First Research, which also sells a full version of this report.
- “Companies in this industry clean building interiors, windows, carpets, and upholstery. Major US companies include divisions of companies such as ABM Industries and ServiceMaster, as well as Coverall North America, Jani-King, and Stanley Steemer; major companies based outside the US include divisions of Aeon Delight (Japan), CNS Consorzio Nazionale Servizi (Italy), ISS World Services (Denmark), Mitie Group (UK), and Wisag (Germany).
- The global cleaning services market is expected to reach $74 billion by 2022, growing at a compound annual rate of more than 6%, according to Allied Market Research. North America is the largest cleaning services market, while the Asia/Pacific region is expected to grow at the fastest rate. Asia/Pacific will account for about 30% of the overall cleaning services market by 2022, with increasing demand coming from China, Japan, and India.
- The US janitorial services and carpet cleaning industry consists of about 58,000 janitorial establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $45 billion and about 7,700 carpet and upholstery cleaning establishments with combined annual revenue of about $4.1 billion.
- Competitive Landscape: Commercial real estate occupancy drives demand for cleaning services. The profitability of individual companies depends on good marketing. Large companies have an advantage in serving customers with multiple locations. Small companies can compete effectively in local markets, especially for small business and residential customers.”
Cleaning Services Business Customer Demographics
Major customer segments for janitorial services and residential cleaning services are reported by IBISWorld, which offers full versions of the reports for purchase here and here.
- Janitorial Services generate approximately $61.4 billion with key market segmentation defined by the end user of the service and the majority of revenue in business-to-business.
- The key markets identified include: commercial (69.2%), residential (11.3%), education (9.9%), and government and not-for-profit organizations (9.6%)
- The commercial sector is the largest revenue generator as these encompass office buildings, retail establishments, healthcare facilities, and others.
- Outsourced janitorial services provided to private educational facilities; federal, state, and local government buildings; and not-for-profits make up the next largest customer segment.
- Residential customers make up the remainder of the segment. While there are customers across all household income levels, as income levels rise, so too does the demand for cleaning services.
Cleaning Services Business Startup Costs
- Commercial & Residential Cleaning startup costs from Entrepreneur Magazine:
- Startup Costs: Under $2,000
- How to Start a Cleaning Business
- How to Start Your Own Janitorial Business
- Plan Your Cleaning Business Budget
Janitorial Services Business Plans
- Janitorial Services Business Plan
- Janitorial Service Business Plan
- House Cleaning Service Business Plan
- Cleaning Service Business Plan
- Window Cleaning Service Business Plan
- Carpet Cleaner Business Plan
Cleaning Services Business Associations
Trade associations often are excellent sources of information on an industry. Here are some relevant cleaning services industry associations:
- ISSA – The Worldwide Cleaning Industry Association
- International Janitorial Cleaning Services Association
- Building Service Contractors Association
- Building Owners and Managers Association International
- Association of Residential Cleaning Services International
- National Cleaners Association
- International Window Cleaning Association
- National Air Duct Cleaners Association
- The Cleaning Institute
Janitorial Services Business Regulations
Although there is no one agency regulating janitorial businesses, the Occupational Safety and Health Administration (OSHA) provides standards for the cleaning industry. Businesses may be subject to state and local environmental regulations in their handling and disposal of cleaning supplies.
Cleaning Services Business Publications
- CleanLink
- eClean Magazine
- Building Services Management
- Cleaning and Maintenance Management
- Facilities Maintenance Decisions
- Cleaning Business Today
- ZenMaid Magazine
Janitorial Services Business Employment Trends
Labors costs are typically the largest expense for a janitorial service. A critical component as an agency grows is hiring qualified workers. Indeed provides average salaries for cleaning and sanitation businesses.
The following are insights from the Bureau of Labor Statistics focused on janitors and building cleaners. A more specific breakdown of wages for Janitorial and Building Cleaners businesses in the US can be found here (see 37-2011 for commercial and 37-2012 for residential).
- “Pay: The median hourly wage for janitors and building cleaners was $13.19 in May 2019.
- Work Environment: Most janitors and building cleaners work indoors, but some work outdoors part of the time, sweeping walkways, mowing lawns, and shoveling snow. They spend most of the day walking, standing, or bending while cleaning. Sometimes they must move or lift heavy supplies and equipment. As a result, the work may be strenuous on the back, arms, and legs. Some tasks, such as cleaning restrooms and trash areas, can be dirty and unpleasant.
- Job Outlook: Employment of janitors and building cleaners is projected to grow 7 percent from 2018 to 2028, faster than the average for all occupations. Many new jobs are expected in industries such as administrative and support services, educational services, and healthcare.”
Additional Small Business Resources
Already in business or thinking about starting your own small business? Check out our various small business resources:
- View more business reports here: Small Business Snapshots
- View small business help topics here: Small Business Information Center
- View industry-specific research here: Market Research Links
- View business plans samples here: Sample Business Plans
Remember, you can also receive free professional business advice and free or low-cost business training from your local Small Business Development Center!
