Market Trends of Contract Cleaning Services Industry
This section covers the major market trends shaping the Contract Cleaning Services Market according to our research experts:
Commercial Cleaning is Expected to Hold a Significant Share
- The commercial sector mainly consists of office buildings, which make major investments in maintaining their facilities' cleanliness and sanitization. The segment holds a high share due to the rising number of commercial buildings after the recovery of the construction and real estate sector from a brief period of stagnation in the early half of this decade. In order to help their staff and management to concentrate on the main business operations, other commercial enterprises like healthcare/medical facilities, educational institutions, hotels and restaurants, and retail outlets typically prefer outsourcing the necessary cleaning operations. There was a growing need for sanitization and cleanliness during the COVID-19 pandemic, which may continue post the pandemic. Therefore, the business sector is expected to present many growth prospects for service providers even after the pandemic.
- Commercial sectors, such as office buildings, require consistent cleaning to maintain quality and upkeep. The demand for cleaning services in this sector is increasing due to the growing need for a clean and safe environment for employees. For instance, office desks contain more than 400 times the amount of germs as a bathroom toilet. These germs contribute to US workers taking an average of seven sick days per year. This problem can be solved by implementing an office cleaning service program that can avoid germs from spreading.
- As the number of offices, stores, and other commercial enterprises is increasing, the cost of in-house cleaning services is alss rising, thus burdening the operating overheads. For instance, according to the US Census Bureau, the total value of US commercial construction in November 2022 was USD 120.66 billion, with 116.51 in private construction and USD 4.16 billion in public construction. Thus, the demand for outsourcing essential cleaning is expected to rise due to the growing office and commercial spaces.
- The commercial segment is likewise anticipated to increase strongly and consistently during the projected period. At such industrial production plants, contract service providers are hired to handle construction cleaning chores like oil spill cleanup and containment and waste and dust cleanup. Additionally, manufacturing facilities must regularly clean up after their restoration work. The market demand among residential end-users will also be driven by the rising level of disposable income and the growing propensity of the young population to outsource routine cleanup duties.
- In the United States, the Northeast area had the most office space under construction nationwide in the second quarter of the last year. At the time, approximately 30 million square feet of offices were being built in the Northeast. According to Colliers International, a diversified professional services and investment management organization with headquarters in Canada, the Midwest had the least amount of new office space under construction.
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North America is Expected to Hold a Major Share
- North America is expected to hold a prominent share in the contract cleaning services market due to factors such as a rise in construction activities, changing consumer lifestyles, a growing number of working women, and the proliferation of advanced cleaning services offered by vendors. The rgion has a significant number of service providers, particularly in the United States. The majority of business enterprises have contracts with service providers to ensure a hygienic and sanitary atmosphere for their workers.
- For instance, Wegmans, a grocery store chain in the United States, contracted cleaning services from Cleaning Services Group Inc. for all its store locations in the country. The cleaning services help the company in keeping its construction sites clean as it constructs 4-5 new stores per year. It also helps the company maintain an environment free from dust and oil spills from construction equipment, thus improving the worksite's safety.
- In the United States, the market for commercial cleaning services remained sizable in the last year, and a sizable portion of the workforce continued to work in this sector. According to the Bureau of Labor Statistics, there were close to three million people employed in the US cleaning services sector in 2021.
- The US Bureau of Labor predicted that there will be more than 236,500 new janitorial jobs throughout the country by the end of the current year. Given a large number of Americans working in the US cleaning services industry, the market is anticipated to expand quickly.
- To keep consumers safe and reduce the likelihood of an infection or outbreak, strict COVID-19 laws in the United States and Canada were implemented, which require cleaning companies to be COVID-certified and continue offering sanitization and disinfection services. More and more cleaning businesses are providing specific COVID-19 cleaning and sanitization services to their clients. This factor may also contribute to the growth of the contract cleaning services market in North America.
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