There are over 54,000 independent building service contractors (BSCs) that clean and maintain commercial, industrial, and institutional facilities in the United States. Accounting for over 30% of the market’s sales, contract cleaners are the largest end users of janitorial and housekeeping cleaning products in the country.
Contractors have increased penetration and revenues; however, cutbacks and changes in floor care programs have affected this leading segment, in terms of chemical purchases. End users are operating under tight budget constraints with a focus on margins, resulting in resistance to price increases and reduced frequency of stripping and finishing floors.
To remain competitive in this highly fragmented market, leading contractors, such as Aramark, Sodexo, ABM, UGL Unicco, Professional Systems, Harvard Maintenance, and Jani-King, gradually acquire regional and local players in order to increase the number of services provided and their geographical reach, building a competitive advantage in this mature market.
For example, Aramark expands its client portfolio in education, health care, and hospitality with the recent acquisition of HPSI purchasing group. Another example is ABM, which focuses on expansion into the European market with the purchase of GBM Support Services Group and Westway Services, a technical facilities service provider.
While the BSC end-use segment is penetrating new accounts, the spending cutbacks for cleaning products will limit growth for both contractors and chemicals suppliers. However, as the role of BSCs evolve beyond floor care and focus more on surface cleaning, building maintenance, and the sanitation of restrooms, there is a favorable climate for leading suppliers to build share. To take advantage of this market state, suppliers of janitorial and household cleaning products will need to focus on the changing needs of building service contractors.
Learn more about the critical success factors and market trends on the U.S. market for cleaning products with Kline’s new edition of the Janitorial and Housekeeping Cleaning Products: U.S. Market Analysis and Opportunities report. This study, which includes insights from over 1,000 in-depth interviews with end users, including BSCs, covers over 20 product categories used in 15 major end-use applications and profiles 100 leading suppliers. This report will serve as a one-stop solution for cleaning products suppliers to build a winning business strategy.
