Cleaning Industry Trends for 2016

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• The cleaning industry is a broad collection of
  many different companies and specialties, from
  commercial janitorial services to housecleaning
  companies. In this presentation, well take a
  look at some of the trends in the industry, and
  how they will affect the types of companies
  mentioned above in 2016.

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• According to a study by the investment bank
  Scott-Macon, the cleaning and janitorial industry
  is expected to grow faster between 2014 and 2020,
  at 4.3, than it did in previous years (2.7
  growth per year between 2010 and 2013).
• As a result, the market sector is expected to be
  worth nearly 60 billion in 2016, and to surpass
  that amount by 2017.

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• One of the reasons the cleaning services industry
  can undergo such growth is because of the low
  barrier of entry to start a successful cleaning
  company. In fact, the 4 largest companies in the
  industry account for less than 10 of the
  available market, with much of the rest taken up
  by smaller, often independent companies.

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• Why does the cleaning industry have such a low
  barrier for entry? There are several reasons,
  including
• A low level of market share concentration
• Relatively low capital investment requirements
• Few training requirements for employees
• High demand for cleaning services in the
  commercial sector and private homes

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• There are an estimated 829,522 cleaning and
  janitorial services companies currently operating
  in the US. Because of the broad spectrum of
  services this includes, many companies specialize
  in one particular element of professional
  janitorial and cleaning work.

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• The cleaning industry can be broken down into the
  following sectors
• Standard commercial cleaning 77.6
• Residential cleaning 7.0
• Damage restoration (water damage repair, mold
  removal, etc.) 4.6
• Other 10.5

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• The majority of cleaning industry revenue is
  generated from the commercial and retail sectors
  (42.3 combined), with educational and healthcare
  facilities representing the fastest growing
  sectors (31.7 and 4.7, respectively).

Residences account for 7.0 of revenue for the
industry.
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• All in all, the cleaning industry is expected to
  have a good year in 2016. Both commercial and
  residential business is expected to increase,
  thanks to the expected upswing in the economy and
  an increase in disposable household income. The
  number of cleaning companies is expected to grow
  1.7 per year.

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• PS Janitorial is your source for new and
  refurbished cleaning and janitorial equipment,
  including floor scrubbers, buffers, and more.
  View our inventory or apply for financing today
  by visiting www.psjanitorial.com.

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• All statistics and industry predictions used in
  this presentation are sourced from the
  Scott-Macon Janitorial Industry Review. The
  report in its entirety can be found here
• http//www.scott-macon.com/announcements/scott-mac
  on-janitorial-industry-review

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Summary

• The cleaning and janitorial industry encompasses
  a wide variety of subsectors, serving both the
  commercial and residential markets. The industry
  is expected to grow for the next few years, both
  in revenue and the number of companies.