The professional cleaning services in Minneapolis or anywhere in the world can be roughly divided into residential cleaning, commercial janitorial services, specialty cleaning and laundry/dry cleaning services. According to a research held in 2015, there were approximately 875,000 businesses employing about 3.5 million people.
This industry in particular is very susceptible to economic down turns and has survived several rough years during the infamous Great Recession which caused the revenue to go down by 5.3% in 2008. The cleaning services are deemed an expendable luxury in tough times.
Fortunately, the years of economic strength helped the industry bounce back which resulted in generating $51 billion of revenue in 2015, and this will continue to increase according to Bureau of Labor Statistics which has predicted job growth of about 6% from 2014 levels to 2020.
According to a study it has been estimated that an average cleaning company loses up to 55% of their customer base every year due to poor & inadequate service which eventually makes this business very risky.
There are hundreds of professional cleaning companies in Minneapolis alone, the number of such companies across the globe is enormous which makes this business very competitive because the barriers to entry are low as there is no expensive equipment needed nor any essential training is required for employees that is why new competitors come up all the time.
The greatest of opportunities lay in the domain of specialty cleaning services as it is a bit different than other cleaning services which makes them less likely to face local competition. The keys to successful cleaning business are Marketing, reputation and location, one can say that a good SWOT analysis would be preferred if you decide to start up this business. Such services are successful mostly in urban or suburban locations with a higher than average level of affluence.
Besides specialty cleaning, opportunities lay in residential cleaning as well. People with higher than average wealth are demanding for house and apartment-cleaning services, such clients usually have multiple revenue streams. Market research suggests that your ideal target should be married couples with college degree with the age of 45 years or older.
When it comes to opportunities in commercial cleaning which is often referred as janitorial services the industry thrives when office vacancy rates are declining and nonresidential construction activity is picking up. It is important to keep in mind that office cleaning accounts for approximately 31% of industry revenue.
Growth in Demand
There has been a consistent demand for various commercial and professional cleaning services Minneapolis and across the US among commercial consumers such as retails sectors, public institutions, hospitals, event planners and stadiums. Construction and mining are the 2 sectors which showed huge demand for debris cleaning. A study held by U.S Census Bureau suggests that a consistent rise in demand for construction activities has been noticed in the global market due to rise in construction of highways, streets and bridges which has led to increase in demand for equipment refinement. If you are looking to invest somewhere then remember 60% of Chinese population is to reside in cities by 2020, driving the demand for construction activities.
CLEANING SERVICES MARKET KEY SEGMENTATION
- Commercial cleaning services
- Window cleaning
- Floor care
- Other Services (Including kit cleaning and dusting)
- Residential cleaning services
- Maid Services
- Carpet & upholstery
- Polishing (Furniture)
The global cleaning services market holds high competition majorly in developed regions, according to the study, U.S janitorial services industry is fragmented with 50 top companies generating about 30% of total revenue.