Los Angeles, CA (PRWEB) September 25, 2012
Topping $7.9 billion in revenue, the Building Exterior Cleaners industry offers a diverse array of services to both residential and commercial clients. Its largest moneymaker is swimming pool cleaning services; however, industry operators also provide power washing, parking lot sweeping, ventilation duct cleaning and chimney sweeping services. Over the past five years, demand for specialty cleaning services plunged as households cut discretionary expenses and businesses closed up shop and stretched out the time between service appointments, says IBISWorld industry analyst Caitlin Moldvay.
The result was a 5.4% and 2.8% revenue decline in 2009 and 2010, stemming from a falling number of clients and increased price-based competition among operators. However, the industry turned the corner in 2011 and is expected to post a modest gain of 1.7% in 2012. The Building Exterior Cleaners industry has been positively affected by increases in household disposable income and a slight rise in business formation rates. Overall, in the five years to 2012, industry revenue declined at an average annual rate of 0.4%.
The Building Exterior Cleaners industry is highly fragmented. In fact, nonemployers make up the majority of firms in the industry. Even with declining business prospects, the number of companies operating in the industry increased at an average annual rate of 2.0% to an estimated 124,399 firms over the past five years. This was largely due to a flood of nonemployers entering the industry, lured by its low barriers to entry, which counterbalanced a declining number of employer companies during the recession, continues Moldvay. In addition, the highly localized nature of providing services also lends the industry to be made up of smaller, local firms that serve a specific region.
Over the next five years, the industry will face brighter conditions. From 2012 to 2017, per capita disposable income is projected to rise, resulting in a greater tendency for households to outsource cleaning services to industry operators. Furthermore, business formation rates are forecast to accelerate, leading to an expanded client market for the industry. As a result, the industry is expected to post solid gains over the next five years. For more information, visit IBISWorld’s Building Exterior Cleaners in the US industry report page.
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IBISWorld industry Report Key Topics
This industry provides exterior cleaning services for residential and commercial buildings. Industry services include power washing and other cleaning services for windows, driveways, swimming pools, gutters and ventilation ducts. Firms also offer lighting maintenance and snow plowing services.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.