Despite significant setbacks during the recession, the industry has started to regain revenue.
New York, NY (PRWEB) August 17, 2014
Cleaning and maintenance supplies distributors sell a broad array of products drawn from a wide range of markets, including janitorial service companies, commercial and industrial buildings, government buildings and retail outlets. “Similar to other distribution firms, demand for cleaning and maintenance supplies distribution has remained subdued over the five years to 2014,” according to IBISWorld Industry Analyst James Crompton. The recession negatively impacted demand from downstream users as consumers reduced purchases in light of contracted budgets. This hampered growth for many industry participants; however, as the economy recovered and consumers experienced higher disposable income, demand from end-users, such as industrial and commercial companies, has improved. Consequently, IBISWorld anticipates that industry revenue will grow at an annualized rate of 1.7% in the five years to 2014.
In 2014, industry revenue is estimated to grow 0.9% to total $23.8 billion. Price competition has intensified as the recession negatively impacted industry conditions. Increased competition has caused average industry profit margins to fall as players reduce the cost of their distributed items to maintain sales volumes. This price competition has forced some players to exit the industry. In the five years to 2014, IBISWorld estimates the number of industry operators will decline at an annualized rate of 1.6% to 2,105. Consolidation in the industry is also expected to be influencing the decline in industry operators, and it is likely the result of companies attempting to capture market share. “Most industry operators serve local and state markets, leading to expansion into new areas through the acquisition of small local and regional competitors,” says Crompton. This trend is anticipated to continue in the next five years.
In the five years to 2019, industry revenue is expected to increase. Healthcare centers will increasingly demand cleaning and maintenance supplies due to strict government regulation regarding cleanliness across healthcare industries. Additionally, demand from local governments and educational institutions will rise over the next five years, as their budgets grow. Over the past five years, these sectors have grappled with significant cuts to their respective budgets to overcome deficits. However, with additional funding, this sector will have more money to spend on cleaning and maintenance services.
For more information, visit IBISWorld’s Cleaning and Maintenance Supplies Distributors in the US industry report page.
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IBISWorld industry Report Key Topics
This industry distributes specialized equipment and supplies for cleaning and maintenance services on a merchant wholesale basis. Products include janitorial and chemical cleaning solutions, waste receptacles and facility maintenance.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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