The industry benefits from growth in business and the value of nonresidential construction
New York, NY (PRWEB) October 28, 2014
The Janitorial Services industry is expected to post modest growth in five years to 2014. Demand for commercial cleaning services, this industry's primary product segment, increased as rising corporate profit led to business expansions and appreciating real estate values boosted nonresidential construction activity. In addition, new business growth during the past five years broadened operators' potential customer base. As a result, industry revenue is expected to increase in the five years to 2014.
However, much of this growth is the result of the industry rapidly rebounding from the 2009 recession. During the global economic crisis, falling corporate profit pressured many businesses to cut cleaning expenses. Additionally, increased office vacancy rates reduced the need for cleaning services. Nevertheless, in 2010, the industry began to recover and has grown steadily since. During the past five years, Canada has experienced a vibrant real estate market, as a growing, aging, urbanizing and progressively wealthy Canadian population boosted residential and commercial real estate demand, particularly in major cities, such as Toronto and Montreal as well as in resource-rich Western cities like Edmonton and Calgary. According to IBISWorld Industry Analyst Stephen Morea, “such growth has broadened operators' potential customer base and increased the floor space available for cleaning.” In addition, the value of nonresidential construction indicates higher investment in repair and remodelling, which correlates positively with demand for building upkeep services such as cleaning.
In the five years to 2019, heightened new business growth and a projected rise in the value of nonresidential construction will broaden operators' potential customer base and cleaning space further. “In addition, corporate profit is anticipated to grow significantly during the next five years,” says Morea. Such growth will allow companies to spend more freely on cleaning services. Lastly, large commercial clients are expected to increasingly purchase cleaning services as part of bundled service offerings, which include security, catering and other building-related activities. As a result, Janitorial Services industry revenue is forecast to increase.
For more information, visit IBISWorld’s Janitorial Services in Canada industry report page.
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IBISWorld industry Report Key Topics
The Janitorial Services industry cleans windows and the interior spaces of buildings and transportation equipment. Common industry activities include cleaning residential buildings, offices, retail complexes, industrial buildings, healthcare facilities, educational facilities, government buildings and commercial aircraft.
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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