NMTN

2024*2025EDITION

STATE

CommercialCleaning

OFTHEMARKET

MARKETREPORT2024

STATEOFTHEMARKET

COMMERCIALCLEANINGEDITION

Thecommercialcleaningindustryisundergoingamassive

transformation.Clientexpectationsareshifting,technology

isadvancing,andcompaniesthatdon’tadaptriskbeingleftbehind.

Thisreportcombinesdatafromover100cleaningcompanies,

expertinsights,dozensofpublicationstohelpyounotonly

keeppacebutthrive.

Keyfindingsinclude:

MARKETGROWTH

TheU.S.commercialcleaning

industry,valuedat$117billion,

isexpectedtogrowsteadily

inthenext5years,drivenby

healthconcerns,specialized

services,andoutsourcing.

介

TECHNOLOGICALINNOVATION

IoT,robotics,anddata

analyticsarereshaping

cleaningoperationsand

customerengagement,

improvingefficiencyand

performance.

ECONOMICPRESSURES

Risingcostsandlabor

shortagesareimpacting

pricingandefficiency,

leadingmanybusinesses

toadoptvalue-based

andflexiblecontracts.

CLIENTPREFERENCES

Businessesareincreasingly

seekingspecializedservices

tailoredtoindustry-specific

needs,particularlyin

healthcare,education,

andlogistics.

REGULATORYSHIFTS

Newhealth,safety,and

environmentalregulations

areforcingcleaning

companiestoadaptorrisk

fallingbehind.

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MARKET

OVERVIEW

ANDGROWTHTRENDS

Despiterecenteconomicchallenges,theUScommercialcleaningindustryisprovingresilient.Themarketsizehasgrownto$117billionandisexpectedtocontinueitsupwardtrajectoryoverthenextfiveyears.What’sdrivingthisgrowth?

POST-PANDEMICHYGIENE

Thepandemicleftan

indeliblemarkonhow

businessesviewcleanliness,pushingthedemandfor

ProjectedU.S.CommercialCleaningMarketGrowth

(2024-2028)

135.0

consistentcleaningservices.

MarketSize(inBillions)

132.5

130.0

127.5

125.0

OUTSOURCINGBOOM

Businessesareincreasinglyoutsourcingtheircleaningneeds,preferringtoleaveittotheprofessionals.

122.5

120.0

117.5

HEALTHCARE&INDUSTRIALGROWTH

Thesesectorsaregrowing

2024.0

2024.5

2025.0

2025.5

2026.0

2026.5

2027.0

2027.5

2028.0

fastanddrivingdemandforspecializedcleaningservices.

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IndustriesResponsibleforGDPGrowth

(KeyTargetsforCommercialCleaning)

12%

18%

10%

20%

15%25%

Retail&HospitalityEducation

ManufacturingHealthcare

Logistics&WarehousingTechandDataCenters

Keymarketdrivers

HEALTHANDSAFETYCONCERNS

Thefocusoncleanlinesspost-pandemicisn’tgoinganywhere.Thisawarenesshasledtoincreaseddemandforprofessionalcleaningservices,particularlyinhigh-risksectorslikehealthcareandfoodservice.

REGULATORYCOMPLIANCE

Businessesinregulatedindustriesfacestricterguidelines.OSHA,forinstance,hasupdatedits

workplacecleaningstandardsthreetimesinthepasttwoyears.Butthat’snotall—30%ofstateshavealsoimplementedgreencleaningrequirementsinpublicbuildings.Forcompaniesthat

don’tadapt,thestakesarehigh.

ENVIRONMENTALREGULATIONS

Greencleaningismorethanatrend—it’sbecomingarequirement.With30%ofstatespushingforenvironmentallyfriendlypractices,businessesmustusenon-toxic,biodegradableproducts,andadoptmethodsthatconservewaterandreducewaste.

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SALESANDMARKETINGTRENDS

Whenitcomestostayingcompetitive,effectivesalesand

marketingstrategiesareessential.Herearethetopapproachesthataredrivingsuccessinthecommercialcleaningindustry:

LeadGenerationStrategies

COLDCALLING

Stillholdingstronginadigitalworld,coldcallingcontinuestobearelevantstrategy

forcommercialcleaningbusinesses.Ninety-twopercentofcompanieswithrevenueover$3millionhaveaninsidesalespositionoroutsourceappointment-settingservices.

Withanappointment-settingrateof2.1%,coldcallingisisoneofthemaindriversofgrowth.

EFFECTIVEAPPOINTMENTSETTINGISKEYTOCLOSINGDEALS

Businessesshouldaimfora25-32%closingratefromoutboundmarketingefforts.

Forhigher-costchannelslikeGoogleAds,closingratesoftenreach60%,makingthesecampaignsastronginvestmentforcompanieslookingtosecurehigh-valuecontracts.

COLDEMAIL

Withanaverageopenrateof24%,emailcampaignsremainpowerfulwhencraftedproperly.Thekeytosuccess?Personalizationandvalue-drivencontentthatcutsthroughthenoise

andspeakstoaprospect’spainpoints.

LINKEDINOUTREACH

As35%ofB2Bdecision-makersuseLinkedInforvendorresearch,outreachonthisplatformisbecomingincreasinglyimportant.Well-targetedInMailcampaignsseeresponserates

averagingbetween10-15%,makingitagreattoolforreachingdecision-makersdirectly.

GOOGLEADS

Effectivebutcostly,GoogleAdsoftenseecost-per-proposalexceeding$400incompetitivemarkets.Despitethehighinvestment,well-optimizedcampaignshavestrongconversion

ratesofaround60%,makingtheROIworthwhileformanybusinesses.

Follow-UpSystemandTouchpoints

Turningleadsintoclientsrequiresconsistentfollow-up.Recentdatashowsthatsuccessfulfollow-upprocessesinvolve8-12touchpointsspreadovera3-monthperiod.Byvaryingtheapproachacross

multiplechannels,youcanmaximizeeffectiveness:

AUTOMATEDFOLLOW-UPSEQUENCES

Companiesthatimplementautomated

follow-upsequencesreport

20%

higherengagementrates,freeing

uptheirsalesteamtofocuson

high-prioritytaskswithoutlosing

trackofleads.

MULTI-CHANNELAPPROACH

Usingphonecalls,emails,andsocialmediaboostsengagementby

40%

Amulti-channelstrategykeeps

potentialclientsawareofyour

serviceswhileavoidingoverwhelming

themwithrepeatedcontact.

Technologyintegrationinsales

Technologyisnotonlyrevolutionizingcleaningoperationsbutalsotransforminghowsalesteamsoperate.TheadoptionofCustomerRelationshipManagement(CRM)systems,AI-poweredlead

scoring,andvirtualrealitytoursarebecomingkeydifferentiatorsinsalesstrategies.

CRMADOPTION

78%ofsuccessfulcleaningcompanieshaveadoptedCRMsystemstotrackleads,manage

pipelines,andstreamlinefollow-upprocesses.Thisensuresthatnoleadisoverlookedandthatclientsfeelvaluedfromthestart.

AI-POWEREDLEADSCORING

30%ofindustryleadersarenowusingAItoprioritizeleadsbasedonbehavior,improvingsalesteamefficiencybyfocusingonthemostpromisingopportunities.

VIRTUALREALITY(VR)SITETOURS

EarlyadoptersofVRsitetoursareseeinga25%increaseinclientengagement.VRallows

potentialclientstoexperienceyourserviceswithouteversteppingfootinthefacility,creatingamoreimmersiveandcompellingsalesexperience.

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OPERATIONALCHALLENGESANDSOLUTIONS

Thecommercialcleaningindustryisn’twithoutitschallenges,butleadingcompaniesarefindingwaystoovercomethem.Here’sabreakdownof

thekeychallengesandhowbusinessesareaddressingthem:

StaffingandRetention

Theindustry’s200%turnoverrateisasignificantchallenge.Highturnoveraffectsservicedelivery,increasesrecruitmentcosts,andreducesoperationalefficiency.

However,companiesthatinvestinemployeedevelopmentprogramsareseeingturnoverreductionsof40%.Additionally,theuseofgigeconomyplatformsis

growingby25%annually,providingflexiblestaffingoptionstohandlefluctuatingdemand.

TurnoverRate(%)

200

175

150

125

100

75

50

25

0

Turnoverratebeforeandafteremployeedevelopmentprograms

200%

160%

BeforedevelopmentprogramsAfterdevelopmentprograms

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SustainabilityInitiatives

Thedemandforgreencleaningisgrowingfast.Infact,thegreencleaningproductsmarketisprojectedtoreach$11.6billionby2029.

Here’swhatbusinessesaredoingtokeepup:

WASTEREDUCTION

45%

OFCOMPANIES

Nowofferwaste-reduction

consulting,helpingclientsminimize

theirenvironmentalfootprint.

WATERCONSERVATION

Low-moisturecleaningtechniqueshaverisenby

28%

since2020,reflectingashifttowardsustainablepractices.

Adoptionofgreencleaningpracticesbystate

90%

California

80%

NewYork

AdoptionRate(%)

74%

68%

70%

Oregon

Illinois

Massachusetts

77%

Washington

State

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DocumentationandAccountability

Today’sclientswantproofthatthejobisbeingdoneright.55%ofclientsnowrequestcleaningauditreports,whichtrackcleaningfrequency,

methodsused,andproductsapplied.Thistrendisespeciallystronginsectorslikehealthcare,education,andfoodservices.Ifyou’renot

alreadyofferingtransparentreporting,nowisthetimetostart.

TechnologicalAdvancements

Technologyisdrivingthefutureofcleaning,transforming

operationswithIoT,robotics,anddataanalytics.Here’show:

AUTOMATEDCLEANINGEQUIPMENT

RobotsandAIaretaking

overroutinetasks,reducinglaborcosts,andimprovingprecision.Themarketfor

cleaningrobotsisexpectedtogrowby15.8%through

2026.

IOTANDSMARTBUILDINGS

25%oflargecommercial

buildingsnowuseIoTto

monitorandmanagecleaningoperations,allowingreal-timetrackingandoptimization.

DATAANALYTICS

Companiesusingbigdatatooptimizecleaningscheduleshaveseen20%improvementinefficiency.

ChangingWorkplaceDynamics

Workplacesarechanging,andcleaningservicesneedto

evolvetokeepup.Hybridworkmodelshavealteredcleaningdemands,with60%ofofficemanagersadjustingtheir

cleaningschedulesaccordingly.Plus,coworkingspacesarebooming,witha40%increaseindemandformorefrequentcleanings.

Businessesthatoperate24/7,likeretailandhospitality,alsoneedcleaningservicesoutsideoftraditionalhours.Since

2019,demandforovernightcleaninghasrisenby25%,ensuringspacesarecustomer-readyatalltimes.

CustomerExperienceFocus

Acleanenvironmentdoesn’tjustfeelgood—itdrivesbusiness.75%ofcustomerssaythatcleanlinessinfluencestheir

purchasingdecisions,especiallyinsectorslikeretailand

hospitality.Butit’snotjustaboutcustomers:businessesthatprioritizecleanlinesssee12%higheremployeesatisfactionscores.

Andit’snotjustabouthygiene—cleanlinessisalsoabrandissue.80%ofconsumersbelievecleanbusinessesaremoreprofessionalandtrustworthy.

Areyouprojectingtherightimage?

SpecializationandNicheServices

Certainindustries,likehealthcareandfoodprocessing,needmorethanbasiccleaning—theyneedspecialists.

Thehealthcaresectorhasseen22%growthinspecializedcleaningservicesoverthelasttwoyears,thankstostrictregulatoryrequirements.

Meanwhile,themarketfordisasterrecoverycleaningisgrowing18%annually,providingopportunitiesin

post-disasterservices.Andhigh-techenvironments,

likedatacentersandcleanrooms,haveuniqueneeds—thissegmentisexpectedtoreach$3billionby2025.

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EconomicFactors

ImpactingtheIndustry

Economicpressuresarereshapinghowbusinessesapproach

cleaning:

COSTPRESSURES

35%ofbusinesseshave

reevaluatedtheircleaning

budgetstomanagecostsmoreeffectively.

LABORSHORTAGES

Theindustryfacesastaggering200%turnoverrate,making

ithardtoretainstaff.Butas

morecompaniesfocuson

outsourcing,thedemand

forskilledcleaningservices

continuestorise.Theoutsourcedcleaningmarketisprojected

togrowby6.1%annuallythrough2025.

ShiftinContractPreferences

Clientsarerethinkinghowtheyapproachcontracts.

Thelatesttrendsshow:

SHORTER-TERMCOMMITMENTS

65%

OFNEWCONTRACTS

in2023werefor1yearor

less,reflectingadesirefor

flexibility.

PERFORMANCE-BASED

CONTRACTS

58%

OFLARGECORPORATIONS

aremovingtoward

outcome-basedagreements,

wherepaymentistiedto

measurableperformance

metrics.

FLEXIBLESCHEDULES

72%

OFCLIENTS

nowwantadaptable

cleaningschedulesthat

adjustbasedonfoottraffic

orseasonaldemand.

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ValuePerceptionvs.PriceSensitivity

Whilepricematters,clientsarebecomingmorefocusedonvalue:

63%

71%

82%

ofclientsrankqualityandreliabilityaboveprice.

ofclientsexpect

transparencyinpricing.

ofclientsarewillingtopay

apremiumforspecialized

services,likemedical-grade

cleaningoreco-friendly

options.

Decision-MakingProcesses

Thesalescycleisgettinglongerandmorecomplex:

MULTIPLESTAKEHOLDERS

Onaverage,3.5decision-makersare

involvedinselectingacleaningprovider.

LONGERSALESCYCLES

Thetimefromfirstcontacttocontractsigninghasincreasedfrom45daysin2020to62daysin2023.

INCREASEDDUEDILIGENCE

78%ofclientsnowrequestdetailed

proposals,includingspecificcleaningmethodologiesandqualityassurancemeasures.

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CompetitiveLandscape

TheU.S.commercialcleaningmarketisafragmentedone,withamixoflargenationalplayersandlocaloperatorsvyingfortheirshareofthe

market.Thetopfivecompanies—ABMIndustries,ServiceMasterClean,Jani-King,AnagoCleaningSystems,andJAN-PRO—accountforabout30%ofthemarket.Theseindustrygiantsemployseveralkeystrategiestogainandmaintaintheircompetitiveedge:

VERTICALSPECIALIZATION

Byfocusingonnichemarkets,likehealthcareorindustrialsectors,thesecompaniesareabletotailortheirservicestomeetthespecificneedsoftheirclients.Thisverticalspecializationnotonlybuildsexpertisebutalsofosterslong-termclientrelationships.

FRANCHISING

With35%ofthemarketcomprisingfranchise

models,rapidexpansionisacommonstrategy.Franchisingallowslargecompaniestotapintolocalexpertisewhileexpandingtheirbrand

presencewithouttheoperationalburdenofdirectlymanagingeverylocation.

TECHNOLOGYINTEGRATION

Automation,AI,andIoT(InternetofThings)are

revolutionizingthecleaningindustry.Byadoptingthesetechnologies,companiescanoptimize

servicedelivery,reducecosts,andimproveclientsatisfactionthroughreal-timetrackinganddataanalytics.

MERGERSANDACQUISITIONS

Consolidationisakeytrendinthemarket.

Largerplayersareexpandingtheirfootprintanddiversifyingtheirserviceofferingsbyacquiringsmaller,specializedcleaningcompanies.

JAKPR0·

CLEANING&DIslNFECTING

ClientRetentionStrategies

Clientretentionisacriticalsuccessfactorforcommercialcleaningbusinesses,andtopperformersconsistentlyachieveretentionratesfarabovetheindustryaverage.Recentdatashowsthattheaverageclientretentionrateinthecommercialcleaningsectoris85%,whiletop-performingcompaniesboastretentionratesof92%orhigher.

Toenhanceretention,businessesareadoptingseveralkeystrategies,supportedbyimpressivemetrics:

CLIENTEDUCATIONPROGRAMS

Educatingclientsonproper

maintenancebetween

professionalcleaningsimprovesretentionby18%,asit

demonstratescommitmenttotheirlong-termsuccessand

helpsensureoptimalresultsfromthecleaningservices.

LONG-TERMCONTRACTS

Companiessecuring3+yearcontractshaveincreasedby15%since2020,indicatingashifttowardbuildinglastingrelationshipswithclients.

PROACTIVECOMMUNICATION

Companiesthatengagein

proactivecommunication

aboutindustrytrendsandbestpracticesexperience20%higherretention.Keepingclients

informedanddemonstrating

expertisestrengthenstrustandloyalty.

VALUE-ADDEDSERVICES

Offeringadditionalservices,suchasairqualitymonitoringand

touchpointdisinfection,leadstoa15%higherretentionrateas

clientsappreciatetheextra

valueprovidedbeyondstandardcleaning.

CUSTOMERSUCCESSPROGRAMS

Implementingacustomer

successprogramfocused

ononboardingandregular

check-inscanboostfirst-yearretentionby35%.These

programsensureclientsfeelsupportedfromthestart,

reducingearlychurn.

CLIENTFEEDBACKSYSTEMS

Businessesthatimplement

regularclientfeedback

mechanismsseea25%

improvementinretentionrates,astheyarebetterableto

addressclientconcernsandimproveservicequality.

PERSONALIZEDSERVICEPLANS

Offeringcustomizedcleaningsolutionstailoredtoindividualclientneedshasprovento

increaseretentionby30%,asopposedtogeneric,

one-size-fits-allservices.

CONSISTENTQUALITYOFSERVICE

78%ofclientscitetheconsistentqualityofserviceastheprimaryreasonforrenewingcontracts,

underscoringtheimportanceofmaintaininghighstandardsovertime.

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ImpactRate(%)

30%

PersonalizedServicePlans

25%

20%

ProactiveCommunication

FeedbackSystems

ImpactofClientRetentionStrategy

80%

QualityofService

Pricingstrategiesandtheirimpact

Inresponsetoeconomicpressuresand

evolvingclientdemands,manycompaniesareshiftingtomoresophisticatedpricingmodels:

VALUE-BASEDPRICING

55%oftop-performing

companiesareadopting

value-basedpricing,where

thecostreflectsthequality

andscopeofservicesprovided.Thismethodbuildstrustand

loyaltybyensuringclientsfeeltheyaregettingmorethanjustacleaningservice—theyare

receivingtailoredsolutions.

DYNAMICPRICING

15%ofcompaniesare

experimentingwithdynamic

pricing,adjustingratesbased

ondemandandresource

availability.Thisstrategyhelpsbusinessesmaximizeprofits

duringpeaktimeswhilekeepingservicesaffordableduring

off-peakperiods.

SUBSCRIPTION-BASEDMODELS

Particularlypopularintheofficecleaningsector,subscription

modelsprovidepredictable,

consistentcosts,whichclientsappreciateforbudgeting

purposes.

QualityControlandClientSatisfaction

Maintainingconsistentqualityisnon-negotiableinthisindustry.

Companiesusingreal-timefeedbacksystemshaveseen30%

increasesinclientsatisfaction.Atthesametime,IoTsensorsandAI-poweredqualityinspectiontoolsarebecomingstandard,with45%

year-over-yeargrowthinIoTadoptionand20%ofindustryleadersnowusingAItoensureserviceconsistency.

THEIMPACTOFTHE

2024ELECTION

Theupcomingelectioncouldbringpolicyshiftsthatwill

significantlyimpactthecommercialcleaningindustry.Herearethekeyareastowatch:

LABORLAWS

Changestominimumwageandemployeebenefitscouldraiseoperationalcosts,

especiallyinstateswithalreadyhighlaborrates.

INFLATION

Inflationarypressuresareexpectedto

continueimpactingbusinesses,including

thecommercialcleaningindustry.Rising

costsofgoodsandservices,suchascleaningsupplies,transportation,andwages,could

compressprofitmargins.Businessesmayneedtoadjusttheirpricingstrategiestoaccountforinflation,whichcouldmake

servicesmoreexpensiveforclientsbutnecessarytomaintainprofitability.

ENVIRONMENTALREGULATIONS

Asenvironmentalregulationstighten,

thedemandforgreencleaningservices

isexpectedtoincreaseasbusinessesstrivetostaycompliant.

IMMIGRATIONPOLICY

Workforceavailabilitycouldbeaffectedbyimmigrationreforms,particularlyinregionswherecleaningcompaniesrelyheavilyonimmigrantlabor.

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WOW!

FINALTHOUGHTS

Thecommercialcleaningindustryisonthebrinkoftransformation.Thekeytosuccessin2024willbeagility—adaptingquicklytoshiftingmarketconditions,regulatorychanges,andtechnological

advancements.Toensureyourbusinessthrives,focuson:

2

RETAINING