Over the last five years, the Commercial Cleaning Services industry has experienced a variety of operating conditions.
Over the four years from 2019 to 2020, steady demand for cleaning services contributed to solid revenue growth.
In the fourth quarter of 2019-20, the COVID-19 pandemic prompted an increase in demand for deep cleaning and other specialised cleaning services from the industry.
In 2020-21, however, the pandemic has resulted in decreasing demand and revenue.
This decrease is attributable to a significant drop in the number of companies operating across the economy, which has resulted in a significant reduction in demand for cleaning services.
In Australia, the commercial cleaning business is valued a whopping $12 billion. There is currently 35,248 commercial cleaning businesses which employ a total of 157,500 people.
The average age of the industry workforce is 45 years old (compared to the national average of 40 years old). Around half work full-time (50 percent, which is lower than the national average of 66 percent), indicating that there are several opportunities to work part-time. Only 12% of the workforce is female (national average is 48%)
Full-time workers typically earn $1,385 per week (similar to the average of $1,460). Earnings tend to be lower when starting out and higher as experience grows.
Spotless Group Holdings is the largest commercial cleaning company in Australia with a revenue of $3038,000,000 in FY2020. ISS Facility Services (ISS/AS) which is an international company had an operating revenue of $3968,000,000 in FY2020 for both their Australia/NZ operations combined comes in at second.
The Commercial Cleaning Services market is expected to profit from an economic rebound following the Coronavirus pandemic, a rise in the number of businesses operating across the economy, and more cleaning function outsourcing over the next five years.
Over the same time period, the overall number of employees in the labour force is expected to expand, with these trends expected to raise industry demand and revenue.
However, due to a stable supply of labour and the ease with which new participants, such as individuals and small franchisees, can enter the market, price-based competition will likely stay intense.
Large corporations will be forced to compete for existing and new contracts, exerting downward pressure on industry prices.