THE
SERVICES INDUSTRY
(7th Edition – September 2007)
Table of Contents
Introduction - Study Scope,
Sources Used, Methodology 1-5
* Industry
Nature & Definition: Description of the industry's major segments, services
provided, NAICS
codes
Executive Overview of Major
Findings ($300) 6-29
* Highlights & key findings of all report
chapters: industry nature, analysis of major trends/issues affecting the
industry (worker pay/turnover, outsourcing, commercial office vacancy rates,
franchising, etc.), profits, green cleaning, industry size/growth -1989-2012
Forecast, 2006-2007 performance, franchising’s
importance, 2004-2007 sales of top
competitors (franchises, non-franchise firms). Analysis of educational,
healthcare, other key end-user segments, industry structure, 2002 Census key
operating ratios (no. of services in U.S., single/multi-unit firms, top 50 mkt.
share, etc.), 1998-2006 customer mix.
The Outlook For
Office Space and Commercial Construction ($200) 30-43
* Status
report of commercial & office construction activity and indicators: value
of
non-residential
construction, 2006-2007 commercial office
vacancy rates in major
metro areas &
nationwide, amount of existing commercial floor
space by
(1986-2003), share of space by type activity
(retail, education, healthcare)
*
Commercial vacancy rates, by top cities, urban vs. suburban markets
*
Discussion of absorption rates, “shadow space”.
Tables:
-
National
office vacancy rates by: downtown, suburban, metropolitan (2006-2007)
-
Top
office space markets, by million sq. ft.
-
Value
of new construction of non-residential buildings: 1993-2Q 2007
-
Markets
(cities) with highest & lowest vacancy rates: 2Q 2007
-
Distribution
of floor space, by main building activity: 1992-2003
-
No.
of buildings and % of total floor space by type activity (education, health
care, lodging, retail, offices, warehouses, etc.), by region (1986, 1989, 1992,
1995, 1999, 2003)
-
Distribution
of commercial floor space, no. of buildings, by Census region.
Industry Size, Growth, Market
Segments ($250) 44-56
* Discussion/analysis of 2-tiered mkt. structure (large
contractors vs. small independents, and
franchise organizations vs. non-franchise cleaners), estd. share by top 11 firms
* Industry size estimates; rationale for estimates by
varying sources, historical values –
Marketdata's 1992-2012 estimates/forecasts,
factors affecting recent growth
* Discussion of market size, based on commercial floor
space vs. Census survey receipts
* 2005, 2006, 2007 actual and estimated industry
performance/receipts
* Sales growth of the leaders, composite average - 2006
* 2007 & 2012
forecasts & outlook: Marketdata projections, key factors affecting
growth
* Discussion of why the industry is recession-resistant,
historical performance
Tables:
- Total industry potential, $ value and % change
(1992-2012 F)
- Share of total receipts by exterminating/pest control,
janitorial, carpet cleaning, "all other"
building
cleaning & maintenance services
(1983-1998) - Census Bureau data
Industry Size - Continued:
- Total industry receipts, by major segments, annual %
change (1998-2005; Census Bureau):
total Industry, pest control, janitorial, carpet cleaning,
other services to buildings
- Annual percent change in receipts: 1999-2005
- Historical share of industry sales by pest control vs.
janitorial/all other services: 1985-2002
Status Report of The Carpet Cleaning Industry ($300) 57-72
* Nature of the business, evolution of the industry, how
carpet cleaning services operate,
services performed, franchises vs. independents
* Major mkt. trends/developments of past several years:
discussion
* Discussion of impact of alternative floor coverings, impact on carpet sales/usage
* Discussion of attempts by mills and retailers to enter
carpet cleaning - why it failed.
* Historical size of the industry: Marketdata
estimates of true size of the segment (1986- 2010 F)
* Discussion of how market potential derived,
avg. annual sales per service, 2007 forecast
and outlook for the sector, effect of recessions/gas
prices/housing starts, other indicators.
* Estimates of commercial
vs. residential, disaster recovery segments, $ values.
* Industry outlooks by: ServiceMaster, Chem-Dry,
Servpro, Mohawk, Duraclean,
IICRC,
ASCR, Stanley Steemer, consultants.
* Franchising: analysis of no. of outlets, start-up
costs, the top 7 carpet cleaning franchisers,
estd. systemwide revenues (1999, 2002, 2005), franchises by
no. of units, franchise fees,
royalty rates, start-up costs
* Carpet cleaner contractor operating ratios:
highlights of 2002 Census… sources of receipts,
multi-unit firms, legal form of firm, 2006, top 50 mkt.
share, carpets cleaners’ major sources
of receipts
The Residential Maid Services Market ($200) 73-82
* Summary: nature & estd.
2006 size of the market, estd. $ sales
per franchise vs. commercial
cleaning services, list of top franchise companies in the
business, franchises vs. independent
maids, reasons why demand is booming (tax laws, 2-worker
households, etc.)
* End-user household demographics: findings of Mediamark Research survey: major target age
groups and usage of professional cleaning services
* List of residential cleaning services franchises: (The
Maids Intl., Maid Brigade; Merry Maids,
Molly Maid, Cottage Care, Swisher
Maids, Mini Maid, Home Cleaning Centers
of
addresses.
Tables:
- Projected no. of
- Residential cleaning franchises: no. of units 2003-2006
- Residential cleaning franchises: start-up costs,
franchise fee, royalty rates: 2004-2006
Commercial Cleaning Contractor
Operating Ratios (
* Discussion of data collected via Cleaning &
Maintenance Management magazine’s
“Benchmarking
Survey”, survey highlights and major findings
Tables & analysis covers following topics:
-
Profile
of janitorial services (yrs. in business, avg. gross sales, no. of employees,
etc.)
-
2006
sales volume mix, % of respondents
-
Customer
mix: % of contractors servicing offices, industrial accts., hospitals, etc.
1998-2006
-
Surfaces
cleaned/areas that contractors clean by type: 1998-2006
-
Most
frequent customer complaints (restrooms, dusting, etc. – by area): 1996-2006
-
Worker
productivity measures: square footage cleaned per hr., avg. labor costs:
1998-2006
-
Cleaning
worker wages, by region: starting worker wages & average wages
(1998-2007)
-
Owner’s
yearly compensation (janitorial, specialty cleaning, maid service): 2005-2006
Industry Structure & Operating
Ratios of the Industry ($400) 91-163
Total
Industry Analysis - Discussion/Text 91-106
*
Explanation of how to interpret Census data, how the data is
arranged/classified by
NAICS codes, and major market segments,
2002 Census
*
2000-2005 Service Annual Survey: Industry receipts and % changes
* Non-employer
receipts of 427,000 sole proprietorships without payrolls,
* Summary
& analysis: no. of cleaning establishments in
firms; industry
size; avg. receipts per office by top states; mkt. share top 50 firms ratios;
summary findings
of 2002 Census & comparison to 1997 data… re: legal form of
organization,
firms & estabs.
by sales size (in receipts & employment);
single/multi-unit
operations.
* Summary
statistics: 1997 vs. 2002 - no. of estabs; total
industry vs. disinfecting/pest
control, other services; annual receipts; payroll costs;
no. of workers; payroll per employee; receipts per employee, receipts per establishment.
*
Geographic analysis - share of national receipts, avg. receipts per estab.,
by state, top states'
ranking: 1992-2002
* Industry
Financial health: composite income statement & balance sheet
ratios, profitability
trends, by size of
cleaning contractor (janitorial services, pest control: 2002-2006
Statistical
Tables: p. 107-163
Total
Industry- All Types of Commercial Cleaning Contractors Aggregated
- Total cleaning industry firms, by legal form of
organization -corporations, sole
proprietorships,
partnerships: 1997 & 2002, (no. of firms, receipts, payroll as %
receipts,
no. of employees).
- Single
vs. multi-unit operations, by size (statistics as above) 1997 & 2002.
-
Concentration Ratios: ratios for top 4, 8, 20, 50 largest firms 1997 & 2002
- Total
Commercial Cleaning Firms, by receipts size (under $100,000 to $100 + mill.);
(no. of firms, estabs., receipts, payroll, avg. receipts per firm) 1997
& 2002
-
Receipts & avg. receipts per establishment, by state - 1997.
-
Receipts & avg. receipts per establishment, by state - 2002
- All
cleaning contractors’ receipts and no. of estabs., by major city: 1997
Janitorial-Building Cleaning & Maint. Services
- Janitorial service firms, by legal form of organization
- corporate, sole
proprietorships,
partnerships: 1997 & 2002, (no. of firms, receipts,
payroll as % receipts, no. of employees)
- Single vs. multi-unit operations, by size (statistics as
above) 1997 & 2002.
-
Concentration Ratios : ratios by top 4, 8, 20, 50
largest firms 1997 & 2002
-
Janitorial service firms, by receipts size (under $100,000 to $100+ mill.) (no. of firms,
estabs., receipts, payroll, avg. receipts per firm), 1997 &
2002.
-
Receipts & avg. receipts per establishment, by state - 1997
-
Receipts & avg. receipts per establishment, by state - 2002
-
Janitorial service contractors’ receipts and no. of establishments, by major
city: 1997
Exterminating
&
- Exterminating & pest control firms, by legal form of
organization - corporate, sole proprietor-
ships, partnerships: 1997 & 2002, (no. of firms,
receipts, payroll as % receipts, no. of
employees) -
Single
vs. multi-unit operations, by size (statistics as above) 1997 & 2002.
- Concentration Ratios : ratios
by top 4, 8, 20, 50 largest firms 1997 & 2002
-
Disinfecting & pest control firms, by receipts size (under $100,000 to
$100+ mill.) (no. of
firms, estabs., receipts, payroll, avg. receipts per firm), 1997
& 2002.
-
Receipts & avg. receipts per establishment, by state - 1997
-
Receipts & avg. receipts per establishment, by state - 2002
-
Composite balance sheet & income statement: 2002-2006 disinfecting &
pest control
services.
Landscaping
Services
- (all tables , as above) – 2002 & 1997
Miscellaneous
Building Maintenance Services
- (all tables , as above) – 2002
& 1997
Competitor Profiles: Major
Cleaning Franchise Organizations ($350) 164-212
* Summary
- how many exist? - Entrepreneur magazine’s 2007 Franchise 500
ranking,
Discussion: how cleaning franchises work and differ, services typically
provided by parent,
master franchises,
*
Analysis of avg. initial franchise
fees/royalty rates/start-up costs in 2003 vs. 2006
* The
industry's leading franchisers: parent co. vs. systemwide revenues, 2000, 2003, 2006
avg. estimated
annual receipts, difficulties estimating revenues due to full-time vs.
part-time
workers; franchise
investment pkgs. sold.
* Estimated or actual revenues of
the largest non-franchise contractors (2000, 2003, 2006
sales:
Tables:
- Top janitorial
franchises (no. of units 2004-2006, franchise. fee, royalty %, start-up $)
- Top residential
franchises (no. of units 2004-2006, franchise fee, royalty %, start-up $)
- Top pest
control franchises (no. of units 2004-2006, franchise fee, royalty %, start-up $)
- Top restroom
franchises (no. of units 2004-2006, franchise fee, royalty %, start-up $)
- Top window
washing franchises (no. of units 2004-2006, franchise fee, royalty %,
start-up $)
Profiles
of The Leading Commercial Cleaning Franchises &
Non-Franchise Firms
(For each
company below: discussion & analysis of services offered, divisions,
franchise packages offered/cost, performance; markets served; strategies, UFOC
financials; history & recent developments; acquisitions, number of franchises; marketing strategies)
*
* Anago Franchising
* Clean
net
*
Coverall Cleaning Concepts
*
Jan-Pro
* Jani-King Intl.
* OneSource
*
O.P.E.N. America
* Servpro
*
ServiceMaster
* Swisher
Intl.
* Tower
Cleaning Systems
* UNICCO
Service Co.
*
Vanguard Cleaning Systems
Reference Directory of Industry
Information Sources 213-220
*
Addresses, phones, contacts at major industry trade associations, trade
journals,
consulting firms:
commercial cleaning and carpet cleaning segments.