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Are commercial cleaning firms too content to grow in 2014?
Confidence is sweeping back into the UK Commercial Cleaning industry. Yet, latest figures show that just under half of all firms are increasing sales and improving profits. Plimsoll's latest 2014 market report suggests that commercial cleaning firms may well be putting security ahead of growth.
Bucking this trend however is a band of 40 firms that are delivering growth rates of up to 8%, their market share jumping from 9% to 11% in just two years. Plimsoll's findings concluded:
* 40 firms have seen their sales increase by over 8%
* These 40 firms now sell on average £11 million per year up from £7 million two years ago
* Of the 786 firms analysed, the average sales increase is only 4.8%
* However, only 388 companies have increased their sales
"It really is essential that businesses look for areas of growth in the market and see how they can keep up with the leaders," says David Pattison, Plimsoll's senior analyst. "These 40 trailblazing firms are heading-up the new direction of the market and the other companies must take notice of those 40. With salaries up and gross margins down, it's clear as costs grow then sales need to increase to pay for it."
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30th January 2014