Cleanzine: your weekly cleaning and hygiene industry newsletter 18th April 2024 Issue no. 1110

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Contract Cleaning Market Report - UK 2015 - 2019 Analysis

The UK market for non-domestic cleaning products, including equipment, materials and chemicals, has been largely flat in recent years and only modest growth is forecast for the 2015 - 2019 period, notes a new report into the UK contract cleaning market, which acknowledges that key trends in this sector include; increasing development of antibacterial products (in particular in the healthcare, food preparation and hospitality sectors), growth in the powered cleaning machine sector, greater focus on improving efficiency and increased automation of cleaning processes, and the increase in daytime cleaning. 

It notes that the market continues to be strongly driven by legislation and higher standards for cleanliness, hygiene and health and safety.

Contract cleaning is a mature and highly fragmented market, and is one of the most competitive of all the contracted-out sectors. Despite the difficult economic climate over the last five years, and continued cuts across budgets in both the private and public sectors, the market has performed reasonably well compared to the wider facilities management and construction industry, says the report.

One of the major issues facing the industry is the announcement in July 2015 of the Government's Living Wage, which means that over 25s will receive an hourly wage rate of £7.20 per hour from April 2016 rising to over £9.00 per hour by 2020. While some of these costs will be absorbed, the rise is substantial and will have a major impact on the contract cleaning industry where average pay rates are low and labour costs represent a high proportion of contract prices. As a result, this will inevitably drive the market upwards and is also likely to drive growth in the equipment sector as larger employers look to increase productivity levels to offset higher labour costs.

The provision of one-stop shop solutions and bundled services has become an increasingly more attractive option, particularly for larger clients. The economic downturn also increased pressure on companies to improve their operational efficiencies and control costs. It seems likely that demand for bundled services contracts will continue to be a strong driving force in the market over the next few years. It has already become a key factor behind the number of acquisitions of single service providers by FM companies, particularly into specialist sectors such as energy management.

Key topics covered in the report include an overview and future prospects, the economic environment, the market, key end-use sectors, a review of the contractors and cleaning equipment and materials.

Companies mentioned include:

* Amey Group
* Atlas Cleaning
* Balfour Beatty WorkPlace
* Carillion Facilities Management
* Carlisle Support Services
* Cofely
* Consultant Services Cleaners
* Devon Norse
* Dublcheck
* Ecocleen
* Emcor Facilities Services
* Eric Wright Facilities Management
* G4S
* GBM Support Services
* ISS UK
* Ideal Cleaning Services
* Integral
* Integrated Cleaning Management (ICM)
* Interserve Support Services
* Jani-King (GB)
* John Laing Integrated Services
* Kier Services
* Lancaster Cleaning & Services
* Mitie
* Minster Cleaning Services
* NIC Services Group
* OCS Group
* Rentokil Initial
* Resource Group
* Serco Group
* ServiceMaster Group
* Skanska Facilities Services
* Sodexo Facilities Management
* TC Facilities Management (TCFM)
* Turner Facilities Management
*
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17th September 2015