Companies in this industry clean building interiors, windows, carpets, and upholstery. Major US companies include divisions of companies such as ABM Industries and ServiceMaster, as well as Coverall North America, Jani-King, and Stanley Steemer; major companies based outside the US include divisions of Aeon Delight (Japan), CNS Consorzio Nazionale Servizi (Italy), ISS World Services (Denmark), and Wisag (Germany).
Globally, janitorial and carpet cleaning services companies are more common in industrialized countries. Demand for commercial janitorial services is dependent on extensive infrastructure, while demand for carpet cleaning services relies on a large population of middle class customers. The industry is heavily concentrated in Australia, Canada, Japan, the US, and countries in Western Europe. But demand is growing in developing countries like China and India.
The US janitorial services and carpet cleaning industry consists of about 55,000 janitorial establishments (single-location companies and units of multi-location companies) and about 8,000 carpet and upholstery cleaning establishments with combined annual revenue of about $40 billion.
Commercial real estate occupancy drives demand for cleaning services. The profitability of individual companies depends on good marketing. Large companies have an advantage in serving customers with multiple locations. Small companies can compete effectively in local markets, especially for small business and residential customers. The US janitorial services industry is fragmented: the 50 largest companies generate about 30% of revenue. The US carpet cleaning industry also is fragmented; the 50 largest companies account for about 25% of...