THE U.S. COMMERCIAL & RESIDENTIAL CLEANING SERVICES INDUSTRY

Table of Contents

• Industry Nature & Definition: Description of the industry' s major segments, services provided, NAICS codes

• 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.

• 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 U.S. and by region (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".

• 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.

• 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

• 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

• 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

• 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 America) - addresses.

• Projected no. of U.S. households using a maid or housekeep, by age group: 2000 & 2006 F
• Residential cleaning franchises: no. of units 2003-2006
• Residential cleaning franchises: start-up costs, franchise fee, royalty rates: 2004-2006

• Discussion of data collected via Cleaning & Maintenance Management magazine' s "Benchmarking Survey", survey highlights and major findings

• 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

• 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, IRS data
• Summary & analysis: no. of cleaning establishments in U.S. and for leading states; no. of 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, profitabilitytrends, by size of cleaning contractor (janitorial services, pest control: 2002-2006

• 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 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 & 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.

• (all tables , as above) - 2002 & 1997

• (all tables , as above) - 2002 & 1997

• 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: ABM, OneSource, Unicco, Temco)

• 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 $)

• ABM Industries
• Anago Franchising
• Clean net USA
• 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

• Addresses, phones, contacts at major industry trade associations, trade journals, consulting firms: commercial cleaning and carpet cleaning segments.