Contract Cleaning

Market Report 2008

Publication Date	April 2008
Publisher	Key Note
Product Type	Report
Pages	87
ISBN Number	not applicable
Product Code	KEY00011

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Summary

This Key Note Market Report examines the market for contract cleaning - the provision of cleaning services by an external firm, which allows the customer company to concentrate on its core activities. In 2007, the UK market for contract cleaning was worth an estimated 6.7bn, an increase of 5.1% on the 6.38bn recorded in the previous year.

Contract cleaning is no longer regarded first and foremost as a single service in its own right, as it is being increasingly incorporated into the range of services offered by facilities management (FM) companies. For large companies and organisations, contract cleaning may be provided for one site or for multi-site contracts, either as a standalone service or as one of a bundle of services (along with security or catering, for example).

The contract cleaning industry faces important challenges. In a market in which contract budgets are very low, it is becoming ever more important to provide a high-quality service over several years. Compared with other industries, contract cleaning often has a poor image, perhaps because it is a cost that is not immediately seen to be relevant to clients' profits or budgets. At the same time, it is recognised that, without proper cleaning, premises become untidy, inefficient and potentially hazardous to health (e.g. in hospitals).

Staff recruitment and retention continue to be key issues for the industry, as a result of competition from other labour-intensive sectors, such as security and catering. There is scope for more training in contract cleaning, in order to develop skills on which a career can be based. An increase in the National Minimum Wage will see further labour issues arise for contract cleaning companies, which will have to ensure that recruitment and employment terms comply with the requirements specified by the new Equality and Human Rights Commission.

Health and safety for contract cleaning staff and their customers is also an area in which safeguards must be taken. Proper management and disposal of cleaning waste materials is now an important responsibility for contract cleaners.

Structurally, the contract cleaning industry is continuing a process of consolidation, mostly through the acquisition of contract cleaning companies by FM companies.

Continued growth is forecast for the market but, in order to maximise its potential, there should be further initiatives in training and career development. The trend of including contract cleaning as part of FM is expected to continue, and major construction plans - including infrastructure for new housebuilding, prisons and the Olympic Games in London - could present future opportunities. However, many clients have the option of carrying out cleaning internally, rather than using contract cleaning. Any news of poor performance by contract cleaners on a major contract such as a hospital can, therefore, influence organisations to keep cleaning work in-house.

Content

Executive Summary
1. Market Definition
- REPORT COVERAGE
- MARKET SECTORS
- Traditional Cleaning Services
- Window-Cleaning Services
- Disinfecting and Exterminating Services
- Specialised Cleaning Services
- Furnace- and Chimney-Cleaning Services
- Cleaning Activities Not Elsewhere Classified
- MARKET TRENDS
- Company Acquisitions
- Facilities Management
- Transportation
- Higher Education
- Growth in Healthcare/Care of the Elderly
- Daytime Cleaning
- ECONOMIC TRENDS
- Population
  - Table 1: UK Resident Population Estimates by Sex (000), Mid-Years 2003-2007
- Gross Domestic Product
  - Table 2: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (m), 2003-2007
- Inflation
  - Table 3: UK Rate of Inflation (%), 2003-2007
- Unemployment
  - Table 4: Actual Number of Unemployed Persons in the UK (million), 2003-2007
- Household Disposable Income
  - Table 5: UK Household Disposable Income Per Capita (), 2003-2007
- MARKET POSITION
- The UK
- Overseas
- Contract Cleaning Contents
- Key Note Ltd 2008
2. Market Size
- THE TOTAL MARKET
  - Table 6: The UK Market for Contract Cleaning by Value at Current Prices (m), 2003-2007
- BY MARKET SECTOR
- Types of Premises
- Types of Surface/Equipment
3. Industry Background
- RECENT HISTORY
- NUMBER OF COMPANIES
  - Table 7: Number of UK VAT-Based Enterprises Engaged in Industrial Cleaning by Turnover Sizeband (number and %), 2007
- EMPLOYMENT
  - Table 8: Number of UK VAT-Based Enterprises Engaged in Industrial Cleaning by Employment Sizeband (number and %), 2007
- REGIONAL VARIATIONS IN THE MARKETPLACE
  - Table 9: Regional Distribution of the UK Labour Force (000 and %), 2006
- DISTRIBUTION
- HOW ROBUST IS THE MARKET?
- LEGISLATION
- National Minimum Wage
- Transfer of Undertakings (Protection of Employment) Regulations 2006
- Working Time Regulations
- EU Services Directive
- Employment Bill 2007/2008
- Equality, Disability and Human Rights
- KEY TRADE ASSOCIATIONS
- Asset Skills
- British Association for Chemical Specialities
- British Cleaning Council
- British Institute of Cleaning Science
- British Institute of Facilities Management
- Cleaning and Support Services Association
- Federation of Window Cleaners
- ISSA
- UK Cleaning Products Industry Association
- Contract Cleaning Contents
- Key Note Ltd 2008
4. Competitor Analysis
- THE MARKETPLACE
- MARKET LEADERS
- Carlisle Cleaning Services Ltd
- Interserve PLC
- ISS UK
- MacLellan Group PLC
- MITIE Group PLC
- OCS Group Ltd
- Pall Mall
- Rentokil Initial PLC
- Resource Services Group Ltd
- Sodexo Ltd
- Other Companies
- Atlas Cleaning Ltd
- GBM Services Ltd
- Executive Cleaning Services
- Ideal Cleaning Services
- Inflight Cleaning Services
- OUTSIDE SUPPLIERS
- Equipment
- Consumables
5. Strengths, Weaknesses, Opportunities and Threats
- STRENGTHS
- WEAKNESSES
- OPPORTUNITIES
- THREATS
6. Buying Behaviour
- TYPES OF CONTRACT
- CONTRACTOR PERFORMANCE
- KEY CUSTOMER SECTORS
  - Table 10: UK Jobs by Industry Sector (000), June 2006
  - Figure 1: UK Jobs by Industry Sector (%), June 2006
- REGIONAL DIFFERENCES IN CLEANING REQUIREMENTS
- Contract Cleaning Contents
- Key Note Ltd 2008
7. Current Issues
- STAFF RECRUITMENT AND RETENTION
- TRAINING AND SKILLS
- INCREASED MINIMUM WAGE
- CLEANING STANDARDS
- HOSPITAL CLEANING
- EQUALITY AND HUMAN RIGHTS
- HEALTH AND SAFETY
- SECURITY
- INSOURCING VERSUS OUTSOURCING
8. The Global Market
- EU DEMAND
  - Table 11: Population and GDP per Capita by EU Country (number of people and index EU-27 PPS=100), 2008
- THE INFLUENCE OF THE US IN EUROPE
9. Forecasts
- INTRODUCTION
- The Economy
- Population
  - Table 12: Forecast UK Resident Population by Sex (000), Mid-Years 2008-2012
- Gross Domestic Product
  - Table 13: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2008-2012
- Inflation
  - Table 14: Forecast UK Rate of Inflation (%), 2008-2012
- Unemployment
  - Table 15: Forecast Actual Number of Unemployed Persons in the UK (million), 2008-2012
- FORECASTS 2008 TO 2012
  - Table 16: The Forecast UK Market for Contract Cleaning by Value at Current Prices (m), 2008-2012
- MARKET GROWTH
  - Figure 2: Growth in the UK Market for Contract Cleaning by Value at Current Prices (m), 2003-2012
- FUTURE TRENDS
- Contract Cleaning Contents
- Key Note Ltd 2008
10. Company Profiles
- Carlisle Cleaning Services Ltd
- Interserve PLC
- MITIE Group PLC
- OCS Group Ltd
- Rentokil Initial PLC
- Sodexo Ltd
11. Further Sources
- Associations
- Government Publications
- Bisnode Sources
- Key Note Research
- The Key Note Range of Reports