Cleaning Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)Report

Cleaning Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

  • Published Date: Jun, 2023
  • Base Year for Estimate: 2022
  • Report ID: GVR-P-10516
  • Format: Electronic (PDF)
  • Historical Data: 2020 - 2021
  • Number of Pages: 60

The pricing and cost analysis helps in deriving and forecasting the actual cost of products or services over the forecast period. It considers all the cost components and provides a competitive edge during supplier negotiations. Moreover, the outcome helps procurement leaders understand detailed and fact-based cost drivers for the category.

In this Cleaning Services procurement intelligence report, we have estimated the pricing of the key cost components. Raw materials (such as cleaning supplies and equipment) form the largest cost component of cleaning services. Together with transportation, license and permits, marketing, and labor, they account for 60-70% of the total cost. In cleaning services, some of the key raw materials may include dusting supplies, cleaning and washing detergents and surfactants, mops, brooms, and sponges, trash bags, gloves, acids, scrub brushes, carpet extractions, surface cleaning machines, sanitizing, and disinfecting supplies, etc. The average cost of cleaning supplies can vary each month depending on the business size, type of business, and geographic location. Costs will be higher for a manufacturing plant that requires specialized services and other industrial supplies compared to a small-sized business that requires only general cleaning supplies.

License and permits also affect the prices directly as it involves the safety of the workers. A few of the licenses and permits may include a fire code permit, license, hazardous materials disclosure, wastewater discharge permit, state EPA identification number, vendor license, DBA license, surety bond etc.

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

The geographical location, scale, and type of business play a vital factor in analyzing the rate benchmarking of the cleaning services category. In our research, we have analyzed the rates of residential and commercial cleaning services in the U.S. region. The average commercial cleaning service prices are almost 60% to 70% higher than residential cleaning services. Prices also depend on the square foot area and the type of specialized cleaning services opted for. Commercial cleaning services consist of better-trained workers and superior machining capabilities, which further increases the cost. For instance, commercial carpet extractor machines are one of the most expensive machines, the cost of which can range from USD 9,000 to USD 18,000.

To gain a comprehensive understanding of other aspects of rate benchmarking, please subscribe to our services and get access to the complete report.

Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, GMP cleaning manager (for cleaning services) at ABM Industries and Pritchard Industries Inc. receive a 10% – 15% higher base salary compared to the salary received by GMP cleaning managers working in companies such as Quadrat Facility Services GmbH and ServiceMaster Clean. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the Cleaning Services category over the last two years:

In March 2023, ABM Industries announced its multi-year partnership with Tropicana Field and Al Lang Stadium, Florida to provide housekeeping solutions and manage day to day event staffing. Through this partnership, ABM Industries aims to provide superior janitorial and cleaning services at the two venues, both of which span across one million square feet of stadium area.

In August 2022, ABM Industries announced its five-year partnership with Chicago City’s O’Hare International Airport. The partnership’s annual contract value is USD 25 million. Through this partnership, ABM aimed to provide total custodial and window cleaning, hygiene and disposal services on Terminals 1, 2 and 3 of the airport.

In November 2021, CCS Facility Services announced the acquisition of Total Cleaning Systems to strengthen and expand its facility maintenance and cleaning services along with customer base in the southeastern and midwestern part of the United States. Total Cleaning Systems has a rich 40 years of experience in the cleaning business.

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Add-on Services

Should Cost Analysis

Component wise cost break down for better negotiation for the client, highlights the key cost drivers in the market with future price fluctuation for different materials (e.g.: steel, aluminum, etc.) used in the production process

Rate Benchmarking

Offering cost transparency for different products / services procured by the client. A typical report involves 2-3 case scenarios helping clients to select the best suited engagement with the supplier

Salary Benchmarking

Determining and forecasting salaries for specific skill set labor to make decision on outsourcing vs in-house.

Supplier Newsletter

A typical newsletter study by capturing latest information for specific suppliers related to: M&As, technological innovations, expansion, litigations, bankruptcy etc.

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