Industry Analysis & Industry Trends
Demand for cleaning services has generally been strong and stable, largely driven by business numbers and outsourcing trends. Governments and businesses have been increasingly outsourcing cleaning to concentrate on core activities and as a way of seeking out cost efficiencies. A rise in demand for residential cleaning services from high- and dual-income households and the ageing of the population has also aided the industry. Many in-home aged-care programs now offer cleaning services, particularly for disabled people.
Industry clients have been increasingly incorporating cleaning, catering, security, maintenance and related services into a single, multi-service contract arrangement... purchase to read more
Industry Report - Industry Investment Chapter
The industry has a low capital intensity level. Cleaning involves a high degree of direct labour input, from liaising with clients to the actual cleaning tasks involved. There is also a limited level of capital requirements in the industry. Some investment in efficient cleaning equipment, such as floor cleaners, can increase labour productivity and lower labour costs, compared with undertaking these tasks manually.
To calculate the capital intensity level, IBISWorld uses data from the industry cost structure. Depreciation is used as a proxy for capital and wages are used as a proxy for labour. In 2014-15, depreciation is estimated to account for 2.3% of industry revenue, with wages estimated to make up for 35.1%... purchase to read more