Industry Analysis & Industry Trends
Offices will always require cleaning, and there will always be people available to clean them. Over the past five years, demand for cleaning services has been steady, largely driven by growth in the number of businesses, and outsourcing trends. Organisations have been increasingly outsourcing cleaning to concentrate on core activities and seek 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 increasingly incorporated 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. Labour costs are significant in the industry due to the general requirement that cleaning processes are carried out by staff to required standards within the specified time frame. Cleaning involves a high degree of direct labour input, from liaising with clients to the actual cleaning tasks involved. There are limited 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... purchase to read more