Industry Analysis & Industry Trends
Demand for cleaning services is strong and stable, driven by trends in non-dwelling construction activity and the outsourcing of cleaning services. Governments and businesses are increasingly outsourcing cleaning as they concentrate on their core activities and services and seek out cost efficiencies in operations. Further, a rise in demand for residential cleaning services is resulting from high- and dual-income households and the progressive ageing of the population. Many in-home, aged-care programs now offer cleaning services, particularly for disabled people.
Industry clients are increasingly seeking to bundle cleaning, catering, security, maintenance and related services under a single, multi-service contract arrangement... purchase to read more
Industry Report - Industry Investment Chapter
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 2013-14, for every dollar allocated for depreciation expenses or capital investments (such as for the use and replacement of buildings, vehicles and equipment), approximately $11.41 is required for labour inputs and wages... purchase to read more