Abstract
INTRODUCTION and OVERVIEW
AMA Research are pleased to announce the publication of the 5th Edition of
' Contract Cleaning Market Report - UK 2011-2015 Analysis' . This report
contains original input and a detailed assessment of the market and represents
excellent value for money to companies in the industry or considering entry.
Key areas covered include:
- Overall contract cleaning market.
- Review of individual sectors including office, health, retail as well as
local and central government
- Review of the cleaning equipment and materials market.
- Main suppliers and distribution channels to the market.
- Key market influences and future prospects up to 2015.
Despite the economic downturn, contract cleaning has performed reasonably well
in 2008-10 with a market value of over £5bn in 2010. Despite
significant fall in demand from sectors such as retail and commercial offices,
trends such as improvements to cleanliness standards, growth in outsourcing
and increased used of powered cleaning equipment have helped to underpin the
market.
The report includes a detailed review of recent trends and developments in
addition to the future prospects of the market, and offers a comprehensive
review of quantitative market developments.
Issues of particular interest:
- Buoyancy of public sector to 2010 has helped partially offset the decline
experienced in key commercial sectors.
- Continuing pressures on margins and prices and rising input costs
resulting in a very competitive market.
- Growth in outsourcing as client companies seek to reduce costs by focusing
on key services.
- Trend towards powered cleaning equipment helping to underpin market for
cleaning equipment and materials.
- Some of the companies featured include:
Amey Group, Atlas Cleaning, Carillion Facilities Management, Carlisle Cleaning
& Support Services, Consultant Cleaners, Dublcheck, Ecocleen, Emcor Facilities
Services (EFS), Facilities Services Group (FSG), Ideal Cleaning Services,
Initial Facilities Services, Insitu Services, Integrated Cleaning Management
(ICM), Interserve Support Services, ISS UK, Jani-King (GB), Lancaster Cleaning
& Support Services, Minster Cleaning Services, MITIE PLC, NIC Services Group,
OCS Group, Serco Group, ServiceMaster Group, Sodexo Facilities Management, TC
Cleaning Contractors.
Key areas covered in the report include:
MARKET OVERVIEW
- Overview of the contract cleaning market plus an analysis of underlying
trends and key influences on the market in 2008-11.
- Historical background - development of the market, influencing factors,
economic influences, etc.
- Market size by value - 2005-2010 - market prospects and factors
influencing future growth potential with forecasts up to 2015.
- Key influences and trends on the development of the market. Impact of the
economy, legislation, environmental / sustainability issues, technological
developments, price competition and trends within manufacturing and
construction sectors.
END-USE SECTOR REVIEW
- Review of key end-use sectors for the contract cleaning market - including
market development since 2005 with forecasts to 2015, share of market by
sector in 2010, key influencing factors.
- Individual reviews for commercial offices, healthcare, transport, food
hygiene, local authorities, central government, retail & distribution,
entertainment & leisure and industrial sectors.
- Contract Cleaning market size by sector 2005-15 - key trends, factors
influencing market, construction trends by sector.
CONTRACTORS REVIEW
- Review of supply structure and corporate activity in recent years.
- Role of Integrated FM providers, single-service contractors etc - key
trends in outsourcing, impact of PFI contracts in public sector.
- Profiles of leading organisations in the main supply channels -
Multi-Service Providers, Contract Cleaning Companies and Franchise Networks.
CLEANING EQUIPMENT AND MATERIALS MARKET
- Market size for cleaninq equipment and materials 2005-15
- Overview of market with recent developments, underlying trends and key
influences on market with forecasts to 2015.
- Product mix by value 2010 for powered cleaning equipment, manual cleaning
equipment and cleaning chemicals.
- Powered Cleaning equipment - product mix by carpet cleaning, hard floor
machines, pressure washers/steam cleaners
- Key suppliers to the market and analysis of leading distribution channels.
FUTURE PROSPECTS/KEY INFLUENCES
- Key influences on the contract cleaning and cleaning equipment markets
including macro and micro economic issues.
- Future developments in terms of the overall market - product trends, end
use sectors and economic influences, in addition to other influences growth of
outsourcing and powered cleaning equipment, price and costs pressures, impact
of public sector spending cuts and potential for further changes in the supply
structure.
SUMMARY OF REPORT CONTENTS
The UK contract cleaning market, which experienced sustained growth to 2008,
has experienced a marginal decline of around 3% 2008-10. The market was
estimated to be worth around £5.3 billion in 2010 with indications of
moderate return to growth in 2011.
Critical factors that have impacted the market in recent years include the
effects of the recession, standards of health and cleanliness demanded by key
sectors such as health and food hygiene, growth in outsourcing, and strength
of the public sector which has helped to buoy the market but has failed to
compensate fully for the overall decline. Other key drivers of growth and
change within the sector include daytime cleaning, the environment and
sustainability, legislation, technology/new product development, multi-service
provision, construction activity and output, PPP and PFI, as well as issues
such as staffing, skills and qualifications.
Suppliers' experience of the recession has been mixed, with some companies
heavily reliant on just a few major contracts sometimes falling into
difficulties, whilst other have reported growth in earnings despite the
significant slowdown. Financial pressures in the market, as a result of
intensification of competition and pressure on margins, has also limited the
ability of organisations to invest in new equipment and technology, training
and the appointment of new staff.
The market for non-domestic cleaning equipment, materials and chemicals covers
a wide variety of products which, in some cases, are sold into both the
domestic and non-domestic markets. Market value reached an estimated £1
billion in 2010 having experience more difficult conditions from 2007 onwards,
although there has been evidence of slight improvement in 2010. The upturn in
sales has been triggered in part by slight improvements in the underlying
economy as well as by higher levels of outsourcing on the part of the public
sector, with the latter driving machinery and other product sales to newly
outsourced contracts.
In the medium to longer term, however, public sector cuts are expected to
negatively affect growth. Current forecasts indicate that the contract
cleaning market is expected to show only marginal growth in 2011 with value of
around £5.3 billion. Prospects into the medium-term are for further
moderate rates of annual growth to 2015 when the market is forecast to reach
around £5.7billion.
Key to this forecast remains the influence of FM and outsourcing of contracts
within the market. In the current climate, many FM contracts have been
renegotiated - particularly in the public sector - to generate savings in long
term contracts, with cleaning budgets likely to be under pressure.
The overall market is likely to be affected by the balance between the pace of
recovery in key private commercial sectors offset by central government and
local authority budget cuts into the medium-term. Government spending cuts may
have some positive effects on contract cleaning and facilities management,
with local authorities opting for bundled service outsourcing contracts rather
than single contracts, in order to reduce the number of suppliers and cut
costs.
Table of Contents
1 INTRODUCTION
- 1.1 BACKGROUND
- 1.2 SOURCES OF INFORMATION
2 SUMMARY & FUTURE PROSPECTS
- 2.1 EXECUTIVE SUMMARY
- 2.2 FUTURE PROSPECTS
3 ECONOMIC ENVIRONMENT
- 3.1 GDP
- 3.2 INFLATION & INTEREST RATES
- 3.3 UNEMPLOYMENT
- 3.4 HOUSEHOLD CONSUMPTION
- 3.5 HOUSING & CONSTRUCTION
- 3.6 STERLING
- 3.7 POPULATION PROFILE
- 3.8 CONCLUSIONS
4 UK CONTRACT CLEANING MARKET
- 4.1 DEFINITION
- 4.2 MARKET SIZE
- 4.3 KEY MARKET TRENDS & INFLUENCES
- 4.3.1 Daytime Cleaning
- 4.3.2 The Environment & Sustainability
- 4.3.3 Legislation
- 4.3.4 Technology/New Product Development
- 4.3.5 Multi-Service Provision
- 4.3.6 Construction Activity and Output
- 4.3.7 PPP and PFI
- 4.3.8 Skills & Qualifications
- 4.3.9 Recruitment and Staffing Issues
5 KEY END-USE SECTORS
- 5.1 Overview
- 5.2 Commercial Offices
- 5.3 Healthcare Sector
- 5.4 Transport
- 5.5 Food Hygiene
- 5.6 Local Authorities
- 5.7 Central Government
- 5.8 Retail & Distribution
- 5.9 Others (including Entertainment & Leisure Sector)
- 5.1 Industrial Sector
6 CONTRACTORS REVIEW
- 6.1 SUPPLY STRUCTURE
- 6.2 COMPANY PROFILES
- 6.2.1 IFS/IFM and Multi-Service Providers
- 6.2.2 Contract Cleaning Companies
- 6.2.3 Franchise Networks
7 CLEANING EQUIPMENT & MATERIALS
- 7.1 OVERVIEW
- 7.2 PRODUCT MIX
- 7.2.1 Powered Cleaning Equipment
- 7.2.2 Manual Cleaning Products
- 7.2.3 Commercial & Industrial Cleaning Chemicals
- 7.3 MARKET TRENDS & INFLUENCES
- 7.3.1 Legislation
- 7.3.2 Voluntary Industry Initiatives
- 7.4 MANUFACTURERS/IMPORTERS OF CLEANING PRODUCTS & EQUIPMENT
- 7.4.1 Powered Cleaning Equipment
- 7.4.2 Manual Cleaning Products
- 7.4.3 Commercial & Industrial Cleaning Chemicals
- 7.5 CHANNELS OF DISTRIBUTION
- 7.5.1 Other distributors
- 7.5.2 Specialist Cleaning Distributors
- 7.5.3 Direct Sales
- 7.5.4 Catalogue Operations
TABLES AND CHARTS
- CHART 1 UK MARKET AND FORECASTS FOR CONTRACT CLEANING 2005 TO 2015 - BY
VALUE (£M MSP)
- CHART 2 INTEREST RATES AND INFLATION (CPI) FROM 1992-2015
- CHART 3 PDI & SAVINGS RATIO AT CURRENT PRICES 1992-2015
- TABLE 4 EXCHANGE RATE FLUCTUATIONS 2006-2011 - STERLING TO THE DOLLAR, AND
THE EURO, SPOT RATES
- CHART 5 AGE DISTRIBUTION OF THE RESIDENT UK POPULATION MID-2008 (' 000)
- TABLE 6 UK MARKET AND FORECASTS FOR CONTRACT CLEANING SERVICES 2005-2015 -
BY VALUE (£M AT CURRENT PRICES)
- TABLE 7 NON-DOMESTIC CONSTRUCTION NEW WORK OUTPUT 2005 TO 2010 - BY VALUE
(£BN AT CURRENT PRICES)
- TABLE 8 ESTIMATED PAYMENTS UNDER PFI CONTRACTS 2001-2036
- CHART 9 UK MARKET FOR CLEANING SERVICES MIX BY TYPE 2010 - % BY VALUE
- CHART 10 UK CONTRACT CLEANING MARKET BY END-USE SECTOR 2010 (COMMERCIAL,
LA, CENT GOVT, HEALTH, RETAIL, INDUSTRIAL, LEISURE ETC) - % BY VALUE
- TABLE 11 UK COMMERCIAL MARKET AND FORECASTS FOR CONTRACT CLEANING
2005-2015 - BY VALUE (£M AT CURRENT PRICES)
- TABLE 12 UK PRIVATE COMMERCIAL OFFICE CONSTRUCTION OUTPUT (NEW WORK) 2005
TO 2010 - BY VALUE (£M AT CURRENT PRICES)
- TABLE 13 UK HEALTHCARE MARKET AND FORECASTS FOR CONTRACT CLEANING 2005 TO
2015 - BY VALUE (£M AT CURRENT PRICES)
- TABLE 14 UK HEALTHCARE CONSTRUCTION OUTPUT (NEW WORK) 2005 TO 2010 - BY
VALUE (£M AT CURRENT PRICES)
- TABLE 15 MIX OF IN-HOUSE, CONTRACTED-OUT AND MIXED CLEANING PRACTICES AT
NHS HOSPITAL SITES 2006 TO 2010 - NUMBER OF SITES AND % SHARE
- TABLE 16 UK TRANSPORT MARKET AND FORECASTS FOR CONTRACT CLEANING 2005 TO
2015 - BY VALUE (£M AT CURRENT PRICES)
- TABLE 17 UK INFRASTRUCTURE SECTOR CONTRACTORS OUTPUT (NEW WORK) 2005 TO
2010 - BY VALUE (£M AT CURRENT PRICES)
- TABLE 18 UK FOOD HYGIENE MARKET AND FORECASTS FOR CONTRACT CLEANING 2005
TO 2015 - BY VALUE (£M AT CURRENT PRICES)
- TABLE 19 UK LOCAL AUTHORITY MARKET AND FORECASTS FOR CONTRACT CLEANING
2005-2015 (AT CURRENT PRICES)
- TABLE 20 EDUCATION SECTOR CONTRACTORS OUTPUT (NEW WORK) 2005 TO 2010 - BY
VALUE (£M AT CURRENT PRICES)
- TABLE 21 UK CENTRAL GOVERNMENT MARKET AND FORECASTS FOR CONTRACT CLEANING
2005 TO 2015 - BY VALUE (£M AT CURRENT PRICES)
- TABLE 22 UK RETAIL AND DISTRIBUTION MARKET AND FORECASTS FOR CONTRACT
CLEANING 2005 TO 2015 - BY VALUE (£M AT CURRENT PRICES)
- TABLE 23 PRIVATE SECTOR RETAIL CONSTRUCTION OUTPUT (NEW WORK) 2005 TO 2010
- BY VALUE (£M AT CURRENT PRICES)
- TABLE 24 UK ENTERTAINMENT AND LEISURE MARKET AND FORECASTS FOR CONTRACT
CLEANING 2005 TO 2015 - BY VALUE (£M AT CURRENT PRICES)
- TABLE 25 ENTERTAINMENT & LEISURE PRIVATE SECTOR CONSTRUCTION OUTPUT (NEW
WORK) 2005 TO 2010 - BY VALUE (£M AT CURRENT PRICES)
- TABLE 26 UK INDUSTRIAL MARKET AND FORECASTS FOR CONTRACT CLEANING 2005 TO
2015 - BY VALUE (AT CURRENT PRICES)
- TABLE 27 PRIVATE INDUSTRIAL CONSTRUCTION OUTPUT (NEW WORK) 2005 TO 2010 -
BY VALUE (£M AT CURRENT PRICES)
- TABLE 28 LARGEST COMMERCIAL CLEANING FRANCHISE NETWORKS 2010-11
- CHART 29 UK MARKET AND FORECASTS FOR COMMERCIAL CLEANING EQUIPMENT,
PRODUCTS AND CHEMICALS 2005 TO 2015 - BY VALUE (£M MSP)
- CHART 30 PRODUCT MIX FOR INDUSTRIAL CLEANING EQUIPMENT AND MATERIALS 2010
- BY VALUE (%)
- CHART 31 UK MARKET MIX FOR COMMERCIAL & INDUSTRIAL CLEANING MACHINES 2010
- % BY VALUE
- CHART 32 UK CLEANING EQUIPMENT AND MATERIALS DISTRIBUTION 2010 (SPECIALIST
DISTRIBUTORS, DIRECT SALES, CATALOGUE, OTHERS) - % BY VALUE
