The UK contract cleaning market
With the recession still in full swing, Tomorrow’s Cleaning has taken a look at AMA Research’s latest contract cleaning report, discussing how the market is faring.
– 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.
Trends which are also likely to impact the market include the increasing use of day-time cleaning, upward trend in wage rates (particularly the minimum wage) and the increased emphasis on use of sustainable products and equipment.
Chart 1: UK Market and Forecasts for Contract Cleaning 2005 to 2015 - By Value (£m msp)
This report is the 5th edition of its kind and focuses on the UK contract cleaning market, which experienced sustained growth up until 2008, but has recently experienced a marginal decline of around 3% in 2008-2010. The current forecast sees an estimated 9% rise by 2015, rising 1% in 2011, 1% in 2012, 2% in 2013 and 2014 and 3% in 2015.
The table above illustrates developments in the market from 2005 with current forecasts to 2015.
Source: AMA Research Ltd/Trade Estimates 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.
What does the future hold? 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
For a full copy of the report, you can contact AMA Research by calling 01242 235 724 or visiting the website at
www.amaresearch.co.uk
The future of our cleaning industry | TOMORROW’S CLEANING | 29 FEATURES
Legislation will continue to be a key characteristic of the market with the onus likely to be on further tightening of allowable chemicals, as well as wider use of powered cleaning equipment.
One of the key factors influencing the cleaning equipment market is likely to be the increasing trend to mechanisation which should buoy market growth.
Sustainability is likely to remain high on the agenda for the contract cleaning market into the medium- term and beyond as cleaning equipment, tools and chemicals are increasingly being brought under greater focus.
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