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NEWS


BCC BACKS TIDY BRITAIN APPG


WESTMINSTER EVENT Members of the BCC have been invited to attend an event at the House of Commons this month to discuss ways of tackling the UK’s growing litter problem.


It’s been organised by Keep Britain Tidy in their role as part of the Tidy Britain All Party Parliamentary Group (APPG) and will be chaired by the BCC’s voice in Parliament, Jim Fitzpatrick MP.


The BCC has decided to sponsor the event as it gives members a


CONTRACT CLEANING MARKET SET FOR


£100M GROWTH IN 2016 A new report from MTW Research suggests the contract cleaning market is set for £100million growth in 2016, despite the new National Living Wage dampening market profitability.


Following a healthy 2015, the contract cleaning market is expected to experience solid growth in 2016, according to MTW’s analysis of 70 top cleaning contractors. Contract cleaning sales are set for above inflation growth this year, boosted by a number of key end use sectors including health, care homes, education and private commercial markets.


The 150 page report forecasts demand growth across several sectors, with more specialised cleaning services leading the way in terms of value growth. Discussing the findings, MTW’s James Taylor said: “By 2020, our forecast models indicate total contract cleaning market sales will rise by £500million, underpinned by volume and value growth.” The report identifies a number of key growth trends to support this optimism, with many of MTW’s findings making for positive reading for the cleaning industry and associated cleaning equipment suppliers.


12 | Tomorrow’s Cleaning April 2016


direct say in the development of the government’s national litter strategy.


Following on from the successful ‘Clean for the Queen’ campaign, the gathering at Westminster will bring together stakeholders from charities, local authorities, parliamentarians as well as professional and socially responsible cleaning industry members.


Allison Ogden-Newton, Keep Britain Tidy CEO, said: “The aim of this event is to reflect on the challenges and successes of the Clean for the Queen campaign and discuss with MPs and other important stakeholders how to create a strategic approach to tackling litter together as a legacy for the campaign.”


cleaning companies in 2016. One example is the rise of IoT and robotic technologies stimulating growth in the floor cleaning sector, as companies seek to increase the effectiveness of their cleaning services. The rise of environmental concern also offers growth potential for suppliers of environmentally friendly and ‘green’ cleaning products, according to MTW.


The introduction of the National Living Wage is set to reduce profitability in the contract cleaning market in the short term, though it is likely to instill some benefits for the market in the medium to long term. Taylor added: “Cleaning companies will need to increase productivity and differentiate through better staff management, more efficient equipment, enhanced levels of monitoring and communication, Internet of Things (IoT) automation and integration of new technologies if they are to succeed.”


The report suggests that new technologies continue to offer considerable growth opportunities for manufacturers and contract


Amongst this optimism the report sounds a note of caution, highlighting a ‘two-tier’ market with non- differentiated cleaning contractors experiencing pricing pressure and low client loyalty. At the lower value end of the market, acquisitions have increased with facilities management companies augmenting their economies of scale. Nevertheless, the general tone of the report is one of underlying optimism with 6% more contract cleaning companies forecast to enter the market by 2020.


Some seven years after the recession, the report depicts a healthy market for well positioned cleaning contractors and those who continue to enhance their service offering. Whilst some contractors are struggling to maintain margins and retain clients, the overall future for contract cleaning appears positive, buoyed by volume and value growth.


To view a free sample or purchase the report, visit MTW Research’s website at www.marketresearchreports.co.uk.


twitter.com/TomoCleaning


Litter is now seen as a significant problem by the British public, with as many as 80% of people saying that litter makes them ‘angry and frustrated’.


Keep Britain Tidy will report their findings back to the BCC in the summer.


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