26 November 2008
Almost half of contract cleaning companies in the UK experienced growth over the past 12 months, despite the economic downturn, but a third of cleaning firms are considered “at risk” as a result of weakening conditions, according to new industry research.
Despite toughening trading conditions in the private sector, continued investment in the public sector should mean further overall growth for the sector, at least in the short term, the research shows.
The new report, from MTW Research on the UK contract cleaning market, found that 45 per cent of cleaning firms saw growth over the past year.
But the research adds that 30 per cent of contract cleaning companies are considered ‘at risk’ in late 2008, and highlights the growing problem of customer retention.
“2009 is likely to be characterised by a decline in capital expenditure and spending on equipment coupled with a growing ‘squeeze’ on assets as sales revenues contract over the next 12-18 months,” the report states.
“Customer loyalty is becoming less prevalent and clients of contract cleaners are increasingly seeking more competitive prices before renewing contracts.”
“This growing trend in the market is driving price competition in a sector where volume demand is now declining as smaller and medium sized firms in particular are internalising certain cleaning duties, rather than outsourcing.”
However, it adds that longer term prospects are more positive for the sector, with more optimistic growth forecast by 2012 as the industry regains some ground lost in 2008 and 2009.
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