02 October 2008
Cleaning firms stand to gain from the recent turmoil in the financial
services sector if they can prove they offer value for money.
Andrew Large, chief executive of the Cleaning and Support Services
Association, said he expects a lot of future contract negations to focus on
price and many clients will probably change suppliers.
“However, there are many opportunities,” said Large whose association’s 85
corporate members employ around 250,000 people and account for 70 per cent
of the contract cleaning market.
“There is still a lot of in-house cleaning in the financial services sector
and the current down-turn for many institutions could force them to
outsource as they search for more cost control. My discussions with many
directors and chief executives of cleaning firms shows they are looking
forward to the coming opportunities.”
Large believed that if the Lloyds TSB takeover of Bradford & Bingley goes
ahead there may well be some branch closures. “But many of these branches
are prime high-street locations so other retailers will move in and need
cleaning services.”
Small to medium size firms are most concerned with the down-turn, he said.
“The danger is for a number of SMEs who could be asked by their financial
sector clients why they should be using their services. These SME will have
to fight hard to prove they offer value for money, especially as they may
not have enough contracts from which to leverage experience and cost
savings.”
The government recently announced that it is nationalising the ailing
Bardford & Bingley bank and will sell off the bank’s retail arm that
includes nearly 200 high-street branches to Santander. The Spanish bank
already owns Abbey and is taking over Alliance & Leicester, and will have
around 1,286 branches in total, according to press reports.
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