9 December 2008
The UK market for contract cleaning is expected to increase by 2 per cent this year in spite of the economic downturn, according to a report by consultancy Market and Business Development.
Growth of 2 per cent compares unfavourably with growth of 5 per cent in 2006 and 2007 and reflects a fall in volume demand and increased price competition between contractors. The fall in demand is a consequence of the decision of a number of SMEs to terminate contracts and internalise cleaning services.
The report explains the continued revenue growth by reference to increased market penetration as contractors continue to take business from in-house cleaners.
MBD anticipates a challenging market for contract cleaners in the next five years. It predicts a growth level between zero and 3 per cent, with five-year cumulative growth of 7 per cent taking the total market to £6,148 million.