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Contract cleaning market grows to £5.6bn

16 April 2008

In 2007 a 4% increase has taken the value of the UK contract cleaning market to a peak of £5.6 bn, according to the UK Contract Cleaning Report from MBD. This continues the trend evident in the previous four years with annual growth of 3-4%, and an overall growth rate of 18% during the five year review period.

The value of the total cleaning market is estimated to be worth around £12bn indicating further growth potential in the contract cleaning market. The business services sector is believed to have represented the largest proportion of the total UKmarket for contract cleaning in 2007, accounting for 31% of the market (equivalent to £1.72 billion).

This sector typically involves general cleaning operations, where moderate specialist skills are required. Image is often an important factor for these organisations and consequently the quality of the cleaning service provided is a high priority. With a strong focus in recent years on business services, MBD believe this sector of the market may offer the strongest potential for growth for contract cleaning organisations.

Market Forecast 2008 - 2012
The UK market for contract cleaning is anticipated to demonstrate annual growth of between 2% and 3% throughout the five year forecast period, with sales reaching a peak of £6.25bn (at 2007 prices) in 2012. This represents overall growth of 12% between 2007 and 2012. The low level of market penetration in the UK contract cleaning industry compared with that in Europe indicates that there is growth potential within the market. Furthermore, the continuing trend towards outsourcing of non-core activities is also expected to generate increased demand for contract cleaning services. In the public sector, growth is expected to be generated, at least in the short-term, from increased demand for cleaning services in the NHS, with the Government announcing plans to continue funding following the recent deep cleaning programme of all NHShospitals in England.

Despite relatively low market penetration allowing for growth in the contract cleaning sector, increased employment legislation is in turn increasing operating costs, thus reducing profit margins. MBD believe contract cleaning companies are passing this extra costs onto the consumer, as reflected in the market forecast. Indeed, the increased costs are likely to be more apparent when businesses (mostly in the public sector) renew their long term contracts.

The UK Contract Cleaning Market Development Report is available from MBD.Price: £600.00The UK Contract Cleaning Market Development Report is published by Market & Business Development Ltd


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