THE U.S. BUILDING MAINTENANCE SERVICES INDUSTRY: NATIONAL TRENDS AND CHARACTERISTICS An Initial Report of the Center for Competitive Analysis

Introduction This report from the Center for Competitive Analysis (CCA) of the University of Missouri provides basic background information about the Building Cleaning and Maintenance Services (BMS) industry. This introductory section provides an overview of the industry. The BMS industry is classified under SIC code 7349. Firms in the industry offer a wide variety of services, typically including vacuuming, dusting, emptying trashcans, and cleaning restrooms. Some businesses may provide additional services such as painting, light carpentry, and replenishing bathroom supplies. This SIC classification does not include carpet and upholstery cleaning services. According to U.S. Census data for SIC code 7349, in 1992 there were 47,349 establishments nationally with a total of $15.3 billion in sales, or an average of about $322,420 per establishment. The 1992 average sales per establishment for the fifty largest (by sales) firms, which had a total of 1,161 establishments, was $3.57 million. The fifty largest firms, therefore, maintained establishments that were approximately ten times larger on average than the industry as a whole. The total number of paid employees in March 1992 was 747,399. Data from the 1997 Economic Census are not yet available. Data for the third quarter of 1998 reveal that the national total of businesses (comparable to the Census “establishments”) in this industry had grown to 68,206, with a total of 759,849 employees. Industry revenues had grown to approximately $20.3 billion, while revenues per business fell slightly to $297,627. It is likely that these figures are influenced by the strong economy of the 1990s along with the push for controlling costs in business firms. The combination of these two factors would lead to more outside contracting for cleaning services and would also increase the incentive for starting new small cleaning businesses. The national average weekly earnings in the industry were relatively low at $216.07 in 1998, which represents only an 8.4% increase over 1994 earnings. Using a broader definition of this labor market, including other related 4-digit SIC code industries, BLS data show that in 1996 the United States had 3.6 million cleaning and maintenance workers, less than 4% of whom belonged to unions.