Industrial Market Research Reports byMBD MARKET RESEARCH REPORTS |
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Released: June 2010 After researching the UK contract cleaning market development and taking into account various other factors the following conclusions can be drawn from MBD's report: Market Review 2005-2009: In 2009, the UK market for contract cleaning is believed to have declined by a marginal amount to £5.7 billion, reflecting the economic downturn, the resulting rise in bankruptcies and the focus by companies on reining in costs. The decline can also be attributed to price competition in an industry where customer loyalty is becoming less prevalent, as clients now seek more competitive contracts prior to renewal. Prior to 2009, a growth trend was evident, although annual growth slowed from 5% in 2006 and 2007 to just 1% in 2008. Overall, the value of the market is estimated to have increased by a cumulative 11% during the five year period. Market Forecast 2010-2014: Between 2009 and 2014, the UK market for contract cleaning is anticipated to increase by a cumulative 11% in real terms, taking the value of the market to a projected £6.3 billion (at 2009 prices) in the latter year. Annual levels of growth are expected to fluctuate between 2% and 3%, with the exception of a marginal increase in 2010. This slower growth reflects the restricted development of the sector in the adverse economic climate. Whilst cleaning remains an essential service and is unlikely to suffer as much as other sectors, volume sales are anticipated to decline in the short term as contract cleaning clients exercise tighter control and only pay for essential services, with some expected to reduce cleaning hours. Moreover, growth is anticipated to be hindered by increasing price pressure and reduced customer loyalty evident towards the end of the review period. Nonetheless, MBD believe opportunities exist in the public sector which is likely to contract out services in order to control costs. Furthermore, new opportunities will arise when those who already outsource retender the cleaning contracts.
Note to Editors: MBD specialises in business to business market research. The range of reports and industries in which we operate in is constantly expanding (our portfolio comprises of more that 140 titles). All our reports are written by in-house market consultants. Click here for full details of the UK Contract Cleaning Market Research Report
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