breaking down the business of bscs · they do business nationally or internationally. many of the...

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Breaking Down the Business of BSCs A look at CMM’s 2015 contract cleaning survey Building service contractors (BSCs) consistently face the delicate balance of keeping prices attractive, yet high enough to keep the doors open, pay their employees, and still turn a profit at the end of the day. Simultaneously, the added challenge of delivering a competitive contract without impacting the level of quality or service often can make or break a BSC operation. This information may sound old hat. CMM covers this topic repeatedly, yet the issues surrounding competitive pricing and profitability continue to impact BSCs in the industry. In fact, in our 2015 BSC/Contract Cleaning Survey, respondents list competition, pricing, and low bidding among the most critical issues facing BSCs in today's competitive marketplace. These and other top concerns are reflected in the above image. ©Copyright 2015 ISSA. Reprinted with permission from CM/Cleaning & Maintenance Management ® magazine. For a free subscription to CM/Cleaning & Maintenance Management ® magazine, visit www.cmmonline.com/subscribe

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Page 1: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

Breaking Down the Business of BSCsA look at CMM’s 2015 contract cleaning survey

Building service contractors (BSCs) consistently face the delicate balance

of keeping prices attractive, yet high enough to keep the doors open, pay

their employees, and still turn a profit at the end of the day. Simultaneously,

the added challenge of delivering a competitive contract without impacting

the level of quality or service often can make or break a BSC operation.

This information may sound old hat. CMM covers this topic repeatedly, yet

the issues surrounding competitive pricing and profitability continue to

impact BSCs in the industry. In fact, in our 2015 BSC/Contract Cleaning

Survey, respondents list competition, pricing, and low bidding among the

most critical issues facing BSCs in today's competitive marketplace.

These and other top concerns are reflected in the above image.

August 2015 Issue_FINAL.indd 16 7/28/15 11:39 AM

©Copyright 2015 ISSA. Reprinted with permission from CM/Cleaning & Maintenance Management® magazine.For a free subscription to CM/Cleaning & Maintenance Management® magazine, visit www.cmmonline.com/subscribe

Page 2: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

The list of top issues facing BSCs translates into challenges

they face in their own organizations, as well. Maintaining

profitable margins and winning new bids are among the top

three challenges respondents say pertain to their business.

The other top challenge: recruiting and retaining quality staff.

This year, more than 300 cleaning contractors—240 of

whom identify as BSCs—completed the survey, providing a

glimpse into the most pressing issues in the commercial

cleaning industry. And with the help of our publisher, ISSA,

the worldwide cleaning industry association, we were able

to reach out and gauge responses from a broader segment of

the BSC market.

The following pages provide a snapshot of topics,

including the ones already mentioned, that drive the BSC

segment of the commercial cleaning industry. To help

readers digest the information and to provide a more

accurate snapshot of the industry, data has been organized

into several categories and reflects responses from those

who primarily identify themselves as BSCs.

A more comprehensive view with additional facts and

figures is available online. Download the complete set of

2015 BSC/Contract Cleaning Survey results at

www.CMMOnline.com/bscsurvey.

Who’s in the Business?The world of commercial cleaning and facilities

management is vast. There are countless contracting

companies that provide cleaning solutions and services to

facilities; manufacturers that create expansive lines of

cleaning and infection control solutions; distributors to help

make the best choices when it comes to the supplies we use;

and of course, custodial workers, who are instrumental in

helping to get the job done.

However, despite the overwhelming size of the

commercial cleaning industry, there are still many BSCs

that service only their local market.

In CMM’s 2015 BSC/Contract Cleaning Survey, more than

half of survey respondents say their business keeps it close

to home, servicing facilities that are located within 100

miles of their headquarters. Only about 23 percent say they

serve facilities in more than one state, and even less say

they do business nationally or internationally.

Many of the BSC survey respondents aren’t new to the

marketplace either; most of them have years—even

decades—of experience to back up their quality of work. In

fact, only 17.7 percent of respondents say their company has

been around for 10 years or less.

YEARS IN BUSINESS

More than 30 years

21-30 years

11-20 years

6-10 years

2-5 years

Less than 2 yearsCOMPUTERS

36.7%

20.3%

25.3%

13.9%

.8%

3%

WHERE ARE BSCs CONDUCTING BUSINESS?

More than half of this year’s respondents say their company works with local facilities.

REGIONAL:22.8%

More than one state

LOCAL:57%

Within 100 miles of headquarters

NATIONAL:13.5%

INTERNATIONAL:6.8%

87.8% of BSCs

are not part of a

franchise business.

For the complete 2015 BSC/Contract Cleaning Survey results

visit www.CMMOnline.com/bscsurvey.

August 2015 Issue_FINAL.indd 17 7/28/15 2:18 PM

©Copyright 2015 ISSA. Reprinted with permission from CM/Cleaning & Maintenance Management® magazine.For a free subscription to CM/Cleaning & Maintenance Management® magazine, visit www.cmmonline.com/subscribe

Page 3: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

SERVICE DELIVERY

Many BSCs provide client services that impact facility appearance and cleanliness, but don’t necessarily fal into the wheelhouse of day-to-day cleaning responsibilities. Floor and carpet restoration, matting services, and grounds care all fall into the category of extras that a BSC may provide to a client on top of their regular contracted duties.

According to results from the 2015 BSC/Contract Cleaning Survey, below are the top services, outside of regular cleaning services, BSCs provide to their clients.

Top Maintenance Services

1. Exterior maintenance (sidewalks, parking lot, etc.)

2. Grounds care (landscaping, mowing, etc.)

3. Snow removal

Top Contracted Cleaning Services

1. Stripping/recoating hard floors

2. Restoring/deep cleaning carpets

3. Restroom supplies management

Top Subcontracted Cleaning Services

1. Remediation/restoration services

2. Entry mat service

3. Window cleaning

SERVICE DELIVERY

Many BSCs provide client services that impact facility appearance and cleanliness, but don’t necessarily fall into the wheelhouse of day-to-day cleaning responsibilities. Floor and carpet restoration, matting services, and grounds care all fall into the category of

extras that BSCs may provide to a client on top of their regular contracted duties. According to results from the 2015 BSC/Contract Cleaning Survey, below are the top services, outside of regular cleaning services, BSCs provide to their clients.

NO. 1 COMPLAINT: RESTROOMS

TENANTRETENTION

Almost half of survey respondents say customers are most likely to complain about the cleanliness of their buildings’ restrooms over other types of areas.

MOST IMPORTANT FOR CUSTOMER SERVICE

FACILITYIMAGE

TENANTRETENTION

REDUCINGCOST

HEALTH &SAFETY

The following items rank as the top four most important when it comes to customer service delivery.

74% of BSCs

offer day cleaning

as a service option.

0 20 40 60 80 100

Task checklist/schedule

Observation/supervision

Mobile device technology

Data from equipment

QUALITY ASSURANCE

What types of quality assurances do BSCs use in their businesses?

17.3%

45.1%

86.1%

86.9%

August 2015 Issue_FINAL.indd 18 7/28/15 11:40 AM

©Copyright 2015 ISSA. Reprinted with permission from CM/Cleaning & Maintenance Management® magazine.For a free subscription to CM/Cleaning & Maintenance Management® magazine, visit www.cmmonline.com/subscribe

Page 4: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

STAFFING

Staffing plays an important role in the success of any commercial cleaning operation. As author Erin Brereton wrote in the June issue of CMM, “Maintaining a well-trained, capable staff is a crucial part of providing consistent, high-quality commercial cleaning services—yet many organizations struggle to keep employees on board.”

The significance of staffing a contract cleaning company—and keeping well-trained employees on board—can weigh heavily on any BSC’s reputation. However, labor costs can greatly impact the bottom line, as well. According to 2015 BSC/Contract Cleaning Survey respondents, wages and benefits average about 52 percent of their operating budgets.

$9.00-$9.99

$8.00-$9.99

$8.00-$8.99

$10.00-$10.99

$11.00-$11.99

MOST PROMINENT STARTING WAGE BY REGION

Below are the most common starting wages for entry-level custodians in various

regions across the United States and Canada, according to survey respondents.

For the complete 2015 BSC/Contract Cleaning Survey results

visit www.CMMOnline.com/bscsurvey.

August 2015 Issue_FINAL.indd 19 7/28/15 1:37 PM

©Copyright 2015 ISSA. Reprinted with permission from CM/Cleaning & Maintenance Management® magazine.For a free subscription to CM/Cleaning & Maintenance Management® magazine, visit www.cmmonline.com/subscribe

Page 5: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

PURCHASING

Performance is the No.1 factor influencing BSCs’ purchasing decisions. About 46 percent of 2015 BSC/Contract Cleaning Survey respondents say performance is most important to them over quality, price, brand, value, and service when selecting equipment for their business.

Although there are several factors to consider when purchasing cleaning equipment and supplies, the final decision is not always up to the BSC. Sometimes it’s up to the client.

BSCs have complete control

Client dictates brands

Client provides options

Not applicable

BRAND AND PRODUCT SELECTION:WHO DECIDES?

0

20

40

60

80

100

81.4%

7.6%5.9% 5.1%

Survey respondents may

purchase cleaning/maintenance

supplies from more than one

type of provider, but they are

most likely to turn to their

jansan supplydistributor.

Products BSCs Purchase Percentage

Cleaning supplies (mops, microfiber, carts, can liners) 88.6%

Cleaners and disinfectants 87.8%

Floor finish/coatings 86.9%

Floor pads/supplies 86.1%

Carpet care equipment (including vacuums) 84.4%

Carpet care chemicals 81.9%

Hard floor care equipment 81.4%

Employees' safety equipment 75.9%

Paper products 74.3%

Odor control products/chemicals 70.9%

Uniforms/apparel 68.8%

Hand soap/sanitizers 67.9%

Restroom dispensers (paper, soap) 65.8%

Batteries (equipment) 62.0%

Bidding/estimating tools 50.6%

Quality assurance programs 45.1%

Matting 34.2%

Grounds care equipment 28.7%

Ice and snow removal 28.7%

Material handling equipment 25.7%

Measurement equipment (infrared, ATP, IAQ, moisture) 22.4%

Pest/bird control 15.2%

Hand dryers 14.3%

HVAC parts/equipment 12.2%

For the complete 2015 BSC/Contract Cleaning Survey results

visit www.CMMOnline.com/bscsurvey.

August 2015 Issue_FINAL.indd 20 7/28/15 11:41 AM

©Copyright 2015 ISSA. Reprinted with permission from CM/Cleaning & Maintenance Management® magazine.For a free subscription to CM/Cleaning & Maintenance Management® magazine, visit www.cmmonline.com/subscribe

Page 6: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

SALES

Business is good for many contractors in the industry. More than two-thirds of survey respondents say their companies’ revenues increased in some capacity last year, which they primarily credit to changes in their marketing strategy, diversification of their service offerings, and company acquisitions.

Only about 13 percent of BSCs who completed the survey identify a decrease in revenues. However, for those noting

the decline, about 43 percent say it was due to the loss of a large customer.

Retaining old customers and acquiring new ones can greatly impact a BSC’s success. The data below provides a snapshot of how contractors are competing in the commercial cleaning marketplace.

2014 REVENUES

Compared to 2013, BSCs say their revenues:

Significantly increased

Somewhat increased

Remain stable

Somewhat decreased

Significantly decreased

24.9%

1.3%

42.2%

11.8%

19.8%

2.1% 1.7%

PROJECTED 2015 REVENUES

Compared to 2014, BSCs expect revenues to:

Significantly increase

Somewhat increase

Remain stable

Somewhat decrease

Significantly decrease

25.7%

48.9%

21.5%

BSCs say the following factors allow their companies to stand above the rest and lock in new bids/contracts:

WINNING NEW BUSINESS

81%

Company expertise

Value-added services

Continuous improvement

68%

38%

12%

52% 51%

Sustainable practices

Industry certifications

Lowest cost

SOURCE OF NEW BUSINESS

92%Replacing another BSC/janitorial firm

8%Replacing all or part of an in-house staff

BSCs' average net profit margin

from janitorial/cleaning services20.4%

August 2015 Issue_FINAL.indd 21 7/28/15 11:41 AM

©Copyright 2015 ISSA. Reprinted with permission from CM/Cleaning & Maintenance Management® magazine.For a free subscription to CM/Cleaning & Maintenance Management® magazine, visit www.cmmonline.com/subscribe

Page 7: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

65.82%

21.52%

9.70%

2.95%

What is your role in the business?

Corporate Management

GeneralManagement/Supervisor

Sales/Businessdevelopment

Support staff

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Corporate Management (Includes Owner)

General Management/Supervisor

Sales/Business development

Support staff

CMM 2015 BSC/Contract Cleaning Survey

©Copyright 2015 ISSA. Reprinted with permission from CM/Cleaning & Maintenance Management® magazine.For a free subscription to CM/Cleaning & Maintenance Management® magazine, visit www.cmmonline.com/subscribe

Page 8: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

8.86%

47.26%

27.85%

4.22%

11.81%

What type of organization is the business?

Publicly heldcorporation

Privately heldcorporation

S-Corp

Partnership

Soleproprietorship

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Publicly held corporation

Privately held corporation

S-Corp

Partnership

Sole proprietorship

CMM 2015 BSC/Contract Cleaning Survey

©Copyright 2015 ISSA. Reprinted with permission from CM/Cleaning & Maintenance Management® magazine.For a free subscription to CM/Cleaning & Maintenance Management® magazine, visit www.cmmonline.com/subscribe

Page 9: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

0.84%

2.95%

13.92%

25.32%

20.25%

36.71%

0.00%

How many years has the company been in the cleaning industry?

Total

Less than 2years

2-5 years

6-10 years

11-20 years

21-30 years

More than 30years

Not sure/Donot wish to...

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Less than 2 years

2-5 years

6-10 years

11-20 years

21-30 years

More than 30 years

Not sure/Do not wish to specify

CMM 2015 BSC/Contract Cleaning Survey

©Copyright 2015 ISSA. Reprinted with permission from CM/Cleaning & Maintenance Management® magazine.For a free subscription to CM/Cleaning & Maintenance Management® magazine, visit www.cmmonline.com/subscribe

Page 10: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

20.25%

27.43%

26.58%

18.99%

6.75%

In which geographical region is the business headquartered?

Northeast

South

Midwest

West

Canada

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Northeast (ME/NH/VT/CT/MA/RI/NY/PA/NJ/DE/MD)

South (TX/OK/NC/SC/GA/FL/TN/AL/MS/AR/LA/KY/WV/VA/DC)

Midwest (OH/IN/IL/MI/WI/MN/ND/SD/IA/NE/KS/MO)

West (NM/AZ/CO/UT/WY/MT/ID/WA/OR/NV/CA/AK/HI)

Canada

CMM 2015 BSC/Contract Cleaning Survey

©Copyright 2015 ISSA. Reprinted with permission from CM/Cleaning & Maintenance Management® magazine.For a free subscription to CM/Cleaning & Maintenance Management® magazine, visit www.cmmonline.com/subscribe

Page 11: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

56.96%

22.78%

13.50%

6.75%

What geographic area(s) does the business serve?

Total

Local (within100 miles of...

Regional (morethan one state)

National

International

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Local (within 100 miles of headquarters)

Regional (more than one state)

National

International

CMM 2015 BSC/Contract Cleaning Survey

©Copyright 2015 ISSA. Reprinted with permission from CM/Cleaning & Maintenance Management® magazine.For a free subscription to CM/Cleaning & Maintenance Management® magazine, visit www.cmmonline.com/subscribe

Page 12: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

32.91%

13.08%

7.17%

13.50%

33.33%

What were the approximate start-up costs for the cleaning business(or for this portion of the broader business)?

Total

Less than$25,000

$25,000 to$49,999

$50,000 to$99,999

$100,000 ormore

Not sure/Donot wish to...

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Less than $25,000

$25,000 to $49,999

$50,000 to $99,999

$100,000 or more

Not sure/Do not wish to specify

CMM 2015 BSC/Contract Cleaning Survey

©Copyright 2015 ISSA. Reprinted with permission from CM/Cleaning & Maintenance Management® magazine.For a free subscription to CM/Cleaning & Maintenance Management® magazine, visit www.cmmonline.com/subscribe

Page 13: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

12.24%

87.76%

Is this business a franchise?

Total

Yes

No

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Yes

No

CMM 2015 BSC/Contract Cleaning Survey

©Copyright 2015 ISSA. Reprinted with permission from CM/Cleaning & Maintenance Management® magazine.For a free subscription to CM/Cleaning & Maintenance Management® magazine, visit www.cmmonline.com/subscribe

Page 14: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

11.81%

10.97%

10.97%

14.35%

10.97%

31.65%

9.28%

What is the total square footage the company is responsible for cleaning on a monthly basis?

Total

Less than250,000 squa...

250,000-499,000square feet

500,000-999,999square feet

1,000,000-2,499,999 square feet

2,500,000-4,999,999square feet

More than5,000,000...

Unsure

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Less than 250,000 square feet

250,000-499,000 square feet

500,000-999,999 square feet

1,000,000-2,499,999 square feet

2,500,000-4,999,999 square feet

More than 5,000,000 square feet

Unsure

CMM 2015 BSC/Contract Cleaning Survey

©Copyright 2015 ISSA. Reprinted with permission from CM/Cleaning & Maintenance Management® magazine.For a free subscription to CM/Cleaning & Maintenance Management® magazine, visit www.cmmonline.com/subscribe

Page 15: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

Which of the following services do you provide in addition to typical cleaning services and which

do you subcontract?

93.62%220

4.68%11

1.70%4

88.89%208

9.40%22

1.71%4

57.40%128

21.52%48

21.08%47

86.09%198

4.78%11

9.13%21

30.52%65

29.11%62

40.38%86

61.26%136

10.36%23

28.38%63

71.79%168

25.64%60

2.56%6

73.18%161

6.82%15

20.00%44

30.59%67

36.99%81

32.42%71

Provide service Subcontract service N/A

Stripping/recoating hard floors

Restorative/deep cleaning carpets

Polishing/restoring stone and marble surfaces

Restroom supplies management

Entry mat service

Lightbulb replacement/relamping

Window cleaning

Clean rooms

Remediation/restoration services

CMM 2015 BSC/Contract Cleaning Survey

©Copyright 2015 ISSA. Reprinted with permission from CM/Cleaning & Maintenance Management® magazine.For a free subscription to CM/Cleaning & Maintenance Management® magazine, visit www.cmmonline.com/subscribe

Page 16: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

46.41%

37.55%

36.29%

29.11%

27.00%

24.89%

18.14%

16.88%

16.46%

15.61%

8.86%

7.59%

In addition to your cleaning services, which of the following facility maintenance services do you offer? Check all that apply.

Answer Choices Responses

Exterior maintenance (sidewalks, etc.)

None, we ONLY provide cleaning services

Grounds care

Snow removal

Painting

Preventive maintenance/building systems

Building(s) security

Maintain HVAC systems

Pest control

Laundry operations

Restroom retrofitting

Roof maintenance/repair

CMM 2015 BSC/Contract Cleaning Survey

©Copyright 2015 ISSA. Reprinted with permission from CM/Cleaning & Maintenance Management® magazine.For a free subscription to CM/Cleaning & Maintenance Management® magazine, visit www.cmmonline.com/subscribe

Page 17: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

47.26%

14.35%

10.97%

9.70%

9.28%

4.64%

3.80%

Which of the following areas/surfaces do you receive the most complaints about

from your customers?

Restrooms

Common/sharedspaces

Hard floorsurfaces

Carpeting

Other, pleasespecify

Entryways

Multi-surfacespaces

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Restrooms

Common/shared spaces

Hard floor surfaces

Carpeting

Other, please specify

Entryways

Multi-surface spaces

CMM 2015 BSC/Contract Cleaning Survey

©Copyright 2015 ISSA. Reprinted with permission from CM/Cleaning & Maintenance Management® magazine.For a free subscription to CM/Cleaning & Maintenance Management® magazine, visit www.cmmonline.com/subscribe

Page 18: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

12.24%

81.01%

67.93%

51.05%

37.55%

51.48%

How do you differentiate your company and services to win bids/contracts?

Check all that apply.

Lowest-costprovider

Companyexperience/...

Value-addedservices

Sustainablepractices

Industryrecognized...

Continuousimprovement

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Lowest-cost provider

Company experience/expertise

Value-added services

Sustainable practices

Industry recognized certifications

Continuous improvement

CMM 2015 BSC/Contract Cleaning Survey

©Copyright 2015 ISSA. Reprinted with permission from CM/Cleaning & Maintenance Management® magazine.For a free subscription to CM/Cleaning & Maintenance Management® magazine, visit www.cmmonline.com/subscribe

Page 19: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

95.78%

4.22%

Typically, what is your company's relationship to the facility/client?

Contract holder

Subcontractor

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Contract holder

Subcontractor

CMM 2015 BSC/Contract Cleaning Survey

©Copyright 2015 ISSA. Reprinted with permission from CM/Cleaning & Maintenance Management® magazine.For a free subscription to CM/Cleaning & Maintenance Management® magazine, visit www.cmmonline.com/subscribe

Page 20: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

Rate the following challenges as they pertain to your business.

43.88%104

40.08%95

9.70%23

2.95%7

1.69%4

1.69%4

53.42%125

32.48%76

10.26%24

1.71%4

0.00%0

2.14%5

27.78%65

44.87%105

17.52%41

6.84%16

0.85%2

2.14%5

24.03%56

45.49%106

20.60%48

6.01%14

1.72%4

2.15%5

27.90%65

25.75%60

21.03%49

13.73%32

8.15%19

3.43%8

24.26%57

29.36%69

26.81%63

13.19%31

4.26%10

2.13%5

24.46%57

19.31%45

24.89%58

19.74%46

9.44%22

2.15%5

Strongly agree Agree Neutral Disagree Strongly disagree N/A

Maintaining profitable margins

Recruiting and retaining quality staff

Winning new bids/contracts

Communicating the value of clean

Customer retention

Validating cleaning results

Meeting contract requirements

CMM 2015 BSC/Contract Cleaning Survey

©Copyright 2015 ISSA. Reprinted with permission from CM/Cleaning & Maintenance Management® magazine.For a free subscription to CM/Cleaning & Maintenance Management® magazine, visit www.cmmonline.com/subscribe

Page 21: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

44.1% 91.3%

12.4% 61.5%

11.5% 62.3%

9.7% 60.2%

9.6% 60.2%

6.3% 50.6%

2.3% 40.3%

2.1% 44.2%

2.0% 37.2%

What percentage of your revenues are from servicing the following building types/facilities?

Answer Choices % of Revenue % of Contractors involved in each segment

Commercial (Office/property management)

Government buildings

Healthcare (Hospital, long-term care, offices)

Education (K-12, colleges/universities)

Industrial (Manufacturing, warehouses)

Retail (Shopping centers, entertainment, restaurants)

Hospitality (Hotels, motel, apartment, convention)

Recreation/Transportation (Arenas, stadiums, airports)

Houses of worship

CMM 2015 BSC/Contract Cleaning Survey

©Copyright 2015 ISSA. Reprinted with permission from CM/Cleaning & Maintenance Management® magazine.For a free subscription to CM/Cleaning & Maintenance Management® magazine, visit www.cmmonline.com/subscribe

Page 22: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

91.98%

5.91%

2.11%

Which of the following typically represents your new accounts?

Replacinganother BSC...

Replacing anin-house staff

Subcontractorreplacing...

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Replacing another BSC/Janitorial firm

Replacing an in-house staff

Subcontractor replacing portion of in-house staff

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Page 23: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

Rate the importance of the following criteria for your customers.

62.45% 35.86% 1.27% 0.42% 0.00% 0.00%

44.73% 37.13% 14.35% 2.95% 0.84% 0.00%

38.89% 26.07% 23.93% 4.27% 2.56% 4.27%

37.55% 35.02% 21.10% 5.49% 0.84% 0.00%

33.05% 40.68% 22.46% 2.54% 1.27% 0.00%

32.62% 29.61% 30.90% 5.15% 1.29% 0.43%

26.07% 32.48% 30.34% 8.12% 2.14% 0.85%

21.79% 32.48% 26.92% 12.82% 5.98% 0.00%

Veryimportant

Somewhatimportant

Neutral Lessimportant

Notimportant

N/A

Improving facility image

Reducing overall cleaning costs

Tenant retention

Health and safety of buildings andtenants

Value-added services

Asset preservation

Reducing number of service contractors

Sustainable/green initiatives

CMM 2015 BSC/Contract Cleaning Survey

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Page 24: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

24.05%

13.08%

13.08%

12.66%

7.59%

5.06%

6.33%

18.14%

Less than 25

25-49

50-99

100-199

200-349

350-499

500-999

More than 1,000

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Less than 25

25-49

50-99

100-199

200-349

350-499

500-999

More than 1,000

Total 237

What is the total number of employees that work for the company?

CMM 2015 BSC/Contract Cleaning Survey

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Page 25: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

23.21%

16.88%

8.44%

8.02%

7.17%

6.33%

8.02%

6.75%

4.64%

0-10%

11-20%

21-30%

31-40%

41-50%

51-60%

61-70%

71-80%

81-90%

91-100%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

0-10%

11-20%

21-30%

31-40%

41-50%

51-60%

61-70%

71-80%

81-90%

10.55%

Total

91-100%

What percentage of employees are full-time employees for the company?

CMM 2015 BSC/Contract Cleaning Survey

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Page 26: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

15.61%

6.33%

8.86%

7.17%

12.24%

8.02%

5.49%

12.24%

16.46%

What percentage of employees are part-time employees for the company?

0-10%

11-20%

21-30%

31-40%

41-50%

51-60%

61-70%

71-80%

81-90%

91-100%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

0-10%

11-20%

21-30%

31-40%

41-50%

51-60%

61-70%

71-80%

81-90%

7.59%

Total

91-100%

CMM 2015 BSC/Contract Cleaning Survey

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Page 27: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

24.05%

75.95%

Are any of the company employees unionized?

Total

Yes

No

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Yes

No

CMM 2015 BSC/Contract Cleaning Survey

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Page 28: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

2.53%

25.32%

22.78%

20.25%

8.44%

7.17%

5.06%

1.27%

4.22%

What starting hourly wage do you pay an entry-level cleaner?

Less than $8.00

$8.00 - $8.99

$9.00 - $9.99

$10.00 - $10.99

$11.00 - $11.99

$12.00-$12.99

$13.00 - $13.99

$14.00 - $14.99

More than$15.00

I don't haveemployees

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Less than $8.00

$8.00 - $8.99

$9.00 - $9.99

$10.00 - $10.99

$11.00 - $11.99

$12.00-$12.99

$13.00 - $13.99

$14.00 - $14.99

More than $15.00

2.95%

Total

I don't have employees

CMM 2015 BSC/Contract Cleaning Survey

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Page 29: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

55.70%

91.14%

15.61%

6.75%

What background checks do you use during the hiring process? Check all that apply.

Drug screening

Criminal record

Credit report

None

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Drug screening

Criminal record

Credit report

None

CMM 2015 BSC/Contract Cleaning Survey

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Page 30: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

60.76%

96.62%

59.07%

1.27%

What type(s) of training do you offer employees? Check all that apply.

Classroom

Hands on

Online/video

None

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Classroom

Hands on

Online/video

None

CMM 2015 BSC/Contract Cleaning Survey

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Page 31: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

97.47%

34.60%

15.19%

29.11%

Who provides training for your cleaning/front line staff?

In-housetrainers/sup...

Distributor/vendors

Third party

Onlinetraining...

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

In-house trainers/supervisors

Distributor/vendors

Third party

Online training options

CMM 2015 BSC/Contract Cleaning Survey

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Page 32: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

70.46%

54.01%

8.86%

37.97%

Which of the following workloading/assignment systems do you use in your

business? Check all that apply.

Team Cleaning

Zone Cleaning

Gang Cleaning

Combination/Hybrid System

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Team Cleaning

Zone Cleaning

Gang Cleaning

Combination/Hybrid System

CMM 2015 BSC/Contract Cleaning Survey

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Page 33: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

74.26%

21.52%

4.22%

Have you implemented day cleaning in your services?

Total

Yes

No

N/A

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Yes

No

N/A

CMM 2015 BSC/Contract Cleaning Survey

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Page 34: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

86.92%

45.15%

86.08%

17.30%

What type(s) of quality assurances do you implement in your business?

Check all that apply.

Taskchecklists...

Application/software for...

Observation/supervision

Analyticaldata...

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Task checklists/Cleaning schedule

Application/software for mobile devices

Observation/supervision

Analytical data from equipment

CMM 2015 BSC/Contract Cleaning Survey

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Page 35: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

75.11%

50.63%

35.86%

30.38%

19.41%

14.35%

What portable technology do your employees use for work purposes? Check all that apply.

Smartphones

Tablets

Workloading,inspection a...

Two-way radios

Equipment/assettracking

None

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Smartphones

Tablets

Workloading, inspection and schedule software

Two-way radios

Equipment/asset tracking

None

CMM 2015 BSC/Contract Cleaning Survey

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Page 36: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

81.43%

5.91%

5.06%

7.59%

How much control do you have over specifying brands and products utilized in your customers' facilities?

I havecomplete...

Client dictatesthe brands,...

Clientprovides a list

N/A

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

I have complete control over equipment and supplies.

Client dictates the brands, equipment and supplies I must use in their facilities.

Client provides a list of options for me to select which equipment and supplies I use in their facilities.

N/A

CMM 2015 BSC/Contract Cleaning Survey

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Page 37: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

82.70%

13.08%

21.52%

22.78%

39.66%

11.81%

11.81%

From whom do you purchase cleaning/maintenance products? Check all that apply.

Jan/san supplydistributor

Office supplydealer

Wholesaler

Industrialdistributor

Manufacturer(Direct)

Big boxretailer

Online retailer

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Jan/san supply distributor

Office supply dealer

Wholesaler

Industrial distributor

Manufacturer (Direct)

Big box retailer

Online retailer

CMM 2015 BSC/Contract Cleaning Survey

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Page 38: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

70.89%

11.81%

14.35%

20.68%

31.65%

7.17%

13.50%

When purchasing cleaning/maintenance products, from which of the following sources do you

purchase online? Check all that apply.

Jan/san supplydistributor

Office supplydealer

Wholesaler

Industrialdistributor

Manufacturer(Direct)

Big boxretailer

Online retailer

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Jan/san supply distributor

Office supply dealer

Wholesaler

Industrial distributor

Manufacturer (Direct)

Big box retailer

Online retailer

CMM 2015 BSC/Contract Cleaning Survey

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Page 39: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

88.61%

87.76%

86.92%

86.08%

84.39%

81.86%

81.43%

75.95%

74.26%

70.89%

68.78%

67.93%

65.82%

62.03%

50.63%

45.15%

34.18%

28.69%

28.69%

25.74%

22.36%

15.19%

14.35%

12.24%

Which of the following products are you responsible for purchasing? Check all that apply.

Answer Choices Responses

Cleaning supplies (mops, microfiber, carts, can liners)

Cleaners and disinfectants

Floor finish/coatings

Floor Pads/supplies

Carpet care equipment (including vacuums)

Carpet care chemicals

Hard floor care equipment

Employees' safety equipment

Paper products

Odor control products/chemicals

Uniforms/apparel

Hand soap/sanitizers

Restroom dispensers (paper, soap)

Batteries (equipment)

Bidding/estimating tools

Quality Assurance programs

Matting

Grounds care equipment

Ice and snow removal

Material handling equipment

Measurement equipment (infrared, ATP, IAQ, moisture)

Pest/bird control

Hand dryers

HVAC parts/equipment

CMM 2015 BSC/Contract Cleaning Survey

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Page 40: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

24.89%

42.19%

19.83%

11.81%

1.27%

Please tell us how your 2014 revenues compared with the previous year by completing this statement:

"Compared to 2013, my 2014 revenues were..."

Significantlyincreased

Somewhatincreased

Stable

Somewhatdecreased

Significantlydecreased

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Significantly increased

Somewhat increased

Stable

Somewhat decreased

Significantly decreased

CMM 2015 BSC/Contract Cleaning Survey

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Page 41: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

13.92%

20.25%

17.72%

14.35%

10.97%

22.78%

What was the biggest factor affecting revenues in the previous question?

Acquisition

Change inmarketing...

Diversifiedservices...

Morecompetition

Lost largecustomer

Economicfactors

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Acquisition

Change in marketing strategy

Diversified services offered

More competition

Lost large customer

Economic factors

CMM 2015 BSC/Contract Cleaning Survey

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Page 42: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

25.74%

48.95%

21.52%

2.11%

1.69%

Tell us your prediction for 2015 revenues by completing the statement:

"Compared to 2014, I expect 2015 revenues to..."

Increasesignificantly

Increase some

Remain stable

Decreasesignificantly

Decrease some

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

Increase significantly

Increase some

Remain stable

Decrease significantly

Decrease some

CMM 2015 BSC/Contract Cleaning Survey

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Page 43: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

26.16%

18.57%

16.03%

6.75%

14.77%

17.72%

Estimate the company's total gross revenue for 2014.

Less than$1,000,000

$1,000,000-$2,499,999

$5,000,000-$9,999,999

$10,000,000-$24,999,999

More than$25,000,000

Not sure/Do notwish tospecify

0%

10%

20%

30%

40%

50%

26.16%

18.57%16.03%

6.75%

14.77%17.72%

Answer Choices Responses

Less than $1,000,000

$1,000,000-$2,499,999

$5,000,000-$9,999,999

$10,000,000-$24,999,999

More than $25,000,000

Not sure/Do not wish to specify

CMM 2015 BSC/Contract Cleaning Survey

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Page 44: Breaking Down the Business of BSCs · they do business nationally or internationally. Many of the BSC survey respondents aren’t new to the marketplace either; most of them have

44.30%

66.24%

36.71%

27.43%

9.28%

28.27%

26.16%

14.77%

Which of the following organizations are you/your company affiliated with?

Check all that apply.

BSCAI

ISSA

BOMA

IFMA

APPA

IICRC

CMI

None

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Answer Choices Responses

BSCAI

ISSA

Building Owners and Managers Association (BOMA)

International Facility Management Association (IFMA)

APPA

IICRC

CMI

None

CMM 2015 BSC/Contract Cleaning Survey

©Copyright 2015 ISSA. Reprinted with permission from CM/Cleaning & Maintenance Management® magazine.For a free subscription to CM/Cleaning & Maintenance Management® magazine, visit www.cmmonline.com/subscribe