THE PURCHASING HABITS AND MARKET GROWTH FOR BUILDING SERVICE CONTRACTORS
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1 JUNE 2017 THE PURCHASING HABITS AND MARKET GROWTH FOR BUILDING SERVICE CONTRACTORS Results of a Joint Study Conducted by
2 Introduction & Methodology OBJECTIVE: This survey was designed to target the purchasing habits and market growth of building service contractors (BSCs) nationwide in SAMPLE: The survey sample was selected from subscribers to Contracting Profits magazine (Building service contractors/professional cleaning contractor executives) and Building Service Contractors Association International database with valid addresses collected from Contracting Profits magazine and BSCAI. Only BSC/Professional Cleaning Contractors were selected. METHOD: Recipients were sent an asking them to participate in this study. The included a URL linked to the online questionnaire. DATA COLLECTED: March, through April 12, 2017 NUMBER OF RESPONDENTS: 224 participants MARGIN OF ERROR: ±6.52 percent at the 95 percent confidence level About Us CONTRACTING PROFITS: Contracting Profits reaches over 20,000 building service contractors. The magazine provides a variety of solutions for business challenges like legislative updates, technology, and infection control, as well as covers the latest cleaning trends. This content and much more are also featured on its website CleanLink.com. BSCAI: BSCAI represents a worldwide network of more than 1,000 member companies from across the United States and 15 countries worldwide that provide cleaning, facility maintenance, security, landscaping and other related services to building owners and managers. PAGE 1
3 Survey Results Please indicate which of the following products you have bought/or will buy in What market area do you service? Local 63% Regional (more than one state) 21% Statewide 12% National 3% International 1% What percentage of your cleaning products and equipment are purchased through the following sources? Avg. Sanitary supply distributor 64% Direct from the manufacturer 12% Retail store 10% Warehouse wholesale club 9% E-tailer (for example Amazon Business) 5% Brooms and Brushes 87% Can Liners 84% Carpet Care Chemicals 85% Carpet Extractors 57% Cleaning Carts 55% Cleaners and Degreasers 93% Disinfectants and Sanitizers 85% Engineered Water Devices 13% Floor Care Chemicals 88% Floor Equipment 67% Floor Pads and Brushes 81% Hand Dryers 12% Hand Sanitizers 49% Hand Soap 71% Ice Melt Products 26% Machine/Equipment Batteries 46% Matting 27% Microfi ber Cloths 79% Mops and Mopping Equipment 83% Odor Control Products 69% Paper Towel and Tissues 72% Pest Control Products 13% Restroom Cleaning Machines 38% Safety Signage/Floor Cones 55% Soap and Paper Dispensers 52% Software (bidding and estimating, inspection, timekeeping, etc.) 31% Squeegees 68% Vacuums 77% Waste Handling Equipment (receptacles/carts, not liners) 45% Wet Wipes 44% PAGE 2
4 Please indicate who specifies the brands of the following products in a majority of the buildings you clean. Your Company Your Customer Brooms and Brushes 96% 4% Can Liners 71% 29% Carpet Care Chemicals 95% 5% Carpet Extractors 96% 4% Cleaning Carts 97% 3% Cleaners and Degreasers 92% 8% Disinfectants and Sanitizers 90% 10% Engineered Water Devices 61% 39% Floor Care Chemicals 94% 6% Floor Equipment 97% 3% Floor Pads and Brushes 97% 3% Hand Dryers 32% 68% Hand Sanitizers 52% 48% Hand Soap 59% 41% Ice Melt Products 46% 54% Machine/Equipment Batteries 84% 16% Matting 38% 62% Microfi ber Cloths 98% 2% Mops and Mopping Equipment 97% 3% Odor Control Products 71% 29% Paper Towel and Tissues 54% 46% Pest Control Products 36% 64% Restroom Cleaning Machines 87% 13% Safety Signage/Floor Cones 88% 12% Soap and Paper Dispensers 43% 57% Software (bidding and estimating, inspection, timekeeping, etc.) 92% 8% Squeegees 97% 3% Vacuums 97% 3% Waste Handling Equipment (receptacles/carts, not liners) 60% 40% Wet Wipes 74% 26% In the next 12 months, you expect business conditions to: Profits in 2016 were: 40% 18% Significantly higher than 2015 Improve 75% Stay the same 23% Decline 2% Slightly higher than % 17% 5% The same as 2015 Slightly lower than 2015 Significantly lower than 2015 PAGE 3
5 Survey Results Which special services do you currently provide or plan to provide this year? Carpet Cleaning 90% Composting Services 4% Drapery/Upholstery Cleaning 36% Fire/Water Restoration 19% Floor Finish Stripping/Application 85% General Building Maintenance (relamping, painting, plant watering, etc.) 31% Graffi ti Removal 34% Grounds Care 19% Light Bulb Disposal 11% Mold Remediation Services 19% Pest Control 7% Recycling Services 22% Snow/Ice Removal 13% Stone/Marble/Tile Care 51% Window Cleaning 74% Wood Floor Care 44% You expect profits in 2017 to be: Significantly higher than % Slightly higher than % The same as % Slightly lower than % Significantly lower than % What market segments are you strong in now? And which ones are you targeting for growth in the next 12 months? Market Segments Strong in now Target for growth Commercial (office buildings/property management firms) 71% 34% Healthcare (hospitals/nursing homes/clinics/medical/dental offi ces) 36% 42% Industrial (manufacturing plants/food processing/utilities/warehouses) 32% 37% Educational (schools/colleges/universities) 24% 46% Religious (churches/convents/etc., EXCLUDING hospitals and schools) 23% 31% Government (municipal/county/state/federal) 18% 43% Restaurants/Clubs (stand-alone/country clubs) 11% 25% Retail (grocery stores/shopping malls/auto dealers/department stores/misc. retail) 11% 36% Transportation (airports/public transit/airlines/bus and rail stations) 8% 37% Recreation (sports stadiums/health clubs/movie theaters/casinos/bowling alleys) 7% 34% PAGE 4
6 What is most important to your customers? A clean appearance 45% A healthy and sanitary environment for building occupants 30% A low price for cleaning 20% An environmentally-friendly (green) cleaning program 5% In the next 12 months, you expect cleaning frequencies to: Improve 40% Stay the same 53% Decline 7% Do you plan on acquiring a cleaning company in the next 12 months? Yes 15% No 85% What legislative issues are most concerning to you? Minimum Wage Increases 45% Healthcare Reform 33% Immigration 16% Worker Classifi cation 6% PAGE 5
7 Survey Results 81% of BSCs plan to add staff positions in the next 12 months What percentage of products (based on sales) do you purchase online from a distributor? 0% 25% 1% to 5% 21% 6% to 10% 14% 11% to 25% 9% 26% to 50% 8% 51% to 75% 8% 76% to 99% 13% 100% 2% What are the largest technology challenges that you face? Quality assurance 26% HR applicant tracking 22% Remote timekeeping/attendance 19% Accounting/finance 15% Workloading 7% Payroll 6% Procurement/purchasing 4% Fleet management 1% PAGE 6
8 Notes: PAGE 7
9 Notes: PAGE 8
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11 2100 West Florist Avenue, Milwaukee, WI WI
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