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Contract cleaning becomes specialised2nd of May 2013
A new report on the UK contract cleaning market suggests that many companies are successfully enhancing their specialist service offering in order to offset margin erosion.
The report, by MTW Research, also identifies an increasing number of contractors easing pricing pressure by offering services which are more closely aligned with the client’s corporate objectives.
It also discusses the part the contract cleaning industry has played in successfully reducing MRSA cases by 85 per cent, but also notes that viral infections will continue to drive demand for high quality cleaning in the longer term.
The research finds that margin erosion has grown in recent years, with the overall industry’s level of profitability experiencing erratic performance during the last two recessions. Debt has risen by 1.9 billion euros in the last six years according to the report, with borrowing now standing at more than 100 per cent of total industry revenue in 2013.
Discussing the impact on product and equipment suppliers MTW director Mark Waddy said: "The contract cleaning industry is highly leveraged at present and this continues to dampen capital expenditure and sales of new cleaning equipment. However liquidity is increasing throughout much of the sector with spending on new or more specialist equipment likely to grow in the near term as contractors look to enhance their service and efficiency levels in order to offset the impact of pricing pressure."
The UK contract cleaning market report is available to purchase: