Russian cleaning industry optimistic for the future

28th of November 2011
Russian cleaning industry optimistic for the future

Oleg Popov from Cristanval cleaning company in Russia is confident about the sector's growth prospects.

Prior to the stalled financial situation of 2009, the cleaning industry in Russia enjoyed strong growth of 30-40 per cent per annum. For the most part, growth was due to services at newly constructed facilities which had been commissioned: shopping centres, business establishments, medical facilities and airports.

During the crisis Russian cleaning enterprises not only managed to survive, but successfully expanded sales growth, mainly on account of services provided at facilities where long term contracts had been secured. A good example would be Cristanval itself, which had a growth in gross revenue of 30 per cent during 2009 compared to the previous year of a relatively 'non-crisis' environment.

The Department of Economical Development of the Russian Federation developmental predictions can be explained as follows: since attempts to restore a business in crisis will most likely exhaust resources for growth potential, such a revival of a failing business boils down to the clever use of investment structuring. Hence, beginning in 2011, investments into projects related to infrastructure spiked noticeably. Currently, in preparation for the Olympics, many magnificent Olympic venues are being built in Sochi and nearly every one of them requires an infrastructure to accommodate its needs.

A second large construction site on Russian soil is the location of the APEC Russia 2012 Summit in Vladivostok, where leaders from member economies will meet on Russky Island, off the coast of the Russian mainland. This will be the first time Russia plays host to a summit for the leaders of Asian-Pacific countries.

Kazan is hosting the World University Games. Sixty-four venues will be used for events, and the largest ones are under construction now. And the 2018 FIFA World Cup is scheduled to be held in Russia, across 13 host cities.

The main news of 2011 is about the capital city - a plan to expand the administrative borders of Moscow. It will grow through adding large territories which are currently attached to the western and southwestern borders. Some governmental administrative departments will relocate to new buildings erected in new territories, which will eventually also become residential districts filled with business centres, shopping plazas, schools, etc.

Taking into consideration all these factors, the growth of the cleaning industry is inevitable. My expectation is that minimal growth will be in the range of 30-40 per cent per year for between five to seven years. However, companies capable of offering professional cleaning services for a building with a complex set-up are limited in number.

In essence, that means the most professional and efficient companies will win a solid competitive edge, and will use this advantage to lay a foundation which should last for 10 years or so. The leaders in the sector will reinforce their positions, and the gap between them and mid-sized companies will become even more evident.


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