This study analyzes the US commercial and residential cleaning service industry. Cleaning services encompass all contract (non-proprietary) establishments engaged in the cleaning of building interiors, including residential maid services; floors, fabrics and surfaces, including carpet and upholstery cleaning, hard surface floor cleaning, drapery and blind cleaning, wall and ceiling cleaning; restoration and remediation services; exterior building cleaning services such as window cleaning, powerwashing and parking lot cleaning; swimming pool cleaning and maintenance; and other specialty cleaning services, including transportation interior cleaning and pet waste removal. Excluded are services conducted by an in-house staff and other building maintenance services such as landscaping, pest control, restroom deodorizing and maintenance, building systems cleaning and security.

INTRODUCTION xi

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4
General 4
Macroeconomic Environment 4
Demographic Trends 7
Employment Outlook 10
Consumer Spending Trends 12
Building Construction Trends 14
Residential 15
Housing Outlook 18
Nonresidential 20
Construction Stock 22
Business Formation Trends 25
Business Establishment Trends 27
Nonresidential Floor Space Trends 29
Service Sector Trends 31
Regulatory Trends & Issues 33
Privacy Laws 34
Indoor Air Quality 34
Chemical Regulations 35
Other Worker Safety Regulations 36
Training & Licensing Regulations 37
FTC Franchise Rule 38
Others 39
International Environment 39

III. SERVICES 42
General 42
Revenues by Service & Market 42
Establishment & Employment Trends 45
Interior Building Cleaning Services 47
Industry Characteristics 49
Nonresidential Interior Building Cleaning Services 51
Business Type 52
Building Type 53
Residential Interior Cleaning Services 55
Business Type 57
Franchises & Corporations 58
Individual Proprietorships 60
Establishment & Employment Trends 62
Market Share 65
Jani-King 66
COVERALL CLEANING CONCEPTS 67
Other Leaders 67
Floor, Fabric & Surface Cleaning 68
Carpet & Upholstery Cleaning 71
Industry Characteristics 73
Revenues by Type 74
Revenues by Market 75
Establishment & Employment Trends 76
Other Floor, Fabric & Surface Cleaning 79
Industry Characteristics 80
Establishment & Employment Trends 82
Market Share 84
Chem-Dry 85
Heaven’s Best 86
Other Leaders 86
Exterior Building Cleaning & Maintenance 87
Street & Parking Lot Cleaning & Maintenance 88
Window Cleaning 90
All Other Exterior Building Services 91
Establishment & Employment Trends 92
Swimming Pool Cleaning & Maintenance 93
Industry Characteristics 94
Establishment & Employment Trends 95
Restoration & Remediation Services 96
Industry Characteristics 98
Establishment & Employment Trends 100
Other Commercial & Residential Cleaning Services 102
Transportation Equipment Cleaning 104
Pet Waste Removal 106
All Other Cleaning Services 106
Establishment & Employment Trends 107

IV. MARKETS 109
General 109
Institutional 111
Office 114
Residential 117
Maid Services 119
Floors, Fabrics & Surfaces 119
Exterior Buildings 120
Swimming Pools 120
Restoration & Remediation 121
Other Cleaning Services 121
Commercial 122
Industrial 124
Other Markets 127

V. REGIONS 132
General 132
Regional Demographic & Economic Trends 132
Population Patterns 133
Economic Outlook 135
Nonresidential Floor Space 136
Housing Outlook 138
Regional Cleaning Service Revenues 140
Regional Market Profile 142
Northeast 144
Revenues by Type 147
Revenues by Subregion & Market 148
New England 150
Middle Atlantic 151
Markets 152
Midwest 153
Revenues by Type 154
Revenues by Subregion & Market 155
East North Central 157
West North Central 158
Markets 159
South 160
Revenues by Type 161
Revenues by Subregion & Market 163
South Atlantic 164
East South Central 166
West South Central 166
Markets 168
West 168
Revenues by Type 170
Revenues by Subregion & Market 172
Mountain 173
Pacific 174
Markets 175

VI. INDUSTRY STRUCTURE 176
General 176
Industry Composition 177
Market Share 181
Jani-King 182
COVERALL CLEANING CONCEPTS 183
JAN-PRO 184
ServiceMaster 184
CleanNet USA 184
Chem-Dry 185
ABM Industries 185
Other Leaders 186
Competitive Strategies 186
Franchising 190
Outsourcing 196
Marketing 197
Mergers & Acquisitions 199
Cooperative Agreements 204
Company Profiles 207
ABM Industries Incorporated 208
Anago Franchising Incorporated 210
ARAMARK Corporation 211
BB Holdings Limited 212
Bonus of America Incorporated 213
Carlisle Holdings Limited, see BB Holdings
Chem-Dry, see Home Depot
Clean First Time Incorporated 214
CleanNet USA Incorporated 215
Compass Group plc 216
Coverall North America Incorporated 217
Crothall Services Group Incorporated, see Compass Group
Davis (Paul) Restoration Incorporated 219
Daystar-USM Exterior Services, see Transfield Services
Diversco Holdings Incorporated 220
Duraclean International Incorporated 221
Dussmann AG & Company KGaA 222
Dwyer Group Incorporated 223
Fish Window Cleaning Services Incorporated 224
Grout Doctor Global Franchise Corporation 225
Harris Research Incorporated, see Home Depot
Harvard Maintenance Incorporated 225
Healthcare Services Group Incorporated 226
Heaven’s Best Carpet Cleaning 228
Home Depot Incorporated 229
Horizon National Contract Services LLC 230
InStar Services Group Incorporated, see ServiceMaster
JAN-PRO Franchising International Incorporated 231
Jani-King International Incorporated 232
Maid to Perfection Corporation 234
Maids Home Services, see Maids International
Maids International Incorporated 235
Merry Maids LP, see ServiceMaster
Milliken & Company 236
Molly Maid Incorporated 237
MPW Industrial Services Group Incorporated 238
OneSource Services Incorporated 239
Outsource Partners Incorporated 240
Pet Butler Franchise Services Incorporated 241
Pride Industries Incorporated 242
Rainbow International Restoration and Cleaning, see Dwyer Group
Sanitors Incorporated 243
ServiceMaster Company 244
Servpro Industries Incorporated 246
Sodexho Alliance SA 247
Stanley Steemer International Incorporated 248
Steamatic Incorporated 249
Temco Service Industries Incorporated 250
Transfield Services Limited 251
Triangle Services Incorporated 253
UNICCO Service Company 254
US Maintenance, see Transfield Services
USM Interior Services, see Transfield Services
Other Companies Mentioned in Study 256

LIST OF TABLES
TABLE NUMBER PAGE
SECTION I -- EXECUTIVE SUMMARY
Summary Table 3

SECTION II -- MARKET ENVIRONMENT
1 Macroeconomic Outlook 7
2 Resident Population 10
3 Civilian Labor Force & Unemployment Rate 12
4 Personal Income & Expenditures 14
5 Building Construction Expenditures 15
6 Residential Building Construction Expenditures 17
7 Households & Housing Stock 19
8 Nonresidential Building Construction Expenditures 22
9 Construction Stock 25
10 Business Establishments 29
11 Nonresidential Floor Space 30
12 Service Income 33

SECTION III -- SERVICES
1 Commercial & Residential Cleaning Service Revenues by Type & Market 44
2 Commercial & Residential Cleaning Service Establishments & Employment 46
3 Interior Building Cleaning Service Revenues by Business Type & Market 49
4 Nonresidential Interior Building Cleaning Service Revenues by Business & Building Type 52
5 Residential Interior Building Cleaning Service Revenues by Business Type 57
6 Revenues for Interior Building Cleaning Service Franchises & Corporations 60
7 Revenues for Interior Building Cleaning Service Individual Proprietorships 62
8 Interior Building Cleaning Service Establishments & Employment 65
9 Floor, Fabric & Surface Cleaning Service Revenues, Establishments & Employment 70
10 Carpet & Upholstery Cleaning Service Revenues by Type & Market 72
11 Carpet & Upholstery Cleaning Service Establishments & Employment 78
12 Other Floor, Fabric & Surface Cleaning Service Revenues by Market 80
13 Other Floor, Fabric & Surface Cleaning Service Establishments & Employment 83
14 Exterior Building Cleaning Service Revenues by Type & Market 88
15 Exterior Building Cleaning Service Establishments & Employment 92
16 Swimming Pool Cleaning & Maintenance Service Revenues by Market 94
17 Swimming Pool Cleaning & Maintenance Establishments & Employment 96
18 Restoration & Remediation Service Revenues by Market 98
19 Restoration & Remediation Service Establishments & Employment 102
20 Other Commercial & Residential Cleaning Service Revenues by Type & Market 104
21 Other Commercial & Residential Cleaning Service Establishments & Employment 108

SECTION IV -- MARKETS
1 Commercial & Residential Cleaning Service Revenues by Market 110
2 Institutional Building Cleaning Service Revenues by Type 114
3 Office Building Cleaning Service Revenues by Type 116
4 Residential Cleaning Service Revenues by Type 118
5 Commercial Building Cleaning Service Revenues by Type 124
6 Industrial Building Cleaning Service Revenues by Type 127
7 Other Markets Cleaning Service Revenues by Type & Market 131
1 Resident Population by Region 134
2 Gross Domestic Product by Region 136
3 Nonresidential Floor Space by Region 138
4 Existing Home Sales & Housing Stock by Region 140
5 Commercial & Residential Cleaning Service Revenues
by Region 141
6 Regional Commercial & Residential Cleaning Service
Market Profile, 2006 144
7 Northeast Cleaning Service Revenues by Type 147
8 Northeast Cleaning Service Revenues by Subregion & Market 150
9 Midwest Cleaning Service Revenues by Type 154
10 Midwest Cleaning Service Revenues by Subregion & Market 157
11 South Cleaning Service Revenues by Type 161
12 South Cleaning Service Revenues by Subregion & Market 164
13 West Cleaning Service Revenues by Type 170
14 West Cleaning Service Revenues by Subregion & Market 173

SECTION VI -- INDUSTRY STRUCTURE
1 Revenues for Selected Cleaning Service Companies, 2006 179
2 Selected Cleaning Service Franchises 194
3 Selected Acquisitions & Divestitures 203
4 Selected Cooperative Agreements 206

LIST OF CHARTS

CHART NUMBER PAGE

SECTION II -- MARKET ENVIRONMENT
1 Year of Construction of Housing Stock, 2006 19
2 US Business Formations & Dissolutions, 1989-2003 27

SECTION III -- SERVICES
1 Commercial & Residential Cleaning Service Revenues
by Type, 2006 45
2 Interior Building Cleaning Market Share, 2006 66
3 Floor, Fabric & Surface Cleaning Market Share, 2006 85

SECTION IV -- MARKETS
1 Commercial & Residential Cleaning Service Revenues
by Market, 2006 111

SECTION V -- REGIONS
1 Commercial & Residential Cleaning Service Revenues
by Region, 2006 142

SECTION VI -- INDUSTRY STRUCTURE
1 Commercial & Residential Cleaning Service
Market Share, 2006 182