Commercial Cleaning Services Market In New Zealand And Australia: COVID-19’s Effects

This article will focus on the current cleaning services market, its size, expected dip, or growth globally and locally. It is also essential to discuss COVID-19's effects on the current commercial cleaning services.

Let's first discuss what cleaning services comprise. It's generally an umbrella term that includes a wide range of services required by the commercial and residential sectors.

This term includes floor cleaning, window cleaning, carpet & upholstery cleaning, and more. Such services have also gained popularity due to various factors such as growth in construction activities, number of working women, etc.

According to IBIS World, in New Zealand, there are 5,391 businesses, industry employment of 26,500, and a current market size of $2 billion.

The companies holding the largest market share in the Commercial Cleaning Services in the New Zealand industry include Downer EDI Limited and OCS Group NZ Limited.

The Commercial Cleaning Services' average industry growth from 2015 to 2020 is 4.9%. This growth came at a mixed pace over the past five years.

With more government agencies, commercial businesses, institutions, and households requiring more significant volumes of cleaning services, increased demand from such an expanding client base is expected to drive further industry expansion.

Although there was flat industry growth in 2017 and 2018 and COVID-19'S apparent adverse effects, this growth is still expected.

There will be an increase in the number of industry participants contributing to the greater supply of cleaning services over the period. This increase shall result in higher profit margins and substantial industry revenue growth.

With New Zealand announcing its 1st COVID-19 Lockdown in February after six months and Auckland slowly moving to alert level 2, there can be effects on the commercial cleaning services market.

For New Zealand’s neighbor Australia, the COVID-19 pandemic has hindered industry demand and caused revenue declines in the past five years. According to a recent market analysis report, Australia’s industry revenue is projected to have declined by 6.6% in 2019-20.

This is mainly due to government departments, businesses, and other industry clients cancelling or reducing cleaning services in response to COVID-19.

Although most of Australia is expected to ease lockdown and quarantine restrictions in the following years, as cleaning demand remains weak as the number of clients continue to fall, revenue is projected to decline by 2.0%.

Hospitals and other medical services, supermarkets, and other businesses and essential services expected to remain open during the pandemic will greatly increase demand for cleaning services.

Furthermore, as businesses and other entities return to normal practices in the following years, industry demand and revenue is forecast to return. In the next five years, from 2020 to 2025, the Commercial Cleaning Services industry is forecast to benefit from an economic recovery from COVID-19.

Various businesses will increase outsourcing of cleaning functions with a number of total employees projected to grow over the period.

In the US, as all over the world, people started paying more attention to cleanliness and the need to disinfect exposed surfaces when COVID-19 hit.

Julia Pollock, who works as a labor economist at ZipRecruiter, says, "There's been a huge spike in demand for cleaning workers."

These services are indeed in demand as facility managers, retailers, and hotel chains continue to take cleanliness seriously.

As Kapur says, "If you run a commercial cleaning company, you should know that the uptick in business may well become a permanent feature." Why? Because coronavirus shall continue to become a threat.

The commercial cleaning services industry was already growing at a steady pace before COVID-19. Still, with its threat continuing to loom over the world, cleaning companies can expect to grow their businesses for years.

At Premium Cleaning Services, we ensure that your homes are always safe despite COVID-19's continuous threat.

About Premium Clean

Originating in New Zealand since 2015, Premium Clean is a cleaning company that has completed more than 30,000 cleaning jobs and has continuously operated in more than nine cities.

As a Kiwi-owned company, 'clean and green' is their thrust, even applying this as they touch every corner of your space. They have also adopted the use of technology to save their customers' time and deliver consistent service.

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