The recent report by IBIS World clearly points to the fact that there is an increase in demand for commercial cleaning in Australia. The increase in demand is prevalent for both bundled and multi-bundled services.
Let us have a look at the reasons for growth in commercial cleaning industry of Australia.
Outsourcing by Businesses and Government Departments
Business and government organisations are increasingly focusing on their core services. These entities want to outsource mundane and cost consuming tasks like cleaning to other companies. Commercial contracting companies realize the shift and understand the requirements for businesses and governments. Business organizations and government bodies in Australia know the cost efficiencies they can get by outsourcing the cleaning services. By acquiring the services of commercial cleaners they will not have to bear the cost of labour, equipment, and supplies.
Cleaning Offered as Allied Service
Many of the commercial cleaning companies are playing smart with their offerings. They are providing bundled services to their business clients, combining cleaning with other items. The bundling of commercial cleaning services in Australia helps business organisations get more services at a reduced cost. Similarly, the commercial cleaning service providers can take advantage of lowered costs because of bulk services offered. Typical services bundled with cleaning may include catering, security, and maintenance among others.
Increased Franchising Opportunities Available
Earlier entrepreneurs could only establish their own cleaning businesses. Now, they have the option to get a franchise from a big cleaning company.
There are a lot of risks involved in starting your own business. No one knows your brand. You struggle to target the right customers. There is no pre-built business model to follow. In case of a franchise, you do not need to worry about these things.
Most of the commercial cleaning service companies in Australia offering franchise have well-established brands and business models. They know their customers very well and can help you find the right approach towards entrepreneurial success.
Low Level of Market Concentration
The commercial cleaning companies have a relatively lower market concentration. An industry with a lower concentration of companies offers more growth opportunities. Therefore, commercial cleaning service companies in Australia can take advantage of this lower level of competition. Some companies are trying to build a dominant position within the commercial cleaning industry. However, thanks to the presence of small business organisations in the commercial cleaning arena, the industry will remain fragmented, offering a lot of options to customers.
There is a lot of potential within the commercial cleaning space of the country. Business organisations are increasingly becoming smart with their product and service offering. The overall market trends show poised growth and stability for the foreseeable future.