Industry Outlook Proves Optimistic According to BSCs

Contracting Profits magazine and BSCAI recently conducted a joint study on the building service contractor market. The goal of the survey was to identify market trends, new service offerings, and the overall health of the industry nationwide in 2023.

The outlook of the industry and BSCs for this year is generally optimistic as businesses continue to recover from the pandemic and people return to normal business operations. This return to pre-pandemic life has resulted in an increase in business for the commercial cleaning industry. Last year, 72 percent of BSCs reported an increase in their sales. Although sales seem to have leveled off as the year has progressed, BSCs are confident about their profits: 78 percent reported that they expect to either slightly or significantly increase their profits in 2023.

The transportation segment (airports/public transportation/airlines/ bus and rail stations) and retail segment (grocery stores/shopping malls/auto dealers/ department stores) are the segments that BSCs are targeting the most for growth: 76 percent are aiming to increase their presence in transportation. 71 percent are targeting growth in retail.

Targeted sectors align with 2023 business trends. Transportation is expected to increase as more people resume their commutes. Additionally, people are planning to travel more now that COVID-19 restrictions have been eased. As current stores bounce back from the pandemic and new stores open, more people are returning to shop and buy, and retail segments are expected to grow.

BSCs are expecting their profits to increase this year, but they are also taking into account the rising inflation and increased cost of living and thus are expecting increases in prices. 72 percent foresee cleaning cost and overall price increases for the client. However, 65 percent also expect the number of clients and customers to increase.

Another significant factor in this year’s findings involves the labor market. 77 percent of BSCs indicate concerns about finding reliable labor. Minimum wage and inflation will play a large part in this issue as BSCs continue to focus on recruiting and retaining talented employees.

Although BSCs are bracing for additional cost increases and have concerns about the labor market, overall, they are expecting growth.