Employee retention, customer satisfaction, and tech adoption are among the top issues for commercial cleaning contractors going into 2024, according to a new survey.
Aspire Software, a ServiceTitan company, has released a report providing insight into the challenges and opportunities facing contractors across the commercial cleaning industry. These results highlight survey responses from more than 1,000 contractors nationwide.
“As an industry in expansion, many janitorial and commercial cleaning services are experiencing rapid growth, along with the challenges that come with building a business in a fluctuating financial landscape,” said Mark Tipton, CEO of Aspire Software. “In today’s environment, businesses must keep their fingers on the pulse of market conditions to stay ahead of the competition.”
Customer Satisfaction and Employee Retention Remain Core Focus Areas
Staffing is identified by 61% of contractors as a significant risk to achieving growth goals in 2024. With an ongoing skilled labor shortage affecting many subsets of the trades industry, recruitment and retention are top of mind for commercial cleaning contractors this year.
Fifty-four percent of survey respondents indicate hiring and employee retention as a primary goal, and 24% see it as a key investment area. Offering competitive salaries can help companies win the talent war against their competitors, which may be why 86% of businesses surveyed plan to raise wages this year.
Increasing revenue and enhancing customer satisfaction are also top priorities for commercial cleaning companies in 2024, and the majority (56%) see customer retention as a potential challenge in reaching their goals this year. For those surveyed, repeat business generates the most significant source of revenue (37%), while recurring/maintenance services comprise the most work (55%). Customer acquisition remains an essential objective for almost half of the businesses surveyed (49%).
Software Eases Supply Chain Burdens
Supply chain issues across the industry have caused delays and price increases affecting business operations. However, survey results indicate lead times may be plateauing or experiencing improvements. Nearly half of the contractors surveyed report stagnant lead times (49%) or improved lead times by one or more weeks (46%).
Still, commercial cleaning businesses of all sizes struggle to obtain vehicles (63%) and equipment (54%). More than half of respondents report price increases on materials and equipment by over 5%, and about a third report over a 10% increase.
Many commercial cleaning contractors use business management software to ease the burden of supply chain delays and rising costs by carefully tracking business health and workflow efficiency. Most respondents (62%) have enjoyed efficiencies and enhanced capabilities while using business management software. Those surveyed report leveraging software for various business functions, including invoicing (59%), scheduling (55%), accounting (54%), payment processing (53%), and business management (40%).
Tech Adoption and Digital Transformation Strengthen Margins
Staying at the edge of innovation and digital transformation is important to 70% of commercial cleaning contractors, and about half (46%) expect emerging technologies like robotics to revolutionize the industry in the coming years. Other emerging technologies contractors are betting on include business information modeling (27%), wearables (16%), data analytics (9%), and artificial intelligence (7%).
Technology can enable contractors to better integrate workflows and manage the entire business more effectively, giving them more time to focus on long-term strategies to reach 2024 goals. Most contractors surveyed (92%) currently use business applications, and 28% plan to invest in new software or technology in 2024.
Aspire Software’s full report is available here.