The financial downturn has not been kind to anyone and now it has revealed that its latest victims could be cleaning services. Almost half of contract commercial cleaning businesses in Great Britain witnessed growth over the past year, despite the recession, but the good news did not last, because a third of office cleaners are considered ‘at risk,’ due to lax conditions. The industry research displayed that despite strengthening trading conditions in the private sector, continued investment in the public sector should relay to overall growth for the industry, only for short gain, the study suggested. The new report, from MTW Research on the UK contract cleaning market, found that 45% of cleaning groups saw growth over the past year. But the research adds that 30% of contract cleaning firms are considered ‘at risk’ late in the year, and highlights the growing problem of customer retention. The report states: “2009 is likely to be characterised by a decline in capital expenditure and spending on equipment coupled with a growing ‘squeeze’ on assets as sales revenues contract over the next 12-18 months. “Customer loyalty is becoming less prevalent and clients of contract cleaners are increasingly seeking more competitive prices before renewing contracts. “This growing trend in the market is driving price competition in a sector where volume demand is now declining as smaller and medium sized firms in particular are internalising certain cleaning duties, rather than outsourcing.” However, it adds that longer term predictions are more positive for the sector, with more optimistic growth forecasts by 2012 as the trade regains some fire in its belly after it was blown out in 2008 and 2009. Armed with dusters and not afraid to use them Despite the general doom and gloom surrounding the nation, and a third of cleaning firms suffering from the recession, the cleaning sector can survive the harsh economic times – if their price is right and is accessible to consumers. Andrew Large, chief executive of the Cleaning and Support Services Association said that if cleaning businesses sweep their mops right, then they could battle the recession. This is because, according to Large, companies seeking cleaners will look for cheaper contracts, thus changing suppliers. “There are many opportunities. There is still a lot of in-house cleaning in the financial services sector and the current down-turn for many institutions could force them to outsource as they search for more cost control. My discussions with many directors and chief executives of cleaning firms shows they are looking forward to the coming opportunities.” Large believes that if the Lloyds TSB takeover of Bradford & Bingley goes ahead there may well be some branch closures. “But many of these branches are prime high-street locations so other retailers will move in and need cleaning services.” However, small to medium size companies fear the down-turn the most, he said. “The danger is for a number of SMEs who could be asked by their financial sector clients why they should be using their services. These SME will have to fight hard to prove they offer value for money, especially as they may not have enough contracts from which to leverage experience and cost savings.” The sector can only wait and see what is in store in the future.