Who Owns Whom

The Contract Cleaning Industry in South Africa

The Contract Cleaning Industry in South Africa 2022

Yasmin Mahomedy | South Africa | 19 July 2022

The Contract Cleaning Industry in South Africa 2020

Louise Mitchell | South Africa | 18 March 2020

The Contract Cleaning Industry in South Africa 2017

Louise Mitchell | South Africa | 27 July 2017

The Contract Cleaning Industry in South Africa 2014

Gareth Barnard | South Africa | 29 October 2014

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Report Coverage

This report on the contract cleaning industry in South Africa and includes information on key factors influencing the sector including office vacancies, the state of the property market and environmental issues, notable players and developments. There are profiles of 27 companies including Bidvest Services, Excellerate, Tsebo Solutions, Supercare, Servest, SweepSouth and SkitterBlink, and specialist cleaning companies such as NAS Colossal Aviation Services.

Introduction

• While the pandemic heightened the focus on cleanliness and hygiene, the contract cleaning services industry was affected by the significant decline in demand for office rental space as people worked remotely.
• Many companies vacated their offices for an extended period, had to downsize or even close over the past two years.
• The industry is slowly recovering, but revenue has not returned to pre-pandemic levels.
• Companies are increasingly moving towards sustainability, using environmentally-friendly products that reduce their impact on air quality and the general environment.
• Cleaning companies are expanding their services and investing in new technologies to improve quality and efficiency.

Strengths

• Cleaning services skills are included in the skills development plan of the Services Sector Education and Training Authority.
• Low barriers to entry encourage competition.
• The industry creates employment, especially for young people, and the unskilled as training is provided.

Weaknesses

• Lack of best practice among companies that are not National Contract Cleaners Association members.
• No proper enforcement of legislation and regulation by some companies.
• Workers are often exploited by informal operators.

Opportunities

• Smart technology to help save costs.
• Technology such as online platforms facilitates expansion and job opportunities.

Threats

• Advancements in technology and increased use of remotely-operated cleaning equipment might mean fewer employees required in the future.
• Cleaning companies are water-sensitive and the drought in some areas affects service delivery and revenue.
• Continued weakening economy could lead to reductions in current and potential cleaning contracts.
• High office vacancy rates and decline in construction activity will constrain growth in the sector.
• Increasing operating costs.
• Unreliable power supply.

Outlook

• The outlook is mixed, with some companies reporting that they are struggling and others indicating they are busy.
• The return to workplaces means increased demand for regularly cleaning.
• Industry associations said the industry is still recovering, and it is unclear how long it will take to reach pre-pandemic revenue growth.
• Some universities that previously insourced cleaning staff, are now outsourcing again, which offers growth opportunities.
• There are few to no barriers to entry in the cleaning industry, but the increase in new entrants poses a challenge of non-compliance with quality standards and legislation.
• While the global contract cleaning industry is seeing an increase in the use of automation, artificial intelligence, and robotics, South African companies are not readily adopting these technologies due to the need to create and preserve jobs by keeping the industry labour intensive.

Read More..
The Contract Cleaning Industry in South Africa
The Contract Cleaning Industry in South Africa 2022

Full Report

R 9 500.00(ZAR) estimated $515.21 (USD)*

Industry Landscape

R 6 650.00(ZAR) estimated $ 360.65 (USD)*

Historical Reports

The Contract Cleaning Industry in South Africa 2020-03-18

R 1 900.00(ZAR) estimated $103.04 (USD)*

View Report Add to Cart

The Contract Cleaning Industry in South Africa 2017-07-27

R 1 900.00(ZAR) estimated $103.04 (USD)*

View Report Add to Cart

The Contract Cleaning Industry in South Africa 2014-10-29

R 1 900.00(ZAR) estimated $103.04 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 4
2.2. Geographic Position 5
2.3. Size of the Industry 6
2.4. Key Success Factors and Pain Points 6
3. LOCAL 7
3.1. State of the Industry 7
3.2. Key Trends 8
3.3. Notable Players 8
3.4. Corporate Actions 9
3.5. Regulations 10
3.6. Enterprise Development and Social Economic Development 11
4. AFRICA 13
5. INTERNATIONAL 14
6. INFLUENCING FACTORS 15
6.1. COVID-19 15
6.2. Economic Environment 16
6.3. Input Costs 16
6.4. Corruption 17
6.5. Labour 18
6.6. Environmental Issues 22
6.7. Electricity and Water Supply Constraints 22
6.8. Technology, Research and Development (R&D) and Innovation 23
7. COMPETITIVE ENVIRONMENT 24
7.1. Competition 24
7.2. Ownership Structure of the Industry 25
7.3. Barriers to Entry 25
8. SWOT ANALYSIS 25
9. OUTLOOK 26
10. INDUSTRY ASSOCIATIONS 27
11. REFERENCES 27
11.1. Publications 27
11.2. Websites 27
APPENDIX 1 29
Summary of Notable Players 29
COMPANY PROFILES 35
African Corporate Cleaning (Pty) Ltd 35
AfriServ (Pty) Ltd 37
Bidvest Services (Pty) Ltd 39
Bontiware (Pty) Ltd 42
Cleaning Africa Services (Pty) Ltd 43
Danic Pest Control and Cleaning CC 45
Excellerate Services (Pty) Ltd 47
Guardian Angel Security (Pty) Ltd 50
Industrial Waste and Environmental Services (Pty) Ltd 51
M M A Security Services (Pty) Ltd 53
Meondo Holdings (Pty) Ltd 55
Metro Sanitary Solutions CC 57
NAS Colossal Aviation Services (Pty) Ltd 59
Red Alert TSS (Pty) Ltd 62
Rentokil Initial (Pty) Ltd 65
S A Cleaning Services (Pty) Ltd 68
Servest (Pty) Ltd 70
Skitterblink Cleaning Services (Pty) Ltd 74
Specialists Franchise Group (Pty) Ltd (The) 76
Suburban Services (Pty) Ltd 79
Supercare Hygiene (Pty) Ltd 81
Supercare Services Group (Pty) Ltd 83
Sweep South (Pty) Ltd 85
Teloc Waste Management (Pty) Ltd 86
TMS Group Industrial Services (Pty) Ltd 88
Tsebo Solutions Group (Pty) Ltd 90
Waco Africa (Pty) Ltd 94

Report Coverage

This report on the Contract Cleaning Industry includes information on the state and size of the industry, the major players and the factors that influence the sector. There are profiles of 27 companies including major players such as Bidvest Services, which owns Bidvest Prestige, Supercare Services and Supercare Hygiene, which are owned by the Empact Group, and Servest. Other companies profiled include SweepSouth, in which Naspers Foundry invested R30m, and Tsebo Solutions, which is in 23 African countries servicing industries from mining and industrial to corporate, healthcare and leisure.

Introduction

This report focuses on the contract cleaning industry which plays an important role in job creation in South Africa. The sector is a sub-sector of the finance, real estate and business services economic sector which contributed 20.8% (R656.9bn) to GDP in Q3 2019. It is estimated that the contract cleaning sub-sector contributed about 0.8% to GDP in Q3 2019. Due to the informal nature of cleaning businesses the majority of workers in the contract cleaning sector are employed to perform work under fixed-term commercial contracts which is a source of labour conflict.

Strengths

• Cleaning services skills are included in the skills development plan of the Services Sector Education and Training Authority
• Low barriers to entry encourages competition.
• Potential to create employment especially for the youth and women.
• Proficient industry association with international ties through the International Sanitary Supply Association.
• Strong local players.

Weaknesses

• Lack of best practice among non-National Contract Cleaners Association members.
• Lack of skilled supervisors and specialised cleaning skills.
• Legislation and regulation are often ignored by employers in the sector and there is weak enforcement of statutory provisions.
• Perceived non-decent working conditions in certain sub-sectors.
• Workers are often exploited and there is a lack of job security.

Opportunities

• Growth and development in retail property in South Africa and the rest of Africa.
• Innovation in smart technology for equipment can lead to greater efficiencies.
• Online technology enables participation in the sharing economy which can create job opportunities.
• The domestic market is large but predominantly informal presenting potential for expansion.

Threats

• A weakening economy could lead to reductions in current and potential cleaning contracts.
• Cleaning companies are water-sensitive and the drought is impacting on performance, service delivery and revenues.
• HIV/Aids is weakening the workforce.
• Increasing costs, including labour, threaten viable margins.
• Substitutes such as remotely operated cleaning equipment and advances in cleaning materials might make employees redundant in future
• The decrease in construction activity and office occupancy rates will constrain growth in the sector.

Outlook

Technology and product innovation is expected to continue to develop, with a greater focus on water- and electricity-saving floor equipment and more environmentally-friendly products. Industry participants expect the sector to be affected by the low economic growth that will impact job creation and the improvement of the welfare of employees from poor families. A positive force is expected to come from commercial and industrial customers’ need to provide clean and safe work environments, and they are expected to outsource cleaning functions in order to benefit from savings derived from administrative and labour costs. Domestic contract cleaning is not expected to show growth while the economic environment puts pressure on the disposable income of households.

Read More..
The Contract Cleaning Industry in South Africa
The Contract Cleaning Industry in South Africa 2020

Full Report

R 1 900.00(ZAR) estimated $103.04 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.13 (USD)*

Historical Reports

The Contract Cleaning Industry in South Africa 2022-07-19

R 9 500.00(ZAR) estimated $515.21 (USD)*

View Report Add to Cart

The Contract Cleaning Industry in South Africa 2017-07-27

R 1 900.00(ZAR) estimated $103.04 (USD)*

View Report Add to Cart

The Contract Cleaning Industry in South Africa 2014-10-29

R 1 900.00(ZAR) estimated $103.04 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 4
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 6
4.1. Local 6
4.1.1. Corporate Actions 8
4.1.2. Regulations 8
4.1.3. Enterprise Development and Socio-Economic Development 10
4.2. Continental 11
4.3. International 12
5. INFLUENCING FACTORS 14
5.1. Economic Environment 14
5.2. Input Costs 15
5.3. Technology, Research and Development (R&D) and Innovation 15
5.4. Labour 16
5.5. Environmental Concerns 20
5.6. Standards and Compliance 21
5.7. Electricity and Water Supply Constraints 22
6. COMPETITION 23
6.1. Barriers to Entry 23
7. SWOT ANALYSIS 24
8. OUTLOOK 25
9. INDUSTRY ASSOCIATIONS 25
10. REFERENCES 26
10.1. Publications 26
10.2. Websites 26
APPENDIX 1 28
Summary of Notable Players 28
COMPANY PROFILES 33
AFRICAN CORPORATE CLEANING (PTY) LTD 33
AFRISERV (PTY) LTD 35
BIDAIR SERVICES (PTY) LTD 37
BIDVEST SERVICES (PTY) LTD 40
BLUE 60 TOWN TRADING (PTY) LTD 43
BONTIWARE (PTY) LTD 44
CLEANING AFRICA SERVICES (PTY) LTD 45
DANIC PEST CONTROL AND CLEANING CC 48
EXCELLERATE SERVICES (PTY) LTD 49
GUARDIAN ANGEL SECURITY (PTY) LTD 52
INDUSTRIAL WASTE AND ENVIRONMENTAL SERVICES (PTY) LTD 53
M M A SECURITY SERVICES CC 55
MEONDO HOLDINGS (PTY) LTD 57
METRO SANITARY SOLUTIONS CC 59
RED ALERT TSS (PTY) LTD 61
RENTOKIL INITIAL (PTY) LTD 64
S A CLEANING SERVICES (PTY) LTD 67
SERVEST (PTY) LTD 69
SPECIALISTS FRANCHISE GROUP (PTY) LTD (THE) 73
SUBURBAN SERVICES (PTY) LTD 75
SUPERCARE HYGIENE (PTY) LTD 77
SUPERCARE SERVICES GROUP (PTY) LTD 78
SWEEP SOUTH (PTY) LTD 80
TELOC WASTE MANAGEMENT (PTY) LTD 82
TMS GROUP INDUSTRIAL SERVICES (PTY) LTD 84
TSEBO SOLUTIONS GROUP (PTY) LTD 86
WACO AFRICA (PTY) LTD 89

Report Coverage

The Contract Cleaning Industry report describes current conditions, market drivers, trends and challenges faced by role players as well as factors that influence the success of the sector. The report profiles 18 companies, including industry leaders Bidvest which increased its shareholding in Ikhayelihle Royalserve Cleaning Services Pty Ltd from 49% to 100% in 2016, Elite Cleaning Services, part of the BMC Group, and Supercare, which is part of the Compass Group. Also profiled is The Specialists Franchise Group (Pty) Ltd which has 65 franchise outlets offering commercial and domestic cleaning services.

Introduction

This report focuses on the contract cleaning business which plays an important role in job creation in South Africa. The sector forms part of the temporary employment services (TES) sub-sector, also known as the labour broker sub-sector. Analysis of the latest available data showed that TES contributed an estimated 7.6% to GDP in 2014. Due to the informal nature of cleaning businesses the majority of workers in the contract cleaning sector are employed to perform work under fixed-term commercial contracts which is a major source of labour conflict. The Contract Cleaning Sector: Decent Work Programme was signed off in 2014 and identified eight areas of priority that have to be addressed by December 2017 to help overcome workplace deficits in the sector.

Strengths

• Cleaning services skills are included in the skills development plan of the Services SETA.
• Low barriers to entry encourages competition.
• Potential to create employment especially for the youth and women.
• Proficient industry association with international ties through the ISSA.
• Strong local players.

Weaknesses

• Lack of best practice among non-NCCA members.
• Lack of skilled supervisors and specialised cleaning skills.
• Legislation and regulation are often ignored by employers in the TES sector and there is weak enforcement of statutory provisions.
• Workers are often exploited and there is a lack of job security.

Opportunities

• Growth and development in retail property in South Africa and the rest of Africa.
• Innovation in smart technology for equipment can lead to greater efficiencies.
• Online technology enables participation in the sharing economy which can create job opportunities.
• The domestic market is large but predominantly informal presenting potential for expansion.

Threats

• A weakening economy could lead to reductions in current and potential cleaning contracts.
• Cleaning companies are water-sensitive and the drought is impacting on performance, service delivery and revenues.
• HIV/Aids is weakening the workforce.
• Increasing costs, including labour, threaten viable margins.
• Substitutes such as remotely operated cleaning equipment and advances in cleaning materials might make employees redundant in future

Outlook

A generally positive outlook is expected for the contract cleaning business. The NCCA is becoming known as the professional body for the cleaning industry in South Africa and members believe the association will play an increasingly important role in compliance. Technology and product innovation is expected to continue to develop, with a greater focus on water- and electricity-saving floor equipment and more environmentally friendly products. Industry commentators estimate that 50% of cleaning is still performed in-house, presenting considerable scope for further industry growth as more cleaning work is likely to be outsourced. However, the weak economic environment with very low growth is expected to impact negatively on the sector since contracting businesses might opt not to renew cleaning contracts or they might negotiate cheaper rates which would lower the margins of the cleaning business. This in turn would lead to lower wages and further impact on the welfare issues of contracted employees.

Read More..
The Contract Cleaning Industry in South Africa
The Contract Cleaning Industry in South Africa 2017

Full Report

R 1 900.00(ZAR) estimated $103.04 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.13 (USD)*

Historical Reports

The Contract Cleaning Industry in South Africa 2022-07-19

R 9 500.00(ZAR) estimated $515.21 (USD)*

View Report Add to Cart

The Contract Cleaning Industry in South Africa 2020-03-18

R 1 900.00(ZAR) estimated $103.04 (USD)*

View Report Add to Cart

The Contract Cleaning Industry in South Africa 2014-10-29

R 1 900.00(ZAR) estimated $103.04 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 4
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 10
4.1. Local 10
4.1.1. Corporate Actions 12
4.1.2. Regulations 13
4.1.3. Enterprise Development and Social Economic Development 14
4.2. Continental 16
4.3. International 17
5. INFLUENCING FACTORS 18
5.1. Economic Environment 18
5.2. Rising Operating Costs 18
5.3. Information Technology, Research and Development (R&D) and Innovation 19
5.4. Standards and Compliance 20
5.5. Labour 21
5.6. Environmental Concerns 27
5.7. Electricity and Water Supply Constraints 28
6. COMPETITION 29
6.1. Barriers to Entry 29
7. SWOT ANALYSIS 30
8. OUTLOOK 31
9. INDUSTRY ASSOCIATIONS 31
10. REFERENCES 32
10.1. Publications 32
10.2. Websites 33
APPENDIX 1 34
Contract Cleaning Sector: Decent Work Programme - Summary of Priorities, Outcomes, Outputs and Activities 34
APPENDIX 2 37
December 2016 Sectoral Determination 1: Contract Cleaning Sector 37
APPENDIX 3 38
Labour Cost Example 38
COMPANY PROFILES 40
AFRICAN CORPORATE CLEANING (PTY) LTD 40
BIDAIR SERVICES (PTY) LTD 42
BIDVEST SERVICES (PTY) LTD 45
CLEANING AFRICA SERVICES (PTY) LTD 48
DEMOCRATIC CLEANING SERVICES (PTY) LTD 50
EXCELLERATE SERVICES (PTY) LTD 51
GLOBAL CLEANING SERVICES (PTY) LTD 54
INDUSTRIAL WASTE AND ENVIRONMENTAL SERVICES (PTY) LTD 56
METRO SANITARY SOLUTIONS CC 58
RED ALERT TSS (PTY) LTD 60
RENTOKIL INITIAL (PTY) LTD 63
S A CLEANING SERVICES (PTY) LTD 66
SERVEST (PTY) LTD 68
SPECIALISTS FRANCHISE GROUP (PTY) LTD (THE) 71
SUBURBAN SERVICES (PTY) LTD 73
SUPERCARE SERVICES GROUP (PTY) LTD 75
TMS GROUP INDUSTRIAL SERVICES (PTY) LTD 78
TSEBO SOLUTIONS GROUP (PTY) LTD 80

Introduction

This report covers the contract cleaning industry which focuses on the cleaning of building interiors and exteriors, industrial plants and trains, planes, ships and vehicles, and includes waste removal, specialised cleaning and pest control. This sector is valued at R13.2bn and in 2010 171,136 people were employed by an estimated 4,500 contract cleaning companies. The National Contract Cleaners Association (NCCA) estimates that 50% - 60% of local companies make use of the services provided by this sector.

Strengths

• High standards of industry training.
• Potential to create employment especially for youth and women.
• Proficient industry association with international ties through ISSA.

Weaknesses

• Growth is dependent on economic growth which is currently low.
• Inferior or dangerous chemicals are often used.
• Legislation and regulation are often ignored.
• Some companies do not adhere to standards and give the industry a bad reputation.
• Workers are often exploited and there is a lack of representation and job security.

Opportunities

• Growth and development in industry, commerce and retail property in sub-Saharan Africa
• Increased demand for health and hygiene cleaners for the new hospitals and being built.
• The domestic market is large but predominantly informal and so there is a large potential for expansion in this area.
• There is still the potential for environmentally friendly practices.

Threats

• A weakening economy could lead to reductions in current and potential cleaning contracts.
• Increasing costs threaten viable margins.

Outlook

Cleaning standards are expected to improve across the sector with the implementation of more environmentally friendly and efficient technologies and with the increasing number of companies joining the national association. A spokesperson for the NCCA believes that the current slow, limited growth for contract cleaning companies is unlikely to change during 2015, especially in light of decreasing GDP growth. There are however a number of factors that could create new cleaning opportunities in future, including the government’s infrastructure programme and the construction of new hotels. As only 35% of small enterprises in South Africa use contract cleaning compared to the almost 50% in developed countries, the NCCA believes there is potential for growth there too. However, any company growth is more likely to be as a result of consolidation as smaller operators merge in an effort to become more competitive.

The Contract Cleaning Industry in South Africa
The Contract Cleaning Industry in South Africa 2014

Full Report

R 1 900.00(ZAR) estimated $103.04 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.13 (USD)*

Historical Reports

The Contract Cleaning Industry in South Africa 2022-07-19

R 9 500.00(ZAR) estimated $515.21 (USD)*

View Report Add to Cart

The Contract Cleaning Industry in South Africa 2020-03-18

R 1 900.00(ZAR) estimated $103.04 (USD)*

View Report Add to Cart

The Contract Cleaning Industry in South Africa 2017-07-27

R 1 900.00(ZAR) estimated $103.04 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Supply Chain 1
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 4
4.1. Local 4
4.1.1. Corporate Actions 5
4.1.2. Regulations 5
4.1.3. Enterprise Development and Social Economic Development 6
4.2. Continental 7
4.3. International 7
5. INFLUENCING FACTORS 8
5.1. Economic Environment 8
5.2. Labour 9
5.3. Rising Input Costs 11
5.4. Information Technology 11
5.5. Environmental Concerns 12
6. COMPETITION 12
6.1. Barriers to Entry 12
6.2. Research and Development (R&D) and Innovation 12
7. SWOT ANALYSIS 13
8. OUTLOOK 13
9. INDUSTRY ASSOCIATIONS 14
10. REFERENCES 14
10.1. Publications 14
10.2. Websites 15
ORGANOGRAM 16