Why a Commercial Cleaning Franchise Is Recession-Resistant

Commercial cleaning services have never been more important. Due to the coronavirus pandemic, employees and consumers are laser-focused on hygiene and sanitation. This concern is well-placed as the pandemic continues to wreak havoc. Professional cleaning service employees are unsung heroes of the pandemic. Thanks to their tireless efforts, businesses were able to remain open. While cleaning services have proven vital during the pandemic, their invaluable role will not diminish in the future. In fact, experts consider cleaning services to be in an exclusive group of recession-resistant businesses, with well-organized cleaning companies continuing to grow even during a recession.

What Does Recession-Resistant Mean?

This term is used to describe assets or companies that are largely unaffected by a recession. During a recession, the economy contracts and Gross Domestic Product (GDP) decreases.

Consumers have less money and their spending slows. Employers have no choice but to lay off workers. In the worst cases, companies go out of business.

Recession-resistant businesses are largely immune to economic downturns. Revenue and net income remain steady. Historically, companies like McDonald’s and Coca-Cola are recession-resistant.

Why Are Cleaning Companies Considered Recession-Resistant Businesses?

When entrepreneurs consider starting a new business, they commonly ask what businesses can survive a recession? They want to invest in a business model that is not threatened by cyclical downturns in the global economy.

Commercial cleaning franchises fall into this exclusive category. In fact, the contract cleaning services industry is forecasted to grow more than 6% through 2027. Continue reading to learn the many reasons why a commercial cleaning franchise is among the best recession-resistant business ideas:

Cleaning Services Are Essential

In 2020, many businesses closed or limited operations due to COVID-19. This was not the case for commercial cleaning services.

Instead, state and local governments deemed cleaning and janitorial services as essential businesses. This means that employees can continue working despite the many restrictions placed on other businesses.

There is no greater statement of importance than an essential designation during this pandemic. This places cleaning services in the same category as law enforcement and health care.

Customer Base

The customer base that uses cleaning services is another reason why they are recession-resistant. Cleaning companies are employed by many public companies.

They provide cleaning and janitorial services to the federal government offices. Also, cleaning companies work with state and local governments.

This includes police buildings and municipal courts. Regardless of what is happening with the economy, these office buildings are going to remain open and require cleaning.

Cleaning service franchises also support the health care system. They work in hospitals and urgent care centers. Also, cleaning services support doctors, specialists, and laboratories.

Grade schools and higher education buildings also rely on commercial cleaning to keep students and staff safe.

What all of these customers have in common is that they are recession-resistant. By servicing these customers, commercial cleaning businesses remain operational no matter what.

Americans Are Sensitive to Viruses

Over the past year, Americans have learned more about how viruses are transmitted than ever before. It is commonly understood that viruses can live in the air and on surfaces for extended periods. As a result of this knowledge, there is a new focus on disinfection.

Customers want to shop in a clean and safe environment. Employees desire to work under the same conditions. To appease customers and employees, business owners are going to great lengths to maintain clean, healthy workspaces. With this cultural shift, the demand for cleaning and janitorial services is expected to remain strong for years to come.

Public Health Standards

State and local governments heavily regulate private businesses to ensure they are sanitary. In the name of public health, there are standards that every business must meet.

Federal, state and local health departments have established cleaning standards and guidelines for many businesses and industries. The responsibility to abide by these standards and guidelines can be substantial, requiring frequent cleaning processes and the use of specific products.

Commercial cleaning service technicians like those at OpenWorks are trained and knowledgeable about the requirements for the specific industries they serve.

Low Overhead

Companies with low overhead expenses are more resilient against recessions. A commercial cleaning franchise has less overhead expense than many other businesses.

Because the work occurs at the customer’s site, employees do not need a dedicated office space or desk. Most overhead expenses are passed on to the customer.

This puts commercial cleaning companies at a distinct advantage. They can make competitive proposals for services with low overhead rates. Most of the costs are direct labor and materials.

Ultimately, commercial cleaning services generate strong profit margins. At the same time, their services remain affordable to customers. This is crucial during times of economic distress.

Commercial Cleaning Companies Are Recession-Resistant: A Recap

Customers and employees want to shop or work in a clean environment. This is especially true during a global pandemic.

Commercial cleaning companies have an exclusive customer base that never goes out of business. Government buildings and schools are just a few examples.

If you want to invest in recession-resistant businesses, contact us today to own a franchise.