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Commodity Group Description
The institutional and industrial cleaning industry provides essential products and services that are used to clean and maintain a healthy indoor environment for commercial establishments of all sizes and types, including schools, hospitals, day care centers, food service operations, office complexes, and other similar establishments. Although labor represents 95% of the dollars spent on housekeeping, for the purposes of this paper, we will focus on the product side of the equation. The products used in the janitorial industry is very broad and covers everything from hand soap, to floor cleaning chemicals; from toilet paper to scouring pads; from mops, buckets and brooms to heavy industrial floor scrubbers. The amount and type of cleaning supplies varies by industry - hospitals have very different requirements than factories, hotels, restaurants or schools. Ultimately, the proper application of these supplies helps protect us from germs, diseases and other hazards that can be present wherever large numbers of people gather.
In the world of housekeeping, suppliers often use benchmark data to help estimate usage of supplies at a given facility. Naturally, there is a high correlation between the number of people at a facility and the janitorial spend for that building, particularly in regard to bathroom supplies. As a benchmark, it is estimated that paper product usage is 1-1/2 cases per year, per person in office settings and 2-1/2 cases (which includes wipers) in manufacturing settings per person, per year. For Hand Soap, the benchmark is $16.00 per person per year irrespective of the setting. Making sure that the bathroom facilities are clean and have the necessary supplies is a key component to any housekeeping job. The basic janitorial duties are sweeping, mopping and maintaining the floors, cleaning windows, vacuuming, emptying trash, dusting, and cleaning and deodorizing bathrooms. To support these duties, basic supplies include vacuums, brooms, mops, buckets, carts for carrying cleaning products, trash bags, chemical cleaning products, cleaning wipes, absorbent towels, paper towels, soaps and deodorizers, etc.
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Industry Analysis
| 2008 DISTRIBUTOR SALES BY PRODUCT CATEGORY |
| Product Category |
Sales |
Percentage of Total |
| Paper/Plastics |
$12,330,000,000 |
53.2% |
| Chemicals |
$ 6,155,000,000 |
26.5% |
| Chemicals |
$ 2,149,000,000 |
9.3% |
| Power Equipment |
$ 1,361,000,000 |
5.9% |
| Other Janitorial Products |
$ 1,186,000,000 |
5.1% |
| TOTAL SALES: |
$23,181,000,000 |
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| SALES BY MARKET SEGMENT |
| Market Segment |
Sales |
Percentage of Total |
| Industrial (manuf. plants/food proc./utilities/warehouses) |
$3,871,227,000 |
16.7% |
| Educational (schools/colleges/universities) |
$3,338,064,000 |
14.4% |
| Contract Cleaners |
$3,268,521,000 |
14.1% |
| Health Care (hospitals/nursing hms/clinics/med/dental) |
$2,526,729,000 |
10.9% |
| Commercial (office buildings/property management firms) |
$2,318,100,000 |
10.0% |
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| 2008 Chemical Sales |
$6,155,000,000 |
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| 2008 Power Equipment Sales |
$1,361,000,000 |
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| 2008 Supplies/Accessories Sales |
$2,149,000,000 |
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| 2008 Paper/Plastic Sales |
| Products |
$2,281,050,000 |
18.5% |
| Industrial Wipers |
$357,570,000 |
2.9% |
| Liners & Bags (paper or synthetic/plastic) |
$2,083,770,000 |
16.9% |
| Packaging Products |
$2,145,420,000 |
17.4% |
| Towels/Facial Tissue/Toilet Tissue |
$5,018,310,000 |
40.7% |
| Other Paper/Plastics not listed above |
$443,880,000 |
3.6% |
| Total |
$12,330,000,000 |
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Top Industry Users
- Hotels
- Hospitals, medical/dental clinics
- Industrial, warehousing, food processing
- Bars/Restaurants
- Office buildings
- Schools
- Airports
Top Industry Business Leaders
- Paper/Wipers
- Georgia Pacific
- Kimberly Clark
- SCA
- Chemicals
- Poly/Liners
- Diversey (Johnson Wax)
- 3M
- Spartan
- Accessories
- Rubbermaid
- Contico
- Impact
Key Items in the Commodity
Bags & Can Liners, Floor & Carpet Care, Mops, Brooms & Brushes, Odor Control, Paper & Dispensers, Skin Care & Personal Hygiene, Waste Receptacles
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