February 17, 2023
By:EmpoweringCPO Insights Team

Cleaning Services

This UAE Cleaning Services Market Research report gives in-depth information about the UAE cleaning market, the impact of Covid-19 on the cleaning industry, supplier cost structure, different types of cleaning services contracts, pros and cons of input and output contracts, and many other additional insights for this category. It can help the procurement team with Sourcing and procurement services for this category.

Abstract

  • The global Cleaning services market size is expected to grow at a CAGR of 6.5% to reach $111.5 billion by 2030.
  • The UAE Cleaning Services Market size was estimated at $2.3 Million in 2020, projected to grow at a CAGR of 5.3% during the forecast period 2021-2026.
  • The floor care segment was the highest contributor to the cleaning service market, with $12,293.8 million in 2020, and is estimated to reach $22,820.2 million by 2030, at a CAGR of 5.7% during the period 2021-2030.
  • UAE cleaning services are all about the business that provides cleaning and restoration services to both residential and commercial markets.
  • The UAE Cleaning Services industry witnessed commendable growth because of increasing life-threatening diseases, awareness, and consciousness among individuals & businesses about family & employee health.
  • The majority of the Cleaning service providers in the Middle East witnessed an increase in revenues during the intense lockdown period of March-May 2020. This revenue increase is due to an increase in demand for fogging, disinfection, and sanitization services, which moderately offset the loss of revenue from certain segments such as retail and educational institutions.
  • Cleaning services contracts are either “Prescriptive” (Input Specifications based) or “Performance” (Output specifications based).
  • There is an increasing shift from “prescriptive” to “performance” contracts as organizations are trying to reduce their overhead costs and focus more on their strategic goals.
  • Suppliers have high bargaining power in this industry as there is a shortage of cleaning workers; substitutes are not easily available as the only option is to get the service done in-house; the threat of new entrants is moderate.
  • The service component is the most important part of the entire Cleaning Services contract; in addition, most companies prefer to ask the same vendor to supply all the consumables that are required during the execution of the contract. The Market Basket approach is the best sourcing approach that can be adopted for cleaning consumables spending.

The strategy adopted for vendor contracting in this Cleaning Services Market Research report are of 2 types:

  • Single Vendor Strategy: Contracting a single cleaning service provider would benefit with respect to overall cost; however the vendor might not be able to match the wide range of cleaning services required.
  • Multiple Vendor Strategy: For large complexes like an airport, the need to maintain a clean and safe environment is a top priority and in order to ensure it, an airport should opt for more than one cleaning service provider to ensure strong SLAs.

Table of Content

Contents Slide No.
Introduction and Global Cleaning Market Outlook 3
UAE Cleaning Market Outlook 4
Impact of Covid-19 & new technologies in the UAE cleaning service industry 5
Suppliers’ cost structure & Average Cleaning Rates 6
Detailed Rate Analysis and ranges of Tier I and II suppliers for cleaning services – Dubai 7
Detailed Rate Analysis and ranges of Tier I and II suppliers for cleaning services – Abu Dhabi 8
Buying decision scorecard 9
RFP Elements 10
Different Types of Cleaning Service Contracts 11
Pros and Cons of Input and Output Contract 12
Pricing Models of Cleaning Services 13-14
Negotiation Questions 15
Porter’s five forces analysis 16
Market-Based Approach for Airport Cleaning Supplies 17
Vendors List (General data) 18-21
Vendors List (Sectors & Clients) 22-24
Single Vendor Strategy – Pros & Cons 25
Multiple Vendor Strategy – Pros & Cons 26
Case Study – Heathrow Airport 27
Case Study – Los Angeles Airport 28
Case Study – O’Hare International Airport (Chicago) 29
Next Steps 30
Methodology and Sources 31
Disclaimer/Feedback 32

If required EmpoweringCPO can support with additional information and the next steps in executing projects like Cleaning Services. Also, feel free to reach us if a similar report is required for any other category. We can also help your organization with tools and services like Procurement Dashboard, Spend Analysis, Procurement Intelligence, Procurement Consultancy, and Sourcing and Procurement Services.

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Compliance Management Tool

Compliance management is very critical as otherwise the procurement organization may run into a scenario where there is a huge gap between realized savings and reported savings. Many procurement functions estimate large savings numbers when contracts are signed. They also invest significant time and effort in negotiating contracts for necessary goods and services, only to have a third or more of their purchasing dollars flow outside those deals. Some of the obvious fall-outs of non-compliance and maverick purchases are:

  • Very high prices
  • Risk of losing out on volume discounts and rebates

As compared to the current contract that was finalized after the sourcing process, the tool helps in tracking:

  • Vendor Compliance
  • Price Compliance

The objective of this tool is to ensure that the orders are placed only with the vendors that were shortlisted after the sourcing process and at the same price that was agreed upon and negotiated during and after the strategic sourcing process.

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