Why are prices so high right now in the cleaning industry?

high prices cleaning

Whether at the gas pump or the supermarket, have you been suffering from sticker shock recently? From computer microchips to cereal, prices are rising across the board for both commercial and retail consumers, affecting a multitude of products. A recent report from the Labor Department says consumer prices rose 5% for the 12-month period ending in May. This marks the sharpest increase recorded since August 2008 during the Great Recession.

The trend has left few industries untouched. The cleaning industry is no exception, as costs are increasing market-wide for basic cleaning supplies and consumables. We break down the reasons behind the price spikes, and what to expect in the near future.

What is causing the market-wide spikes?

Currently, there are shortages in key raw ingredients essential to the production of many products. This creates major bottlenecks in the global supply chain. One example is petroleum resin, which is used to make plastics. The shortfall is partly thanks to the sudden freezing temperatures that occurred this past February in Texas, which shut down the world’s largest petrochemical complex.

These shortages are happening just as public life is finally opening up in the United States and around the world following the COVID-19 pandemic, increasing global consumer demand. Transportation has also become a factor, as the essential network of cargo ships, trains and trucks are struggling to keep up with this increased demand. This was only aggravated when a stuck cargo vessel blocked traffic through the Suez Canal in March. It’s one of the busiest canals in the globe, which channels around 12% of world trade. In addition, an estimated 5.5% of all ocean freight capacity is currently waiting outside a port. Storage space for finished goods is also scarce, and the delays are not expected to end anytime soon.

All this follows the cycle of lockdowns during the COVID-19, shutting down factories and warehouses all over — creating a perfect storm for price inflation.

How will this affect your cleaning costs?

  1. Cleaning Products: The current shortage in solvents and resins (used to make polymers) is affecting the production of cleaning products, as these are key ingredients in many formulations and cleaning items. Spartan Chemical Company has already confirmed a brand-wide 4.9% price increase on all products. Meanwhile, Clorox has announced that the company is currently considering price increases due to these additional costs.
  2. Consumables: The lack of resin affects the cost of many plastic consumables like trash liners, which has led to increases between 10 and 22%. Due to the current global shortage in wood pulp, paper products like tissue and paper towels are also experiencing price increases. Major paper suppliers Kimberly Clark and Essity have already increased their prices on paper-based products.
  3. Labor: Labor will also become a factor in increased cleaning costs, as Florida is currently experiencing a shortage of workers. Though the market will eventually adjust, labor will cost more due to the voter-approved minimum wage increases. Starting in September this year, minimum wage will go from $8.65 to $10 an hour, followed by a $1 dollar increase every year until 2026, when it reaches $15 an hour.

What are typical commercial cleaning service rates?

Commercial cleaning service prices can vary widely depending on several factors. The cost of commercial cleaning services is influenced by factors such as the size and type of facility, the scope of services required, the frequency of cleaning, geographic location, and the specific needs of the client.

Here are some key factors that can impact commercial cleaning service prices:

  • Size of the Facility: The square footage of the facility being cleaned is a significant factor in determining the price, as well as the density .Both impact time, labor and resources which help determine pricing.
  • Type of Facility: Different types of commercial facilities have varying cleaning needs and challenges. For example, medical facility cleaning may involve specialized sanitation protocols and require higher cleaning standards, which can result in higher costs compared to cleaning an office or retail space.
  • Scope of Services: The specific cleaning tasks requested by the client can greatly affect pricing. Basic services like dusting, vacuuming, and restroom cleaning are standard, but additional services such as window cleaning, floor finish, machine scrubswaxing, carpet cleaning, and special deep cleaning may add to the cost.
  • Frequency of Cleaning: How often the cleaning services are performed can impact pricing. Daily cleaning will generally be more expensive than weekly or less than weekly  services due tolabor and supply costs associated with frequent cleaning.
  • Geographic Location: The cost of living and labor rates in a particular geographic area can influence pricing. Cleaning services in urban areas or regions with a higher cost of living may be more expensive than those in rural or lower-cost areas.
  • Cleaning Equipment and Supplies: Cleaning supplies, tools and equipment should be built into the pricing, to ensure transparent pricing and consistency in cleaning for the scope of work requirements.
  • Contract Duration: The common industry standard is a one year contract with a 30-cancellation clause.  If however, the facility’s cleaning requirements require specific equipment and tools, contracts tend to be longer, to cover the upfront investment in specific equipment purchased for the facility
  • Seasonal Factors: Seasonal cleaning needs are mostly charged as a special service and outside the normal monthly pricing.

How much does commercial cleaning cost in 2024?

To obtain an accurate estimate for commercial cleaning services, your best bet is to request a walk-through. A commercial property walk-through with a cleaning service is an important step in establishing a successful cleaning partnership. It’s a chance for both you and the cleaning service provider to assess the facility, discuss cleaning requirements, and establish expectations. Following the commercial property walk-through, you should receive a detailed proposal or contract outlining the scope of work, pricing, and terms. If you would like to understand how much commercial cleaning services cost and receive a customized proposal for your South Florida facility, contact SparkleTeam online or call us at (561) 988-5410. We look forward to hearing from you.