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| BD7406Q |
| MBD HEAVY INDUSTRIAL CLEANING MARKET DEVELOPMENT : QUARTER TWO 2002 |
| Overview |
This report covers: heavy industrial cleaning, contract cleaners, descaling, fumigation, high-pressure water cleaning, steam, high-pressure water jet, ultrasonic cleaning, building exteriors, interior cleaning of factories, workshops and warehouses, cleaning of boilers, tanks, sewers, drains and pipelines, cooling towers, ships, planes and trains,
Companies covered include: Cleansing Service Group, Dyno-Rod, Optim Contract Services, Pall Mall Support Services, Prestige Tank Cleaning.
All MBD reports are reviewed quarterly by the publisher and updated as necessary to ensure that you receive the latest information. You can either choose to buy just the latest quarterly update, or you can elect to receive the latest report and the next three quarterly updates for £95 more by ticking the annual update service box.
Table of Contents Executive Summary
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| No. | Title | Page |
| 1 | EXECUTIVE SUMMARY | 1 |
| 2 | INTRODUCTION | 5 |
| 2.1 | Definitions | 6 |
| 2.2 | Abbreviations | 6 |
| 2.3 | Market Positioning | 6 |
| 2.3.1 | Customers | 7 |
| 2.3.2 | Suppliers | 7 |
| 2.4 | UK Economy | 7 |
| 2.5 | Market Factors | 9 |
| 3 | MARKET SIZE AND TRENDS | 11 |
| 3.1 | Chapter Summary | 12 |
| 3.2 | Market Overview | 13 |
| 3.3 | Market Segmentation | 14 |
| 3.4 | Market Trends | 15 |
| 3.5 | Regional Sales | 17 |
| 4 | INDUSTRY STRUCTURE | 19 |
| 4.1 | Chapter Summary | 20 |
| 4.2 | Industry Overview | 20 |
| 4.2.1 | Industry Rivalry | 20 |
| 4.2.2 | Threat of Entry | 23 |
| 4.3 | Structure by Turnover | 23 |
| 4.4 | Employment | 24 |
| 4.5 | Company Profiles | 25 |
| 4.5.1 | Cleansing Service Group | 26 |
| 4.5.2 | Dyno-Rod | 27 |
| 4.5.3 | Optim Contract Services | 27 |
| 4.5.4 | Pall Mall Support Services | 28 |
| 4.5.5 | Prestige Tank Cleaning | 28 |
| 5 | DEMAND STRUCTURE | 30 |
| 5.1 | Chapter Summary | 31 |
| 5.2 | Demand Structure | 32 |
| 6 | FORECAST | 34 |
| 6.1 | Chapter Summary | 35 |
| 6.2 | Market Size | 36 |
| 6.3 | Market Segmentation | 38 |
| 6.4 | Industry | 39 |
| 7 | FURTHER SOURCES & CONTACTS | 41 |
| 7.1 | Trade Associations | 42 |
| 7.2 | Trade Magazines | 42 |
| 7.3 | Trade Exhibitions | 43 |
| List of Tables | ||
| No. | Title | Page |
| 1 | UK Market for Heavy Industrial Cleaning, 1997-2001 | 13 |
| 2 | The Heavy Industrial Cleaning Market, by Sector, 1997-2001 | 14 |
| 3 | Gross Value Added, by Industry, 1992 and 2000 | 16 |
| 4 | Segmentation of Businesses Operating in the UK, by Sector, 2000 | 16 |
| 5 | Regional Distribution of Business Establishments, 2000 | 17 |
| 6 | Regional Distribution of Leading Businesses Sectors, by Region,2000 | 18 |
| 7 | Analysis of the Changes in the Industrial Cleaning Industry,1996-2000 | 22 |
| 8 | Analysis of the Financial Structure of the Industrial CleaningSector, 1999 and 2000 | 24 |
| 9 | Employment in the UK Industrial Cleaning Industry, by Type,1997-2001 | 25 |
| 10 | Financial Analysis of Cleansing Service Group, 1996-2000 | 26 |
| 11 | Financial Analysis of Dyno-Rod, 1996-2000 | 27 |
| 12 | Financial Analysis of Optim Contract Services, 2000 | 27 |
| 13 | Financial Analysis of Pall Mall Support Services, 1997-2000 | 28 |
| 14 | Financial Analysis of Prestige Tank Cleaning, 1997-2001 | 29 |
| 15 | Segmentation of the UK Market for Heavy Industrial Cleaning,by Purchasing Sector, 2001 | 32 |
| 16 | Forecast UK Market for Heavy Industrial Cleaning, 2002-2006 | 37 |
| 17 | Forecast Heavy Industrial Cleaning Market, by Sector, 2002-2006 | 38 |
| List of Diagrams | ||
| No. | Title | Page |
| 1 | Development of the UK Market for Heavy Industrial Cleaning, 1997-2006 | 38 |
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| 1 | The UK market for heavy industrial cleaning has demonstrated year-on-year growth during the review period, rising by some 18 percent to an estimated £331.7 million in 2001. This growth is largely reflecting the general growth of the economy, although manufacturing which has demonstrated markedly slower growth than the service portion of the economy in what has increasingly become a two pace economy, still remains the largest target market for contract cleaners involved in the heavy cleaning sector. However, the rate of market development during recent years has been slightly slower than the mid 1990s. |
| 2 | The recent market growth has been achieved at the same time as continued reductions in the already tight margins in the overall contract cleaning sector. Indeed, much of this growth is attributable to contractors being forced to pass on a large proportion of their increased employment and administration costs to end users. These increasing operating costs include those enforced by EU and national legislation concerning employment conditions. |
| 3 | General industrial plant cleaning, which includes descaling and fumigation of plant, represents the largest share of the total heavy industrial cleaning market. This sector accounted for an estimated 42 percent of the total market value in 2001, retaining its share throughout the review period. Heavy industrial plant cleaning was valued at an estimated £140.6 million in 2001, indicating an increase of some 18 percent in nominal terms during the review period. |
| 4 | High-pressure water cleaning, which includes steam, high-pressure water jet and ultrasonic cleaning, represented a further 18 percent of the heavy industrial cleaning market in nominal terms in 2001. The value of the sector has grown during the review period from an estimated £51.8 million in 1997 to some £61 million in 2001. This sector comprises the cleaning of building exteriors, particularly those of public buildings, although a smaller proportion of the market value is accounted for by the interior cleaning of factories, workshops and warehouses using high-pressure water cleaning equipment. |
| 5 | The value of the sector incorporating the cleaning of boilers, tanks and tankers has been increased by some 17 percent during the review period. This sector was valued at some £31.8 million in 2001, representing some 10 percent of the total heavy industrial cleaning market. |
| 6 | Cleaning of sewers, drains and pipelines, valued at an estimated £30.5 million in 2001, is believed to have represented some 9 percent of the total heavy industrial cleaning market in 2001. Although the sector has retained its share of the total market relatively unchanged, the value of the sector has grown by an estimated 16 percent in nominal terms during the review period. |
| 7 | The value of the cleaning and decontamination of cooling towers, accounting for some 7 percent of the total heavy industrial cleaning market, is believed to have been increased by a further 3 percent during 2001 to some £22.6 million. Growth in this sector is believed to have slowed considerably since the mid 1990s. Although many of the utilities privatised during the 1990s were expected to benefit from considerable upgrading, this has failed to reflect on the cleaning sector as the focus of investment has been on other areas of the business. |
| 8 | The market for other heavy industrial cleaning is believed to have shown the highest growth during the review period in nominal terms. The value of the sector has been increased by some 21 percent to an estimated £45.2 million in 2001. The value of this sector tends to fluctuate slightly more than the rest of the market, due to it reflecting developments in the building and construction industry, which tends to be highly volatile. Furthermore, there has been an increase in the cleaning, disinfecting and exterminating activities regarding ships, planes and trains, following the general rise in the travel industry. |
| 9 | MBD forecast moderate sustained year-on-year real term growth in the heavy industrial cleaning market, with the rate of development forecast to be slightly ahead of economic growth forecast, although slower than that recorded during the peak period of market development in the early 1990s. This reflects the continued growing emphasis on environmentally sensitive cleaning regimes. |
| 10 | The rate of market growth is projected to be marginally increased to 4 percent in the current year, reflecting the expected growth of the UK economy. Growth of 5 percent is forecast for 2003, followed by a further increase of 4 percent in the following two years. Continued year-on-year real market increase is forecast for the end of the period, with growth of 3 percent forecast for 2006. Overall, the value of the heavy industrial cleaning market in the UK is expected to increase by 17 percent in real terms during the forecast period, although in part this is likely to reflect increased disposal costs of cleaning materials which will be passed on to customers rather than margin growth. |
| 11 | While some of the anticipated growth in the market value reflects increased market penetration, it should be noted that part of the increase in market value anticipated in the short term reflects the impact of recent employment legislation which has increased operating costs for the majority of industrial cleaning companies. The modest levels of profit margins in the industry have forced these to be passed on to end users and this is reflected in the forecast market development. Further, the full impact of these cost increases will be phased in due to the effect of long term contracts with fixed price increases, particularly with public sector bodies, that prevent industrial cleaners charging a prevailing commercial rate until the contract is renewed. |
| 12 | General industrial plant cleaning is forecast to continue to represent the largest share of the total heavy industrial cleaning market, accounting for an estimated 42 percent of the total market value during the forecast period. However, the share of industrial plant cleaning of the total market is anticipated to be slightly eroded during the forecast period, continuing to reflect the general developments in the UK manufacturing sector. The value of the heavy industrial plant cleaning sector is expected to be increased to £168.7 million at constant 2001 prices by 2006, indicating an increase of some 15 percent from the anticipated £146.2 million in 2002. |
| 13 | High-pressure water cleaning is expected to somewhat increase its share of the total market value from 18 percent to 19 percent of the total heavy industrial cleaning market in during the forecast period. The value of the sector is anticipated to grow by some 19 percent in real terms during the forecast period from £64.2 million in 2002 to some £76.7 million in 2006. |
| 14 | The value of the boilers, tanks and tankers cleaning sector is anticipated to be increased by some 16 percent in real terms during the forecast period. This sector is expected to be valued at some £38.8 million in 2006, representing some 10 percent of the total heavy industrial cleaning market. |
| 15 | The value of the sector comprising the cleaning of sewers, drains and pipelines, is anticipated to be increased by some 18 percent in real terms during the forecast period from some £31.6 million in 2002 to a value of £37.3 million in 2006. |
| 16 | The value of the cleaning and decontamination of cooling towers sector is expected to account for some 7 percent of the total heavy industrial cleaning market during the forecast period. The value of the sector is anticipated to be increased by a further 17 percent during the period from 2002 to 2006 to some £27.4 million. |
| 17 | The market for other heavy industrial cleaning is anticipated to show real term growth of some 18 percent during the forecast period. The value of the sector is expected to be increased to £54.7 million by 2006. This sector is anticipated to increase its share of the total heavy industrial cleaning market in nominal terms, albeit only marginally, during the forecast period, as companies active in the sector attempt to reduce their dependence on the manufacturing industry |
Text © 2002 MBD - Market & Business Development
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Last updated by Duncan Nottage June 2002