Following pandemic-era volatility and inflation-driven pricing changes, the janitorial services industry showed signs of ongoing recalibration in early 2025. According to Vertical IQ, total portfolio sales across the Cleaning and Hygiene sector declined 7% year over year and 4% quarter over quarter in Q1. At Lion Business Advisors, we continue to see steady buyer demand for janitorial firms with recurring commercial contracts, low client concentration, and streamlined operations.
Key Trends This Quarter
According to the ISSA’s Precision Q1 2025 Market Snapshot, nearly all janitorial product categories and end-user segments experienced contraction. While categories like Janitorial Equipment and Dry Wipers showed slight growth, the broader market continues to adjust from the demand spikes seen during the pandemic. Shifting customer expectations and tighter organizational budgets are driving many firms to reevaluate service frequency, staffing levels, and equipment upgrades. Business owners considering an exit should understand how this recalibration impacts client retention and valuation. Operators with diversified end-user portfolios, especially those serving high-traffic areas like retail, travel, and entertainment—may be best positioned to weather economic headwinds and attract premium offers.
Employment and Wage Trends
Vertical IQ reports that employment in janitorial services remained essentially flat, declining 0.9% year over year as of July 2025. Over the past decade, the industry has seen only a 1.3% growth in jobs, significantly below the 13% rise in private sector employment. However, average hourly wages rose 3.7% year over year to $18.79, and have increased 58.3% over the last ten years, outpacing private sector wage growth. For Texas operators, this may compound hiring challenges, especially in competitive labor markets like Austin and Houston. Buyers are increasingly focused on labor stability, employee tenure, and clear HR policies when evaluating janitorial firms for acquisition.
Industry Forecast
Vertical IQ forecasts a 5.57% compounded annual growth rate (CAGR) for the janitorial services industry from 2025 to 2029, a pace that exceeds projected overall U.S. economic growth. While inflation and cost pressures persist, essential cleaning services continue to be seen as non-discretionary by key sectors. Growth opportunities exist in healthcare, education, and high-traffic commercial spaces. No Texas-specific updates were reported this quarter.
M&A Market Outlook
The janitorial M&A landscape remains balanced, with strong interest from regional strategic buyers, facility services platforms, and private equity-backed roll-ups. Businesses with $1M+ in revenue, recurring commercial accounts, and limited owner involvement are commanding premium valuations. We’ve also observed rising buyer scrutiny of labor practices, contract terms, and equipment condition. Sellers should expect buyers to request detailed customer retention data and seek operational documentation well ahead of due diligence. In Texas, metro-area firms with bilingual teams and consistent contract billing cycles are particularly attractive.
As the market stabilizes and growth opportunities return, now is an opportune time for janitorial business owners to assess readiness. Whether you’re planning to exit in one year or five, understanding your firm’s current marketability can make all the difference.
If you’re considering an exit, now is a good time to assess how your contracts, staff structure, and online presence stack up. Take our Sellability Score assessment to see how your janitorial business would perform in today’s market
Lion Business Advisors’ quarterly industry insights incorporate data and trends sourced from internal deal flow and buyer activity, Vertical IQ, and market comparables from platforms such as Axial and BVR (Business Valuation Resources).
Industry Insight Report: Janitorial Q3-2025
Following pandemic-era volatility and inflation-driven pricing changes, the janitorial services industry showed signs of ongoing recalibration in early 2025. According to Vertical IQ, total portfolio sales across the Cleaning and Hygiene sector declined 7% year over year and 4% quarter over quarter in Q1. At Lion Business Advisors, we continue to see steady buyer demand for janitorial firms with recurring commercial contracts, low client concentration, and streamlined operations.
Key Trends This Quarter
According to the ISSA’s Precision Q1 2025 Market Snapshot, nearly all janitorial product categories and end-user segments experienced contraction. While categories like Janitorial Equipment and Dry Wipers showed slight growth, the broader market continues to adjust from the demand spikes seen during the pandemic. Shifting customer expectations and tighter organizational budgets are driving many firms to reevaluate service frequency, staffing levels, and equipment upgrades. Business owners considering an exit should understand how this recalibration impacts client retention and valuation. Operators with diversified end-user portfolios, especially those serving high-traffic areas like retail, travel, and entertainment—may be best positioned to weather economic headwinds and attract premium offers.
Employment and Wage Trends
Vertical IQ reports that employment in janitorial services remained essentially flat, declining 0.9% year over year as of July 2025. Over the past decade, the industry has seen only a 1.3% growth in jobs, significantly below the 13% rise in private sector employment. However, average hourly wages rose 3.7% year over year to $18.79, and have increased 58.3% over the last ten years, outpacing private sector wage growth. For Texas operators, this may compound hiring challenges, especially in competitive labor markets like Austin and Houston. Buyers are increasingly focused on labor stability, employee tenure, and clear HR policies when evaluating janitorial firms for acquisition.
Industry Forecast
Vertical IQ forecasts a 5.57% compounded annual growth rate (CAGR) for the janitorial services industry from 2025 to 2029, a pace that exceeds projected overall U.S. economic growth. While inflation and cost pressures persist, essential cleaning services continue to be seen as non-discretionary by key sectors. Growth opportunities exist in healthcare, education, and high-traffic commercial spaces. No Texas-specific updates were reported this quarter.
M&A Market Outlook
The janitorial M&A landscape remains balanced, with strong interest from regional strategic buyers, facility services platforms, and private equity-backed roll-ups. Businesses with $1M+ in revenue, recurring commercial accounts, and limited owner involvement are commanding premium valuations. We’ve also observed rising buyer scrutiny of labor practices, contract terms, and equipment condition. Sellers should expect buyers to request detailed customer retention data and seek operational documentation well ahead of due diligence. In Texas, metro-area firms with bilingual teams and consistent contract billing cycles are particularly attractive.
As the market stabilizes and growth opportunities return, now is an opportune time for janitorial business owners to assess readiness. Whether you’re planning to exit in one year or five, understanding your firm’s current marketability can make all the difference.
If you’re considering an exit, now is a good time to assess how your contracts, staff structure, and online presence stack up. Take our Sellability Score assessment to see how your janitorial business would perform in today’s market
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