The Australian Contract Cleaning Market

At the moment commercial cleaning represents a full ninety seven per cent of the market for cleaning service for hire in Australia, although this proportion is shrinking as the popularity of home cleaning begins to increase in Australia. In Australia, the contract cleaning industry was estimated as being worth approximately three point nine million Australian dollars in the financial year ending on June 30 2008, growing on an annual basis at three and a half per cent on average. The cleaning of offices and other commercial buildings is one of the most popular functions of an organisation to be out sourced, due to the considerable economies of scale and operational efficiencies that can be provided when the cleaning of a building is provided by an external contractor or sub contractor.

Therefore, it is almost universal among many top businesses to out source their building cleaning functions to a specialist contractor cleaning firm rather than retain this aspect of their business operations in house. This occurs for many factors, including the relative lack of difference between cleaning tasks from one office and the next. Speaking in a strictly general sense, there is a certain level of general stability found in the cleaning services in Brisbane industry in Australia, with an average level of growth between the years two thousand and nine and two thousand and fourteen of two point two per cent: a perfectly reasonable amount. The contracted cleaning industry exists in the market structure of monopolistic competition. A lack of potential for significant product differentiation exists because of the relatively homogeneous nature of the service being offered. Although the potential does exist for a certain level of non price differentiation, preventing the contract cleaning industry in Australia from becoming a perfectly competitive market, there is not much scope to differentiate between differing cleaning firms in a sustained comparison of products.

A monopolistic competition market, such as the market for office cleaning, is characterised by a number of relatively small firms offering a somewhat differentiated product. It can be contrasted with perfect competition, in which the product being sold is homogenous, oligopoly, in which there are only a few large firms competing, perhaps with a high degree of non price product differentiation, and monopoly, in which there is only a single firm. In many circumstances, the monopolistic competition market structure is considered the best for consumers desiring some measure of choice between products, and so according to such an analysis the market structure of the Australian contract commercial cleaners in Gold Coast market would be ideal for consumers.

In the Australian labour market for office cleaners, nearly all of the jobs available are either casual or possibly permanent part time: very few positions in the industry are full time. Work is usually after hours while the offices or other premises that are being cleaned are not in use.

William Lewis