A 4-part post from Accelerator CC — Every year, we at Accelerator CC step back and take a look at the industry trends that are affecting our customers, and those that will soon be impacting their day-to-day operations in the near future. In this 4-part post series, we outline our view of the increasing pressures shared between building owners, managers, and building service contractors.

Part three of four in our series reviews new pressures from tenants, building owners and managers have translated to new pressures for BSCs—and how BSCs are being forced to respond. Here is the impact way we see it.

To win new clients and to retain existing accounts, Building Service Contractors are being forced to adapt

  • In most metro areas in the U.S., BSC’s are being forced to hold the line on pricing (bill rate per square foot) for larger commercial properties while providing more value added information, management services, and reporting
  • Increasingly BSC’s are being forced by their larger clients to adopt LEED-EB compliant practices and/or adopt Green Seal™ Environmental Standard for Cleaning Services (GS-42)
  • BOMA is encouraging building operators to demand that BSC’s provide documentation that GS-42 (and other) standards are being followed including
    • Inventory and specifications for all chemicals used
    • Compliance with OSHA Hazard Communication Standard and Safety Data Sheets
    • Employee documentation including background checks and training
    • Dates and activities associated with cleaning maintenance and services provided
    • Equipment being used on site is in compliance with LEED-EB guidance
    • eVerify & right to work
    • Liability & Work Comp insurance meets or exceeds State regulations and building policy

As a result, Building Services Contractors, must either grow to scale or remain a local, craft oriented provider of service

  • The increasing demands of large or sophisticated clients are forcing BSC’s to incur higher SG&A costs (Sales, General and Administrative costs)
  • Margins are continuing to be squeezed as more overhead, reporting and information is being provided by the BSC to their clients
  • Scale or niche are the only two viable strategies; firms stuck in the middle will struggle and will seesaw as they win and lose accounts that they are ill equipped to support from an information and reporting perspective
  • Small, craft organizations, will survive through the direct management by a strong leader of a local team who coordinates activity and allocates scarce resources through a direct, face to face approach
  • Coordinating operations of a larger mobile and dispersed workforce will require increasing reliance on mobile devices and supporting technology to ensure that the right priorities are set, that the work is getting done and information is flowing to the people who need it

Does this describe what you’re seeing in the industry? What did we miss? We’d like to hear from you.

In our next post, we’ll explore how BSCs are leveraging technology strategies to maintain control as they respond to, and support, the demands found in 2016.

Thank you for reading. Please share with your colleagues who might find this of interest. Authored by Accelerator CC, providers of cloud-based commercial cleaning software that helps you profitably manage contracts, bids, operations, sales, and staff while providing advanced on-site inspection and quality assurance to your customers. One of the fastest-growing SaaS platforms on the market, Accelerator CC delivers an advanced level of automation, remote/field connectivity and built-in best practices that specifically target the needs of commercial cleaning organizations and their customers. To see a demo of Accelerator CC, please email contactme@acceleratorcc.com or call 610.849.5039.