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Janitorial-Market Intelligence
Cost Drivers Union/Guild

Ver 1.0 (Jun 22)

Janitorial Cost Drivers can vary by business vertical (office, warehouse, retail, etc.), union/ non-union labor, country/ region. Determining the cleanable square footage of all useable areas is critical to determine the allocation of labour hours and selection of equipment. Local labour rates and benefits should be updated prior to initiating any new project. 

Cost Drivers

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Cost Driver Analysis - Union/Guild/ Governmental Influence 

Identify cost elements and drivers for the category to identify Total Cost Levers
Consider:
  • Labor - Regionally based
  • Change in benefits
  • Collective Bargaining Agreements
  • Chemical costs
  • Equipment costs
  • Communication
  • Overhead & Profit
  • Specification
  • Internal cost of change
Labor 
50% of total cost
Supplies/ Equipment
5% of total cost
Labour Costs
Benefits
Burden
  • Uniform
  • Supplies
  • Chemicals
  • Equipment
  • Technology
  • Misc.
  • Overhead
  • Profit
Hiring due diligence process
Safety a priority to reduce premiums
Proper work methods training to prevent employee injuries
Business Processes/Labour Efficiency
Wage rate dynamics
Smart WO applications/ GEO fence
Demand Management
Preventive Maintenance Program
Deployment of High efficiency equipment
Buying Power Leverage
  • Effective union relations compliance reporting
  • Better ratings, lower rates
  • Use of technology
  • High-efficiency equipment
  • Trained supervision and employees
  • Safety program / training
  • Proactive, not reactive
  • Share productivity gains
  • Leverage scale of supply chain
  • SQD - service delivery
  • Resource utilization
Benefits
23% of total cost
Burden
16% of total cost
Overhead & Profit
6% of total cost
Inventory visibility through IT
Track and use OEM Warranties
Other Important Factors

Confidential & Proprietary | 2022 CBRE, Inc.

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Janitorial-Market Intelligence

Cost Drivers - Non-Union

Ver 1.0 (Jun 22)

Savings Levers & Inflation Mitigation

Cost Driver Analysis - Non-Union 

Identify cost elements and drivers for the category to identify Total Cost Levers
Consider: Non-Union
  • Labor - Regionally based
  • Government - Minimum wage
  • Change in benefits
  • Collective Bargaining Agreements
  • Chemical costs
  • Equipment costs
  • Communication
  • Overhead & Profit
  • Specification
  • Internal cost of change
Labor 
50% of total cost
Benefits
23% of total cost
Burden
16% of total cost
Supplies/ Equipment
5% of total cost
Overhead & Profit
6% of total cost

Janitorial Cost Drivers can vary by business vertical (office, warehouse, retail, etc.), union/ non-union labor, country/ region. Determining the cleanable square footage of all useable areas is critical to determine the allocation of labour hours and selection of equipment. Local labour rates and benefits should be updated prior to initiating any new project. 

Labour Costs
Benefits
Burden
  • Uniform
  • Supplies
  • Chemicals
  • Equipment
  • Technology
  • Misc.
  • Overhead
  • Profit
Hiring due diligence process
Safety a priority to reduce premiums
Proper work methods training to prevent employee injuries
Business Processes/Labour Efficiency
Wage rate dynamics
Smart WO applications/ GEO fence
Demand Management
Preventive Maintenance Program
Deployment of High efficiency equipment
Buying Power Leverage
Inventory visibility through IT
Track and use OEM Warranties
Other Important Factors
  • Effective staff retention programs
  • Better ratings, lower rates
  • Use of technology
  • High-efficiency equipment
  • Trained supervision and employees
  • Safety program / training
  • Proactive, not reactive
  • Share productivity gains
  • Leverage scale of supply chain
  • SQD - service delivery
  • Resource utilization

Confidential & Proprietary | 2022 CBRE, Inc.