The Index Propreté (cleaning index) was launched eighteen months ago. Published quarterly, this indicator reflects changes in the costs of companies in the cleaning sector. Here is an analysis and explanation from the experts at AURIS Finance, a consultancy specialising in mergers and acquisitions.
How do we measure changes in costs for cleaning contractors in a context of inflation? To answer this question, the FEP (Fédération des Entreprises de Propreté, d’Hygiène et Services Associés) has created an index. Published on the index-proprete.fr website, it takes into account all the costs associated with the activity of professional cleaning companies: purchase of raw materials and supplies (cleaning products, detergents), personnel costs (wages, salaries and benefits), external costs (commercial rents, energy costs, transport costs, temporary staff, etc.). The list of items taken into account is the result of a survey of a sample of 1,500 companies with NAF code 8121Z, which allows for a refinement of the cost structure.
Increased costs
Published since 20 October 2023, the index has been positively assessed by the Direction Générale de la Concurrence, de la Consommation et de la Répression des Fraudes (DGCCRF- a service responsible for ensuring that companies comply with consumer law) and the Direction des statistiques de l’Institut Nationale de la Statistique et des Études Économiques (INSEE-The French national Institute for statistics). The latest known value of the Index Propreté, for the third quarter of 2023, is 108.6, representing an increase in costs for companies in the sector of 8.6 points between the first quarter of 2022 and the third quarter of 2023. Since the first measurement, carried out in the first quarter of 2022, the increase in costs has been linear, at around two points per quarter.
A key indicator
Since its launch, the Index Propreté has been very well received, both by companies in the sector and by their clients. Until now, no indicator has been able to provide a detailed assessment of the changes in costs faced by the cleaning industry: the various indicators that existed were either too general, too broad in scope, or related to transaction prices rather than production costs. The Index Propreté enables companies in the sector to update or revise existing cleaning contracts. More and more contractors are adopting the index, as is the case with public procurement contracts, which are beginning to include it in their price review clauses.
An industry in a structuring phase
The Index Propreté is a response to the need for clarity in a sector beset by numerous challenges. In addition to the rising cost of raw materials and supplies, the human factor is weighing on the performance of companies. Intense competition in the sector is driving cleaning companies to make acquisitions. This is a strategy to achieve critical mass more quickly and spread fixed costs over a larger volume of revenue.
In France, the cleaning sector currently employs 600,000 people and has an estimated turnover of €18 billion. It is made up of a myriad of companies, with nearly 16,000 listed on the B-to-B market.
Change in the value of the Index Propreté
Q1. Q2 etc…
Our experts at your side
At AURIS Finance, our experts are specialised by sector. Our cleaning company specialists are at your side. Experienced in the specific problems of this industry, they are able to support you throughout your sale and acquisition operations.
