The Industrial & Institutional Category Is Back in Business

Fatty deli meats and fast-food burgers have always been hazardous to one’s waistline. But toss Listeria and E. coli into the mix and it’s a recipe for a health disaster and a clarion call for proper hygiene procedures in industrial and institutional settings. 

In July, the US Centers for Disease Control (CDC) issued a warning that meats sliced at delis, including Boar’s Head liverwurst, were contaminated with Listeria. CDC urged delis that received recalled meats to thoroughly clean and sanitize all food and non-food surfaces, including deli slicers, and throw away any open meats and cheeses in the deli. The USDA-FSIS (Food Safety and Inspection Service) also advised delis that received recalled product to not use any opened deli products because the recalled meats could cross-contaminate other deli meats and cheeses.

More recently, in October, an E. coli outbreak linked to onions in McDonald’s Quarter Pounders led to dozens of illnesses and at least one death. In a recall notice for the onions, Taylor Farms urged customers to “stop using the affected product as soon as possible” and to “destroy” them.

The number of people infected by the bacteria linked to slivered onions on the Quarter Pounder burgers had risen to 104 across 14 states as of November 13, according to the CDC. Of these, 34 people were confirmed to have been hospitalized and four others had developed potentially life-threatening kidney complications.

As a result, the US Food and Drug Administration (FDA) issued a Class I risk classification for a large number of affected onions, including those distributed to food service facilities in Colorado, Kansas, Missouri, Nebraska, New Mexico and Utah. FDA’s Class I risk classification means there is a “reasonable probability that the use of, or exposure to, a violative product will cause serious adverse health consequences or death.” 

Both contamination cases underscore the need for proper handling of food and thorough cleaning of surfaces in food service, as well as in the workplace, healthcare settings, schools and other public areas. According to the National Restaurant Association (NRA), more than half of US foodborne illness outbreaks are linked to restaurants and foodservice businesses.

But while proper hygiene is top-of-mind, restaurants, lodging and janitorial staff shortages are a major issue for many customers.

“In 2024, the biggest issue facing our customers is employee turnover, particularly at the custodial level,” said an SC Johnson Professional spokesperson. “The expectation to do more with fewer resources remains a major concern. Despite efforts to address employment gaps, the situation has not improved.”

Ecolab got its start in the hospitality and food service businesses more than 100 years ago. But the industry changed dramatically during the covid-19 pandemic, moving quickly toward digital technology and that’s impacted employment. 

“A third of the people who used to sit in a restaurant now order remotely or through the drive-thru,” said Ecolab President and CEO Cristophe Beck at the Baird 2024 Global Industrial Conference last month. 

And yet, Ecolab’s food and hospitality business has been growing 6-7% a year. Beck rightly called it a remarkable performance, one driven, in part, by Ecolab’s decision to maintain staff during the pandemic.

“We had 10,000 people serving hotels and restaurants,” recalled Beck. “We made the decision to keep everyone, to pay everyone bonuses and to keep that level of expertise forever.”

The move enabled Ecolab to gain massive share, in Beck’s words, so that when the food and hospitality business came back, it had a compound effect on growth. 

“And today, we have a relationship with customers that is better than it’s ever been,” he added.

For companies suffering from staff shortages, the NRA and ServSafe published “Always Ready: Foodborne Illness Outbreak” guide. The free guide includes:

• Leading causes of foodborne illness outbreaks and key prevention measures;
• Handling a complaint;
• Working with regulatory/health department officials to isolate the cause and rectify a breach;
• Communication do’s and don’ts, with employees and guests; and
• Responding to the media and social media best practices.

Foodborne illness may be in the news, but consumers still utilize quick-service and full-service eateries. According to the NRA, 2024 sales will top $1 trillion for the first time in history. And the nation’s second-largest private sector employer is on track to add 200,000 jobs, pushing total employment to 15.7 million people. But table service employment remains down 234,000 positions compared to pre-covid levels. Meanwhile, food delivery service sales, such as Uber Eats and Grubhub, continue to make inroads on traditional food service operations, according to Bloomberg.

The growth provides a boost to I&I sales. 

“Despite more use of disposable wares and food delivery apps, warewash chemicals continue to post gains with the restaurant industry seeing strong revenue growth,” explained Laura Mahecha, director, Kline + Company’s Professional Cleaning vertical. 

Post-Covid Gains

Following the huge gains and steep losses during the pandemic years from 2020-2022, the US professional cleaning market has stabilized and is growing at more typical annual rates in the 3-5% range, said Mahecha.

Industry executives agree.

“While there remains an increased focus on the importance of cleaning and disinfecting post-pandemic and ongoing challenges around custodian labor shortages, the impact of covid-19 is largely over,” said an SC Johnson Professional executive. “We’re seeing a return to normalcy in both work and travel. Employees are heading back to offices full-time, and business and leisure travel is in full swing. This is evident in the increased traffic flowing through airports. The world is largely returning to the state it was pre-pandemic.”

According to Kline + Company’s analysis, the total US professional cleaning market is valued at approximately $10-12 billion. Kline puts the global I&I market at around $25-30 billion. What’s in demand? According to Mahecha, wipes, hard surface cleaners, disinfectants/sanitizers and hand soaps are growing at market or higher rates. 

To hear more insights from Laura Mahecha, click here.

Clorox Professional is taking advantage of the demand for wipes. Combining the ease of wipes with an environmentally friendlier profile, Clorox Professional launched EcoClean Disinfecting Wipes earlier this year. The brand replaces Green Works in the Clorox lineup. Clorox EcoClean Disinfecting Wipes are made with a 100% plant-based substrate and naturally derived, citric acid active ingredient that kills 99.9% of illness-causing germs including cold and flu viruses, E. coli, MRSA and Norovirus, according to Clorox. Formulated without bleach, ammonia or alcohol, Clorox EcoClean Disinfecting Wipes are said to be gentle on surfaces but tough on grease, grime and germs.

“Customers are looking for products that are evaluated more in-depth,” explained Kirsten Hochberg, a senior specialist with CloroxPro’s clinical and scientific affairs team. “Our EcoClean wipes meet all the requirements for LEED certification and the US Environmental Protection Agency’s Environmentally Preferrable Purchasing program.”

The wipes are the latest addition to the EcoClean lineup, which includes disinfecting cleaner, all-purpose cleaner and glass cleaner. All Clorox EcoClean products are made using 25% post-consumer recycled plastic packaging and can help facilities reach their sustainability goals, including meeting requirements for LEED, ISSA CIMS—Green Building, and Healthy Green Schools and Colleges.

Earlier this year, in April, Clorox Professional introduced a more concentrated version of its Pine-Sol Multi-Surface Cleaner and Disinfectant. The 2X concentrated formula promises more cleaning with less waste due to smaller bottle. The original pine formula disinfects both full-strength and diluted, and kills 99.9% of germs, including cold and flu viruses, the virus that causes covid-19, RSV, Norovirus and more.

According to Kline’s research, floor care continues to grow but at a slower pace largely due to low-maintenance flooring and less frequent tasks like stripping and buffing. 

Floor care has been a focus this year at SC Johnson Professional. The new EZ Care Floor Care System is designed to help improve operational efficiency. It simplifies the floor care process, integrating seamlessly into existing workflows with minimal training required, according to the company. In an environment where labor shortages continue to be a concern, the EZ Care system helps reduce manual labor by eliminating the need for conventional stripping through the use of an auto scrubber, allowing teams to achieve a durable, high-gloss finish with less effort and time. 

“To further help our customers improve efficiency, our TruShot 2.0 Mobile Dispensing System is designed to provide optimized dilution delivery at the pull of the trigger,” added the SC Johnson Professional spokesperson. “Its fully intuitive design makes it easy to use, requiring minimal training for staff. By streamlining the chemical dispensing process, it can save cleaners 48 hours per year in travel and refill time and helps enhance overall productivity.”

More Cleaning, More Often

According to Mahecha, post-covid, most buildings and facilities adopted a cleaning frequency that is either slightly elevated or similar to pre-pandemic levels, largely due to staff shortages. She also noted that office buildings continue to operate below pre-pandemic daily capacity as many employees continue to follow a hybrid schedule, typically working 2-3 days in the office and the rest remotely. 

“However, more employers are expected to require additional in-office days starting in 2025, which could drive growth in this sector,” observed Mahecha. “Building service contractors (BSCs) are currently impacted by both staffing shortages and reduced office occupancy, but with anticipated increases in in-office workdays and a broadening customer base, BSCs remain key end users of professional cleaning products.”

With peak cold and flu season underway in the Northern Hemisphere, Lysol Pro Solutions released results of a study about how germ spread in public spaces and how an effective hygiene program can cut down transmission.

“We wanted to help businesses understand more about how germs spread, which surfaces act as hotspots for transmission, and how effective hygiene measures can help reduce those germs from spreading in a business environment,” explained Brian Leafblad, R&D senior manager, global business solutions, Reckitt’s Lysol Pro Solutions. “We did this by conducting a real-world study in the public areas of a hotel by using a ‘tracer’—a special microbe that replicates a virus but is harmless to humans. While the study was conducted in a hotel, it applies to common areas in commercial buildings in general.”

Leafblad said that at a very high level, the study showed that hands pick up germs from surfaces and spread them around high traffic spaces. 

“When you touch an object in a public space, you may be connecting with many others and sharing germs,” he explained. 

For example, the results showed that the tracer spread from a door handle and elevator button to 13 other surfaces in a four-hour period. 

“This teaches us that hygiene isn’t just about products and cleaning, it’s about understanding how people interact with spaces,” Leafblad said. “The study showed that an effective hygiene approach, where germ hotspots are cleaned and disinfected at the appropriate time and frequency, helps to break the chain of transmission and reduces the risk of germs spreading after someone has touched a surface by 80%.”

One interesting finding from the study was just how many surfaces people touch in public spaces, often without even knowing or thinking about it. Reckitt researchers discovered that, in a two-hour period, over 50% of people who entered the hotel touched two or more surfaces, such as countertops and door handles, often in food and hospitality areas.

 “If you then consider all the different spaces you enter during a regular day, and how many different surfaces you might touch within those spaces, the potential risk of your hands being part of the chain of transmission for germs is significant,” said Leafblad. 

Ultimately, the study shows that using an effective hygiene approach in commercial facilities such as hotels can help reduce the spread of germs, and in doing so, help businesses protect their guests and staff—especially as more people spend time indoors during the winter months. 

“This type of science-led intel helps our customers train their cleaning teams on which surfaces are most frequently touched and how often to disinfect, which helps create protected spaces that staff and customers feel comfortable to spend time in,” Leafblad concluded.

Where the Growth Lies

Healthcare, foodservice, travel and hospitality (for both business and leisure) and recreational facilities are all experiencing growth, according to Kline. 

Increased dining out, travel, and entertainment are driving higher sales of cleaning products for these facilities. 

Healthcare facilities, with their ongoing focus on disinfection, sanitization, and keeping vulnerable occupants healthy and safe, represent a perennial area of growth for cleaning products, added Mahecha. 

There are 6,120 hospitals in the US, according to the American Hospital Association. 

Sustainability Gains

Sustainable ingredients in cleaning products are a growing focus, with innovations incorporating citric acid, lavender, lactic acid and hydrogen peroxide as alternatives to harsher chemicals.

“A heightened focus on sustainability and the growing popularity of e-commerce are emerging topics of discussion with our customers,” agreed the SC Johnson Professional executive. “Customers are becoming more aware of these topics, asking more questions and prioritizing purchasing more environmentally responsible products. They are often checking if they have a third-party certification, such as Green Seal, to avoid greenwashing claims being made by companies.”

“Kline + Company’s recent surveys indicate that many respondents are willing to pay more for eco-friendly cleaning products,” said Mahecha. “Additionally, initiatives such as recycled-content packaging, water-saving concentrates, and other sustainable solutions are becoming increasingly important to professional users aiming to meet environmental goals by 2030.”

Automation is also a major area of development for suppliers in this market. Demand for automatic soap, sanitizer and paper towel dispensers has risen significantly. Automated equipment helps end users optimize chemical usage, reducing over-application and the need for re-cleaning, which leads to cost savings. 

The Internet of Things (IoT) and connected equipment are expected to see continued growth in demand across factories, industrial settings and medical facilities to schedule and confirm cleaning, said Mahecha.

“For facilities facing staffing shortages, push notifications about restrooms or dispensers needing service can improve efficiency, saving time and reducing costs,” she concluded.

Suppliers use technology to do more with less. 

“E-commerce is also reshaping how businesses make purchasing decisions,” said the SC Johnson Professional spokesperson. “Businesses are becoming more budget-conscious, often comparing prices online to find the best deals. They are increasingly focused on the actual cost rather than just the case price and are more selective about where and how they spend their money.”

During the Baird Global Industrial Conference last month, Beck detailed how his company thrives in today’s price-conscious market. He noted that, on average, pricing rose 1-1.5% every single year. In fact, there hasn’t been a year when pricing went down, according to Beck. But today, Ecolab’s pricing model is growing 2-3%, and it’s driven, not only by digital, but also by the share of savings Ecolab provides its customers. 

“We provide customers with best-in-class potential and we deliver that on a daily basis,” Beck explained. “(Customers’) safety is under control. Operational costs are better because they are using less water and energy. Well, that adds up to a dollar term. And we agree with the customer about the share of that improvement that we get as a company that translates into value pricing as we call it. That’s what’s driving the 2-3% vs. the 1-1.5%.”

Technology makes Ecolab more efficient and its customers more efficient. Ecolab has been investing in digital technology since 1991. More than 30 years later, it has 1,200 employees in its digital department. Today, Ecolab has thousands of remote systems that are connected to one of the largest IoT clouds in the world. 

Technological advances are reshaping every industry. In the labor-intensive I&I sector, technology is the way forward for the hospitality, foodservice and healthcare segments.