| SIC Codes: | 0782 7359 1799 4212 4581 4724 4725 7363 7381 7389 7699 8741 8744 9223 1731 7338 7334 7323 7322 7217 4959 4953 4729 |
| NAICS Codes: | 323111 561599 561611 561612 561613 561621 561622 561710 561720 561730 561740 561790 561910 561920 561990 562111 562112 562119 561110 561210 561311 561312 561320 561330 561410 561421 561422 561431 561439 561440 561450 561491 561492 561499 561510 561520 561591 562211 562212 562213 562219 562910 562920 562991 562998 922140 |
The US business services sector consists of about 340,000 companies with combined annual sales of about $620 billion. Major companies include staffing services providers Manpower and Kelly Services; facilities service companies ABM Industries and Rollins Inc; and solid waste handlers Waste Management and Republic Services. Other major companies in the sector include office administrative service firms such as Automatic Data Processing and Iron Mountain; ADT Security Services, and the travel division of American Express. The business services sector is highly fragmented: the 50 largest companies account for less than 25 percent of sector revenue.
Demand ultimately depends on the level of business spending, which is determined by the health of the overall economy. The profitability of individual companies depends on efficient operations and effective marketing. Large companies often enjoy economies of scale and can compete for large, national accounts. Small companies can compete by offering highly specialized services, or through superior customer service. The sector is labor-intensive: annual revenue per employee averages about $80,000. Business support activities are often undertaken in-house by establishments in many sectors of the economy.
Major services provided include employment services (30 percent of sector revenue), services to buildings and dwellings (15 percent), and waste management and environmental remediation services (12 percent). Travel arrangement, and investigations and security services together account for 12 percent. Office administrative services, facilities support, and other business support services account for the remainder of sector revenue.
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