The Service Industry And The Janitorial Services Industry

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LCS Facilities Group is a business that operates out of Poughkeepsie, New York and offers a diverse set of services to the region. The services that LCS provides include cleaning institutions and Green cleaning. The wide range of services that LCS delivers funnel down into two different industries: the Landscaping Service Industry and the Janitorial Services Industry. The Janitorial Service industry, NAICS code 56172, provides services that include: “office cleaning, restaurant kitchen cleaning, residential cleaning, shopping center and mall cleaning and service station cleaning” 1. The other major industry that LCS Facilities occupies is the Landscaping Services industry, NAICS code 56173, that provides services including: “arborist…show more content…
Therefore it should also be noted that a major risk that exists in the Landscaping Service Industry is its dependence on the health of other businesses consuming their services, and the economy overall. Potential risks in future for the Landscaping services industry also include the pricing of services. Customers may have greater ability to dictate prices of services and “as a result, average industry profit margins, measured as earnings before interest and taxes, are forecast to remain stable at 6.7% in 2020, despite increasing demand for industry products” 3. Another area of future potential risk is the common practice in the Landscaping Service Industry to use both legal migrant workers and undocumented laborers. H-2B is a certification program issued by the US Department of Labor that allows businesses in the Landscaping Service industry to hire noncitizens to work during busy periods. Since 2011 there have been disputes over the calculation of wages the result of which was “in March 2015, the entire program was halted temporarily after a federal court blocked DOL regulation on the H-2B.” 3 The Department of labor started accepting applications for certification in early June. For businesses that use migrant workers there is a risk that the functioning of your business could be disrupted by legislation, which could have immediate impact on profit. Potential of
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