1Manual services, for example cleaning, transport, retail and carpenters, are services that handle physical objects in contrast to knowledge services which handle abstract knowledge. Manual services have singular production and management problems. They are caught in a squeeze that makes it very difficult to develop the services and the companies. They cannot increase profit and therefore not invest much in innovation and development. They have difficulties in attracting and keeping competent labour force. This chapter presents a discussion of this squeeze and suggestions for solutions thus manual service firms can escape it. The idea of a manual services squeeze is based on empirical case studies. First will the empirical basis be briefly presented, next will the squeeze be discussed and finally will suggestions for solutions be presented in a model.

Empirical basis

2The empirical basis are case studies in manual service firms, specifically cleaning firms, with interviews. The