<PAGE>   1
================================================================================


                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

(Mark One)
      [X]       QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                          OF THE SECURITIES ACT OF 1934

For quarterly period ended September 30, 1998

                                       OR

      [ ]       TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to
                               --------------------    --------------------

Commission File Number:  0-23335

                       MPW INDUSTRIAL SERVICES GROUP, INC.
             (Exact name of registrant as specified in its charter)

                 Ohio                                             31-1567260
   (State or other jurisdiction of                            (I.R.S. employer
    incorporation or organization)                           identification no.)

9711 Lancaster Road, S.E., Hebron, Ohio                             43025
(Address of principal executive offices)                          (Zip code)

                                 (740) 927-8790
              (Registrant's telephone number, including area code)

                                 Not Applicable
              (Former name, former address and former fiscal year,
                          if changed since last report)


--------------------------------------------------------------------------------

Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes  X   No
                                              ---     ---

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of the issuer's classes of common
stock, as of the latest practicable date.

As of October 31, 1998, 10,714,601 shares of the issuer's common stock, without
par value, were outstanding.


================================================================================
<PAGE>   2
                       MPW INDUSTRIAL SERVICES GROUP, INC.

<TABLE>
                                                    INDEX
<CAPTION>
PART I.      FINANCIAL INFORMATION                                                                     PAGE
<S>          <C>                                                                                       <C>
Item 1.      Financial Statements

             Consolidated Balance Sheets as of September 30, 1998 (unaudited) and June 30, 1998...........3

             Consolidated Statements of Operations for the three months ended September 30,
             1998 and 1997 (unaudited)....................................................................4

             Consolidated Statements of Cash Flows for the three months ended September 30,
             1998 and 1997 (unaudited)....................................................................5

             Notes to Consolidated Financial Statements (unaudited).......................................6

Item 2.      Management's Discussion and Analysis of Financial Condition and Results of Operations........9

Item 3.      Quantitative and Qualitative Disclosures About Market Risk..................................12


PART II.     OTHER INFORMATION

Item 1.      Legal Proceedings...........................................................................12

Item 2.      Changes in Securities and Use of Proceeds...................................................12

Item 3.      Defaults Upon Senior Securities.............................................................13

Item 4.      Submission of Matters to a Vote of Security Holders.........................................13

Item 5.      Other Information...........................................................................13

Item 6.      Exhibits and Reports on Form 8-K............................................................13


SIGNATURES...............................................................................................14

EXHIBIT INDEX............................................................................................15
</TABLE>

                                                                          Page 2
<PAGE>   3
                        PART I. -- FINANCIAL INFORMATION

ITEM 1.      FINANCIAL STATEMENTS.

<TABLE>
                                MPW INDUSTRIAL SERVICES GROUP, INC.
                                    CONSOLIDATED BALANCE SHEETS
                                 (in thousands, except share data)
<CAPTION>
                                                                      SEPTEMBER 30,     JUNE 30,
                                                                          1998            1998
                                                                      -------------     --------
                                                                       (UNAUDITED)
<S>                                                                      <C>            <C>    
                             ASSETS
Current assets:
   Cash and cash equivalents                                             $   121        $   507
   Accounts receivable, net of allowances                                 23,505         19,386
   Inventories                                                             5,521          4,959
   Deferred income taxes                                                   1,301          1,439
   Prepaid expenses                                                        1,101          1,178
   Other current assets                                                      384            351
                                                                         -------        -------
                                                                          31,933         27,820

Property and equipment, net                                               31,217         28,593

Noncurrent assets:
   Intangibles                                                            25,511         15,514
   Other assets                                                              434            440
                                                                         -------        -------

Total assets                                                             $89,095        $72,367
                                                                         =======        =======

              LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
   Accounts payable                                                      $ 5,785        $ 6,279
   Accrued compensation and related taxes                                  3,193          3,729
   Current maturities of noncurrent liabilities                            3,895          2,615
   Other accrued liabilities                                               4,296          3,768
                                                                         -------        -------
                                                                          17,169         16,391
Noncurrent liabilities:
   Long-term debt                                                         26,412         14,296
   Deferred income taxes                                                   1,334          1,192
   Other                                                                     613            767
                                                                         -------        -------
                                                                          28,359         16,255

Shareholders' equity:
   Preferred stock, $0.01 par value; 5,000,000 shares authorized;
     no shares issued and outstanding                                         --             --
   Common stock, no par value; 30,000,000 shares authorized;
     10,700,201 and 10,496,647 shares issued and outstanding
     at September 30, 1998 and June 30, 1998, respectively                   107            105
   Additional paid-in capital                                             39,839         37,591
   Retained earnings                                                       3,621          2,025
                                                                         -------        -------
                                                                          43,567         39,721
                                                                         -------        -------

Total liabilities and shareholders' equity                               $89,095        $72,367
                                                                         =======        =======
</TABLE>

The accompanying notes are an integral part of these consolidated financial
statements.

                                                                          Page 3
<PAGE>   4
<TABLE>
                              MPW INDUSTRIAL SERVICES GROUP, INC.
                             CONSOLIDATED STATEMENTS OF OPERATIONS
                             (in thousands, except per share data)
<CAPTION>
                                                                          THREE MONTHS ENDED
                                                                             SEPTEMBER 30,
                                                                        ----------------------
                                                                          1998           1997
                                                                        -------        -------
                                                                              (UNAUDITED)
<S>                                                                     <C>            <C>
Revenues                                                                $29,837        $21,756

Costs and expenses:
   Cost of services                                                      19,958         14,271
   Selling, general and administrative expenses                           5,342          3,545
   Depreciation and amortization                                          1,339            866
   Deferred stock option compensation                                        --            160
                                                                        -------        -------
   Total costs and expenses                                              26,639         18,842
                                                                        -------        -------

Income from operations                                                    3,198          2,914
Interest expense, net                                                       489            335
Minority earnings                                                            --             99
                                                                        -------        -------
Income before taxes                                                       2,709          2,480
Provision for income taxes                                                1,110            149
                                                                        -------        -------

Net income                                                              $ 1,599        $ 2,331
                                                                        =======        =======

Pro forma information:

   Historical income before taxes                                       $ 2,709        $ 2,480

   Pro forma taxes on income                                              1,110            992
                                                                        -------        -------

   Pro forma net income                                                 $ 1,599        $ 1,488
                                                                        =======        =======

   Pro forma net income per share                                       $  0.15        $  0.24
                                                                        =======        =======

   Pro forma net income per share, assuming dilution                    $  0.14        $  0.22
                                                                        =======        =======

   Weighted average common shares outstanding                            10,610          6,200
   Weighted average common shares outstanding, assuming dilution         11,301          6,881
</TABLE>

The accompanying notes are an integral part of these consolidated financial
statements.

                                                                          Page 4
<PAGE>   5
<TABLE>
                             MPW INDUSTRIAL SERVICES GROUP, INC.
                            CONSOLIDATED STATEMENTS OF CASH FLOWS
                                       (in thousands)
<CAPTION>
                                                                      THREE MONTHS ENDED
                                                                         SEPTEMBER 30,
                                                                   -------------------------
                                                                     1998             1997
                                                                   --------         --------
                                                                          (UNAUDITED)
<S>                                                                <C>              <C>     
CASH FLOW FROM OPERATING ACTIVITIES:
Net income                                                         $  1,599         $  2,331
Adjustments to reconcile net income to net cash provided by
 (used in) operating activities:
   Depreciation                                                       1,068              811
   Amortization                                                         271               55
   (Gain) loss on disposals of assets                                     2               (4)
   Minority interest                                                     --               99
   Effect of exchange rate changes on cash                               (3)              --
   Deferred stock option compensation                                    --              160
   Change in deferred income taxes                                      280               --
   Changes in operating assets and liabilities:
     Accounts receivable                                             (2,334)          (1,514)
     Inventories                                                        735                8
     Prepaid expenses and other assets                               (1,742)              88
     Accounts payable                                                (1,251)             334
     Other accrued liabilities                                         (574)          (1,007)
                                                                   --------         --------
Net cash provided by (used in) operating activities                  (1,949)           1,361

CASH FLOW USED IN INVESTING ACTIVITIES:
Purchases of property and equipment                                  (3,023)            (558)
Purchase of businesses, net of acquired cash                         (7,040)              --
Proceeds from the disposal of property and equipment                     24                4
                                                                   --------         --------
Net cash used in investing activities                               (10,039)            (554)

CASH FLOW FROM FINANCING ACTIVITIES:
Proceeds from revolving credit facility                              14,250           11,414
Payments on revolving credit facility                                (6,365)         (10,817)
Proceeds from notes payable                                           6,804               --
Payments on notes payable                                            (3,007)            (220)
Payments on capital lease obligations                                   (80)             (20)
Distributions to shareholders                                            --           (1,121)
                                                                   --------         --------
Net cash provided by (used in) financing activities                  11,602             (764)
                                                                   --------         --------
Increase (decrease) in cash and cash equivalents                       (386)              43
Cash and cash equivalents at beginning of year                          507              489
                                                                   --------         --------

Cash and cash equivalents at end of period                         $    121         $    532
                                                                   ========         ========
</TABLE>

The accompanying notes are an integral part of these consolidated financial
statements.

                                                                          Page 5
<PAGE>   6
                       MPW INDUSTRIAL SERVICES GROUP, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1998
                                   (Unaudited)

NOTE 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         BASIS OF PRESENTATION AND DESCRIPTION OF BUSINESS MPW Industrial
Services Group, Inc. and its subsidiaries (the "Company") is an industrial
services firm that provides industrial cleaning and facility support services,
industrial process water purification, industrial filtration management services
and other specialized services. Such services are typically provided at customer
facilities. The Company also operates a process facility for industrial
container cleaning. The Company's principal customers are large industrial
facilities in the automotive, electric power, chemical, pulp and paper, steel,
transportation, aerospace and other heavy manufacturing industries. The Company
provides services primarily in the midwestern and southeastern United States.

         The accompanying unaudited consolidated financial statements include
the accounts of the Company and all of its wholly-owned subsidiaries, including
Aquatech Environmental, Inc. ("Aquatech"), which was 70% owned by the Company
until December 5, 1997, at which time the Company purchased the remaining
minority shareholders' interests of Aquatech, and it became wholly-owned. The
minority shareholders' interests in the equity and net income of Aquatech are
presented separately in the accompanying unaudited consolidated financial
statements for the three months ended September 30, 1997. All material
intercompany transactions and balances have been eliminated in consolidation.

         The accompanying unaudited consolidated financial statements presented
herein have been prepared by the Company and reflect all adjustments of a normal
recurring nature that are, in the opinion of management, necessary for a fair
presentation of financial results for the three months ended September 30, 1998
and 1997, in accordance with generally accepted accounting principles for
interim financial reporting and pursuant to Article 10 of Regulation S-X.
Certain footnote disclosures normally included in financial statements prepared
in accordance with generally accepted accounting principles have been condensed
or omitted pursuant to such rules and regulations. These interim consolidated
financial statements should be read in conjunction with the Company's Annual
Report on Form 10-K for the year ended June 30, 1998 ("Annual Report"). The
results of operations for the three months ended September 30, 1998 and 1997 are
not necessarily indicative of the results for the full year (see Note 7 for
further information regarding fluctuations in quarterly results).

         INTANGIBLES Intangibles include costs in excess of net assets of
acquired businesses ("goodwill"), patents, covenants not-to-compete and customer
lists. Goodwill, resulting primarily from certain acquisitions accounted for
using the purchase method of accounting, is amortized on a straight-line basis
over periods not exceeding 25 years. The remaining intangibles are amortized on
a straight-line basis over periods ranging from 5 to 20 years.

         USE OF ESTIMATES The preparation of the financial statements in
conformity with generally accepted accounting principles requires management to
make estimates and assumptions that affect the amounts reported in the
accompanying consolidated financial statements. Actual results could differ from
those estimates.

         RECLASSIFICATIONS Certain amounts presented as of June 30, 1998 have
been reclassified to conform to the September 30, 1998 presentation.

NOTE 2.  ACQUISITIONS

         TANK MANAGEMENT Effective August 1, 1998, the Company purchased
substantially all of the assets of Tank Management, Inc. ("TMI") for aggregate
consideration of $5,750,000. The consideration included the issuance of 114,318
shares of common stock of the Company, representing an aggregate value of
$1,250,000. The purchase price may be increased upon the achievement of certain
new customer sales objectives for the TMI facility over the three-year period
following the date of acquisition. The acquisition has been accounted for using
the purchase method of accounting. The accompanying financial statements include
the results of operations of TMI from the effective acquisition date through
September 30, 1998.

                                                                          Page 6
<PAGE>   7
         GAUTHIER Effective August 1, 1998, the Company acquired all of the
outstanding stock of Gauthier Enterprises, Inc., a Michigan corporation
("Gauthier"), for aggregate consideration of $3,000,000. The consideration
included the issuance of 89,236 shares of common stock of the Company,
representing an aggregate value of $1,000,000. The purchase price may be
increased by $3,000,000, or more or less, contingent upon the achievement of
certain revenue and operating objectives over the three-year period following
the date of acquisition. The acquisition has been accounted for using the
purchase method of accounting. The accompanying financial statements include the
results of operations of Gauthier from the effective acquisition date through
September 30, 1998.

         The terms of certain of the Company's other acquisition agreements also
provide for additional consideration to be paid based on the achievement of
certain objectives. Such additional consideration is paid in cash, common stock
of the Company, or a combination thereof, and is capitalized as goodwill. During
the three months ended September 30, 1998, the Company paid additional
consideration of $304,000. No common stock of the Company was issued in
connection with this consideration.

NOTE 3.  INTANGIBLES

         Intangibles are summarized as follows:

<TABLE>
<CAPTION>
                                                SEPTEMBER 30,    JUNE 30,
                                                -------------    --------
                                                    1998           1998
                                                  -------        -------
                                                      (in thousands)
<S>                                               <C>            <C>    
                    Goodwill                      $18,641        $15,115
                    Customer lists                  5,119             --
                    Patents                         1,369             --
                    Non-compete agreements            382            399
                                                  -------        -------
                                                  $25,511        $15,514
                                                  =======        =======
</TABLE>

         Accumulated amortization of intangibles as of September 30, 1998 and
June 30, 1998 was $851,000 and $580,000, respectively.

NOTE 4.  INCOME TAXES

         Prior to October 31, 1997, the income of MPW Industrial Services, Inc.
("Industrial") was taxed under the provisions of Subchapter S of the Internal
Revenue Code of 1986, as amended, which provides that in lieu of corporate
income taxes, the shareholders of the S Corporation were taxed on their
proportionate share of Industrial's taxable income. Therefore, no provision or
liability for federal income tax has been included in historical financial
statements related to Industrial prior to October 31, 1997. The accompanying
financial statements do, however, include provisions for income taxes for
federal, state, provincial and local tax purposes for the other subsidiaries of
the Company that were subject to corporate income taxes prior to October 31,
1997.

         Deferred income taxes reflect the net tax effects of temporary
differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for income tax purposes. Significant
components of the Company's deferred tax asset and liability as of September 30,
1998 are related to the use of accelerated depreciation rates on property and
equipment for tax purposes and the carryforward of tax adjustments related to
the termination of Industrial's S Corporation status.

         The pro forma income taxes presented in the Consolidated Statements of
Operations for the three months ended September 30, 1997 represent the estimated
income taxes that would have been reported had Industrial been subject to
federal and state income taxes for that period.

NOTE 5.  EARNINGS PER SHARE

         In 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 128 ("SFAS No. 128"), Earnings per Share,
effective for periods ending after December 15, 1997. SFAS No. 128 replaced the
previously reported primary and fully diluted earnings per share with basic and
diluted earnings per share. Unlike primary earnings per share, basic earnings
per share excludes any dilutive effects of options, warrants and convertible
securities.

                                                                          Page 7
<PAGE>   8
Diluted earnings per share is similar to the previously reported fully diluted
earnings per share. All earnings per share amounts for all periods have been
presented to conform to the SFAS No. 128 requirements.

         The following table sets forth the computation of pro forma basic and
diluted earnings per share (in thousands, except per share data):

<TABLE>
<CAPTION>
                                                                                          THREE MONTHS ENDED
                                                                                             SEPTEMBER 30,
                                                                                        ---------------------
                                                                                          1998          1997
                                                                                        -------        ------
<S>                                                                                     <C>            <C>   
                  Numerator for basic and diluted earnings per share:
                     Pro forma net income                                               $ 1,599        $1,488
                                                                                        =======        ======

                  Denominator for basic earnings per share - weighted average
                    common shares                                                        10,610         6,200

                     Effect of dilutive employee stock options                              691           681
                                                                                        -------        ------

                  Denominator for diluted earnings per share - adjusted weighted
                    average common shares and assumed conversions                        11,301         6,881
                                                                                        =======        ======

                  Pro forma net income per share                                        $  0.15        $ 0.24
                                                                                        =======        ======

                  Pro forma net income per share, assuming dilution                     $  0.14        $ 0.22
                                                                                        =======        ======
</TABLE>

NOTE 6.  SUBSEQUENT EVENTS

         Effective November 2, 1998, the Company entered into a new credit
agreement with its principal banks (the "Credit Facility") to replace the
previous credit agreement (the "Previous Credit Agreement"). The Credit Facility
provides the Company with $75,000,000 of revolving credit availability for a
three-year period. All of the outstanding borrowings under the Previous Credit
Agreement were paid off with the proceeds of the Credit Facility.

         In November 1998, the Company acquired Envirosafe Technical Cleaning,
Inc. and Support Systems, Inc. and acquired substantially all of the assets of
Suresco, Inc. and Technological Environment Cleaning International Company. The
Company has also entered into an agreement in principle to acquire Dryden
Engineering, Inc. All five of these companies will be merged into a newly
created, wholly-owned subsidiary of the Company. The purchase price, paid
through a combination of cash, common stock of the Company and preferred stock
of the newly created company, is expected to be an aggregate of $19,550,000.

NOTE 7.  FLUCTUATIONS IN QUARTERLY RESULTS

         The Company's revenues and results of operations tend to vary
seasonally as a result of a number of factors over which the Company has no
control, including its customers' budgetary constraints, the timing and duration
of its customers' planned maintenance activities and shutdowns, changes in its
competitors' pricing policies and general economic conditions. Also, certain
operating and fixed costs remain relatively constant throughout the fiscal year,
which when offset by differing levels of revenues may result in fluctuations in
quarterly operating results. Because of these factors, the Company typically
generates the least amount of revenues in the third quarter, higher revenues in
the second quarter and the greatest amount of revenues in the first and fourth
quarters. Although the Company believes that the historical trend in quarterly
revenue for the first and fourth quarters are generally higher than the second
and third quarters, there can be no assurance that this will occur in future
periods. Accordingly, quarterly or other interim results should not be
considered indicative of results to be expected for any quarter or for the full
year.

                                                                          Page 8
<PAGE>   9
ITEM 2.      MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
             RESULTS OF OPERATIONS.

         Except for historical information, certain statements in this
Management's Discussion and Analysis of Financial Condition and Results of
Operations ("MD&A") are forward looking. These forward looking statements are
based on current expectations that are subject to a number of uncertainties and
risks, and actual results may differ materially. The uncertainties and risks
include, but are not limited to, competitive and other market factors, customer
purchasing behavior, general economic conditions and other facets of the
Company's business operations as well as other risk factors identified in
"Investment Considerations" in the Company's Annual Report. The Company
undertakes no obligation and does not intend to update, revise or otherwise
publicly release the result of any revisions to these forward looking statements
that may be made to reflect future events or circumstances.

         The following information should be read in conjunction with the
Unaudited Consolidated Financial Statements and Notes included herein. The
following information should also be read in conjunction with the Audited
Consolidated Financial Statements and Notes and MD&A for the year ended June 30,
1998 as contained in the Company's Annual Report.

OVERVIEW

         In fiscal 1998, the Company completed the acquisitions of four
companies, ESI International, the Vinewood Companies, Straightline Optical
Service and Maintenance Concepts (collectively, the "fiscal 1998 acquisitions").
During the three months ended September 30, 1998 (the "fiscal 1999 quarter"),
the Company completed the acquisitions of two companies, TMI and Gauthier
(collectively, the "fiscal 1999 acquisitions"). See Note 2 to the Consolidated
Financial Statements. Collectively, the fiscal 1999 and 1998 acquisitions
contributed $7.1 million of revenues in the fiscal 1999 quarter.

         On December 1, 1997, the registration statement related to the
Company's initial public offering of its common stock (the "Offering") was
declared effective by the Securities and Exchange Commission and its stock began
trading on the NASDAQ national market system on December 2, 1997. During the
three month period ended December 31, 1997, numerous events occurred and certain
transactions were recorded that were directly related to the Offering and affect
the comparability of the results of operations for the Company for the fiscal
1999 quarter to the three months ended September 30, 1997 (the "fiscal 1998
quarter"). For purposes of this MD&A, adjusted pro forma results of operations
for the fiscal 1998 quarter are being utilized. Adjusted pro forma information
for each of the quarters in fiscal 1998 is described in the Company's Annual
Report and its Prospectus dated December 2, 1997, filed in connection with the
Company's Registration Statement on Form S-1 (File number 333-36887).

RESULTS OF OPERATIONS

         The following table sets forth, for the periods indicated, consolidated
statement of income data as a percentage of revenues for actual results for the
fiscal 1999 quarter and adjusted pro forma results for the fiscal 1998 quarter:

<TABLE>
<CAPTION>
                                                                   THREE MONTHS ENDED
                                                                      SEPTEMBER 30,
                                                                  -------------------
                                                                   1998          1997
                                                                  -----         -----
<S>                                                               <C>           <C>   
         Revenues                                                 100.0%        100.0%
         Costs and expenses:
            Cost of services                                       66.9          65.6
            Selling, general and administrative expenses           17.9          16.5
            Depreciation and amortization                           4.5           3.9
                                                                  -----         -----
            Total costs and expenses                               89.3          85.9
                                                                  -----         -----
         Income from operations                                    10.7          14.1
         Interest expense, net                                      1.6            --
                                                                  -----         -----
         Income before taxes                                        9.1          14.1
         Provision for income taxes                                 3.7           5.6
                                                                  -----         -----

         Net income                                                 5.4%          8.5%
                                                                  =====         =====
</TABLE>

                                                                          Page 9
<PAGE>   10

         THREE MONTHS ENDED SEPTEMBER 30, 1998 COMPARED TO THREE MONTHS
                            ENDED SEPTEMBER 30, 1997

         Basis of Presentation. Management's analysis of the fiscal 1999 quarter
compared to the fiscal 1998 quarter utilizes adjusted pro forma information for
the fiscal 1998 quarter.

         Revenues. Revenues increased by $8.1 million, or 37.1%, to $29.8
million for the fiscal 1999 quarter from $21.7 million for the fiscal 1998
quarter. This increase was primarily the result of the six acquisitions that
were completed since October 1, 1997, which contributed an aggregate of $7.1
million of revenues. Despite the impact of the General Motors strike (the "GM
strike"), the internal rate of growth in revenues in the fiscal 1999 quarter was
4.4%. Excluding the impact of the GM strike, the internal rate of growth in
revenues in the fiscal 1999 quarter was 10.1%.

         Cost of Services. Cost of services increased by $5.7 million, or 39.9%,
to $20.0 million for the fiscal 1999 quarter from $14.3 million for the fiscal
1998 quarter. Cost of services as a percentage of revenues increased to 66.9%
for the fiscal 1999 quarter from 65.6% for the fiscal 1998 quarter. The increase
in cost of services as a percentage of revenues is the result of the loss of
revenues related to the GM strike and higher margin project work that was
performed in the fiscal 1998 quarter.

         Selling, General and Administrative Expenses. Selling, general and
administrative expenses increased by $1.8 million, or 48.9%, to $5.3 million for
the fiscal 1999 quarter from $3.5 million for the fiscal 1998 quarter. Selling,
general and administrative expenses increased as a percentage of revenues to
17.9% for the fiscal 1999 quarter from 16.5% for the fiscal 1998 quarter. The
increase in selling, general and administrative expenses is primarily due to the
overhead costs assumed in the six acquisitions noted above, costs associated
with the Company's status as a public company and other investments in the
Company's infrastructure to support overall growth.

         Depreciation and Amortization. Depreciation and amortization increased
by $498,000, or 59.2%, to $1.3 million for the fiscal 1999 quarter from $841,000
for the fiscal 1998 quarter. Depreciation and amortization increased as a
percentage of revenues to 4.5% for the fiscal 1999 quarter from 3.9% for the
fiscal 1998 quarter. This increase is a result of additional capital
expenditures related to the Company's growth and additional goodwill arising out
of the six acquisitions noted above.

         Income from Operations. Income from operations increased $141,000, or
4.6%, to $3.2 million for the fiscal 1999 quarter from $3.1 million for the
fiscal 1998 quarter. Income from operations decreased as a percentage of
revenues to 10.7% for the fiscal 1999 quarter from 14.1% for the fiscal 1998
quarter. The increase in income from operations and the decrease in operating
margin are due to the factors discussed above.

         Interest Expense, net. Immediately following the Offering, the Company
had no borrowings under the Previous Credit Agreement with its banks. For this
reason, interest expense has been eliminated in the adjusted pro forma
information for the fiscal 1998 quarter to give effect as if the repayment of
the Company's debt obligations from the proceeds of the Offering had occurred as
of the beginning of the period. Reported interest expense in the fiscal 1999
quarter is the result of new borrowings subsequent to the Offering, primarily
resulting from the six acquisitions noted above.

         Provision for Income Taxes. Prior to October 31, 1997, Industrial was
an S Corporation for income tax purposes and did not record a provision for
federal and certain state income taxes. The provision for income taxes in the
adjusted pro forma information for the fiscal 1998 quarter reflects an effective
rate of 40%. The provision for income taxes for the fiscal 1999 quarter reflects
an effective rate of 41%.

         Net Income and Net Income per Share. Net income decreased $249,000, or
13.5%, to $1.6 million for the fiscal 1999 quarter from $1.8 million for the
fiscal 1998 quarter. Assuming dilution, net income per share decreased to $0.14
for the fiscal 1999 quarter from $0.17 for the fiscal 1998 quarter. These
decreases are due to the factors discussed above. Weighted average common shares
outstanding used in the calculation of net income per share for the fiscal 1998
quarter assumes that the Offering and repurchase of minority interests had
occurred at the beginning of the period.

                                                                         Page 10
<PAGE>   11
QUARTERLY RESULTS AND SEASONALITY

         The Company's results of operations tend to vary seasonally, with the
least amount of revenues generated in the third quarter, higher revenues in the
second quarter and the greatest amount of revenues in the first and fourth
quarters. The Company's quarterly results of operations may fluctuate
significantly as a result of a number of factors over which the Company has no
control, including its customers' budgetary constraints, the timing and duration
of its customers' planned maintenance activities and shutdowns, changes in its
competitors pricing policies and general economic conditions. Also, certain
operating and fixed costs remain relatively constant throughout the fiscal year
that, when offset by differing levels of revenues, may result in fluctuations in
quarterly results.


LIQUIDITY AND CAPITAL RESOURCES

         As of September 30, 1998, the Company had cash and cash equivalents of
$121,000 and working capital of $14.8 million. During the fiscal 1999 quarter,
the Company used $1.9 million in operating activities and made capital
investments of $3.0 million.

         In the fiscal 1999 quarter, the Company completed two acquisitions that
required an aggregate of $6.5 million in cash and the issuance of 203,554 shares
of the Company's common stock.

         Prior to November 2, 1998, the Company operated under the Previous
Credit Agreement with its principal banks, which, as amended, provided the
Company with $50.0 million of credit availability. Effective November 2, 1998,
the Company entered into the Credit Facility to replace the Previous Credit
Agreement. This Credit Facility provides the Company with $75.0 million of
revolving credit availability for a three-year period, subject to extension by
the banks each year on the anniversary of the agreement. Under the terms of the
Credit Facility, the entire $75.0 million is available for general corporate
purposes, including working capital, capital expenditures and acquisitions.
Borrowing under the Credit Facility is at rates, based on the prime or
Eurodollar rate, that the Company believes to be very favorable. Availability of
borrowing is subject to the maintenance of a minimum level of net worth, certain
levels of interest coverage and maintenance of a certain ratio of funded debt to
earnings before interest, taxes, depreciation and amortization that the Company
believes are achievable. As of September 30, 1998, $29.4 million had been drawn
on the Previous Credit Agreement in the form of term notes and revolving credit.
Subsequent to September 30, 1998, the entire amount outstanding under the
Previous Credit Agreement, $29.4 million, was transferred to the Credit Facility
in the form of revolving credit.

         The Company completed, in November 1998, the acquisitions of four
companies and has an agreement in principle to purchase a fifth company, all of
which provide cleaning services and related technical services to cleanroom
environments. These companies are Envirosafe Technical Cleaning, Inc., Support
Systems, Inc., Suresco, Inc., Technological Environment Cleaning International
Company and Dryden Engineering, Inc. The five companies will be consolidated to
form a wholly-owned subsidiary of the Company. The Company intends to become a
leading nationwide provider of technically-driven cleanroom services to the
semiconductor, microelectronics, pharmaceutical, electronics and bio-medical
industries. These services include cleanroom cleaning, both during construction
and on an ongoing basis, equipment cleaning, emergency restoration, testing and
certification of cleanrooms and equipment and other related technical services.
The purchase price, paid through a combination of cash, common stock of the
Company and preferred stock of the newly created company, is expected to be an
aggregate of $19.6 million.

         The Company intends to continue its strategy of complementing its
internal growth and to expand its service offerings, including the technical
cleanroom services discussed above, through acquisitions. In the fiscal 1999
quarter, the Company completed two acquisitions that utilized $6.5 million of
cash, and following the quarter, the Company completed the four acquisitions
discussed above, which utilized $13.5 million in cash. Subsequent to these
acquisitions, the total amount outstanding against the Credit Facility was $42.9
million. Also, the Company has agreements in principle to purchase certain other
companies that may require the utilization of $6.1 million of borrowings under
the Credit Facility.

         The Company believes that cash on hand as of September 30, 1998, cash
flow from operations and available borrowings under the Credit Facility will be
sufficient to fund the acquisitions discussed above, its currently planned
capital projects and operations for at least the next 24 months.

                                                                         Page 11
<PAGE>   12
YEAR 2000 ISSUE

         Many computer systems in use today were designed and developed using
two digits, rather than four, to specify the year. As a result, such systems
will recognize a date using "00" as the year 1900 rather than the year 2000.
This could cause many computer applications to fail completely or to create
erroneous results unless corrective measures are taken.

         The Company recognizes the need to ensure its operations will not be
adversely impacted by year 2000 software failures. Major areas of potential
business impact have been identified and initial conversion efforts are
underway. The Company is also addressing this risk with its suppliers, dealers,
financial institutions and others with which it does business to coordinate year
2000 conversion. The Company's main operating and financial system became year
2000 compliant effective with the recent normal software upgrade completed in
December 1997. The cost of achieving year 2000 compliance for the remaining
systems is estimated to be less than $100,000 over the cost of normal software
upgrades and replacements and will be incurred through the end of the second
quarter of fiscal 1999, at which time the Company expects that all of its
financial and operating systems will be year 2000 compliant.

INFLATION

         The effects of inflation on the Company's operations were not
significant during the periods presented in the Consolidated Financial
Statements.


ITEM 3.      QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

             The Company's exposures to market risk are not material.


                          PART II. -- OTHER INFORMATION

ITEM 1.      LEGAL PROCEEDINGS.

             None.

ITEM 2.      CHANGES IN SECURITIES AND USE OF PROCEEDS.

             (a)      Not Applicable.

             (b)      Not Applicable.

             (c)      On August 5, 1998, pursuant to an Asset Purchase
                      Agreement, dated as of May 8, 1998 (the "TMI Agreement"),
                      by and among TMI, Orr & Boss, Inc. and the Company, the
                      Company purchased substantially all of the assets of TMI
                      (the "Purchase"). As partial consideration for the
                      Purchase, the Company issued 114,318 shares of its common
                      stock to TMI. Pursuant to an Escrow Agreement entered into
                      in connection with the consummation of the Purchase, the
                      shares of common stock issued pursuant to the TMI
                      Agreement are held in escrow for a minimum period of at
                      least one year and will be available for satisfaction of
                      certain indemnity claims that the Company may have against
                      TMI. The issuance of the shares of common stock pursuant
                      to the TMI Agreement was pursuant to Section 4(2) of the
                      Securities Act of 1933, as amended (the "Act").

                      On August 18, 1998, pursuant to a Purchase Agreement,
                      dated as of August 18, 1998 (the "Gauthier Agreement"), by
                      and between Amy J. Gauthier and the Company, the Company
                      purchased through a wholly-owned indirect subsidiary all
                      of the issued and outstanding capital stock of Gauthier
                      (the "Acquisition"). As partial consideration for the
                      Acquisition, the Company issued 89,236 shares of its
                      common stock to Ms. Gauthier. Ms. Gauthier was an officer
                      and director of Gauthier and has entered into an
                      employment and non-competition agreement with the Company
                      and its affiliates. Pursuant to an Escrow Agreement
                      entered into in connection

                                                                         Page 12
<PAGE>   13
                      with the consummation of the Acquisition, the shares of
                      common stock issued pursuant to the Gauthier Agreement are
                      held in escrow for a minimum period of at least one year
                      and will be available for satisfaction of certain
                      indemnity claims that the Company may have against Ms.
                      Gauthier. The issuance of the shares of common stock
                      pursuant to the Gauthier Agreement was pursuant to Section
                      4(2) of the Act.

             (d)      Not Applicable.

ITEM 3.      DEFAULTS UPON SENIOR SECURITIES.

             Not Applicable.

ITEM 4.      SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

             Not Applicable.

ITEM 5.      OTHER INFORMATION.

             None.

ITEM 6.      EXHIBITS AND REPORTS ON FORM 8-K

             (a)        Exhibits.

                        3(a)  Amended and Restated Articles of Incorporation of
                              the Company effective October 30, 1997 (filed as
                              Exhibit 3(a) to the Company's Registration
                              Statement on Form S-1 (File No. 333-36887), and
                              incorporated herein by reference).

                        3(b)  Amended and Restated Code of Regulations of the
                              Company effective October 30, 1997 (filed as
                              Exhibit 3(b) to the Company's Registration
                              Statement on Form S-1 (File No. 333-36887), and
                              incorporated herein by reference).

                        4     Revolving Credit Loan Agreement, dated as of
                              November 2, 1998, among the Company and its
                              subsidiaries and affiliates, Bank One, NA and
                              National City Bank of Columbus.

                        27    Financial Data Schedule.

             (b)        No reports on Form 8-K were filed during the period.

                                                                         Page 13
<PAGE>   14
                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on behalf by the
undersigned thereunto duly authorized.

                              MPW INDUSTRIAL SERVICES GROUP, INC.,
                              an Ohio corporation

Dated: November 12, 1998      By:  /s/ Daniel P. Buettin
       -----------------         -----------------------------------------------
                                   Daniel P. Buettin
                                   Vice President and Chief Financial Officer
                                   (on behalf of the Registrant and as Principal
                                      Financial Officer)

                                                                         Page 14
<PAGE>   15
                                  EXHIBIT INDEX

   Exhibit
    Number       Description of Exhibit
    ------       ----------------------

     3(a)        Amended and Restated Articles of Incorporation of the Company
                 effective October 30, 1997 (filed as Exhibit 3(a) to the
                 Company's Registration Statement on Form S-1 (File No.
                 333-36887), and incorporated herein by reference).

     3(b)        Amended and Restated Code of Regulations of the Company
                 effective October 30, 1997 (filed as Exhibit 3(b) to the
                 Company's Registration Statement on Form S-1 (File No.
                 333-36887), and incorporated herein by reference).

      4          Revolving Credit Loan Agreement, dated as of November 2, 1998,
                 among the Company and its subsidiaries and affiliates, Bank
                 One, NA and National City Bank of Columbus.

      27         Financial Data Schedule.

                                                                         Page 15