by Shane Henson — July 15, 2011—AMA Research’s report Facilities Management Outsourcing—Health and Education Market Report—UK 2011-2015 Analysis is now available in hard copy or electronic format. This report is specifically focused upon healthcare and education application sectors, representing some of the most dynamic end use sectors for outsourced FM services over the last decade.
According to the report, the FM market has shown good growth since the early 1990s, influenced by the desire to control operational efficiencies and costs, and a trend within the private sector for companies to refocus their business in order to concentrate on core competencies. Further growth since the turn of the millennium was influenced by the buoyant state of the economy and public sector developments. According to the report, 2009 saw the market decline as the economy overall experienced a period of recession. This has led to an overall market value for outsourced “bundled” services and TFM of over $14 billion in 2010.
The penetration of FM outsourcing within the healthcare sector is estimated at around 40-50 percent, with outsourcing generally higher for “soft” services, says the report. The healthcare sector is largely approaching maturity, with limited potential for growth particularly in the acute hospital sector, although there remain some opportunities in the primary care sector.
In contrast, the education sector is less mature, with outsourcing accounting for around 20-25 percent of overall FM provision by value, leaving more potential for growth. Historically outsourcing has often taken the form of single service contracts within education, although total facilities management (TFM) provision increased, with a boost from the Building Schools for the Future (BSF) program. However, the cancellation of BSF means this growth in bundling and TFM is likely to slow, notes the report.
The FM market has experienced an unprecedented number of mergers and acquisitions, as well as business failures and market withdrawals, adds the report. The level of acquisitions has been largely influenced by the poor performance within the economy overall but also by market maturity, as well as by the increasing array of services being outsourced leading to larger companies seeking to “buy in” specialist knowledge.
