by Rebecca Walker — January 5, 2011—Growth in the U.K. facilities management market has slowed down over the past two years to just one percent in 2010, bringing the total of the market to 118.8bn, according to the latest industry development figures.
The slowdown in growth, from 5 percent in 2007 is a reflection of continuing economic woes, according to the U.K. Facilities Management Market Development (MBD) report said. The report notes that clients have curtailed spending, causing the value of FM contracts to drop.
However, those companies with existing FM contracts have benefitted from the downturn, as clients remain with their existing suppliers during an uncertain time. In addition, central and local government contracts are proving lucrative for FM suppliers as they look to save by opting for multi-service bundled contracts.
The report predicts development will increase over the next five years as the trend for outsourcing continues, although budget pressures will continue to squeeze profit margins.
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