by Shane Henson — April 6, 2012—Global Industry Analysts Inc. (GIA), a publisher of off-the-shelf market research, has released Facilities Management: A Global Strategic Business Report. GIA says that the carefully researched report provides a comprehensive industry overview, impact of recession, market trends, key growth drivers, recent industry activity, and profiles of major/niche global market participants. The report also provides annual service revenue estimates and projections for the years 2009 through 2017 in value (U.S.$) terms for geographic markets, including the United States, Canada, Japan, Europe, and Asia-Pacific. The study also provides historic data for an insight into market evolution over the period 2003 through 2008.
According to the report, the world facilities management market is forecast to reach $394.69 billion by the year 2017. As the world economy navigates its way through recession and towards recovery, market growth will be led not just by cost-effective solutions, but rising demand for value-creation and productivity. Medium to long-term growth will be driven by resurgence in FM outsourcing, especially in Asia, and Middle East and Africa. Further, sustainable development and appropriate energy, water and waste management will be important trend setters in the foreseeable future.
Other information discussed in detail within the report includes:
- As companies modernize their business environment, driven by the need to remain competitive, and retain critical survival capabilities in a fast-changing marketplace, their commitment to take up FM services reaches new levels. The tough economic conditions have additionally reinforced the need to restructure businesses in a cost-effective, yet compelling way. As facilities management operations are heavily dependent on overall corporate health, and public sector spending, the recent economic recession took a heavy toll on the world FM industry. Demand for facilities management dwindled as companies placed outsourcing plans on the back burner, renegotiating existing contracts at lower prices and postponement of contract extensions, and renewals.
- Medium- to long-term growth will be driven by resurgence in FM outsourcing, especially in Asia, and Middle East and Africa. As companies step into a post-recession period, the mode of operation in the corporate world changes to “doing-more-with-less-resources.” As the world economy navigates its way through recession and towards recovery, organizations will still retain their appetite for cost-effective solutions, but will, however, demand more value-creating productivity. Shifting priorities among limited budgetary constraints will make it critical for market participants to follow spending patterns to understand areas where companies will be spending their precious funds. Against this backdrop, facilities management stands poised for post-recession boom. Companies that will consume the most cloud services are expected to be those operating in the IT (information technology), telecom, financial services and industrial sectors.
- Cost reduction continues to be the main motivational factor behind the rapid growth in facilities management by major companies. These enterprises prefer to outsource all or at least a non-core activity to more cost-effective service providers. Buffeted with escalating cost-reduction pressures, facilities managers are finding new ways to improve efficiencies. Within an organization, FM costs are second only to costs of handling human resources. Hence, efficient facilities management could save millions of dollars to enterprises annually. In addition, facilities management enables the company to focus on its core areas of business, thus offering savings not only in terms of cost, but also valuable time and resources.
- Traditionally, the environmental impacts of the building construction industry are associated with energy consumption, energy efficiency, atmospheric emissions, and resource efficiency. The concept of sustainable development has emerged to become a vital government policy, and appropriate energy and water and waste management will continue to remain important issues in foreseeable future. As a result, sustainable building practices are emerging as a major trend in the industry, an area in which the FM sector can make a difference. In commercial and residential buildings, the use of FM services helps achieve sustainability in multiple areas, for example, energy saving, construction and exploitation of HQE (environmental high-quality) of the office buildings, and quality of water and air.
- With the facilities management landscape increasingly attracting players from all corners of the industry ecosystem, competition in the marketplace is heating up like never before. The market is currently a hunting ground for companies such as Aramark, Johnson Controls Inc., and EMCOR Group.
- Medium- to long-term growth will be driven by resurgence in FM outsourcing, especially in Asia, and Middle East and Africa. As companies step into a post-recession period, the mode of operation in the corporate world changes to “doing-more-with-less-resources.” As the world economy navigates its way through recession and towards recovery, organizations will still retain their appetite for cost-effective solutions, but will, however, demand more value-creating productivity. Shifting priorities among limited budgetary constraints will make it critical for market participants to follow spending patterns to understand areas where companies will be spending their precious funds. Against this backdrop, facilities management stands poised for post-recession boom. Companies that will consume the most cloud services are expected to be those operating in the IT (information technology), telecom, financial services and industrial sectors.
