by Shane Henson — December 23, 2013—The facilities management industry will change dramatically over the next 10 years as clients increasingly look to facilities managers for advice on business operations, according to a new study commissioned by MITIE, a U.K.-based provider of facilities, property and energy management for a wide range of public and private sector businesses.
The study, The Future of Facilities Management, found that property directors increasingly view FM providers as the “feet on the ground” within organizations, providing management with essential information needed by the board. This will transform perceptions of FM from that of a commodity service to a provider of vital information that can ensure effective operations, the study’s authors say.
According to MITIE, the research drew on in-depth interviews with 30 senior property and facilities directors across the U.K. to develop a closer understanding of the issues and opportunities they face. Key findings include:
- Outsourcing as a means of reducing cost is becoming less popular than as a way to harness expertise.
- Companies are becoming more interested in consolidating multiple services to single suppliers as a way of improving value.
- Energy and carbon consumption are playing a growing role in property decisions and strategies, with a focused effort to drive down both.
- There is a significant consolidation opportunity for service providers able to deliver an integrated package of broad property services.
- A focus on key performance indicators is rapidly being replaced by a focus on outcomes, with the value attached to the broader outcomes rather than the minutia of a contract.
The study also found that many FM providers now use the huge amounts of data they capture on operational costs and premises efficiencies, along with their own experience, to identify opportunities for improvement in their client’s organizations. The result is that companies, and in particular their property directors, now rely on FM providers to assist with changing property strategies that must incorporate an attractive working environment with the need to contain all operational costs. For example, FM providers can now use their data about occupancy rates and how their premises function and operate on a daily basis, to help property directors realize the most effective strategy for property rationalization and utilization.
“The FM industry is still relatively new, having only really been around for the last 20 years or so. In just that short amount of time, we have seen a change from a demand for single services with multiple providers to a more integrated approach,” said Martyn Freeman, managing director of MITIE’s facilities management business. “This research shows the industry has huge potential to elevate itself and become fully integrated with its clients, thereby adding more and more value.”
