by Brianna Crandall — July 28, 2014—The demand for facilities management services in the United Kingdom is expected to grow 16 percent over the next decade, according to a new report from market research firm Mintel International Group Ltd.
The study, titled Facilities Management (Industrial Report) – UK – June 2014, attributes the anticipated growth to increases in new construction and major infrastructure projects.
Mintel expects the fastest growth to take place in the area of “hard” FM services, predicting that mechanical and electrical contracting will grow faster than any other sector of the FM market, by 19 percent in real terms up to 2018.
With the spate of mergers and acquisitions over the past few years, such as Interserve’s £250 million acquisition of Initial Facilities, as well as spending cuts being undertaken by the U.K. government, the report predicts a cooling of the market in coming months. Mintel notes that companies will be focusing on integrating the new entities.
