by Jbs012310 f3 — January 25, 2010—The U.K. facilities management market will continue to see a dramatic shift toward multi-service provision in 2010, with FM clients following “flight to price” procurement strategies to reduce outsourcing costs, according to a new report from MTW Research. UK Facilities Management Market Research & Analysis Report—UK 2010-2013 was written specifically for companies who supply to FM companies.
The new report indicates that client loyalty in the FM market is being steadily eroded by price competition in 2010, with sectors such as property maintenance, office support, etc., becoming increasingly price sensitive due to the recent recession. MTW found that this trend resulted in multi-service FM providers gaining further share of the market in 2009 over single-service FM contractors.
MTW also found that the FM market has become increasingly characterized by closer relationships between suppliers and contractors, as greater efficiencies and lower procurement costs are sought. During 2009, several FM companies established programs specifically designed to improve supplier relationships to ensure that material and equipment suppliers were aligned with customer relationship principles and accountable for their own supply chains.
Based on sales figures from the industry, the total FM market is currently worth just under 90 billion according to MTW, with operations and maintenance services the largest sector in 2010 and integrated or “bundled” FM service provision now the second largest market segment. The report states that security services provision, which includes CCTV monitoring, access control, security screening, etc., has grown steadily in recent years and is anticipated to outstrip overall FM market growth in the longer term.
MTW’s report also reviews the structure and current health of the U.K. FM industry, with just over 65 percent of FM contractors viewed as having either an “excellent” or “good” credit rating, reflecting a core strength in the market in terms of financial standing, although around 11 percent of the companies active in the FM market are viewed as being at imminent risk of failure due to the recession.
The 200-page report and forecast is available for purchase from MTW Research’s Web site, where a free sample is also available to download.
