Table of Contents
Executive Summary
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- The market
- Underlying growth
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- Figure 1: Potential market for facilities management services, 2015-19
- Strong further potential
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- Figure 2: Segmentation of the potential market for facilities management, by type of contract, 2015-19
- A wide variety of services
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- Figure 3: Segmentation of the total facilities management and contracted-out services, by sector of service, 2015-19
- Margin pressure in soft services
- Technology and green issues to add value
- Growth prospects
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- Figure 4: Forecast segmentation of the potential market for facilities management, 2020-24
- Companies and brands
- Scale – a threat and opportunity
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- Figure 5: UK facilities management M&A activity by target sector, 2018
- Specialisation very different to other corporates
- What we think
Issues and Insights
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- The National Living Wage price war
- The facts
- The implications
- Technology as a differentiator
- The facts
- The implications
The Market – What You Need to Know
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- Limits are few and far between
- Market growth
- Brexit
Market Size
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- Slow growth in opportunity
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- Figure 6: Potential market for facilities management services, 2015-19
- The contracted-out market
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- Figure 7: Actual outsourced services typically defined as facility management, 2015-19
- Integrated facilities management
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- Figure 8: Actual market for integrated facilities management, 2015-19
Market Segmentation
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- Integrated, bundled, single contract and in-house
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- Figure 9: Segmentation of the potential market for facilities management, by type of contract, 2015-19
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- Figure 10: Comparative growth of integrated facilities management, contracted-out and internal services, 2015-19
- Individual markets
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- Figure 11: Segmentation of the total facilities management and contracted-out services, by sector of service, 2015-19
Market Forecast
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- A highly developed market
- The Brexit issue
- The expectation
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- Figure 12: Forecast market for integrated facilities management services, 2020-24
- Figure 13: Forecast segmentation of the potential market for facilities management, 2020-24
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- Figure 14: Forecast segmentation of the total facilities management and contracted-out services, by sector of service, 2020-24
The Impact of the Economy
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- GDP
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- Figure 15: Quarterly GDP development, Q1 2015-Q2 2019
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- Figure 16: GDP quarterly development, by sector, 2004-19
- Figure 17: Forecast GDP development, 2019-23
Market Trends
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- Employment costs squeezing margins
- National Minimum Wage and National Living Wage
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- Figure 18: The development of the NMW and NLW, 1999-2019 (£s per hour rate)
- Apprenticeship Levy
- Workplace pensions
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- Figure 19: Composition and progression of workplace pension contributions, 2012-19 (% of earnings)
- The outsourcing evolution
- Moving beyond the cost benefit
- Sustainability – not just buildings
Market Drivers
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- Repair and maintenance activity
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- Figure 20: Housing repair and maintenance expenditure by sector, 2014-18 actual and 2019-24 forecast
- Figure 21: Infrastructure repair and maintenance expenditure, 2014-18 actual and 2019-24 forecast
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- Figure 22: Private industrial and commercial repair and maintenance expenditure, 2014-18 actual and 2019-24 forecast
- Figure 23: Public non-residential repair and maintenance expenditure, 2014-18 actual and 2019-24 forecast
- Mechanical and electrical contracting
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- Figure 24: M&E contracting market, 2014-18 actual and 2019-24 forecast
- Distribution of workplaces
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- Figure 25: Number of PAYE/VAT-registered business establishments, by industry, 2015-19 (000s)
- Figure 26: Number of PAYE/VAT –registered business establishments, by industry and turnover with a turnover over £2 million, 2019
- PFI and PF2 projects
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- Figure 27: Capital costs of current PPP projects, 2018
- Figure 28: Unitary payments of current PPPs, 1997-2050
- Contract catering
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- Figure 29: Contract catering market, 2014-18 actual and 2019-23 forecast
Companies and Brands – What You Need to Know
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- Specialisation
- The margin issue
- The scale issue
- Technology to provide value added
Industry Structure
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- Wide range of services
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- Figure 30: Development of the facilities management sector, 2015-19
- Figure 31: Size of facilities management sites, 2019 (number)
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- Figure 32: Turnover analysis of the facilities management sector, 2019 (number)
- M&A driven by variety of services
- Fragmented and competitive
Competitive Strategies
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- Few common themes
- Technology to drive sustainable margins
- Sector consolidation and M&A
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- Figure 33: UK facilities management M&A activity by target sector, 2018
Company Profiles
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- CBRE GWS
- Activity
- Performance
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- Figure 34: Financial summary of CBRE GWS in the UK, 2013-17 (£ million)
- Strategy
- Compass Group
- Activity
- Performance
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- Figure 35: Financial summary of Compass Group, 2014-18 (£ million)
- Strategy
- G4S
- Activity
- Performance
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- Figure 36: Financial summary of G4S, 2014-18 (£ million)
- Strategy
- ISS Facility Services
- Activity
- Performance
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- Figure 37: Financial summary of ISS Facility Services, 2014-18 (£ million)
- Strategy
- Interserve Group
- Activity
- Performance
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- Figure 38: Financial summary of Interserve Group, 2014-18 (£ million)
- Strategy
- Mitie
- Activity
- Performance
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- Figure 39: Financial summary of Mitie, 2015-19 (£ million)
- Figure 40: Turnover segmentation of Mitie, 2019 (£ million)
- Strategy
- Serco Group
- Activity
- Performance
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- Figure 41: Financial summary of Serco Group, 2014-18 (£ million)
- Figure 42: Geographic turnover analysis of Serco Group, 2018 (£ million)
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- Figure 43: Service turnover analysis of Serco Group, 2018 (£ million)
- Strategy
- Sodexo
- Activity
- Performance
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- Figure 44: Financial summary of Sodexo, 2014-18 (£ million)
- Strategy
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Methodology
Further Sources and Contacts
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- Trade associations
- Trade magazines
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