Table of Contents
Executive Summary
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- Impact of COVID-19 on facilities management
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- Figure 1: Short-, medium- and long-term impact of COVID-19 on facilities management, 27 November 2020
- The market
- Potential market size and forecast
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- Figure 2: Potential market for facilities management services, 2015-2025, prepared on 27 November 2020
- Contracted-out services
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- Figure 3: Actual outsourced services typically defined as facilities management, 2015-2025, prepared on 27 November 2020
- Integrated facilities management
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- Figure 4: Actual market for integrated facilities management, 2015-2025, prepared on 27 November 2020
- Varied services – each with their own trends
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- Figure 5: Segmentation of contracted-out services, 2020 (£ billion)
- Companies and brands
- A fragmented sector
- M&A activity
Issues and Insights
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- The long-term structural changes from COVID-19
- Is industry consolidation about to increase?
The Market – Key Takeaways
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- Major COVID-19 impact
- Some sectors subject to structural change
- Major potential remains
- Technology impact
Market Size and Forecast
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- COVID-19 changes the facilities management landscape
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- Figure 6: Short-, medium- and long-term impact of COVID-19 on facilities management, 27 November 2020
- A vast and varied market
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- Figure 7: Potential market for facilities management services, 2015-2025, prepared on 27 November 2020
- The contracted-out market
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- Figure 8: Actual outsourced services typically defined as facilities management, 2015-2025, prepared on 27 November 2020
- Integrated facilities management
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- Figure 9: Actual market for integrated facilities management, 2015-2025, prepared on 27 November 2020
- Market drivers and assumptions
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- Figure 10: Key drivers affecting Mintel’s market forecast, 2015-2025, prepared on 27 November 2020
- Forecast methodology
Market Segmentation
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- The packages
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- Figure 11: Segmentation of the potential market for facilities management, by type of contract, 2015-2020
- Individual services
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- Figure 12: Segmentation of contracted-out services, 2020 (£ billion)
- M&E engineering
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- Figure 13: Market size for M&E contracting, 2015-25 (prepared on 27 November 2020)
- PFI
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- Figure 14: PFI/PF2 unitary charges, 2015-2025
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- Figure 15: Capital value of outstanding PFI/PF2 contracts as at March 2018
- Landscaping and gardening
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- Figure 16: Market size for landscaping & gardening addressable by facilities management companies, 2015-25 (prepared on 27 November 2020)
- Office services
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- Figure 17: Market size for office services, 2015-25 (prepared on 27 November 2020)
- Cleaning
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- Figure 18: Market size for cleaning services, 2015-25 (prepared on 27 November 2020)
- Building fabric maintenance
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- Figure 19: Market size for building fabric maintenance services, 2015-25 (prepared on 27 November 2020)
- Catering
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- Figure 20: Market size for catering services, 2015-25 (prepared on 27 November 2020)
- Security
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- Figure 21: Market size for security services, 2015-25 (prepared on 27 November 2020)
- Other
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- Figure 22: Market size for other services, 2015-25 (prepared on 27 November 2020)
Market Drivers
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- Repair and maintenance activity
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- Figure 23: Housing repair and maintenance activity, by sector, 2015-24 (prepared on 12 November)
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- Figure 24: Public non-residential repair and maintenance activity, 2015-24 (prepared on 12 November)
- Figure 25: Infrastructure repair and maintenance activity, 2015-24 (prepared on 12 November)
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- Figure 26: Private non-residential repair and maintenance activity, 2015-24 (prepared on 12 November)
- Mechanical and electrical contracting
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- Figure 27: Market size for M&E contracting, 2015-24 (prepared on 13 November 2020)
- Figure 28: Segmentation of the M&E contracting market, by type of work, 2015-24 (prepared on 13 November 2020)
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- Figure 29: Segmentation of the electrical contracting market, 2015-24 (prepared on 13 November 2020)
- Figure 30: Segmentation of the mechanical contracting market, 2015-24 (prepared on 13 November 2020)
- Distribution of workplaces
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- Figure 31: Number of PAYE/VAT registered business establishments, by sector, 2016-20 (000s)
- Figure 32: Number of PAYE/VAT-registered business establishments, by industry and turnover with a turnover over £2 million, 2020
- COVID-19 changing remote working practices
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- Figure 33: Number of people mainly working from home, 2015-19
- Employment costs squeezing margins
- National Minimum Wage and National Living Wage
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- Figure 34: Development of the NMW and NLW, 1999-2020 (£s per hour rate)
- Apprenticeship Levy
- Workplace pensions
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- Figure 35: Composition and progression of workplace pension contributions, 2012-20 (% of earnings)
- The Coronavirus Job Retention Scheme
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- Figure 36: Number of furloughed employments, March-August 2020
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- Figure 37: Coronavirus Job Retention Scheme claims, at 31 August 2020
Companies and Brands – Key Takeaways
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- Very mixed results in 2020
- Highly fragmented sector
- M&A activity
- The move to technology
Industry Structure
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- Varied boundaries
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- Figure 38: Development of the facilities management sector, 2016-20
- Figure 39: Employment structure of facilities management sites (number of companies)
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- Figure 40: Turnover analysis of the facilities management sector, 2020 (£ 000)
Competitive Strategies
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- Structural change for public sector supply alters the industry structure
- Mitie cleared to acquire Interserve’s facilities management arm
- Will 2021 see another major acquisition?
- G4S attracts both GardaWorld and Allied Universal interest
- Public sector balance or specialisation
- Service specialisation
- M&A activity
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- Figure 41: M&A activity in the facilities management sector, 2015-19
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- Figure 42: Segmentation of M&A activity in the facilities management sector by sub-sector, 2019
Company Profiles
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- CBRE GWS
- Activity
- Performance
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- Figure 43: Financial performance of CBRE GWS in the UK, 2014-18 (£ million)
- 2020 activity
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- Figure 44: Segmentation of CBRE GWS global revenues by sector, Q2 and Q3 2020
- Strategy
- Compass Group
- Activity
- Performance
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- Figure 45: Financial performance of Compass Group, 2016-20 (£ million)
- Figure 46: Turnover segmentation of Compass Group, 2020
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- Figure 47: Organic revenue changes by sector and quarter for the Compass Group, 2020
- Figure 48: European turnover segmentation of Compass Group, 2020
- Strategy
- G4S (formerly Group 4 Securicor)
- Activity
- Performance
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- Figure 49: Financial performance of G4S, 2015-19 (million)
- Figure 50: Revenue segmentation of G4S, 2019
- 2020 activity
- Strategy
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- Figure 51: G4S target markets, 2020
- ISS Facility Services
- Activity
- Performance
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- Figure 52: Financial performance of ISS facility Services, 2014-18 (£ million)
- Figure 53: Segmentation of ISS Facility Services turnover, 2018
- 2020 activity
- Strategy
- Mitie
- Activity
- Performance
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- Figure 54: Financial performance of Mitie, 2016-20 (£ million)
- Figure 55: Revenue analysis of Mitie, 2020 (£ million)
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- Figure 56: Financial summary of Interserve Group, 2014-18 (£ million)
- 2020 activity
- Strategy
- Serco Group
- Activity
- Performance
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- Figure 57: Financial performance of Serco, 2015-19 (£ million)
- Figure 58: Geographic turnover analysis of Serco Group, 2019 (£ million)
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- Figure 59: Service turnover analysis of Serco Group, 2019 (£ million)
- 2020 activity
- Strategy
- Sodexo
- Activity
- Performance
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- Figure 60: Financial performance of Sodexo, 2015-19 (£ million)
- 2020 activity
- Strategy
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
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