Table of Contents
Overview
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- What you need to know
- Covered in this Report
Executive Summary
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- The market
- Bordering on economy independent
- Strongly established but still large potential
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- Figure 1: Development of the potential market for facilities management services, by type of contract, 2013-17
- Many different services
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- Figure 2: Segmentation of the total facilities management and contracted out services, by sector of service, 2013-17
- Customer expectations
- Growth prospects
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- Figure 3: Forecast segmentation of the potential market for facilities management, 2018-22
- Technology – from reducing manpower to adding value
- Companies and brands
- Some disruption
- Legislative pressures on margins
- M&A activity changing
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- Figure 4: Facilities management M&A activity, by sector, 2014-17
- Specialisation very different to other corporates
- What we think
Issues and Insights
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- The impact of Brexit
- The facts
- The implications
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- Figure 5: Quarterly effective exchange rate index for Sterling
- Figure 6: Hourly minimum wage in the EU, by country, 2017
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- Figure 7: Levels of expectation in the facilities management environment, 2017
- Technology the way forward
- The facts
- The implications
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- Figure 8: Expectations of workforce growth in the facilities management sector, 2017
The Market – What You Need to Know
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- Difficult to define boundaries
- Protection from economic changes
- Technology expanding opportunities
Market Size
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- A mix of services
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- Figure 9: Potential market for facilities management services, 2013-17
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- Figure 10: Actual outsourced services typically defined as facilities management, 2013-17
- Figure 11: Actual market for integrated facilities management, 2013-17
Market Segmentation
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- Integrated facilities management market penetration
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- Figure 12: Segmentation of the potential market for facilities management services, by type of contract, 2013-17
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- Figure 13: Comparative growth of integrated facilities management, contracted-out and internal services, 2013-17
- Individual markets
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- Figure 14: Segmentation of the total facilities management and contracted-out services, by sector of service, 2013-17
Market Forecast
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- Economic uncertainty – an opportunity or threat?
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- Figure 15: Forecast market for integrated facilities management services, 2018-22
- Figure 16: Forecast segmentation of the potential market for facilities management, 2018-22
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- Figure 17: Forecast segmentation of the market for contracted-out services, 2018-22
The Impact of the Economy
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- GDP
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- Figure 18: GDP Overall quarterly development, Q4 2016-Q2
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- Figure 19: GDP quarterly development, by sector, 2004-18
- Figure 20: Forecast GDP development, 2017-22
Market Trends
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- A developed industry but expanding
- Legislative pressures on margins
- Living wage
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- Figure 21: National living wage rates, 2016-18
- The Apprenticeship Levy
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- Figure 22: Expected impact of the Apprenticeship Levy on introducing new talent to the facilities management sector, 2017
- Workplace pensions
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- Figure 23: Composition and progression of workplace pension contributions, 2012-19 (% of earnings)
- Customer expectations
- Public sector
- Building information modelling and other technologies
Market Drivers
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- New construction
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- Figure 24: Construction output in Great Britain, 2013-17
- New housebuilding
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- Figure 25: New housebuilding construction activity 2013-17 actual and 2018-22 forecast
- New public non-residential
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- Figure 26: Public non-residential new construction activity 2013-17 actual and 2018-22 forecast
- Figure 27: Segmentation of new public non-residential construction, 2013-17 (£ million)
- New private industrial
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- Figure 28: Private industrial new construction activity 2013-17 actual and 2018-22 forecast
- Figure 29: Segmentation of new private industrial construction, 2013-17 (£ million)
- New private commercial
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- Figure 30: Private commercial new construction activity 2013-17 actual and 2018-22 forecast
- Figure 31: Segmentation of new private commercial construction, 2013-17 (£ million)
- New infrastructure
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- Figure 32: Infrastructure new construction activity 2013-17 actual and 2018-22 forecast
- Figure 33: New infrastructure output, 2013-17
- Repair & maintenance
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- Figure 34: Housing repair and maintenance expenditure by sector 2013-17 actual and 2018-22 forecast
- Figure 35: Infrastructure repair and maintenance expenditure by sector 2013-17 actual and 2018-22 forecast
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- Figure 36: Private industrial and commercial repair and maintenance expenditure by sector 2013-17 actual and 2018-22 forecast
- Figure 37: Public non-residential repair and maintenance expenditure by sector 2013-17 actual and 2018-22 forecast
- Mechanical and electrical contracting
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- Figure 38: The market for M&E contracting, 2013-17
- Distribution of workplaces
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- Figure 39: Number of PAYE/VAT-registered business establishments, by industry, 2013-17 (000s)
- Public Private Partnerships
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- Figure 40: Capital costs of current PPP projects, 2017
- Figure 41: Unitary payments on current PPPs, 1997-2050
Companies and Brands – What You Need to Know
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- Industry disruption
- M&A activity changing
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- Figure 42: Facilities management M&A activity, by sector, 2014-17
- International appetite for UK remains
Industry Structure
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- The specialisation difference to other corporate sectors
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- Figure 43: Analysis of changes in the structure of the combined facilities support activities industry, 2013-17
- Figure 44: Size of facilities management sites, 2017
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- Figure 45: Turnover analysis of facilities management companies, 2017
- M&A driven by the variety of services
- Highly competitive sector leading to leveraging data
Competitive Strategies
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- Technological developments
- Mitie targets Connected Workspace
- G4S identifies £2.45 billion of technology related revenues
- Market- or service-specific, versus complete coverage
- Market focus
- Serco targets public sector
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- Figure 46: Analysis of Serco Group turnover, by sector, 2017
- Single service focus
- Compass prioritises food
- G4S prioritises security
Company Profiles
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- National operators
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- Figure 47: Breakdown of Mitie revenues, 2017 (£ million)
- Single service concentrations
- Single market concentrations
- International consolidators
- Construction heritage
- Property agents
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Methodology
Further Sources and Contacts
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- Trade associations
- British Institute of Facilities Management (BIFM)
- The Facilities Management Association
- Trade magazines
- Building and Facilities Management
- Building Services and Environmental Engineer
- Facilities Management Journal
- FM World
- Practical Facilities Management
- Premises & Facilities Management
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