- Language: English
- 70 Pages
- Published: December 2012
- Region: Global
Facilities Management Outsourcing Market Report - UK 2012-2016 Analysis
- Published: August 2012
- Region: United Kingdom
- 97 Pages
- AMA Research
AMA Research are pleased to announce the publication of the 9th edition of the report ‘Facilities Management Outsourcing Market Report – UK 2012-2016 Analysis'. Incorporating original input and primary research, the report provides a wide-ranging and informative perspective on the sector, with a focus on the provision of Total Facilities Management and ‘bundled' or multi-service provision.
Key areas covered by this report include:
- Overview of Multi-Service Provision in the UK FM outsourcing market - size, recent trends and key market influences, forecasts and future prospects.
- Analysis of 3 key end-use sectors for Corporate, Central & Local Government, Healthcare & Education – sector sizes / performance,
trends and influences by sector and potential areas of opportunity.
- Review of Market Structure and Leading Providers – changing supply structure, diversification of service provision and company profiles for the leading contractors.
The FM outsourcing market is approaching maturity in most sectors and has become increasingly dependent upon the economic climate and levels of government expenditure. As a result, the global economic downturn has hindered its performance in recent years. Opportunities in the corporate sector have been particularly affected, although the Government spending cuts have reduced public spending and this is now having an impact on construction and building programmes and also upon FM opportunities. Opportunities are expected in less mature sectors such as Local Authorities, with further potential in the corporate sector as the commercial sector of the economy recovers.
The report contains a detailed assessment of these and other market trends and influences, with analysis of future prospects and potential areas of opportunity.
Areas of particular interest:
- Market activity from 2006 to 2011, with forecasts through to 2016.
- Key focus areas among end-users are now cost reduction and sustainability.
- Added impetus to the trend for clients to procure an increasingly wide array of services under TFM or ‘bundled' service contracts as clients seek to consolidate supply chains and reduce costs.
- Increasing globalisation of contracts providing greater standardisation and economies of scale.
Key areas covered in the report:
- FM Market overview – estimates of total market size from 2006-2011, with forecasts for the period from 2012 to 2016.
- Overview of overall support services outsourcing market - market size, sector shares, analysis by sector.
- Key market influences – diversification in service provision, public sector spending (including influence of PFI/PPP) and legislative influences.
- Future prospects for FM market covering macro-economic influences and government departmental expenditure, outlook by end-use application area, key potential growth areas, trends in service provision, changing supply structure, impact of market maturity, legislation and other key influences.
KEY END-USE SECTORS
- Analysis of FM market by broad end-use sector - Corporate, Central & Local Government, Healthcare & Education.
- Estimates of market size for each sector from 2006 – 2011, with forecasts from 2012 to 2016. Review of mix of contracted-out/in-house trends. Key factors influencing trends within each sector.
- 'Corporate sector' – sector development and trends, impact of office take up levels, penetration and market maturity, analysis of sub sectors – corporate offices, retail, leisure, manufacturing etc.
- Central & Local Government Sector – market mix, key growth sectors and areas of opportunity, influence of PFI/PPP. Analysis by department for Department of Work and Pensions, Ministry of Justice, HM Revenue & Customs, Local Authorities, and Social Housing. Central versus Local Government mix.
- Healthcare & Education Sector – market mix, outsourcing penetration levels, influence of PFI/PPP, procurement trends and opportunities.
- Review of origins of FM companies – construction, engineering, support services, property services and special purpose vehicles.
- Structure of supply – Business Process Outsourcing, TFM contractors and support services providers.
- Key trends – period of acquisitions & mergers, impact of market maturity & margin erosion, expansion and diversification of service provision.
- Market Shares of leading providers.
- Company profiles of leading FM providers covering around 40 major providers and niche specialists – outline includes company size, growth trends, areas of specialisation, sector strengths and major contracts. SHOW LESS READ MORE >
1.2 SOURCES OF INFORMATION
2.1 EXECUTIVE SUMMARY
2.2 FUTURE PROSPECTS
3. ECONOMIC ENVIRONMENT
3.2 INFLATION & INTEREST RATES
3.4 HOUSEHOLD CONSUMPTION
3.5 HOUSING & CONSTRUCTION
3.7 POPULATION PROFILE
4. FACILITIES MANAGEMENT OUTSOURCING MARKET
4.2 MARKET SIZE AND TRENDS
4.3 KEY MARKET INFLUENCES
4.3.1 Diversification in Service Provision and Contract Periods
4.3.2 Non-Domestic Construction Output
4.3.3 Public Private Partnerships
4.4 SERVICES AND SERVICE PROVISION
4.4.1 Service Provision
4.4.2 Service Mix
4.4.4 Building Maintenance
4.4.7 Other Services
5. KEY END USE SECTORS
5.2 CORPORATE SECTOR
5.2.1 Market Size and Trends
5.2.2 Key End Use Markets
5.3 CENTRAL & LOCAL GOVERNMENT
5.3.1 Market Size & Trends
5.3.2 Key End Use Markets
5.4 HEALTH & EDUCATION SECTORS
5.4.1 Market Size & Trends
5.4.2 Key End Use Markets
6. CONTRACTORS REVIEW
6.1 ORIGINS AND SUPPLY STRUCTURE
6.2 MARKET SHARES
6.3 COMPANY PROFILES
6.3.1 Leading FM Contractors
6.3.2 Other Large Companies in the FM Market
CHART 1: UK BUNDLED FM OUTSOURCING MARKET AT CURRENT PRICES £BN 2006 – 2016
CHART 2: INTEREST RATES AND INFLATION (CPI) FROM 1992-2016
CHART 3: PDI & SAVINGS RATIO AT CURRENT PRICES 1992-2016
TABLE 4: EXCHANGE RATE FLUCTUATIONS 2006-2012 - STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES
CHART 5: AGE DISTRIBUTION OF THE RESIDENT UK POPULATION MID-2010 (‘000)
TABLE 6: UK FM MULTI-SERVICE OUTSOURCING MARKET 2006 –2016 £M (AT CURRENT PRICES)
TABLE 7: NON-DOMESTIC CONSTRUCTION NEW WORK OUTPUT BY SECTOR 2006-2016 (£BN) AT CURRENT PRICES
TABLE 8: CURRENT PFI PROJECTS ACROSS GOVERNMENT BY DEPARTMENT 2012
CHART 9: NUMBER AND COMBINED CAPITAL VALUE OF PFI PROJECTS SIGNED ANNUALLY 2000 TO 2012
TABLE 10: PROJECTED SERVICE PAYMENTS UNDER PFI CONTRACTS - 2006/2007 TO 2019/2020
CHART 11: UK NON-CORE SERVICES MARKET BY TYPE OF OPERATION 2011
CHART 12: SERVICE MIX OF BUNDLED FM MARKET BY VALUE (%) (CLEANING, SECURITY, CATERING ETC) 2011
CHART 13: BUILDING MAINTENANCE PRODUCT MIX BY VALUE 2011 (%)
TABLE 14: REPAIR AND MAINTENANCE SERVICE PROVISION – MIX OF IN-HOUSE AND OUTSOURCED PROVISION 2010 (GAS, VOIDS, EMERGENCY ETC)
CHART 15: UK MIX OF CATERING PROVISION – IN-HOUSE, OUTSOURCED BUNDLED, OUTSOURCED SINGLE-SERVICE.
CHART 16: UK FM SERVICES MARKET SHARE BY VALUE - 2011
TABLE 17: UK CORPORATE FM OUTSOURCING MARKET 2006-2016 (AT CURRENT PRICES)
TABLE 18: CONSTRUCTION NEW WORK OUTPUT - CORPORATE END USE MARKETS 2006-2016 (£BN) CURRENT PRICES
CHART 19: UK CORPORATE FM BY END USE APPLICATION BY VALUE (LEISURE, RETAIL, OFFICES ETC) 2011
CHART 20: CENTRAL LONDON OFFICE MARKET – OFFICE TAKE UP (MILLION SQ. FT)
TABLE 21: RETAIL TURNOVER EXCLUDING AUTOMOTIVE FUEL (£BN) 2006-2012
TABLE 22: UK CENTRAL & LOCAL GOVERNMENT FM MARKET 2006-2016 (CURRENT PRICES)
CHART 23: MIX OF FM MARKET BY VALUE, CENTRAL & LOCAL GOVERNMENT – 2011
CHART 24: SERVICE PROVISION FOR SOCIAL HOUSING 2011
TABLE 25: TOTAL AREA OF HOLDINGS AND TOTAL RUNNING COSTS BY GOVERNMENT DEPARTMENT (M2, % CHANGE, £M, % CHANGE)
TABLE 26: UK EDUCATION AND HEALTHCARE BUNDLED FM OUTSOURCING MARKET 2006-2016 (£M)
TABLE 27: CONSTRUCTION NEW WORK OUTPUT 2006 – 2016 (£M) AT CURRENT PRICES - PRIVATE & PUBLIC HEALTH AND EDUCATION SECTORS
CHART 28: MIX OF FM MARKET BY VALUE BETWEEN THE HEALTH AND EDUCATION SECTORS – 2011
CHART 29: SERVICE PROVISION MIX (IN HOUSE, BUNDLED, SINGLE ETC) BY VALUE 2010/11 (%)
TABLE 30: ESTIMATED SERVICE MIX IN OUTSOURCED FM IN THE HEALTH SECTOR (CLEANING, BLDG & ENG, CATERING ETC) 2010/11
CHART 31: FACILITIES SERVICES COSTS IN EDUCATION (SECONDARY, PRIMARY, TERTIARY ETC) BY VALUE 2010/11
TABLE 32: FM SERVICE MIX IN EDUCATION (CATERING, BLDG & MAINTENANCE, CLEANING, GROUNDS MAINTENANCE ETC) BY VALUE
TABLE 33: TOP 20 FM SUPPORT SERVICES COMPANIES IN THE UK
The Facilities Management market has exhibited good levels of growth for much of the last twenty years, influenced by company/organisational desires to control operational efficiencies and costs, as well as a trend within the private sector for companies to refocus their business in order to concentrate on core competencies.
The deterioration in the UK economy from mid to late 2008 has had a negative impact on the development of the FM market, with reduced opportunities in the corporate sector. This was moderated in 2009/10 by the influence of public sector contracts arising from long-term projects coming ‘on stream' and government attempts to stimulate the economy through increased public sector expenditure. These combined factors have resulted in marginal deterioration in growth in the FM market to 2011. Following the formation of the Coalition Government in 2010, focus shifted to public sector cuts, with the corporate sector unable to support the decline in public sector FM expenditure, therefore some decline s expected in 2012 and 2013 as work in this area slows. The market is forecast to stabilise from 2014 and reach £18.5bn by 2016.
Factor influencing the development of the FM market in recent years include the trend to outsource an increasing array of services, with a gradual shift towards ‘bundled service' and TFM contracts and global contracts, adding to contract values.
The market is now considered to be relatively mature across a wide range of sectors such as corporate offices, retail and most Central Government Departments. As a result there is relatively limited potential for growth through increased penetration making the FM market increasingly subject to economic trends. The recent downturn has heightened price competition in the market, with end users looking for better value for money at the time of tendering for contracts. This has had a negative impact on contract prices and has resulted in lower margins for FM providers.
The corporate sector remains the largest end use sector, accounting for around 56% of the market, with the central and local government market accounting for 25%. Healthcare & Education has been the most rapidly growing sector in recent years to account for a share of around 19%. FM outsourcing has increased in both the public and private sectors over the last decade to account for around 65% of overall non-core service provision, although single service provision accounts for a significant part of this. Despite this there remain a number of niche sectors where outsourcing is less well established and potential for growth remains, these include Local Authorities, Schools, Leisure, and Manufacturing.
The last few years have seen significant consolidation in the supply structure of the FM market, with a number of mergers, acquisitions, business failures and market withdrawals. Maturity in the FM market makes it heavily dependent upon the economic climate, through its influence on the prospects for organic growth in key end use sectors such as commercial offices, retail and leisure.
The government is committed to reducing the level of public sector debt over the next five years, resulting in reduced levels of expenditure across virtually all government departments. Bearing in mind the influence of public sector applications on the FM market, this will have a significant dampening effect on growth prospects over the medium term.
- Amey Group
- Aramark UK
- Babcock International Group
- Balfour Beatty Workplace
- BAM Facilities Management
- Capita Group
- Carillion Facilities Management
- EC Harris Solutions
- Emcor Facilities Services
- Eric Wright Group
- ETDE Energy and Services Division
- Europa Support Services
- Facilities Services Group
- G4S Facilities Management
- Gardiner & Theobald Facilities Management
- Global Workplace Solutions
- Hochtief Facilities Management
- Initial Facilities Services
- Integral UK
- Interserve Support Services
- ISS UK
- John Laing Integrated Services
- Kier Facilities Services
- Norse Group
- OCS Group
- Pinnacle PSG
- Robertson Facilities Management
- Serco Group
- SGP Property and Facilities Management
- Skanska Facilities Services
- Sodexo Facilities Management
- Telereal Trillium
- Turner Facilities Management
- Vinci Facilities
- Volker Fitzpatrick.