The United Kingdom (UK) Facilities Management market was valued at USD 63.97 billion in 2020, and it is expected to reach USD 71.43 billion by 2026, registering a CAGR of 1.42%, during 2021-2026.
The UK is one of the largest markets for facility management services in Europe in terms of maturity and sophistication. Considering the high penetration of facilities management services, several service providers operating in the country have focused on expanding their presence, in order to take advantage of the growing demand for facilities management, especially with the trend recent development favoring the outsourcing of non-essential operations.
New York, July 20, 2021 (GLOBE NEWSWIRE) – Reportlinker.com announces the publication of the report “United Kingdom Facility Management Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026)” – https://www.reportlinker.com/p06106046/?utm_source=GNW
– According to a BCIS study, maintenance expenditure in the United Kingdom represents just under 3% of the country’s GDP; BCIS’s benchmark life cycle cost estimates indicate that maintenance (upkeep of fabrics and services and decorations) accounts for approximately 40% of total facility management costs, including cleaning and utilities, thus valuing the FM market at around 7.5% of the country’s GDP. Due to these developments in the country driven by the increasing trend of outsourcing, the market is expected to experience further growth in the next few years.
– The facilities management industry is one of the country’s service industries that has positively impacted economic output, is likely to witness the likely impact of Brexit during the forecast period . As a member of the EU, FM companies operating in the UK were able to reap all the benefits by specializing in activities where they had a comparative advantage. The influx of foreign direct investment (FDI) and the free movement of workers have helped companies in the country hire experts from across the EU.
– The COVID-19 outbreak has had a mixed business impact on facility management companies as restrictions on the movement of people have resulted in a drop in project work and a reduction in the level of activity at many sites clients. Major market players, such as Mitie, the CBRE group and others, have been adversely affected due to the pandemic lockdown.
– FM suppliers have experienced supply chain disruptions resulting in difficulties in sourcing materials and supplies. In addition, they have found it more difficult to cope with staff shortages due to various factors including lockdown restrictions, self-isolation and illness. However, the easily built environment has played an important role in supporting various industries, from healthcare and social services to transportation and public services, and has helped to fight the spread of the virus.
– Since then, the facility management industry has relied heavily on workers from the European Union. Soft FM services depend primarily on this source of labor, and restricted post-Brexit access can have significant implications. FM companies, especially those with contracts with the EU, are expected to be affected by potential changes to migrant workers, supply chain and other regulations in the post-Brexit scenario.
Key market trends
Unique FM service expected to experience significant growth
– Working with a single facility management service provider means, above all, outsourcing the management of tasks to independent entities. It also means having a different service provider for each different service the organization needs, such as one for cleaning, one for reception, one for vending machines, among others. Calling on these services from specialized providers offers many advantages.
– It allows customers to focus on their core business and what they do best, while single service providers can focus primarily on what they do best. Entrusting task management to experts will lead to much higher efficiency and better quality of service. It will also allow company employees to focus on the most important business areas and save resources for non-essential activities.
– Outsourced FM has been used successfully in various industries including public sector, retail, professional services, healthcare, technology, logistics, manufacturing and education. The areas that FM services deal with vary widely and depend primarily on its type, size of business and the industry in which it operates. It is not a one-size-fits-all approach. Some companies will only need a single service solution provider, while other large companies will look for a bundled service offering or a complete facilities management solution.
– Suppliers operating in the UK market have offered unique services to customers, regardless of the emergence of bundled and integrated services, as some organizations still need unique solutions. For example, TC Facilities Management Ltd offers unique services, such as cleaning and security, in several industry sectors at more than 5,500 locations across the country.
– According to the RICS UK Facilities Management survey for the second quarter of 2021, around 6% of respondents believed the single FM industry would experience the strongest growth over the next twelve months in February 2021, and the response rate has increased of 10% of respondents. believed Single FM would experience the highest growth in May 2021. However, key survey respondents believed other services such as FM bundles and internal services are set to experience the fastest rate of growth. higher over the next 12 months.
Business entities are expected to have a significant market share
– Business entities cover office buildings occupied by business services, such as the headquarters of manufacturers, IT and communications, and other service providers. For this reason, the provision of the necessary fittings and interiors as well as the decoration and management of commercial buildings have assumed significant importance, thus boosting the market in the commercial sector of the country.
– UK Commercial Group offers a wide range of commercial facility management services, such as commercial cleaning services, duct cleaning training and comprehensive facilities management in its Newcastle office. Likewise, B38 Group, a national facilities management and property support company established to meet the highest expectations of clients in the commercial real estate industry, provides commercial property support services including; outsourcing, property maintenance, construction, civil engineering, corporate interior design and energy services.
– The spread of COVID-19 has forced the massive closure of workspaces and the implementation of work-from-home policies in most industries, particularly in corporate buildings in the information technology sector and telecommunications, which had a negative impact on the market. However, for some businesses, the new standard may initially mean antivirus protection for their offices through short-term fixes, new ways of working, and long-term design upgrades that put hygiene at the heart of the business. workplace planning. This may have a positive impact on flexible services, such as COVID-19 cleaning services, in the region.
– In September 2020, Hearst UK, a publisher of several brands including ELLE, Harper’s Bazaar, Cosmopolitan and Esquire, appointed Churchill Group and Pareto FM as facilities service providers for its London offices. Under the terms of the agreement, the Portfolio by Churchill may oversee cleaning and event management activities, with Pareto assuming responsibility for providing all scheduled maintenance and mechanical, electrical and tissue-related reagent and management services. project. Several new service solutions were also introduced, including an occupational hygiene program, PRISM and COVID-19 mitigation services from Portfolio, and Pareto expanding its Women in Engineering program with an electrical apprenticeship.
– The market is witnessing multiple partnering activities between sellers and business entities in UK. In 2019 TC Facilities Management (TCFM) secured a number of new clients to provide its window cleaning and cleaning services in the wholesale, commercial, high street and office sectors across the UK . The contracts, worth £ 3million per year, have seen more than 300 colleagues join TCFM. The company provided cleaning services at more than 100 sites for 14 of its new customers.
Facility Management in the UK is very fragmented as it is a very competitive market with the presence of several players of different sizes. This market is expected to see a number of mergers, acquisitions and partnerships as companies continue to invest to offset the current downturns they are strategically experiencing.
– September 2020 – Interserve Ltd. was awarded an FM services contract worth € 7.6 million for the next three years with the London fire department. The contract includes the cleaning of the Brigade estate, which includes 94 fire stations and associated sites. Thus, the industry should move towards integrating services for productivity and sustainability.
– October 2020 – ENGIE has launched a new zero-carbon home renovation model. With UK households accounting for over a quarter of all UK CO2 emissions and half of the market achieving an EPC rating of D or less, radical action is needed if the UK is to achieve a reduction massive greenhouse gas emissions by 2050. The new offer uses the savings generated by the improvement works as well as existing revenue streams and government incentives, including the obligation of energy companies (ECO ), the renewable heat incentive (RHI) and grid balancing agreements to help finance the initial costs of the works.
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