FRENCH ENERGY & FACILITIES SERVICES LEADER STRENGTHENED ITS POSITION IN NUCLEAR AND ENERGY SECTOR WITH UK FM MARKET ASSESSMENT

Industry: Integrated Facilities Management, Security, Catering, Cleaning, Landscape management Heating, Ventilation, Fluid management, Nuclear and Power

Services: Strategy Consulting,  Market Sizing, Competitive Assessment, CEO Advisory

The Client

The client is a France-based provider of integrated and bespoke FM services especially to the energy and nuclear sector. Its range of services include security, catering, cleaning, landscape management as well as heating and ventilation, fluid management and power.

The Challenge

The client wanted to perform an assessment of the UK FM market and understand the possible opportunities in the market to shape up its future growth strategy accordingly.

The Solution

As part of the engagement, a deep-dive assessment of the market was conducted. The size of the market, historical and forecasted growth rates as well as significant drivers of the market were identified to help build an effective go-to-market strategy.

The UK FM services market offers significant opportunities to players in both the public and private domain. Given that it is a mature market, it witnesses a high degree of competition from players of all sizes. The detailed assessment of the market revealed the following:

  • The market assessment was conducted in 2016 and found that the FM market in the UK was expected to grow from £115.8 Bn in 2015 to £128.5 Bn by 2019 recording a CAGR of 3%
  • In line with all growing markets, investments in workforce, capital and technology were expected to increase substantially during the period
  • The public sector FM market was heavily outsourced – 72% of the total £45.0 Bn, which translates into a sizeable chunk

One of the most significant drivers of growth was identified as the ability to hire and retain the correct talent as well as focus on upskilling existing employees. In the final phase, the outsourced market was further segmented basis the services outsourced along with an analysis of key competitors in the market.

The Results: The Client successfully evaluated their market position, exited healthcare and retail sectors and entered Defence and Social Housing thereby generating £460m of new business over 3 years.