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Transaction Management – FM players seeking foothold

Do you know that Transaction Management Companies is on the top end of the FM value chain and with future of Workplace dilemma may companies are relying on these providers to help shape their real estate and workplace portfolio.

One of the main reason buyers take them on- board is cost savings. By hiring these providers, Clients save on lease costs, floor space, Op. Ex and setting up cost on management office. Also covid19 has demonstrated,  integration of FM and TM will improve performance and efficiency, i.e Real estate transaction management is one area where synergy with FM can be harnessed extensively and lead to profitable portfolio expansion for FM players. Interestingly, transaction management services also enables FM providers to tap into double digit profitability.

To know the Key Transaction Management Advisory Deals in the UK, Key players and their competitive landscape.

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What is the Average Value & Duration of the FM Contracts in the UK?

The UK facilities Management comprises of a wide range of players that offer services across various sectors and the key players offer services utilizing their size & scale. So, the average contract value and duration is varied based on the sector, service provided and the type of sector. Overall, FM providers have secured various contracts with an average total contract value TCV of ~£10.9Mn and an average contract duration of 3.9 years.

Impact of COVID-19 in UK FM Market

As global concerned about the COVID-19 outbreak and still dealing with it, we’re doing our best to keep everyone healthy and safe in the workplace while also minimizing the disruptions to our day-to-day operations. Still, dealing with the challenges of it. As workplaces prepared to reopen there was requirements make the buildings covid-19 safe, with demand for screens, hand cleansing stations etc.

Key challenges are that Cleaning services are highly impacted as FM companies have started building capabilities to avoid infection at client sites. Not only this, There is a decline in profits for FM players .

The Cleaning Services spends circa ~£21.3 Bn in terms of Total Contract Value (TCV), accounting for 18.3% of the total UK FM Market.

To have more knowledge on the UK FM Market covering Key trends, Top players, Market breakdown, Market drivers, Challenges, Growth forecasts and Covid -19 impact.

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Crown Commercial Service (CCS)

Crown Commercial Service is the Cabinet Office Executive Agency responsible for policy making, advice and delivering direct procurement services to government departments. As of 2019-20, CCS has ~771 employees working across 5 locations including Liverpool, Norwich, Newport, Leeds &London.

The agency supports over 18,000 customer organisations procure products and services from more than 5,000 suppliers. The Key responsibilities are managing the procurement of common good an services, increasing savings for the taxpayer by centralising buying requirements for common good& servcies and leading on procurement policry on behalf of UK government.

UK Facilities Management landscape by Service – Pest Control Services

Pest infestations can cause an array of problems from the obvious health & safety implications to loss of stock, risking the reputation of your business. Pest Control Services involve range of measures for regular inspection, treatment & control of rodents, crawling & flying insects & pest bird species.From small domestic work to large offices and premises in the city centre’s, the pest control companies minimize the threat of pest infestations by both preventative & responsive strategies.

The total Pest Control Services FM market in the UK is estimated at ~£2.1 Bn in terms of Total Contract Value, accounting for 1.8% of the total UK FM Market.

UK Facilities Management landscape by Service – Reception Services

Reception Services involves welcoming an organization’s visitors, providing information & guidance, maintaining overall security and handling minor office tasks & also offer technology-enabled solutions including virtual front-of-house and help desk services.

Various FM providers offer bespoke, sophisticated concierge-style services that reflects the environment expected by the client’s community.

The total Reception Services FM market in the UK is estimated at ~£5.3 Bn in terms of Total Contract Value (TCV), accounting for 4.5% of the total UK FM Market

UK Facilities Management landscape by Sector – Retail

UK retail sector is the single largest private sector in UK, with 1 in 10 people working in retail. The national wide lockdowns last year resulted in majority of physical shops being shut for number of weeks, impacting physical retail sales and few of the trends emerged during those times are digitisation- such as e-commerce services and shift towards sustainability.

The Retail sector spends circa ~£4.6Bn, in which Soft FM acounts of services contracted with TCV of ~£2.5Bn (54%), followed by Hard FM with ~£1.2Bn (25.1%) and Integrated FM with ~£0.4Bn (9.3%) according to database value of Dec 2020.
To know the Market Share, Key providers, key customers and their competitive landscape.
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UK Facilities Management landscape by Sector – Health Care

NHS is one of a kind sector that covers the entire population in UK. Due to the rising needs of Health care services, agile project management approaches have been adopted to meet the demanding health care needs.These demands resulted in preferring Private Health Care over NHS due to the rise in waiting lists, rise in technology like online consultation &decline in PMI.

The Health care sector spends circa ~£6.1Bn , in which soft FM accounts for the highest proportion of services
contracted with TCV of ~£2.4Bn (38.7%) , followed by Integrated FM with ~£2.1Bn (34.2%) and Hard FM with ~£1.2Bn (19.5%)

UK Facilities Management landscape – Leisure Sector

In UK, the Leisure sector comprises of companies that are into betting & gambling, culture & heritage and leisure & entertainment.

According to a Community Leisure UK (CLUK) report August 2020, over 22,000 jobs are at risk across the UK’s public leisure sector due to COVID-19 outbreak.

The Leisure sector spends circa ~£5.9Bn, in which Soft FM accounts of services contracted with TCV of ~£4.9Bn (82.2%), followed by Integrated FM with ~£444Mn (7.5%) and Hard FM with ~£198Mn (3.3%)

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