Covid

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

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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

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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.

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UK Facilities Management landscape by Sector – Retail

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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.
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UK Facilities Management landscape by Sector – Health Care

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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%)

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