FACILITIES AND ENGINEERING SERVICES IN 2024: THE MARKET OUTLOOK AND COMMERCIAL TRENDS

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Baskar Sundaram

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.

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Baskar Sundaram

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.

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Baskar Sundaram

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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Baskar Sundaram

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%)

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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...
Read More
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...
Read More
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...
Read More
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...
Read More
How did the UK FM Service Providers reacted to Covid19 and how to make your revenue in 2021 and beyond in the UK Facilities Services Market?
One of the challenges that many FM service providers are facing is how do you even begin to prepare for...
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Data Science and Sales Growth: Driving Sustainable growth together in Uncertain Times
Learn how best-in-class Sales Operations and marketing functions are leveraging UKs only facilities services...
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Prioritise, segment accounts and refresh your FM market position with data or die!
How has your market opportunity evolved in today’s COVID 19 , and how has your organisation reacted?...
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Be boring and survive the Covid19 environment
When it comes to business, familiarity works in a simple way.  Do you know where your FM revenue is going...
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Summer Economic Update - Baachu Detailed
Security & Home Affairs Sector Court modernisation – The Government will invest £102 million to...
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