Facilities Management Insider

Budget 2020 – Welfare

As part of today’s Budget, the UK Government has made the following announcements Welfare System and Skills Funding UK Shared Prosperity Fund:  At a minimum,

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Value For Money In FM Service Contracts

Assessing value for money in FM service contracts is difficult at the point of bid
evaluation as an assessment must be made on which of the suppliers will actually
deliver the specified services to the defined service standards for the prices
submitted.

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Self-delivery as a tool to improve margins

As the UK market matures, self-delivery is growing in importance for both competitive advantage and risk mitigation.

Even in the more complex IFM segment, self-delivery is becoming more common as customers seek more contract centralization and suppliers seek to grow margins.
Early leaders include ISS, which is a leader in the development of integrated service offerings based primarily on self-delivery.
White-collar FM firms are also moving into self-delivery (e.g., JLL’s acquisition of Integral in 2016).

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Trends/Factors Impacting the UK FM Market

New Business Models: FM shift to workplace solution, innovative technologies will proliferate in the UK allowing NEW service models to shift CAPEX to OPEX. Like Software as a service, FM companies must embrace these new concepts to provide energy Saving as a Service, and so on.

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Innovations, Technology & Trends Impacting the FM Sector

From the top-down, these are the sexy things larger FM teams like to talk about. Smaller organizations will probably focus on budget tools and how to get more with less. Workflow and automation based on certain types of criteria could also be something that would move the needle with that group.

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Marketing Your Innovation

Globalization and technological advancement have drastically affected the market. Most products have a short shelf life and consumers keep demanding more and more products. News products are constantly introduced into the market, but very few stick on for the long run. Therefore, innovation is key for the survival of any business.

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Is it Time for a Market Correction in the Outsourcing Industry?

A key question rising from the smouldering ashes of Carillion, troubles in Kier and Interserve is “how many of the top government suppliers will exist in 2020?” There is no doubt that the market is stressed, and there is a palpable nervousness amongst debt and equity investors, industry leaders and leaders in government. 

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