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Are you an analyst researching about an FM company – A typical UK FM Market Question ?

Baskar Sundaram
Are you an analyst researching about an FM company – A typical UK FM Market Question ?
 
We have many analyst members who use our research insights for their deep dive on work. Recently a asset management research analyst, was comparing her research to our report on the UK FM Market to see if a membership would be worth it. 
 
In her research of a leading FM provider, she found their revenue was XXbn in 2020 – she was wondering why in our Baachu Rain FM report we have listed the provider holds X% of the UK FM Market and she asked for our insights as to what the X% market share means that would help her decisions 
 
Our Response 
Our market sizing is based on our proprietary database of publicly available list of Facilities Management (FM) public and private contracts awarded in the UK market. 
 
We estimate that we cover 85% of UK market as not all contract data is publicly available, which means we have 8,600+ contracts that add up total contract value (TCV) of £117 Bn (as of Jan 2021). 
 
For calculating market shares, we adopt the following approach – For say a service provider has ‘A’ number of contracts with varied contract values ranging from £1 Mn to £100 Mn, we sum the provider’s every single total contract value (TCV) and compare it to the TCV of all the contracts we have on the database. 
 
From our database, we estimate the provider has B% market share = 
so their contract size order book, lets say Y £bn = B% * £117bn spread over multiple years
 
Their annual revenue is an in-year revenue that is based on movement of how many new business wins, losses, renewals, account growth they make within that calendar year. 
 
If you are analyst or investor you can schedule your inquiry needs via this page 
 

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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.

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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.

Subscribe to Rain Plus Membership and get access to our 50+ thought leadership articles, 10+ reports, round tables & insight sessions.

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