I’m always surprised at the number of generic questions we get about market strategy .
- “Did I pick the right market? Is it too big? Too small?”
- “How can I know what my customer actually wants?”
- “How can I be certain my pricing solution will generate profit …even before I bid?”
The Institute of Government report published early this month, ranks which services have been outsourced successfully and which need reform. The Report finds that outsourcing waste collection, cleaning, catering, FM, BPO Services has delivered significant savings and benefits to citizens. Particularly in these areas, bringing services entirely back into government hands could lead to worse and more expensive services for the public
Yes 80% of the market is outsourced, this trend is increasing, and the first-generation opportunities are very rare.
Quick Snapshot of Facilities Management Market
Global market size – 1.2 – 1.3 trillion USD.
The 4 big service lines covering 1.1 Trillion USD are Property maintenance, Cleaning, Security and Catering.
50% outsourced market in North America and Western Europe
North America – 250 B USD
Western Europe – 350B USD
UK – 150B USD is the most matured market
Public sector – 30 B GBP (across 9 submarkets)
Private sector – 90 B GBP (across 13 different submarkets)
Third generation outsourcing with 2% YOY growth next 3 years
If you are part of CCS FM framework, we have created CCS FM Essential Guide to make sure you know everything there is to know about positioning your CCS FM framework strategy and public-sector FM market.
We estimate 40% of the public-sector opportunities – Circa £12 billion are expected to be procured through CCS FM Market place
France – 50 Billion USD market (1/3rd size of UK).
High growth market with 8-10% YOY growth next 5 years
Reaching $100 B USD (2/3 rd size of UK) by 2025.
Do you know which UK private or public sector market and which of the 4 service lines poised to grow faster than the rest? Check the Tool…
Better understand your FM landscape, the growing or shrinking markets, what your competitors do and what they dont? Plan your strategy, budget, must wins and resources.
Typical punitive contract structure, EBITDA margin erosion (as low as 3%), high CAPEX and OPEX are common factors in the FM industry producing high stressed assets.
Providers rightly are spending more time in fixing operations. Lucky few who have fixed their operations are successfully mining their existing accounts by cross selling and upselling more services. Even the providers who have grown through acquisition in the past are constraint due to poor cash position with integrations taking longer than expected. Gone are the times of market intimidation.
Very few FM providers have new business win rates above 50% and retention above 80%. Some running as low as 20%. Many have stopped measuring and continue to approach the market impulsively. So, any contract can be displaced in the market with the right strategic approach.
Around 11000 FM opportunities outsourced (£120 billion) in UK with 1250 immediate opportunities (next 12 months). 65% of these are between £500k to £5m annual revenue. Build confidence on your revenue trajectory and order book. Be proactive and sustain your own market…
So Stop Guessing at What your market wants and reach out to Us at firstname.lastname@example.org