Disclaimer : Contracts data is based on public available information. Due to Covid19, many of the contracts could be extended or re-procured.
FM Outlook for upcoming business opportunities by Private Sector in 2022
As the world moves beyond the shadows cast by the Pandemic, we take a look on FM industry in the UK in the coming year 2022. Going by the figures, the coming year will be full of business opportunities for the industry as contracts worth more than £333 Million annual value will expire and come up for fresh bidding during this period. The period will see around 162 contracts in the private sector up for taking.
The year will begin on a positive note with January offering more than £17 Million annual worth of contracts, followed by a steady business flow with a major spike seen in the month of March that promises £39 Million annual worth of business prospects to the Industry players. The full year spread of estimated opportunities are depicted in the given graph. The year will end on a higher note with November seeing contracts in excess of £49 Million valued annually becoming available for the FM industry as these will come up for fresh bidding.
Top Private Sector entities with large offerings in the coming Year
A dissection of the overall prospect business and a closer look at the top offerings provides a glimpse of the major buyers for the FM Industry. Fulham Road Collaborative and Circle Housing Group will offer contracts worth more than £20 Million valued annually. The Fulham Contract is currently being held by ISS and that of Circle Housing by Kier. BBC will offer third largest contract worth £16 Million which is currently being managed by Interserve during this period. Below graph shows the top 10 Buyers that will offer the bulk of the business deals for the FM providers in the coming year.
Category wise spread for FM opportunities in 2022
In the sectoral breakdown, the management of office space will offer the largest chunk at more than 30% of the overall business on offer for the FM providers in the coming year. The rest of the business will be evenly divided between other market sectors with Residential & Housing, Energy and Utilities and Manufacturing and Industrial showing promise at more than 12% each of overall value deals on offer during the coming year. Retail will also hold a significant 9% business of the overall pie.
Way ahead to seize these business opportunities
Typically, the expired or any new contracts go through a laid out process of tendering and bidding which usually takes anything between three to six months. Although the mentioned business opportunities or contracts will expire in the coming year, however, the actions surrounding the procurement of these deals would have already begun.
Assuming that the tendering process typically takes six months, below chart shows the tentative timelines to lookout for these opportunities by keeping an eye on the contract or prior information notices published through multiple communication channels.
Overall, the figures clearly support the market optimism in the near and long term which clearly has a lot to offer for the players in the Facilities Management sector. The FM providers can look forward to an exciting and lucrative business times in the coming year.
If you are an incumbent looking to renew or challenger looking to displace the contract then drop me a line – baskar@baachu.com to discuss your sales growth opportunities, goto market and renewal bid strategies