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 Public Sector in 2022
As we move into the new year with great deal of optimism after the pain and agony that engulfed the entire world due to the pandemic, we look forward to an exciting business journey for business community especially in the FM Industry. The coming year looks promising for the FM providers as we look into the business prospects basis the deals that will be available during the year. The activity would have already begun with the tendering process for the contracts that will see implementation in the coming year presuming the action begins around three to six months before the expiry of the in-force contracts.
The data based on compilation of contracts expiring in the coming year shows a huge business opportunity in excess of £4.4 Billion for the FM service providers. As the procurement process begins two quarters in advance the ball would have been set rolling for few of these business deals especially that are coming up during the 1st quarter of the coming year.
Through this article, we will look at some of the top buyers from the public sector who will be in action during the coming year in addition to the spread of the business opportunities during the course of the year. A look at the below graph shows a big opening month with 68 contracts with value in excess of £619 Million on offer for FM service providers. The volume of business will see some ups and downs before peaking in the month of June when the market will be abuzz with business deals valued at more than £1.4 Billion. The subsequent months will see consistency in the business volumes. Although, the execution of the new contracts will commence after the existing contracts expire the procurement process will begin well in advance, probably between three to six months.
Top Public Sector authorities with large offerings in 2022
The crown commercial Service which acts as a common platform for Public sector companies through its framework based approach will be the top buyer in the coming year. The contracting authority will offer business deals in excess of £1.4 Billion as per the data of contracts expiring in 2022. The next-in line offerings will come from Home office which has a large contract worth more than £600 Million coming up in the month of September. Orbit group limited which is an NGO will offer the largest opportunity in Jan-22 followed by local government authorities of Dundee City and & Lancashire County Councils. The attached graph shows the top 15 buyers in the coming year.
Category wise spread of the upcoming FM opportunities
The share of central government authorities tops the market categories which will see large offerings of around 39% from the total business volume for FM market players. Local government authorities which include city and county councils will contribute the 2nd largest chunk of business volumes at 25%. The other significant category will be the companies in the housing sector who will provide 18% of the total business volumes. The rest of the market will be divided between other sectors like Education, Healthcare, Transport and charitable organizations as per the attached graphics.
When does the action begin on grabbing these upcoming deals
Although the contracts will expire in the coming year, however, the actions surrounding the procurement of these deals begins much in advance. The tendering process begins quite early around three to six months before the contract is enforced and the FM provider starts work on its deliverables. 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.
Overall, the odds seem to be loaded in favour of exciting business opportunities for the FM providers in the coming Year and the action would have already begun with bidding and tendering process underway for some of these deals especially those expiring in the initial few months. The FM providers can look for a lucrative year ahead.
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