Introducing UKs most comprehensive outlook of the market
Every single FM service provider have a short- and medium-term growth strategy in place. Here is an opportunity to test the assumptions underpinning your growth strategy.
Before we begin the test. How do you go about determining the size of your idea’s potential market? Much of this information exists in the heads of the management team, the way it is at many companies. But now is when you write it down. Alternatively, you could hire an expert to conduct a market analysis.
Unlike most other sources with similar offerings, Baachu’s most comprehensive outlook of the market is uniquely based on our detailed list of 11000+ FM contracts awarded in the UK market.
The Bottom-up approach differs extensively from the Top-down approach in which typically the revenue of key players is purported as the basis for calculating market size primarily on interviews and therefore is subject to fluctuation.
The goal in this article was to cut out a lot of the fluff out there online and just share some data driven insights from UKs only database of 11000+ outsourced FM opportunities and our interaction with 100+ stakeholders in buyers, investors and service providers.
Here is our Top 10 FM Market Insights so that you can review your assumptions.
- Baachu’s latest research on outsourced FM in the UK indicates that the market was worth c.£85 Bn
- Market is dominated by private sector which exhibited a high level of outsourcing activity, contributing 55% (£47.0 Bn) to the total FM market
- In private sector, Integrated FM contributed 45.3% to the private sector market; followed by soft FM (25.9%)
- The Offices and Commercial Buildings sector contributed the highest to the outsourced private FM market – accounting for 44% of the total outsourced private FM
- With a share of 69%, Integrated FM services is the preferred service type in the Offices and Commercial Buildings market
- The private sector will offer opportunity worth c.£1.2 Bn over the next four years (2020-23) with 100 contracts in the £1 Mn – 5 Mn range
- The central and local government together account for more than half the market (c.53%) of the outsourced public FM market
- Circa 200 contracts worth c.£3.5 Bn are expected to come up for renewal in the public sector in the over the next four years (2020-23)
- Over the next four years (2020-23), Local government sector is expected to have the highest deal volume (~ 200 contracts), more than half of which is expected to be driven by soft FM services
- With a share of 40%, Soft FM services is the preferred service in Central government and Local government market
Key trends that would likely shape the global FM market:
There are new trends and developments occurring in the market almost on a frequent basis. There are however a few trends that are likely to change the dynamics of the industry in the coming years with regards to how effective FM services are going to be delivered
New look workplace
A multi-generational workforce – Given the improvements in health and lifestyle people are also expected to live and work longer. The implication for organisations to bridge the gap between different generations of employees will be critical.
Wellness as a differentiator – Employees will demand a workplace where wellness is a centralised theme.
Collaborate to innovate – building and workplace designs that support collaboration would become an integral part of developing workplace strategy
Digital disruption
Managed workspace and co-working – Technology will continue to be the main driver behind the growing attention on managed workspace and co-space while managing capital spend.
Personalisation – Customers will demand a more personalised experience and service providers should be ready to spend considerable resources to offer it as a differentiator. With balance shifting between physical and virtual space, an entirely different FM skillset would be required to cater to the needs of these new environments.
AI and smart buildings
Data backed decision-making – Data and data analytics will become crucial for addressing cost and performance issues in purview of the entire FM industry.
Internet of Things (IoT) –FM leaders would be presented with an opportunity to use IOT and improve end-user experience with self-serving, customised services.
I, Robot – The market for robotics might be small but it is rising where by robots can help manage labour costs on specific tasks and increase efficiency through automation.
Immediate Future of FM
Buyers
Buyers will continue to drive towards Technology led payment by results model. Buyers will expect service providers to integrate the supply chain (including buyers) bringing together all of the services with real time contract reporting, Social Value reporting and manage their Carbon Target.
Service Providers
Service providers will continue to consolidate their supply chain towards more self-delivery and invest or collaborate for technology solutions to improve margins and showcase innovation.
Service Providers will continue to move towards service integration, robust customer experience and sophisticated advisory services to keep growing and remain profitable.
Service providers will also need to invest on Government relations not a generic public relation if they want to continue to operate in Public Sector.
Successful service providers will continue to extend, renew and mine existing contracts and will qualify new business even more carefully!
In addition to Brexit planning, service providers will also need to conduct risk assessment of their operations around new government policies and COVID -19.
There’s a lot in there I thought you might find helpful. This is a summary from our recent webinar, we have consolidated even more insights in our UK Facilities Management Market 2020 – 2023 Report. The Facts, Market Overview, Key Insights, Trends, growth forecasts, key government policies, FM provider landscape, competitive analysis, buyer trends and a mapping of the most attractive opportunities for growth to 2023.
Here’s the link to check it out
http://baachurain.com/product/uk-fm-market-sizing-and-insights/
Yes it includes detailed report plus a 4 hour insight session so that we can stress test your goto market strategy implementation and bring the market insights at your chosen location to help YOU (and wider board) make decisions and navigate your growth path ahead.
With average EBIT in the FM sector at 3%, reasonably and thoughtfully estimating your potential market size is a key step to successfully enter and sustain growth in any market.
Here is exclusive i-FM ONLY offer: Utilise £2000 discount code FB5V9AZ5 (expires 31st March 2020) to access the report and book your insight session for only £2999+ VAT
Don’t be afraid to let me know exactly what you think, I want it to be most impactful just like you.
Alternatively, you can also subscribe to our FM market deep dive webinars (8 by sectors and 4 by services) below for only £995+ VAT.
Wishing you all the success in the new decade.
Baskar Sundaram
ABOUT BAACHU
Baachu Rain
At Baachu RAIN (www.baachurain.com) we are the UK’s ONLY data driven Market Development & Strategic Research Specialists for Built Environment with a commercial intelligence database of 11000+ outsourced public and private sector FM tender opportunities. For over five years, Baachu Rain has become UK renowned for its role in helping investors, corporate leaders and buyers in Facilities Management and Workplace services stress test their growth and operational strategy, navigate market changes and identify opportunities in an uncertain market.