UK Facilities Management Market Analysis: Growth Opportunities 2023-2025

Growth Opportunities 2023-2025 was a sequel to our previous FM Market webinar on the Upcoming Public & Private sector Contracts where we discussed the contracts that will be out for tender in Q3 2022, Q4 2022 and 2023 . The aim of this Growth Opportunities webinar was to provide a guide on how to utilize the information provided in the previous webinar to the maximum and grow your business. Watch the webinar recording in order to have a better understanding of what we have discussed here.

In this webinar, we delved deep into our data to provide incisive details about the upcoming opportunities for the suppliers of FM Services. We scanned through our Baachu Rain database of more than 10K Contracts across Public & Private Sector to come out with the business opportunities through the period 2023 to 2025 based on contract renewals.

The FM market size based on the total contract value stands at £116.9 billion with 62% share from public sector and 38% that of private sector. The market is further segregated by service type into Hard FM (36%), Soft FM (33%) and Integrated FM (31%) with Local Government authorities being the top buyers at 19% of overall deals followed by Central Government with 17% share and the office space management at 13% primarily from private sector.



Webinar Highlights : Upcoming Opportunities

The FM Market will provide opportunities worth £16.8 billion to the FM suppliers spread across public & private sectors during the three years from 2023-25. The quarterly spread shows Q1 of 2023 offering the maximum £4.4 billion worth of contracts followed by a stable trend during this period. Local & Central government authorities together will offer around 45% of this business followed by housing companies with a 12% share. Among the private sector buyers Finance & insurance companies will provide 26% of the overall renewal business during this period.

Looking at the Contract count Local government authorities will offer the maximum of 580 contracts from the public sector followed by education sector with 395 contracts. Among the private sector buyers Office space management sector commanded the highest 49 contracts.

In the Specialized services space Repair & maintenance commanded the highest share at 15% just behind Integrated services wherein multiple services are offered by a single supplier. Security services were closely behind at 13% of the overall value business. From the contract count perspective Cleaning & Catering services topped the list with 357 and 286 contracts respectively.

As far as leading buyers are concerned Worcestershire County Council will offer the largest contract for soft FM services worth £926 Million at the current value followed by Ministry of Defence with an Integrated FM services contract worth £427 Million and Northern Ireland Housing Executive with a Hard FM contract worth £386 Million from the public sector.

In the Private Sector sphere SSE Plc will offer a soft FM contract worth £940 Million followed by an integrated FM contract worth £850 Million by Lloyds Banking group and a £200 Million contract by Circle housing group.

From among the Central government buyers Ministry of Justice will be the top buyer with contracts worth £758 Million followed by Department of Works & Pensions with contracts worth £707 Million and Ministry of Defence with contracts worth £447 Million.

   

CCS Framework

CCS has pruned its list of suppliers for the new framework agreement :

• The new framework RM6232 list consists of 44 Suppliers
• Fourteen new suppliers have been added to this list from the previous RM6830
• Eleven Suppliers have been dropped from the earlier list

The latest trends and role of technology was also discussed during the session with growth opportunities divided into Respond, Re-set and Rebound phased linking these to the aftermath of the pandemic. The session also covered PFI Contracts and discussed about Net Zero carbon emission targets in some detail.