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21 June 2018
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FM outsourcing to pick up pace in 2012

22 August 2011

Growth in the FM corporate outsourcing market is expected from 2012 onward, but will be slow and in line with construction projects being finished.

According to the latest FM outsourcing report from AMA Research, “Maturity in the corporate FM market makes it heavily dependent upon the economic climate.”

“As a result, the market is expected to exhibit some stabilisation and subsequent growth over the short to medium term, recovering only slowly from 2012 as construction activity improves and new projects reach completion.”

The report, Facilities management outsourcing: corporate sector market, 2011-15, focuses on commercial offices, retail, entertainment and leisure, manufacturing and warehousing, energy and utilities, and privatised transport services.

“Levels of construction output have a strong impact on the corporate FM market, with the commencement of FM commonly linked to the uptake of new business premises,” says the report. “The global economic crisis has, therefore, impacted upon the majority of corporate end use sectors, with some contraction in the corporate FM market from 2009.

"But over the short to medium term, the market is expected to return to growth as the economy strengthens.”

FM service providers will see some good opportunities within niche sectors. Leisure will benefit from the 2012 Olympic Games in London and a continuing growth in the budget hotel sector is expected to last for the rest of the decade, according to the report.

The corporate market for outsourced “bundled” services was valued at around £9.5 billion in 2010.

The past few years have seen significant consolidation in the supply structure of the FM market, with an unprecedented number of mergers, acquisitions, business failures and market withdrawals.

More mergers are likely, noted the report, because of a trend for clients to seek a single provider for an increasing number of services.

In turn, major FM providers will look to acquisitions as a way to offer more services and strengthen their position in the market.

Other news for Monday, 22 August 2011:

FM outsourcing to pick up pace in 2012

Employees expect more collaborative space

BSRIA creates online compliance resource

ISG wins Cheltenham gallery contract

Select Committee slams PFI use

Understanding leadership