Facilities management industry

January 28th, 2016 Category: Local Authority & Housing

The facilities management (FM) sector is set for continued growth in the run-up to 2019, new findings have revealed.

A report published by AMA Research Ltd found that FM outsourcing is set to grow by seven to eight per cent per year.

FM outsourcing encompasses a range of different disciplines, such as cleaning, hospitality, building management and other similar services.

The industry has already seen an increasing number of contracts, which has been aided by the improved economy, rising confidence and good growth in the financial and service sector. All of this has helped to lead to growth of between four and five per cent.

According to figures by AMA Research, the majority (75 per cent) of services by value is thought to be outsourced in some way.

Commercial offices and retailers are more likely to make use of FM services. Indeed, commercial offices alone accounted for an estimated 52 per cent of the market by value.

In addition, the report showed that the leisure and entertainment sectors also account for a significant share.

Speaking about the findings, Keith Taylor, director of AMA Research, said: “The need to minimise operational costs and redundancies resulting in a reduction in workforces has seen many organisations reducing office space, and this is having a negative influence on the FM market as contract values are cut.

“These cutbacks in FM contracts usually occur at the time of re-tendering but have also become more prevalent mid-contract, though pressures have been easing in the private sector as employment levels recover. However, the benefit of office rationalisation has seen a growth in the use of niche services such as workspace management and move planning.”

Despite the high demand for cleaning and other such FM services, many businesses in the sector are coming under increasing pressure to create efficiencies through both cost and energy savings. 

Indeed, the FM market has experienced a number of mergers and acquisitions over the last few years, influenced by market maturity.

Looking for a sustainable and reliable FM provider?

The report clearly highlights the rising demand for FM services in the UK, and this looks set to grow for at least the next few years.

However, due to environmental pressures and the drive towards more eco-friendly practices, it is becoming abundantly clear that FM providers that already encompass sustainability at the heart of their strategies are more likely to be able to withstand the peaks and troughs over the next few years.

Nviro is one such company we put green cleaning at the heart of everything we do and the services we provide.

Therefore, if you are on the lookout for an FM provider that you can trust, look no further than Nviro.