FM market set for change
January 29th 2010 The Facilities Management market will continue to see a dramatic shift toward multi-service provision in 2010, according to a new market report from MTW Research, with FM clients following ‘flight to price’ procurement strategies to reduce outsourcing costs. The report indicates that client loyalty in the FM market is being steadily eroded by price competition in 2010, with many of the commodity sectors within the market, such as property maintenance, office support etc, becoming increasingly price sensitive.
MTW found that this trend was fuelled by the recent recession and resulted in multi-service FM providers gaining further share of the market in 2009, with these companies often able to offer greater cost savings than single service FM contractors. MTW also found that the FM market has become increasingly characterised by closer relationships between suppliers and contractors, as greater efficiencies and lower procurement costs are sought.
During 2009, several FM companies established programmes specifically designed to improve supplier relationships to ensure that material and equipment suppliers were aligned with customer relationship principles and accountable for their own supply chains. According to MTW, these supplier improvement programmes vary in scope, though typically include audits in relation to CRM, sustainable procurement and may even include a ‘best practice’ policy to which suppliers are expected to adhere.
Based on sales figures from the industry, the total FM market is currently worth just under £90 billion according to MTW, with operations and maintenance services the largest sector in 2010 and integrated or ‘bundled’ FM service provision now the second largest market segment. By the end of 2010, the report states that the overall FM market is expected to grow to a value of around £87.7 billion, reflecting sustained public expenditure coupled with a return to stronger growth from the private sector. MTW’s SWOT analysis identifies a number of key market influencers which are expected to further drive the market in 2011, despite increasing uncertainty regarding short and medium term public spending budgets.
The 200 page report provides a comprehensive review of the UK facilities management market in 2010 and forecasts sales to 2013, with product and end use sector shares alongside sales leads for key FM contractors. The report is available to purchase from £565 from MTW Research’s website click herewww.marketresearchreports.co.uk where a free sample is available to download or by calling 08456 524324.
More articles from MTW Research: | 
