INTRODUCTION and OVERVIEW

AMA Research have published the 1st edition of the report ‘Facilities Management Outsourcing – Health and Education Markets - UK 2009-2013’. The report offers a unique review of the market for outsourced management and delivery of non-core services with a specific focus on the Health and Education sectors. With a combined value in excess of £2.5bn, these represent two of the most dynamic growth sectors within the overall FM market.   FM outsourcing within Health and Education has exhibited good growth in recent years, influenced by significant public sector investment through PFI as the Government strives to improve the level and standard of service provision. Much of the growth in the early part of the millennium was driven by the healthcare sector, reflecting a significant number of large acute hospital DBFO schemes incorporating long term FM concessions. More recently market development has been influenced to a growing degree by opportunities in the education sector, reflecting the relatively low penetration of FM outsourcing and a number of major capital schemes such as the ‘Building Schools for the Future’ programme. The report contains a detailed assessment of these and other market trends and influences, with analysis of future prospects and potential areas of opportunity.

Key areas covered by the report include:

• Specific Analysis of FM Outsourcing market within Health & Education – sector sizes & trends, key market influences, government expenditure plans & PFI/PPP, penetration of FM outsourcing, forecasts and potential opportunities.

• Review of Major Development Programmes providing opportunities for FM Providers – PFI/PPP, LIFT, Procure 21, BSF, Primary Capital Programme, Academies Programme and Higher Education.

• Review of Market Structure and Leading Providers – changing supply structure, diversification of service provision and company profiles for the leading contractors within Health and Education sectors.

• Overview of the broader UK FM outsourcing market - size, recent trends and key market influences, forecasts and future prospects.

Of particular interest:-

• Market activity within Health & Education from 2003 to 2008, with forecasts through to 2013.

• Significant opportunities over the short to medium term arising from public sector expenditure plans, as the Government seeks to stimulate the UK economy.

• FM outsourcing anticipated to demonstrate good growth in the education sector over the medium term, with this representing one of the most dynamic end use sectors.

Companies included:

Amey Business Services, Aramark UK, Atkins Asset Management (AAM), Babcock International Group, Balfour Beatty Workplace, BAM Construct, Carillion Facilities Management, Crispin & Borst Support Services, Dalkia Plc, EC Harris Solutions, Ecovert FM, Elyo, Emcor Facilities Services (EFS), Enterprise plc, Eric Wright Plc Fitzpatrick Contractors Ltd, Gardiner & Theobald Facilities Management (GTFM), GSL (Global Solutions Limited), Initial Facilities Services, Integral UK, Interservefm, ISS UK, Jarvis Plc, John Laing Integrated Services (JLIS), Kier Support Services (KSS), MITIE plc, Morrison Facilities Services, Mouchel, Norse Group, OCS Group, Parkwood Holdings Plc, Pinnacle Group, Robertson FM, Ryhurst, Serco Group Plc, SGP Property and Facilities, Skanska Facilities Services (SFS), Sodexo Facilities Management, Taylor Woodrow Facilities Management (TWFM), Trillium, Turner Facilities Management (TFM), VT Group.

Key areas of coverage in the report include:-

FM OUTSOURCING WITHIN HEALTH AND EDUCATION

• Review of FM Outsourcing market within Health & Education – estimates of market size from 2003-2008, with forecasts for the period from 2009 to 2013.

• Key market influences – capital expenditure programmes, growing penetration of outsourcing, increasing market maturity in the healthcare sector, construction output and developments within the PFI/PPP sector.  Future opportunities and threats.

• Market mix among Health and Education – recent growth rates and changing market mix.

• Penetration of Outsourcing in the Health and Education sectors – level of maturity, services outsourced, trend to TFM and bundled services.

• Market size from 2003-2008, with forecasts from 2009 – 2013.  Key market influences, drivers for growth, future opportunities and threats.

• Review of major capital expenditure programmes: PFI/PPP, LIFT, Procure 21, Treatment Centres Programme.

• Shifting focus from Acute Hospitals to Primary Care Sector and impact for FM providers.

EDUCATION SECTOR

• Market size from 2003-2008, with forecasts from 2009 – 2013.  Key market influences, factors influencing developing pace of growth.  Influences behind anticipated growth levels over the medium term alongside a review of potential threats.

• Review of major capital expenditure programmes: PFI/PPP, BSF, Primary Capital Programme, Academies Programme, Higher Education.

• Key trends – large number of recent acquisitions & mergers, market entrants, business failures, impact of market maturity, expansion and diversification of service provision, market polarisation.

• Review of origins of FM companies and Supply Structure

• Market Shares of and company profiles for leading FM providers to Health and Education covering over 40 major providers and niche specialists – outline includes company size, growth trends, areas of specialization, sector strengths and major contracts.

• Overview of the overall FM Market - estimates of total market size from 2003-2008, with forecasts for the period from 2009 to 2013.

• Key market influences and future prospects – macroeconomic factors, diversification in service provision, increasing maturity in a number of end use sectors, trend towards TFM and ‘bundling’, public sector spending (including influence of PFI/PPP) and legislative influences.

• Overall market mix by end use sector amongst Healthcare & Education, Central & Local Government and Corporate sectors.