The level of RMI
(Repairs, Maintenance and Improvement) activity within specific
end user sectors has always been difficult to quantify due to the
fragmented way budgets are managed and controlled. However, AMA
Research have recently published a unique review assessing the
Education RMI market in terms of overall spend, sector splits,
spend programmes, levels of responsibility etc
The total market for
building related RMI works in the non-residential sector is
estimated at around £20 billion at contractors output levels. Of
this, public sector works account for around £8 billion and
private sector work for over £12 billion. Education RMI work cuts
across both public and private sectors and is currently estimated
to be worth around £2 billion. The education RMI market showed
good growth in the early part of the decade, although more
recently the market has started to decline as the economy faltered
and a change in government saw a shift in public sector spending.
However, overall demand within RMI will be supported by the need
for essential reactive and cyclical RMI, while planned maintenance
programmes may be a necessary alternative to newbuild where costs
need to be tightly controlled.
Maintained schools
constitute the largest area of activity. These schools have a
combined estate of around 90 million sq m. in the UK. Primary
schools and secondary schools account for most RMI work
undertaken, with special schools and nurseries being niche
markets.
In the state school
sector there has been a large-scale devolvement of responsibility
for reactive and cyclical maintenance away from local authorities
to school governors with most reactive and cyclical maintenance
now funded from schools revenue budgets.
RMI expenditure grew
steadily within the independent schools sector until 2008/09, when
the recession started to impact on this area ahead of other
sectors within education which were temporarily sustained by
increased government expenditure. The independent schools sector
comprises over 2,500 establishments, educating over 600,000
children. Preparatory and independent junior schools account for
over half these.
RMI work in the higher
education sector – mostly comprising the 100+ universities- is
estimated to account for over 20% of education RMI output. The
total estate size is approximately a quarter the size of the
public sector schools estate, but Universities include a wide
range of student accommodation, research, sports and leisure
facilities.
The further education
sector educates students at over 400 institutions, though RMI
expenditure levels are much lower due to more limited facilities.
Combined, the FE estate is around a third the size of the higher
education estate. RMI spending is expected to decrease over the
longer term as budget cuts see reduced funding.
Supply of RMI services
is highly fragmented and localised due in part to the wide range
of services provided. In the state schools sector, however, at
newer schools (re)built under long-term DBFO contracts, RMI
services are typically provided under 25+ year concessions by
large facilities management companies as Balfour Beatty Workspace,
Carillion FM and Interserve Facilities Services, seeing some
consolidation within the market, while other sectors adopt a wide
range of service provision arrangements.
