After significant growth between 2005 and 2007, measured by
contract value, the FM market for manufacturing and warehousing
slowed through to 2009. It is estimated that the market continued
to decline over the period 2010 and 2011. This has contributed to
a market value for outsourced ‘bundled’ services and TFM within
the manufacturing and warehousing market of about £1.03bn in 2010.
Positive but modest growth is forecast in 2013 and 2014. Slightly
more positive conditions are expected in 2015, although still
constrained by continuing sluggish growth in the economy.
Manufacturing represents by far the largest end user within this
market, although there has been more recent expansion in use of FM
services within warehousing. However, it is estimated that the UK
warehousing FM market still only account for about 2% of the
combining manufacturing and warehousing FM market in 2010,
measured by contract value. Food and Drink manufacturing
represents the largest end use sub sector, with an estimated 23%
of the market by value, followed by Automotive, Aerospace and
other transport equipment with 15% of market share.
The
recession has been a major driver for change in the FM market for
manufacturing and warehousing end users, as companies restructure
and look to reduce costs. Both the manufacturing and warehousing
sectors
face extreme pressures on margins, which has impacted on capital
investment programmes,
both for new build facilities and maintenance spend. Given this,
there is an increasing focus on maximising the value of built
assets and production systems. This has manifested itself in
relation to a number of different aspects of FM contracts,
including:
Maintenance, repair and overhaul (MRO): It is becoming more common
amongst industrial companies to include the installation and
maintenance of production equipment within FM service contracts.
Energy management: Energy costs are and will remain one of the
highest production costs for every industrial operation.
Increasingly, industrial companies have turned to FM providers to
help minimise these costs. Increasingly stringent regulations on
carbon emissions are also driving changes in practices in relation
to energy management and this is becoming an increasingly
important area of FM contract growth.
Regulatory compliance: Managing the process safety management
lifecycle and compliance environment within industrial settings is
becoming increasingly complicated as the regulatory framework
impacting on manufacturing and warehousing becomes more stringent.
This is also the case with respect to the need to comply with more
complex and demanding waste disposal and management regulations.
Monitoring of production and facilities: In order to ensure
product quality there is an increasing need to effectively monitor
and regulate air, water and temperature quality at production and
storage facilities.
A
range of other services are also provided including portering,
reprographics, reception, helpdesk, pest control, design, build
and costing support, project management, heating, ventilation and
air conditioning (HVAC), labour recruitment, emergency management
and non production related electrical and mechanical
maintenance.
