Facilities Management Outsourcing - Corporate Sector Report - UK 2015-2019 Analysis
Published: 10/11/2015 / Number of Pages: 62 / Price: £745.00
Introduction and Overview
AMA Research have published the 4th edition of the 'Facilities Management Outsourcing - Corporate Sector Report - UK 2015-2019 Analysis'. The report offers a unique view of this substantial market, focusing on the outsourced management and delivery of non-core services within corporate end-use sectors including commercial offices, retail, entertainment & leisure, manufacturing & warehousing, energy & utilities and privatised transport services.
Key issues covered:
- Specific analysis of the FM Outsourcing market within the corporate sector - sector sizes & trends, key market influences, penetration of FM outsourcing, mix by end-use sector, forecasts and potential opportunities as the market sector recovers.
- Review of key corporate application areas - sector sizes, key market influences and trends, implications for FM providers, future prospects and areas of opportunity for FM provision.
- Review of market structure and leading providers - consolidating supply structure, diversification of service provision and company profiles for the leading contractors within the private commercial sectors.
Particular areas of insight include:
- Market activity within the corporate sector from 2009 to 2015, with forecasts through to 2019.
- Positive future prospects are influenced by the improving economy, growing added value opportunities, greater use of integrated FM services and more international contracts.
- Impact of Compulsory Living Wage on the overall FM market and on the corporate FM market in particular.
- Impact of the skills shortages in certain, more highly skilled sectors may constrain growth.
Some of the companies included:
Amey Group, Aramark UK, Babcock International Group, Balfour Beatty Workplace, Bouygues Energies and Services, Capita Group, Carillion, Cofeley, Deloitte Real Estate, EC Harris, Emcor UK, Eric Wright, Europa Support Services, Facilities Services Group, G4S, Gardiner & Theobald, Incentive FM, Integral UK, Interserve, Inviron, ISS UK, John Laing, Johnson Controls, Kier, Mace Macro, Mears Group, MITIE, Morgan Sindall, Mouchel, Norland, Norse Group, OCS Group, Rentokil Initial, Robertson Group, Serco Group, SGP, Skanska UK, Sodexo, Turner, Vinci, Volkerfitzpatrick.
FM Outsourcing - Corporate Sector
- Review of Corporate FM Outsourcing market - estimates of market size from 2009-2015, with forecasts for the period from 2016 to 2019.
- Key market influences - macroeconomic factors, construction output, and legislation. Market maturity in most end use sectors, growth opportunities, greater client integration, greater emphasis on added-value FM contracts, improving confidence levels in business and office sectors. Future opportunities and threats.
- Market mix among corporate end use application Areas - Offices, Retail, Leisure and Other. Future opportunities and potential for growth in each sub-sector.
- Penetration of outsourcing in the corporate sector - level of maturity, trend to TFM and BPO. Influence of consolidation in the industry, influence of internationalisation of the industry and trend towards more international contracts.
Key Corporate End Use Sectors
- Commercial Offices - sector performance, key influences, take-up and vacancy rates in Central London, Regional office review. FM outsourcing penetration, influences and trends. Future prospects and opportunities, improving levels of business confidence and potential influence on the market of increased speculative build.
- Retail - sector performance and key influences across retail outlets and shopping malls. FM outsourcing penetration, influences and trends. Future prospects and opportunities against a background of increased Internet purchases, greater warehousing requirements and lower levels of large scale retail space being constructed.
- Leisure and Entertainment - sector reviews for Hotels, Restaurants & Cafes, Pubs & Clubs, Betting & Gaming Facilities and Leisure & Sports Clubs. FM outsourcing penetration, influences and trends. Future prospects and opportunities.
- 'Other' End Use Sectors - sector reviews for Manufacturing & Warehousing, Energy & Utilities and Privatised Transport Services. FM outsourcing penetration, influences and trends.
- Future prospects and opportunities in the light of the improving industrial environment, particularly in advanced manufacturing, electronics, automotive, aerospace and within the Enterprise Zones.
- Review of origins of FM companies and supply structure. Share groupings of the major companies across the FM industry.
- Key trends - large number of recent acquisitions & mergers, market entrants, impact of market maturity, expansion and diversification of service provision, market consolidation.
- Market profiles for leading FM providers to Corporate application areas, covering over 40 major providers and niche specialists - outline includes company size, growth trends, areas of specialisation, some sector strengths and major contracts.
The Overall FM Outsourcing Market
- Overview of the overall bundled Facilities Management Market - estimates of total market size from 2009-2015, with forecasts for the period from 2016 to 2019.
- 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' and legislative influences.
In 2015, the market value for outsourced 'bundled' services and TFM within the corporate sector was adversely affected by the decline in construction across a wide range of private sector markets between 2008 and 2013, but more recently, the market has seen some improvements in terms of number of contracts, business confidence levels, a generally improved economy and good growth in the financial and service sector. This has led to reasonable growth in the market and optimism for good growth over the next few years. Nevertheless there remain sustained pressure on margins, reflecting consolidation in the market and greater numbers of larger FM contractors who are intent on ensuring they win enough business to fill their capacity.
There are expected to be inflationary pressures from the introduction of a compulsory Living Wage in 2016, perhaps squeezing the contractor margins, particularly in the public sector where budgets remain under pressure. In any event this is likely to create some inflation in the marketplace. Some of the growth forecast from 2016 onwards incorporates an impact from this change. However, there are greater pressures to create efficiencies through both cost and energy savings. Energy management is commonly incorporated in FM contracts, with providers likely to become key players in the delivery of energy/carbon reduction, and this may favour specialists with expertise in energy management.
Commercial offices represent the largest end use sector accounting for over half of the market by value, followed by the retail sector. The leisure & entertainment sectors also account for a significant share. Certain sectors of the corporate FM industry are likely to offer greater opportunities than others, in particular the office sector in the south east is continuing to show good growth. The leisure sector is expected to continue growing though the retail sector remains under pressure from the growth of the Internet and the Omni-channel and Multi-channel operations. This seems likely to limit the opportunity for substantial new developments of larger scale retail parks, though it may create opportunities in the warehousing sector.
However, facilities outsourcing within the corporate market is considered to be mature across most sectors, with around 75% of services by value thought to be outsourced in some way. Commercial offices and retail are approaching saturation point and as such, growth is largely reliant on expansion of these sectors. The FM market has experienced a number of mergers and acquisitions over the last few years, influenced by market maturity, as well as changes in the economic climate. This consolidation is likely to continue over the short term with tightening margins and a challenging economic environment.
List of Report Contents
- Contents Listing
- 1. INTRODUCTION 6
- 1.1 BACKGROUND 6
- 1.2 SOURCES OF INFORMATION 6
- 2. SUMMARY & FUTURE PROSPECTS 8
- 2.1 SUMMARY 8
- 2.2 FUTURE PROSPECTS 10
- 3. ECONOMIC ENVIRONMENT 11
- 3.1 GDP 11
- 3.2 INFLATION & INTEREST RATES 12
- 3.3 UNEMPLOYMENT 13
- 3.4 HOUSEHOLD CONSUMPTION 14
- 3.5 HOUSING & CONSTRUCTION 14
- 3.6 STERLING 15
- 3.7 POPULATION PROFILE 16
- 3.8 CONCLUSIONS 16
- 4. FM IN THE CORPORATE SECTOR 18
- 4.1 FACILITIES MANAGEMENT OUTSOURCING MARKET 18
- 4.1.1 Definition 18
- 4.1.2 FM Market Size and Trends 18
- 4.2 CORPORATE FM MARKET DEFINITION 21
- 4.3 CORPORATE FM MARKET SIZE AND TRENDS 22
- 4.4 KEY MARKET INFLUENCES 25
- 4.4.1 Private Sector Construction Output 25
- 4.4.2 Legislation 26
- 5. KEY CORPORATE END USE SECTORS 29
- 5.1 END USER MIX 29
- 5.2 COMMERCIAL OFFICES 29
- 5.3 RETAIL 32
- 5.4 LEISURE AND ENTERTAINMENT 36
- 5.4.1 Hotels & Guest Houses 37
- 5.4.2 Public Houses & Bars 40
- 5.4.3 Betting & Gaming 41
- 5.4.4 Other 42
- 5.5 OTHER END USERS 43
- 6. CONTRACTORS REVIEW 45
- 6.1 ORIGINS AND SUPPLY STRUCTURE 45
- 6.2 MARKET SHARES 47
- 6.3 COMPANY PROFILES 48
- 6.3.1 Leading FM Contractors 48
- 6.3.2 Other Companies in the Corporate FM Market 57
- Tables & Charts
- CHART 1 UK FM OUTSOURCING MARKET WITHIN THE CORPORATE SECTOR AT CURRENT PRICES 2009-2019 8
- TABLE 2 GDP DATA - 2012-2015 - KEY CONSTITUENT ELEMENTS 11
- CHART 3 INTEREST RATES AND INFLATION (CPI) FROM 2000-2019 13
- CHART 4 PDI & SAVINGS RATIO AT CURRENT PRICES 2000-2019 14
- TABLE 5 EXCHANGE RATE FLUCTUATIONS 2010-2016 - STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 16
- CHART 6 UK BUNDLED FM OUTSOURCING MARKET AT CURRENT PRICES 2009-2019 (£ MILLION) 19
- TABLE 7 UK CORPORATE FM OUTSOURCING MARKET 2009-2019 (AT CURRENT PRICES) 22
- CHART 8 UK CORPORATE FM SERVICES SHARE OF OVERALL FM MARKET 2009-2019 24
- TABLE 9 CONSTRUCTION NEW WORK OUTPUT AND FORECAST £BN - CORPORATE END USE MARKETS (OFFICES, RETAIL, ETC) 2010-2019 CURRENT PRICES 25
- CHART 10 UK CORPORATE FM SERVICES MARKET MIX BY END USE APPLICATION BY VALUE (LEISURE, RETAIL, OFFICES ETC) 2015 29
- CHART 11 CENTRAL LONDON OFFICE MARKET - OFFICE TAKE UP (MILLION SQ. FT) 30
- CHART 12 CENTRAL LONDON OFFICE MARKET - OFFICE VACANCY RATES (%) 31
- CHART 13 NUMBER OF UK RETAIL BUSINESSES WITH AN ANNUAL TURNOVER £1M+ 2009-2014 33
- TABLE 14 UK RETAIL VALUE SALES EXCL. AUTOMOTIVE & FUEL - NOT SEASONALLY ADJUSTED - 2009-2015 (£BN) 33
- CHART 15 NET CAPITAL EXPENDITURE BY MAJOR UK RETAIL SECTORS £M 2009-2013 (GENERAL, CLOTHING, ELECTRICAL, FOOD ETC) 34
- CHART 16 KEY LEISURE SECTORS - NO. ENTERPRISES (2009 - 2013) 37
- TABLE 17 UK HOTEL SECTOR - NUMBER OF HOTELS AND GUESTHOUSES (10 OR MORE BEDROOMS) AS AT JUNE 2015 38
- CHART 18 TURNOVER IN THE UK HOTEL SECTOR - 2009-2018 (£ BILLION) 39
- TABLE 19 TOP UK RESTAURANT OPERATORS AND THEIR BRANDS - 2014 (NO OF OUTLETS) 40
- CHART 20 TURNOVER IN THE UK PUBS AND CLUBS SECTOR 2007 -2013 41
- CHART 21 PERFORMANCE OF THE MANUFACTURING, UTILITIES AND TRANSPORT SECTORS - TURNOVER 2009-2014 (£ MILLION) 43
- TABLE 22 TOP 20 FM SUPPORT SERVICES COMPANIES IN THE UK 47
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