Facilities Management Outsourcing Market Report – UK 2018-2022

The 12th edition of the ‘Facilities Management Outsourcing Market – 2018-2022’ offers a unique review of this substantial market, focusing on the outsourced management and delivery of non-core services in three key end-use sectors, with analysis of future prospects.

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The 12th edition of the ‘Facilities Management Outsourcing Market – 2018-2022‘ offers a unique review of this substantial market, focusing on the outsourced management and delivery of non-core services in three key end-use sectors, with analysis of future prospects.

Key sections covered:

  • Overview of Multi-Service Provision in the UK FM outsourcing market – size, recent trends and key market influences, forecasts and future prospects.
  • Analysis of 3 key end-use sectors for Corporate, Central & Local Government, Healthcare & Education – sector sizes / performance, trends and influences by sector and potential areas of opportunity.
  • Review of Market Structure and Leading Providers – changing supply structure, diversification of service provision and company profiles for the leading contractors.

Key areas of insight include:

  • Market activity from 2013 to 2017, with forecasts through to 2022.
  • The trend towards bundled services and total facilities management as clients seek to consolidate supply chains and reduce costs.
  • The development of specialist niche services within existing sectors – driven by providers seeking to diversify, in the face of overall market maturity.
  • Growing client awareness of the risks associated with long term contracts – less of a focus on price and more emphasis on long-term partnership arrangements can be expected.
  • Technological advances and innovations – leading FM providers to become more involved in building management by making more use of intelligent data..

The Facilities Management Market

  • Review of FM Outsourcing market – estimates of market size from 2013-2017, with forecasts for the period from 2018 to 2022.
  • Key market influences – macroeconomic factors, construction output and legislation. Government investment and spending, as well as diminishing influence of public-private partnerships and growing impact of technological changes. Future opportunities and threats.
  • Market mix among End User Areas – Corporate (e.g. offices, retail, manufacturing, leisure/recreation), Central & Local Government and Healthcare/Education. Future opportunities and potential for growth in each sub-sector.
  • Market Prospects for the FM Market – covering macroeconomic factors and Government spending levels, future construction output, outlook by end-use application area, changing supply structure and key potential growth areas.

Key End Use Sectors

  • Analysis of FM market by broad end-use sector – Corporate, Central/Local Government and Healthcare/Education.
  • Corporate – sector performance and trends, including business confidence and business, office take-up in cities, impact of online retailing and betting, etc. Analysis of sub-sectors, i.e. commercial offices, retail, leisure/recreation, manufacturing, energy and transport.
  • Central & Local Government – market mix, size of the central and local estate, impact of public-private partnerships (e.g. PFI), key growth sectors and areas of opportunity.
  • Healthcare & Education – market mix, outsourcing penetration levels, recent budgets and spending levels and Central vs Local Government mix.

FM Contractors Review

  • Review of origins of FM companies and Supply Structure. Share groupings of the major companies across the FM industry.
  • Key trends – impact of market maturity, expansion and diversification of service provision, impact of the Carillion collapse, market consolidation and strategy changes.
  • Company profiles for leading FM providers, covering over 30 major providers and niche specialists – outlines include company size, growth trends, areas of specialisation, sector strengths and major contract wins.

The Overall FM Market

  • Overview of the overall bundled Facilities Management Market – estimates of total market size from 2013-2017, with forecasts for the period from 2018 to 2022.
  • Key market influences and market prospects – macroeconomic factors, diversification in service provision, increasing maturity in a number of end use sectors, trend towards TFM and ‘bundling’ and legislative influences.

This market continues to increase in size, although the pace of growth has slowed. This is mainly due to the market’s mature state, coupled with budgetary cuts in the public sector and the ongoing uncertainties caused by Brexit, which have affected business confidence and hence investment. Areas such as energy and workspace management are becoming an increasingly common component of many bundled TFM contracts, although the collapse of Carillion has highlighted the risks facing FM operators when contracts turn out to be unprofitable.

Over the short to medium term, there is likely to be greater use of FM providers in a more integrated way, linking the FM service provision with the company objectives more closely. Clients are increasingly expecting FM contractors to provide added-value advice and services, often via the use of technology. FM companies are therefore taking a more proactive role in the design and operation of buildings in both the public and private sectors. The report contains a detailed assessment of these and other market trends and influences, with analysis of market prospects and potential areas of opportunity.

  1. Contents Listing
  2. 1. INTRODUCTION 6
  3. 1.1 BACKGROUND 6
  4. 1.2 SOURCES OF INFORMATION 6
  5. 2. SUMMARY & MARKET PROSPECTS 8
  6. 2.1 EXECUTIVE SUMMARY 8
  7. 2.2 MARKET PROSPECTS 10
  8. 3. ECONOMIC ENVIRONMENT 12
  9. 3.1 GDP 12
  10. 3.2 INFLATION & INTEREST RATES 14
  11. 3.3 UNEMPLOYMENT 15
  12. 3.4 HOUSEHOLD CONSUMPTION 15
  13. 3.5 HOUSING & CONSTRUCTION 16
  14. 3.6 STERLING 17
  15. 3.7 POPULATION PROFILE 17
  16. 3.8 CONCLUSIONS 18
  17. 4. FACILITIES MANAGEMENT OUTSOURCING MARKET 19
  18. 4.1 DEFINITION 19
  19. 4.2 MARKET SIZE AND TRENDS 20
  20. 4.2.1 Market Size 20
  21. 4.2.2 Market Background 21
  22. 4.2.3 Market Prospects 23
  23. 4.3 KEY MARKET INFLUENCES 24
  24. 4.3.1 Diversification in Service Provision and Contract Periods 24
  25. 4.3.2 Non-Domestic Construction Output 25
  26. 4.3.3 Public Private Partnerships 27
  27. 4.3.4 Legislation 29
  28. 4.4 SERVICES AND SERVICE PROVISION 324.4.1 Service Provision 32
  29. 4.4.2 Service Mix 33
  30. 4.4.3 Cleaning 33
  31. 4.4.4 Building Maintenance 35
  32. 4.4.5 Security 36
  33. 4.4.6 Catering 37
  34. 4.4.7 Mechanical and Electrical Services (M&E) 39
  35. 4.4.8 Energy Management 39
  36. 4.4.9 Waste Management 40
  37. 4.4.10 Other Services 41
  38. 5. KEY END USE SECTORS 42
  39. 5.1 OVERVIEW 42
  40. 5.2 CORPORATE SECTOR 43
  41. 5.2.1 Market Size and Trends 43
  42. 5.2.2 Key End Use Markets 45
  43. 5.3 CENTRAL & LOCAL GOVERNMENT 56
  44. 5.3.1 Market Size & Trends 56
  45. 5.3.2 Key End Use Markets 58
  46. 5.4 HEALTH & EDUCATION SECTORS 68
  47. 5.4.1 Market Size & Trends 68
  48. 5.4.2 Key End Use Markets 71
  49. 5.4.3 Major FM Contracts – Health and Education 79
  50. 6. CONTRACTORS REVIEW 80
  51. 6.1 ORIGINS AND SUPPLY STRUCTURE 80
  52. 6.2 MARKET LEADERS 81
  53. 6.3 COMPANY PROFILES 82
  54. 6.3.1 Leading 20 FM Contractors 82
  55. 6.3.2 Other FM Contractors 101
  1. Tables & Charts
  2. CHART 1: UK BUNDLED FM OUTSOURCING MARKET AT CURRENT PRICES (£BN) 2013-2022 8
  3. TABLE 2: GDP DATA – 2013-2016 – KEY CONSTITUENT ELEMENTS 13
  4. CHART 3: INTEREST RATES AND INFLATION (CPI) FROM 2000-2020 14
  5. CHART 4: PDI & SAVINGS RATIO AT CURRENT PRICES 2000-2020 16
  6. TABLE 5: EXCHANGE RATE FLUCTUATIONS 2012-2018 – STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 17
  7. TABLE 6: UK FM MULTI-SERVICE OUTSOURCING MARKET 2013 -2022 £M (AT CURRENT PRICES) 21
  8. TABLE 7: NON-DOMESTIC CONSTRUCTION NEW WORK OUTPUT BY SECTOR 2013-2022 (£BN) AT CURRENT PRICES 25
  9. TABLE 8: CURRENT PFI/PF2 PROJECTS ACROSS GOVERNMENT BY DEPARTMENT 2017 27
  10. TABLE 9: PROJECTED SERVICE PAYMENTS UNDER PFI CONTRACTS – 2012/2013 TO 2022/2023 28
  11. CHART 10: UK NON-CORE SERVICES MARKET BY TYPE OF OPERATION 2018 32
  12. CHART 11: SERVICE MIX OF BUNDLED FM MARKET BY VALUE (%) (CLEANING, SECURITY, CATERING ETC) 2018 33
  13. TABLE 12: CONSTRUCTION RMI OUTPUT 2013 – 2022 (£M) AT CURRENT PRICES 35
  14. CHART 13: UK FM SERVICES MARKET SHARE BY VALUE – 2018 42
  15. TABLE 14: UK CORPORATE FM OUTSOURCING MARKET 2013-2022 (AT CURRENT PRICES) 43
  16. CHART 15: UK CORPORATE FM BY END USE SECTOR 2018 45
  17. TABLE 16: RETAIL TURNOVER EXCLUDING AUTOMOTIVE FUEL (£BN), 2013-2018 47
  18. CHART 17: RETAIL TURNOVER EXCLUDING AUTOMOTIVE FUEL BY SECTOR 2018 48
  19. TABLE 18: LEADING HEALTH & FITNESS GROUPS, 2018 53
  20. TABLE 19: MAJOR FM CONTRACTS – ENERGY INDUSTRY 2017-2018 54
  21. TABLE 20: UK CENTRAL & LOCAL GOVERNMENT FM MARKET 2013-2022 (CURRENT PRICES) 57
  22. CHART 21: CENTRAL & LOCAL GOVERNMENT MARKET SEGMENTATION BY VALUE (%), 2018 58
  23. TABLE 22: GOVERNMENT DEPARTMENT OPERATING COSTS, 2015/2016 – 2016/2017 (£M) 62
  24. TABLE 23: CENTRAL GOVERNMENT – MAJOR FM CONTRACTS 2017-2018 65
  25. TABLE 24: LOCAL GOVERNMENT CONTRACTS – COUNTY COUNCILS/UNITARY AUTHORITIES – 2017-18 67
  26. TABLE 25: LOCAL GOVERNMENT CONTRACTS – BOROUGH COUNCILS – 2017-18 68
  27. TABLE 26: UK EDUCATION AND HEALTHCARE BUNDLED FM OUTSOURCING MARKET 2013-2022 (£M) 69
  28. TABLE 27: CONSTRUCTION NEW WORK OUTPUT 2013-2022 (£M CURRENT PRICES) PRIVATE & PUBLIC HEALTH AND EDUCATION 70
  29. CHART 28: MIX OF FM MARKET BY VALUE BETWEEN THE HEALTH AND EDUCATION SECTORS – 2018 71
  30. TABLE 29: NHS TRUSTS – VALUE OF CONTRACTED OUT SERVICES & FM EXPENDITURE, 2016/2017 – 2017/2018 (£M) 73
  31. TABLE 30: ESTIMATED SERVICE MIX IN OUTSOURCED FM IN THE HEALTH SECTOR 2017/2018 74
  32. TABLE 31: PUBLIC SCHOOLS – EXPENDITURE ON BOUGHT-IN PROFESSIONAL SERVICES (NON-CURRICULUM) 2015/2016 – 2016/2017 (£M) 77
  33. CHART 32: PUBLIC SECTOR SCHOOLS EXPENDITURE ON SELECTED SERVICES (£M) 2016/17 77
  34. TABLE 33: MAJOR FM CONTRACTS – HEALTH & EDUCATION SECTORS 2017-2018 79
  35. TABLE 34: TOP 20 FM SUPPORT SERVICES COMPANIES IN THE UK 82
  36. TABLE 35: CAPITA – MAJOR CONTRACTS BY SECTOR – 2017-18 84
  37. TABLE 36: MITIE – MAJOR CONTRACTS BY SECTOR – 2017-18 86
  38. TABLE 37: AMEY UK – MAJOR CONTRACTS BY SECTOR AND VALUE – 2017-18 87
  39. TABLE 38: SERCO – MAJOR CONTRACTS BY SECTOR – 2017-18 88
  40. TABLE 39: INTERSERVE – MAJOR CONTRACTS BY SECTOR – 2017-18 89
  41. TABLE 40: KIER – MAJOR CONTRACTS BY SECTOR – 2017-18 90
  42. TABLE 41: ISS FACILITY SERVICES – MAJOR CONTRACTS BY SECTOR, 2017-18 92
  43. TABLE 42: CBRE – MAJOR CONTRACTS BY SECTOR 2017-18 93
  44. TABLE 43: COMPASS- MAJOR CONTRACTS BY SECTOR – 2017-18 94
  45. TABLE 44: OCS GROUP UK – MAJOR CONTRACTS BY SECTOR – 2017-18 95
  46. TABLE 45: ENGIE UK/COFELY – MAJOR CONTRACTS BY SECTOR – 2017-18 96
  47. TABLE 46: SODEXO – MAJOR CONTRACT WINS BY SECTOR – 2017-18 97
  48. TABLE 47: G4S – MAJOR CONTRACTS BY SECTOR – 2017-18 98
  49. TABLE 48: VINCI – MAJOR CONTRACTS BY SECTOR – 2017-18 99
  50. TABLE 49: EMCOR – MAJOR CONTRACTS BY SECTOR – 2017-18 100

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