Market Trends of United Kingdom (UK) Facility Management Industry
Single FM Service is Expected to Hold Significant Share
- Delegating task management to separate entities is common when working with a single facility management service provider. It also entails a different service provider for each service the organization needs, such as cleaning, reception, and vending machines. Using the services of specialized service providers includes several advantages.
- It allows customers to focus on their core business, while single-service providers provide adequate customer services and help operational efficiency. Experts handling task management will result in much higher efficiency and service quality. It will also free company employees to focus on the most critical business areas while saving resources for non-core activities.
- Outsourced FM is used significantly in various sectors, including the public sector, professional services, healthcare, technology, logistics, manufacturing, retail, and education. The areas that FM services look after vary widely, primarily depending on its type, the company size, and the sector in which it functions. Some organizations may only require a single service solution provider, further driving the demand for single FM in the country.
- Increasing the country's construction sector emphasis on sustainable building practices and lifecycle management has increased the demand for facility management services that can support the whole lifecycle of a building, from design and construction to procedure and maintenance. Single facility management systems provide a holistic approach to managing buildings throughout their lifecycle, ensuring sustainability and longevity. According to the Office for National Statistics (UK), in 2023, the gross value added (GVA) of the construction industry in the United Kingdom amounted to almost GBP 108.7 billion, compared with GBP 124.4 billion in the previous year.
- Modern buildings have increasingly complex systems and technologies, including HVAC systems, security systems, energy management systems, and smart building technologies. Single facility management systems offer integrated solutions to manage and optimize these systems effectively, maximizing operational efficiency and cost savings.
- When businesses choose a single service provider, they outsource their day-to-day operations to a specialist provider. They can be assured of superior service quality and efficiency by hiring specialists. Using several service providers is a time-consuming activity that necessitates the management of multiple vendors and the associated hazards. The scale of the developing and developed economies makes working with a single supplier and servicer impossible. Unfortunately, many businesses still operate with a single mindset, relying on a single property management service provider for all their needs.
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The Commercial End-user Segment is Expected to Hold a Significant Market Share
- The commercial segment's demand for facility management services continues to grow as businesses prioritize operational efficiency, occupant satisfaction, regulatory compliance, and risk management to maintain competitive advantage and maximize returns on their real estate investments. Office buildings used by providers of business services, including manufacturers' corporate offices, IT & communication companies, and other service providers, are mainly referred to as the commercial end-user sector. Due to this, the overall supply of commercial building decoration, essential interior fittings, and management has grown drastically in importance, pushing the region's commercial sector market.
- Commercial buildings often have complex infrastructure and systems requiring regular maintenance, including HVAC, electrical, plumbing, and security systems. Facility management services help ensure these systems operate efficiently, minimizing downtime and disruptions to business operations.
- According to the Construction Industry Training Board, in 2023, output for the construction of commercial facilities in the United Kingdom increased by 4%, and it is predicted to be the same in FY 2024. Further, according to the Office for National Statistics (UK), it is projected that the revenue of construction of residential and non-residential buildings in the United Kingdom will amount to around USD 138.93 billion by 2025. Growth in the commercial construction sector leads to an increase in new buildings, including commercial properties, which may further create demand in the market.
- In addition, commercial properties are exposed to various risks, including security threats, equipment failures, and natural disasters. Facility management services help mitigate these risks by implementing security measures, conducting preventive maintenance, and developing emergency response plans to protect occupants and assets.
- Additionally, the market offers several opportunities for vendors to implement and execute various IoT-based facility management and enhance the development of smart buildings within the United Kingdom. This is due to the rising interest in establishing smart buildings and IoT technologies. Also, the surge in the business acumen among industry providers and the diversification of the economy from various industries is anticipated to maximize the demand for facility management services within the region.
- In January 2023, Fisco UK, the facilities management company, partnered with (MWS) managed workplace services provider Apogee Corporation to expand its overall IT offering and deliver a more automated and integrated solutions portfolio to its client base. Through the partnership, the firm has boosted machinery uptime for its clients by around 28% compared to its previous MWS supplier. Hence, these significant developments are poised to drive the demand for FM services in the commercial space in the United Kingdom.
