It’s hard to believe it’s April 2019 already! As we close the book on the first quarter of the year, 300 North takes a look at what the rest of the year, and beyond, has in store for the UK Facilities Management (FM) market.

    Leading the way in the UK

    Ok, we promise not to dwell on the ‘B’ word but it’s impossible not to mention it given the current situation in the UK. Who knows what the final outcome will be, and what impact this will have on the FM market, but it’s not all doom and gloom.

    While the UK’s economic performance has an obvious impact upon market demand and growth, the recent Facilities Management Outsourcing Market Report states that the UK FM industry has ‘demonstrated itself to be capable of growth in both lean and buoyant times’. In fact, the Global Facilities Management Market Report 2018 goes as far as to say the UK paves the way as the largest outsourced FM and IFM market in Europe boasting ‘innovation, sophistication and maturity’.

    With the FM market forecast to rise by more than £10 billion by 2022 and outsourcing to grow by £2 billion this year alone, despite the turbulent political forecast, there are growth opportunities for FM companies and suppliers.

    The changing demands of FM

    Many of these growth opportunities stem from the changing demands of FM - particularly in the workplace - with the Global Facilities Management Market Report 2018 forecasting three trends which are expected to impact the market significantly:

    1. Future labour force

    • Millennials are expected to account for almost half of the labour force by 2025.
    • The demands of an ageing population will influence the labour market.

    2. Future place of work

    • There is expected to be a 17% drop in office space by 2020.
    • Choice, flexibility and collaborative working becoming key considerations in workplace design.

    3. Future of workplace technology

    • Human and robot collaboration in work is anticipated to be commonplace by 2025.
    • 52% of experts anticipate AI and automation will positively impact employment.

    Innovative FM solutions

    What links these three trends and the FM market, is the need to be innovative in order to address such changing demands. In fact, this is critical if the FM market is to move forward and achieve growth in a world where technology, sustainability and traditional ways of working are shifting toward a more agile, ethical and productive business environment.

    Both in and out of the workplace, the demand for amenities which cater to an ageing population and workforce will also drive the demand for FM. Voice activation, automated features and dementia-friendly services will be just a few of the things that shape facilities moving forward.

    While technological advances are already impacting the FM market, and businesses are relying on (and challenging) the FM market to meet their evolving needs, there’s still plenty more to come. Not just in terms of the services carried out by FM providers but the way FM personnel go about their work too.

    Additional key findings

    Construction sector performance is expected to be sustained by several large projects and increased regeneration spend in cities such as Birmingham and Manchester but…
    • …in sectors such as healthcare and education, construction activity remains below the levels experienced in previous years. As the Government estates in these two areas continue to shrink, the current emphasis is upon making better use of existing facilities rather than building new ones.
    • The Industrial sector is where FM is expected to see record growth.
    • The Private sector leads in overall FM and IFM contributions through demands for top-class commercial facilities in major cities; increasing hard/technical service demands, as well as emerging interest in support services such as sustainability and business productivity.
    • Security services are set to boost the FM market by £1.5 billion, with property maintenance and office support services rising by £5 billion combined by 2020.
    • The end of the PFI will have a dramatic effect on the market as this pipeline is replaced by other mechanisms.

    All that’s left to say is, watch this space…