Facilities Management Outsourcing - Corporate Sector Report UK Analysis

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1 Facilities Management Outsourcing - Corporate Sector Report UK Analysis Published: 12/12/2017 / Number of Pages: 60 / Price: Introduction and Overview The updated version of the 'Facilities Management Outsourcing - Corporate Sector Report - UK Analysis' offers a unique review of this substantial market, focusing on the outsourced management and delivery of non-core services within corporate end-use sectors, examples of which include commercial offices, retail, entertainment & leisure, manufacturing & warehousing, energy & utilities and privatised transport services. Key issues analysed include: Specific analysis of FM outsourcing market within the corporate sector - sector sizes & trends, key market influences, penetration of FM outsourcing, mix by end use sector, forecasts and opportunities as the market sector recovers. Review of key corporate application areas -sector sizes, key market influences and trends, implications for FM providers, market prospects and areas of opportunity for FM provision. Review of market structure and leading providers - consolidating supply structure, diversification of service provision, company profiles for the leading contractors within the sector. Key Areas of Insight Include: Market activity within the corporate sector from 2012 to 2016, with forecasts through to Positive market prospects as a result of improved business confidence, growing added value opportunities, greater use of integrated FM services and more international contracts. Continued high level of demand for FM services from the commercial offices sector, despite the uncertainties caused by Brexit. Technological advances and innovations, leading FM providers to become more involved in building management by making more use of intelligent data. Detailed market data and insight on facilities management outsourcing by AMA Research, a leading UK provider of construction market intelligence. Some of the companies included:-

2 Amey Group, Apleona HSG, Aramark, Babcock International Group, BAM Facilities Management, Bellrock, Bouygues Energies & Services, CBRE Group, City Facilities Management, Compass Group, Deloitte Real Estate, Emcor, Engie UK, Eric Wright, G4S Facilities Management, Galliford Try, Gardiner & Theobald, Imtech Inviron, Incentive, Integral UK, Interserve, ISS UK, Kier Group, Mace Macro, Mears Group, Mitie, Morgan Sindall Property Services, NG Bailey, Pinnacle PSG, Robertson Facilities, Serco Group, Servest, Skanska Facilities Services, The Capita Group, The OCS Group UK, Turner Facilities Management, Vinci Facilities FM Outsourcing Within the Corporate Sector Review of Corporate FM Outsourcing market - estimates of market size from , with forecasts for the period from 2017 to Key market influences - macroeconomic factors, construction output, and legislation. Market maturity in many end-user sectors, growth opportunities, greater client integration and emphasis on added-value services and technological advancements. 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 and review of regional activity levels. Penetration of FM outsourcing, as well as influences and trends. Retail - sector performance and key influences across retail outlets and shopping malls. Penetration of FM outsourcing penetration, as well as influences and trends. Leisure and Entertainment - sector reviews for Hotels, Restaurants & Cafes, Pubs & Clubs, Betting & Gaming Facilities and Leisure & Sports Clubs. FM outsourcing penetration, influences and trends. 'Other' End Use Sectors - sector reviews for Manufacturing & Warehousing, Energy & Utilities and Privatised Transport Services. FM outsourcing penetration, influences and trends. Contractors Review 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 - outlines include 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 , with

3 forecasts for the period from 2017 to Key market influences and prospects - macroeconomic factors, diversification in service provision, increasing maturity in a number of end use sectors, trend towards TFM and 'bundling' and legislative influences. Report Summary This facilities management outsourcing market in the corporate sector is expected to experience reasonable growth over the next few years, assuming the UK economy and business confidence holds up well. Although the corporate sector of the FM industry is mature and outsourcing is well-established, demand is likely to remain strong in certain areas of the market. Many UK cities continue to report shortages of office space, which should have a positive effect on demand, whilst the FM market should also benefit from the ongoing expansion of sectors such as budget hotels and gyms and private warehouses. Over the short to medium term, there is likely to be greater utilisation 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 in areas such as energy usage and carbon footprint reduction, whilst changing working patterns may mean that FM companies are becoming more involved in workplace design and management. The report contains a detailed assessment of these and other market trends and influences, with analysis of market prospects and potential areas of opportunity. List of Contents Contents Listing 1. INTRODUCTION BACKGROUND SOURCES OF INFORMATION 6 2. SUMMARY & MARKET PROSPECTS SUMMARY MARKET PROSPECTS 9 3. ECONOMIC ENVIRONMENT UPDATED GDP INFLATION & INTEREST RATES UNEMPLOYMENT HOUSEHOLD CONSUMPTION HOUSING & CONSTRUCTION STERLING POPULATION PROFILE 15

4 3.8 CONCLUSIONS FM IN THE CORPORATE SECTOR FACILITIES MANAGEMENT OUTSOURCING MARKET Definition FM Market Size and Trends CORPORATE FM MARKET DEFINITION CORPORATE FM MARKET SIZE AND TRENDS KEY MARKET INFLUENCES Private Sector Construction Output Legislation KEY CORPORATE END USE SECTORS END USER MIX COMMERCIAL OFFICES RETAIL LEISURE AND ENTERTAINMENT Hotels & Guest Houses Restaurants Public Houses & Bars Betting & Gaming Other OTHER END USERS CONTRACTORS REVIEW ORIGINS AND SUPPLY STRUCTURE MARKET SHARES COMPANY PROFILES Leading FM Contractors 46

5 6.3.2 Other Large Companies in the FM Market 55 Tables & Charts CHART 1: UK FM OUTSOURCING MARKET WITHIN THE CORPORATE SECTOR AT CURRENT PRICES TABLE 2: GDP DATA KEY CONSTITUENT ELEMENTS 11 CHART 3: INTEREST RATES AND INFLATION (CPI) FROM CHART 4: PDI & SAVINGS RATIO AT CURRENT PRICES TABLE 5: EXCHANGE RATE FLUCTUATIONS STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 15 CHART 6: UK BUNDLED FM OUTSOURCING MARKET AT CURRENT PRICES ( MILLION) 18 TABLE 7: UK CORPORATE FM OUTSOURCING MARKET (AT CURRENT PRICES) 21 CHART 8: UK CORPORATE FM SERVICES SHARE OF OVERALL FM MARKET TABLE 9: CONSTRUCTION NEW WORK OUTPUT AND FORECAST BN: CORPORATE END USE MARKETS (OFFICES, RETAIL, ETC) CURRENT PRICES 23 CHART 10: UK CORPORATE FM SERVICES MARKET MIX BY END USE APPLICATION BY VALUE (LEISURE, RETAIL, OFFICES ETC) CHART 11: CENTRAL LONDON OFFICE MARKET - OFFICE TAKE UP (MILLION SQ. FT) 28 CHART 12: CENTRAL LONDON OFFICE MARKET - OFFICE VACANCY RATES (%) 29 CHART 13: NUMBER OF UK RETAIL BUSINESSES WITH AN ANNUAL TURNOVER 1M CHART 14: TURNOVER FOR UK RETAIL INDUSTRY ( BN) TABLE 15: UK RETAIL VALUE SALES EXCL. AUTOMOTIVE & FUEL - NOT SEASONALLY ADJUSTED ( BN) 32 CHART 16: KEY LEISURE SECTORS - NO. OF ENTERPRISES ( ) 34 CHART 17: TURNOVER IN THE UK HOTEL SECTOR ( BN) 35 CHART 18: TURNOVER IN THE UK RESTAURANTS SECTOR ( BN) 37 TABLE 19: TOP UK RESTAURANT OPERATORS AND THEIR BRANDS (NO OF OUTLETS) 38 CHART 20: TURNOVER IN THE UK PUBS AND CLUBS SECTOR ( M), CHART 21: PERFORMANCE OF THE MANUFACTURING, UTILITIES AND TRANSPORT SECTORS - TURNOVER ( MILLION) 42

6 TABLE 22: TOP 20 FM SUPPORT SERVICES COMPANIES IN THE UK 46 The 'Facilities Management Outsourcing - Corporate Sector Report - UK Analysis' costs 845+VAT (if applicable) for a PDF version. Other formats are available - click here for a information about available report formats. All AMA reports are sold with a single user licence as standard. For more information about AMA licences click here. About AMA Research Established in 1989, AMA Research is widely recognised as the leading specialist provider of market research to the UK building and construction industries. AMA s research and analysis goes beyond the more commonly available range of statistical and company information to provide expert, informed commentary and in-depth market analysis, making the reports a valuable and relevant resource for understanding the UK s construction and associated markets. We offer the following: Consultancy and bespoke research projects Published research reports high quality, detailed research reviews covering a wide range of environmental, building and construction products. Our extensive experience and in-house research database enables us to offer specialised and flexible bespoke research services, as well as giving excellent value for money. Our experienced in-house team of researchers are experts in their fields and adept in conducting original and relevant research for reports or bespoke projects, and key decision makers across the building and construction industries, both in the UK and abroad, frequently use our high-quality reports as their primary source of market data. To find out more about AMA Research, visit: or call us on