What’s driving growth in the FM industry

There are four big trends currently driving growth in the facilities management market worldwide. They are providing strong growth and all of them seem set to continue into the 2020s, affecting jobs and recruitment. Let’s take a look at them.

1. Increasing FM integration and demand for outsourced services
In the Asia Pacific region, there is a rapid increase in the demand for outsourced services. At the same time, there’s a worldwide growth in demand for integrated provision. How are these two things linked?

The link is that clients see them both as twin solutions which will allow them to bundle up all their facilities tasks, and pass them to a provider who will provide an integrated, end-to-end solution, replacing a hotchpotch of maintenance contracts, in-house staff and other arrangements. As huge markets such as China open up to the possible efficiency savings of integrated and outsourced facilities supervision, this market will see significant growth.

2. Growing demand for services that assist corporate aims
These value-added services involve the provider having an in-depth knowledge of what the business is trying to achieve, and understanding how they can help. For example, this might be in the area of environmental issues, where a client might wish to achieve a more sustainable workplace through the use of the latest energy management technologies.

Similarly, a facilities manager might be able to bring about significant economies through more efficient use of energy, space, and infrastructure, thus increasing shareholder value. Again, an active provider could be engaged in helping a company to show its staff and customers that they are good employers, by promoting a “well building” approach and showing an active interest in issues such as indoor air quality.

3. International trade
Despite some problems in trade relations, the number of contracts is growing globally. Integrated management of facilities has broad international appeal because it can deliver on some universal business requirements. These are the need to cut costs, the desire to provide great workspaces to help recruitment of talented staff, and a feeling across the world that simpler, more standardised services are easier to manage and more likely to deliver.

As companies aggregate their regional and national operations, they are seeking contracts that can deliver integrated management of facilities to wider geographic areas and business sectors.

4. Increasing economic pressures on companies
Disruption from the internet, increased regulation and greater competition, are all putting pressures on companies to cut costs, and find partners to deliver key services at more economical rates.

All companies want to protect their current facility assets, but many are seeking a partner to take over the whole of the FM function, leaving the company free to concentrate on its core business. Companies are well aware that if they don’t deliver shareholder value, they could be targets for takeover, and so they are intent on divesting non-core activities.

Increased regulation concerning environmental, employment and health and safety issues means that it now makes sense to hand the whole facilities management function over to specialised companies.

It’s not surprising then, that many facilities management jobs now include a compliance component, which requires FM managers to have an up to date understanding of all current legislation and guidance.