October 25, 2002—The first survey of confidence in the facilities management industry shows that, despite economic and political uncertainty, UK FM providers generally feel confident about the prospects for their businesses.
The first i-FM Index quarterly survey of business confidence records an 83% rating, with MDs and chief executives particularly optimistic about turnover growth.
The i-FM Index is compiled from the responses of business leaders, mostly MDs and CEOs, to an online survey covering key business metrics and important business issues. Over 75% of companies listed in the i-FM Top 40 took part in the survey.
Confidence across six factors averaged 4 out of a maximum of 5. Respondents were particularly optimistic about the prospects for higher turnover, recruitment, forward orders and improvement in the general business environment. They were less confident about increasing capital investment and improving margins, where scores of 3.9 and 3.4 suggest these two measures are likely to remain static.
Asked to choose the top three business issues facing them, respondents opted for ‘Improving margins’ (chosen by 20 of the 31 respondents), ‘Winning business’ and ‘Skill shortages’.
The fact that ‘Retaining business’ was selected by just nine respondents either illustrates a high level of retention or a willingness to accept the loss of existing clients while chasing new ones on higher margins.
i-FM also asked respondents about other factors they thought would have a significant impact on the outlook for their business and market sectors.
Political and economic uncertainty and the future of private sector involvement in the provision of public services were common themes.
Constant change in the FM industry was also seen as a problem by some respondents. One said: “The number of mergers, acquisitions, comings and goings among our competitors is damaging customers trust in the outsourcing industry.”
The next quarterly survey will be published in January 2003. For more information, contact i-FM.
—Richard Byatt
Reprinted with permission; copyright 2002 i-FM
