Few FM providers can operate across Europe says consultant
January 7, 2002—Just one or two FM providers can offer a credible service across Europe. The pan-European FM market is in its infancy with only a small number of companies having both experience and the necessary infrastructure.
These are the conclusions of research by property and facilities consultants Landmark FMC, originally carried out to help a major corporate occupier understand the relative competence of the European facilities management contracting market.
The research looks at management services, rather than single service providers, comparing five leading players against industry benchmarks, including: experience of European contracts; turnover on a country by country basis; infrastructure and support across the region; available management resources; and use of systematic operating processes and procedures.
Ten organizations were asked to provide ‘pre-qualification’ information that was then assessed to produce weighted scores against an ‘ideal’ European facilities contractor.
Just five of the ten companies responded to the invitation. The researchers suggest this was because the others had inherent weaknesses in their European offering that would have shown up in the evaluation process. The report provides a summary of ‘rumors’ about the European competence of all the respondents. Although the companies are not identified, those with some knowledge of the FM market should be able to put a name to most of them.
Out of a theoretical maximum score of 100 just one company (most likely Johnson Controls) scored more than 70, with the second-placed provider amassing just under 57 points. Landmark concludes that there are just one or two organizations that can currently offer a panEuropean facilities management solution but say this number is likely to increase over the next five years.
More importantly for potential clients, says Landmark, those FM companies offering a pan-European service will need to demonstrate that they can offer more than just organization and track record: “They would also need to show demonstrable advantages relevant to their particular portfolio, that can be achieved on a pan European basis (including value for money, accountability, reduced administration etc), that are not available on a country by country basis.”
The consultants advise their client to ask potential providers how their business planning process will rectify deficiencies in their European offering. They also suggest asking for a proposal identifying how the provider can significantly add benefit to the client organisation.
A summary version of the European Contractors report can be downloaded from the Landmark Web site.
-Richard Byatt
Reprinted with permission; copyright 2002 i-FM
