May 16, 2003—New analysis from Frost & Sullivan says that integrated FM services are gaining popularity in North America as clients seek to outsource non-core activities to third parties.
The report, “North American Integrated Facilities Management Services Markets,” reveals that revenues in this industry totaled $12.39 billion in 2002 and are projected to reach $21.89 billion by 2009.
Frost & Sullivan attributes the rising popularity of integrated FM services to the need for companies to “cut costs and focus on revenue-generating core competencies.” The firm says that the need for expert professional maintenance of sophisticated heating, ventilation, air-conditioning, data communications systems, and constant replacement cycles is likely to benefit facility service providers.
Currently, single service suppliers appear to be the preferred option since the client is able to perceive tangible benefits of specific operations rather than a broad base of services.
The “single-sourcing” trend is creating demand for companies that can provide comprehensive services, best practices management, and consistent engineering standards, the report concludes.
