April 5, 2006—According to research by Frost & Sullivan, a global growth consulting company, Northern Europe got a head start in the Integrated Facility Management (I-FM) market with the UK, along with the US, pioneering the concept of outsourcing two or more FM contracts. Consequently, this $7.3 billion market is characterized by a high maturity and competitiveness.
“Almost 40 global participants (Johnson Controls, ISS, Sodexho) and British I-FM companies (Mitie, Mowlem, Serco) from building operation and maintenance and support service backgrounds account for a major portion of market revenue,” notes Frost & Sullivan Research Analyst Mireille Pierrevelcin.
While significant opportunities exist in both regions, the UK market has untapped segments that could provide additional revenue, which can help the market reach $12.8 billion in 2011. Moreover, several Government initiatives such as Private Finance Initiative (PFI) and Public-Private Partnership(PPP) programs have ensured substantial investments from public sector representatives. In fact, the public sector in the UK has been most receptive to I-FM companies.
Many small- and medium-sized companies are in investing in I-FM due to the market’s large potential for further outsourcing opportunities. Enterprises that are originally from a cleaning or catering background tend to expand into Hard FM, while those from construction will invest in Soft FM, explains Frost & Sullivan.
Meanwhile, the large, established I-FM companies are further expanding. With the greater number of participants competing for the same sectors, margins are beginning to narrow, as price becomes an increasingly important purchase factor.
For a virtual brochure that provides manufacturers, end users, and other industry participants an overview of the latest analysis of Northern European Integrated Facility Management (B803-19), e-mail Magdalena Oberland, Corporate Communications, with your full name, company name, title, telephone number, fax number, e-mail address, and source of information. An overview will be e-mailed.
