June 9, 2004—EMCOR Group, Inc. recently announced results of a proprietary facilities services study. According to the research study, nearly half of senior corporate and institutional executives believe that facilities services will play a strategic role in achieving 2004 goals and 42% say that proper management of real estate and facilities has a direct impact on shareholder value.
Conducted by Moskowitz/Jacobs, Inc., a market research firm, the major research study included C-Suite (CEO, President and CFO) and senior ]operational management executives across a broad range of industries and from many of the largest companies and institutions in the U.S., Canada and the U.K. There were 450 respondents from industries that included financial services, healthcare, higher education, manufacturing, energy & utilities, hotels/hospitality, retail, manufacturing, pharmaceuticals and transportation, and construction/real estate.
The research was quantitative and statistically significant at the 95% confidence level.
Notably, the results reveal that there are four key and distinct mindsets that drive facilities management decision-making: Big Risk & Reward, Success & Achievement, Results Driven & Personnel Fulfillment, and Preservation & Protection.
Among other findings of the survey:
Energy was a major area of concern, with 87% of respondents indicating they have room to improve; 74% saying that they do not have a handle on controlling the cost, quality and reliability of the power delivered and consumed across their enterprises; 59% indicating that they feel they are not well positioned in-house to control energy and improve operational efficiency; and with 49% saying that they are seeking ways to optimize energy usage.
Financial Services is a lead industry for facilities services outsourcing, based on the extent and degree of the different tasks and activities the financial services industry outsources; the study provided clear quantification for the principal outsourced areas.
Executives have high expectations and demands of a facilities services company they will allow into their businesses as an integral partner; 82% say that financial stability is an important factor in their choice of a facilities services provider, and 78% say that reputation and track record are key.
Facilities services outsourcing is a very high interest area, in all industries, at all organization levels and in all mind-set segments, yet a full 50% of executives say that their real estate/facilities are not currently well managed.
Senior management is becoming more involved in facilities services outsourcing decisions, with 91% being involved in all decisions to pay more than $1 million in annual outsourcing fees for facilities service; 37% are involved in every decision.
Successful integration of facilities services outsourcing within an organization depends upon understanding drivers for each decision-maker, which vary by industry, job position and motivator/mindset.
The results of the study as well as a presentation to survey participants are available from EMCOR.
