August 13, 2003—Two reports published in the last two weeks on the state of the FM market demonstrate that the sector has significant growth potential for the future.
The AMA Research publication “Facilities Management Outsourcing Market 2003,” calculated that the bundled service and total FM sector is now worth 11.75bn, and it is expected to show steady growth over the next three years. The key areas for growth in the medium term are NHS Trusts, education, the Home Office, county and magistrates courts and local authority leisure services sectors.
Financial services, banking, retail multiples and central government have now reached maturity and are less likely to grow as fast in future, it says.
Market & Business Developments publication, “UK Facilities Management Market Development Report,” says that the potential market for FM grew 14% in 2002 to 94.9bn. The report calculates that 36% of FM is conducted in house and these facilities services were valued at 37.7bn in 2002. Catering is contracted out by about 70% of companies and valued at 10.7bn for 2002), with cleaning contracts valued at 8.6bn and security contracts at 7.5bn.
Total facilities management is seen as the major growth sector and by 2007 could be worth 108.9bn, 12% more than 2002.
Reprinted with permission; copyright 2003 i-FM
