Facilities management (FM) services market – still very much an evolving industry – comprises of the maintenance and management of an organization’s facilities by integrating multidisciplinary activities in order to coordinate a physical workspace and enhance the overall administration and productivity of an organization. Broadly speaking, these services can be divided into three categories:
- Hard services: require technical knowledge
- Soft services: performed by non-technical workforce
- Value-added services
In 2015, the global FMS market stood at $1.16 trillion, and, according to analysts at Technavio, will grow moderately at a CAGR of 4% by 2020.
Latest Facility Management Market Trends
Use of metrics to measure performance
With well-defined KPIs (key performance indicators), organizations are looking for ways in which they can reduce expenses such as insurance costs, costs associated with the purchase and maintenance of property, plant and equipment (PPE), and other related expenses. FM service providers, with the help of metrics, are now able to provide accurate data regarding expenses and cost savings. The stringent matrix employed by FM service providers not only reduces the cost of operations, but also improves the service delivery of the organization.
Adoption of web-based technological platforms
With the emergence of web-based technologies like EVM, GIS, CMMS and BIM, FM service providers can now easily identify opportunities for resource optimization, and improve energy and cost efficiency. A current example of this trend is how JLL helped a UK-based investment company bring down its operational costs through the adoption of energy management measures.
Web-based tech platforms not only enable access to information in multiple locations, but also help in facilitating transparent communication between facility managers.
Increase in number of multinational projects
As projects go multinational/multicultural, there is a growing demand for service providers to evolve their operational procedures in order to handle cultural differences. As FM service providers can manage cultural diversity within the workplace and understand the local regulations related to work permits, safety, and emissions, they make it easier for organizations to establish long-term relationships in new markets.
Increased focus on sustainability and corporate social responsibility (CSR)
Sustainability and CSR are no longer just fancy terms used by corporate entities to promote themselves. Rather, they have become important issues and several organizations are working diligently to contribute to sustainable growth and add value to society. It is in this context that FM services become all the more important, as they help organizations comply with sustainability standards, improve their productivity, and enhance the overall image of their brand.
Greater focus on finance, HR and procurement
Human resources (HR), procurement, and finance are several departments that have garnered a great deal of attention in the past few years. With FM services, organizations can easily identify key projects that demand active input and support from multiple corporate groups in order to achieve collaborative learning and shared outcomes.
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