Skip to main content
Facilitate Magazine: Informing Workplace and Facilities Management Professionals - return to the homepage Facilitate magazine logo
  • Search
  • Visit Facilitate Magazine on Facebook
  • Visit Facilitate Magazine on LinkedIn
  • Visit @Facilitate_Mag on Twitter
Visit the website of the Institute of Workplace and Facilities Management Logo of the Institute of Workplace and Facilities Management

Main navigation

  • Home
  • News
    • Comment
    • People
    • Reports
    • Research
  • Features
    • Analysis
    • Features
    • Round Tables
    • Webinars
  • Outsourcing
    • Contract Finder
    • Contracts
    • FM Business Models
    • Interviews
    • Mergers & Acquisitions
    • Opinion
    • Procurement
    • Trends
  • Know-How
    • Explainers
    • Legal Updates
    • White Papers
  • Jobs
  • Topics
    • Workplace Services
      • Hospitality
      • Catering
      • Cleaning
      • Front of House
      • Grounds Maintenance
      • Helpdesk
      • Mailroom
      • Manned Guarding / Security
      • Pest Control
      • Washroom Services
      • Disaster Recovery
      • Specialist Services
    • Professional Performance
      • Behavioural Change
      • Continual Professional Development
      • Education
      • Management
      • Recruitment
      • Training
    • Workplace Performance
      • Benchmarking
      • Health & Wellbeing
      • Operational Readiness
      • Procurement
      • Security
      • Workplace User Experience
      • Workplace Culture
    • Compliance
      • Health & Safety
      • Risk & Business Continuity
      • Standards
      • Statutory Compliance
    • Building Services
      • Architecture & Construction
      • Asset Management
      • Building Controls
      • Building Fabric
      • Drinking Water
      • Fire Protection
      • HVAC
      • Landscaping
      • Mechanical & Electrical
      • Building Security
      • Water, Drainage & Plumbing
    • Technology
      • Building Information Modelling
      • CAFM
      • Data & Networks
      • Document Management
      • Information Management
      • Internet of Things (IoT)
      • Software & Systems
    • Energy management
      • Energy Management Systems
      • Electricity
      • Gas
      • Solar
      • Wind
    • Sustainability
      • Environmental Quality
      • Social Value
      • Waste Management
      • Recycling
    • Workspace Design
      • Agile Working
      • Fit-Out & Refurbishment
      • Inclusive Access
      • Lighting
      • Office Interiors
      • Signage
      • Space Planning
      • Storage
      • Vehicle Management / Parking
      • Washroom
    • Sectors
      • Corporate Office
      • Education
      • Healthcare
      • Manufacturing
      • International
      • Retail
      • Sports & Leisure
      • Regions
  • Buyers' Guide
Quick links:
  • Home
  • Sections
  • News
Reports
Surveys
Market Analysis
Technology
Public Sector

£3bn sales boost for FM market in 2022 despite huge lost revenue

Open-access content Herpreet Kaur Grewal — Tuesday 10th May 2022
web_facilities-staff-conferring_©Gorodenkoff_shutterstock_1899126988.png

£3bn sales boost for FM market in 2022 despite huge lost revenue – Image from Gorodenkoff-Shutterstock

The cost of Covid-19 will exceed £11 billion in lost revenue by 2026 for the facilities management sector, reveals a market report.

But the report on the UK Facilities Management market from MTW Research also states that prospects for the market are positive, with a £3 billion sales uplift in 2022.

The 100-page study reviews the legacy of Covid-19, highlighting near-term labour, profitability and other operational challenges but places this into context within wider positive FM market trends and opportunities, forecasting double-digit growth over the next four years.

Property technology software represents a key positive FM market trend in 2022, according to MTW, with growth in disruptive technology boosting healthy sales opportunities.

Discussing this trend, MTW’s director Mark Waddy said: “Trends in FM technology and process innovation are enabling FM providers to develop an ‘empathic response’ to service provision, boosting added value by more closely integrating with the client and anticipating their needs.”

Public sector FM grew share of the FM market in 2020/21 as commercial demand slowed in response to the pandemic. MTW identifies that this trend is now reversing in 2022, although public spending plans published in March 2022 were further revised upward by 2.8%, on top of a real terms increase of £150 billion announced in 2021. This growth, coupled with a steadily strengthening private FM outsourcing sector, underlines a fundamental strength in the FM market for the medium to longer term with MTW forecasting that the market will reach 98% of pre-Covid sales in 2022.

Despite high inflation, real-term growth is set to return in H2 2022 with full-year 2023 growth expected to outpace inflation as international and domestic inflationary pressures steadily ease. However, MTW also identifies a number of issues dampening growth prospects. One is the trend of insourcing, with caterers, cleaners, security and maintenance contractors having become so well integrated that they are viewed as the “lifeblood” of the organisation and so are adopted as employees. This trend is often also supported by unions and so has gained more traction as a result.

The report also highlights growing challenges in the TFM market, with a growing trend of FM contractors focusing on specialism rather than broad spectrum service delivery in order to develop more defined brands and enhance margin opportunities. More selective tender submissions and enhanced margin protection continue to become increasingly evident across the FM market in 2022 as the quality of service rather than volume of contracts grows in significance. Nevertheless, bundled FM services continue to dominate the market in 2022, rising by more than 13% over the entire review period.

Best-performing sectors in recent years according to MTW, include the contract cleaning market and security sectors while the property maintenance and catering markets performed generally in line with the overall FM market. By 2026, sales from these four sectors alone will generate more than £55 billion of sales in cash terms.

The report also identifies some of the more recent mergers and acquisitions and forecasts M&A action will grow rapidly in 2022, underpinned by private equity, which continues to price trade buyers out of the market.  

As private equity continues to grow its share of the FM market, M&A activity is set to rise by some 35% in 2022 compared with 2019 levels.  

Today’s top news stories

web_Department-of-education-government-office_credit_William-Barton_shutterstock_1244003899.png

Willmott Dixon wins deal to renovate DfE HQ

Willmott Dixon Interiors has been awarded a 27-month contract to refurbish the grade II listed Sanctuary Buildings in London – home to the Department for Education.
Friday 2nd June 2023
Open-access content
web-electrican-iStock-1096963636.png

Jaguar takes M&E deal at City offices

Hard FM company Jaguar Building Services has been awarded the mechanical and electrical contract at Hill House in the City of London. 
Friday 2nd June 2023
Open-access content
web-Parking-solar-panels-shutterstock_2191807461 (1).png

Solar panels for large buildings can be ‘low cost’

Research by academics has found that installing solar panels on large buildings and car parks would be “relatively low cost”.
Research
Thursday 1st June 2023
Open-access content
web-commercial-heating-pump-shutterstock_349251179.png

Scottish government plans reforms to help firms take energy-saving measures

The Scottish Government is consulting on measures that will save businesses time and money by making it easier to install renewable energy equipment.
Thursday 1st June 2023
Open-access content
web_cabinet-office_CREDIT-decisiveimages_iStock-187242044.png

DMA named as supplier on CCS DPS

Property management firm DMA Group has won a place as a supplier on the Crown Commercial Service’s (CCS) RM6264 Facilities Management & Workplace Services DPS.
Thursday 1st June 2023
Open-access content
web_Baitings-reservoir_credit_Phil-Silverman_shutterstock_2187419771.png

Mitie dives into £4m deal with Yorkshire Water

Mitie has been awarded a new £4 million contract by Yorkshire Water to carry out on-site grounds maintenance for three years. 
Thursday 1st June 2023
Open-access content

You may also be interested in...

web_woman-at-home-standing-desk_credit_iStock-1313171511.png

Older female workers need more ‘flexibility and support’ to help close pay gap

Research from 1,356 older workers (aged 45-plus) has revealed that more than half of women do not feel their pension is enough for them to be financially independent.
Thursday 12th May 2022
Open-access content
web_modern-offices-reflections_credit_iStock-495049108.png

Office activity hits a high for post-pandemic London

London office demand remained stable in Q1 2022 and occupier take-up reached just over 3.1 million square feet, according to a study by real estate adviser Gerald Eve.
Monday 16th May 2022
Open-access content
web_Artificial-intelligence-concept_credit_iStock-1188293935.png

‘AI worker robots require accountability guidelines’

Organisations that employ AI robots need to create specific accountability guidelines to ensure that their use remains ethical, according to research by Durham University Business School.
Wednesday 4th May 2022
Open-access content
web_Hybrid-working_credit_VectorMine_shutterstock_2053274192 (1).jpg

‘Businesses looking to expand office portfolios as working patterns evolve’, shows study

A significant majority of businesses, (68%) expect to be promoting a more regular return to the office by the middle of this year, states the latest EMEA Occupier Sentiment Survey from global real estate adviser CBRE.
Friday 20th May 2022
Open-access content
web_office-workers-walking-chatting_credit_bbernard_shutterstock_1193724559.jpg

Engaging workers is ‘top priority’ for global businesses 

Employee engagement is now the top priority for global businesses and nearly two-thirds (62%) are investing in their offices, according to a global survey by FM firm ISS. 
Monday 23rd May 2022
Open-access content
web_restaurant-waitress-giving-out-menus_credit_DGLimages_shutterstock_1625111101.png

UK Hospitality Scotland launches local elections manifesto

UKHospitality Scotland has issued key recommendations for local government ahead of elections in early May, stating the sector’s “crucial value as an agent for positive change for post-Covid communities across Scotland”.
Monday 25th April 2022
Open-access content
Filed in
News
Also filed in
Reports
Surveys
Market Analysis
Technology
Public Sector
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

 

Latest Jobs

Interim Head of Health & Safety

Suffolk
£250.00 - £300.00 per day (premium day rate)
Reference
59637

Contracts & Senior Estates Project Manager

North West England
£29.53 per hour
Reference
59633

Facilities Manager

London (Central)
up to £43,000 + excellent benefits including car
Reference
59631
See all jobs »

 

 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to print

Sign up to receive our bi-monthly magazine

Subscribe
Facilitate magazine cover, June 2020
​
FOLLOW US
@Facilitate_Mag
Facilitate Magazine
Facilitate Magazine
CONTACT US
Contact us
Tel: 020 7880 6200
​

IWFM

About IWFM
Become a member
Qualifications
Events

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to Facilitate Magazine
Write for Facilitate Magazine

General

IWFM Jobs
Help

© 2023 • www.facilitatemagazine.com and Facilitate Magazine are published by Redactive Media Group. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ