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
International
Topics

£200m cash injection for FM market in 2016

Open-access content Thursday 7th April 2016 — updated 4.00pm, Tuesday 26th May 2020
upward trend shutterstock

7 April 2016 | Herpreet Kaur Grewal


The UK FM market's profitability is set to rise by £200 million in 2016, according to a report by MTW Research.

 

The profitability will sustain "optimism for the market despite a slight slowdown in growth" it says.

 

Based on data from 100 leading FM providers, the study found that although there are some short-term challenges for the outsourcing market, long-term fundamentals remain largely positive for sustained value and volume growth in 2016 and 2017, with contract wins gathering pace through to 2020.

 

The recent introduction of the national living wage (NLW) will cost the FM market some £250 million in the next few years, says MTW, which will affect more than 400,000 people.

 

MTW found that the UK's FM outsourcing market is responsible for more than 1.4 million jobs in 2016 with SME FM providers and regionally based companies feeling the pinch of the NLW more than London-based and larger TFM providers.

 

The report discusses the trend of 'in-sourcing' in some detail. Findings indicate that there is some anecdotal evidence of 'unbundling' occurring in some sectors of the FM market. MTW forecasts that this trend will carry on in the next few years owing to medium-term factors, although growth in differentiated FM should continue to negate this threat in the longer term.

 

MTW's director Mark Waddy said: "The FM market is headed inexorably toward a two-tier market with some providers drawn into a 'race to the bottom' as 'in-sourcing' trends sustain pricing pressure. More successful FM providers are extending market gains through differentiation such as strategic FM, use of IoT technology, enhanced communication, collaboration and greater understanding of the client organisation."

 

The FM market will generate an average of £300 million of sales a day in 2016, says MTW. Some £40 million a day will be spent on FM services in the health sector alone by 2017, with growing pressure on budgets boosting demand for efficiency savings.

 

The report is available to purchase from £595 from MTW Research’s website, where a free sample is available to download.

Also filed in
Content
News
International
Topics

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Today's top reads

 

Latest Jobs

Interim Sustainability Manager (12 month fix-term contract)

London (Central)
c.£60,000 per annum plus excellent benefits
Reference
59413

Regional Facilities Manager

Borehamwood
Circa £47,000 + Decent Package & opportunities
Reference
59410

Facilities Manager

Hertfordshire
Up to £75,000 + Decent Package
Reference
59408
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