Facilities Management Services Procurement 2030 - Charting the Future

Facilities Management Services Category - Procurement Intelligence

Witness the meteoric rise of the global facilities management (FM) services arena, set to soar at a staggering 12% CAGR from 2023 to 2030. Embracing the dawn of innovation, hard facilities management specialists are transitioning from manual to cutting-edge solutions, particularly in areas like security and fire safety. The spotlight is on tackling surging energy costs, meeting imperative ESG targets, and embarking on decarbonization initiatives, fueling the fervor for energy management solutions which have become the talk of the town in 2023.

Look up for a workplace revolution as per Grant Thornton's 2022 findings! The dynamics of the workplace are metamorphosing, driving an uptick in demand for office makeovers. Fabric maintenance, fit-outs, and refurbishments witnessed a whopping 14 deals in 2022, a stark contrast to the meager four deals in 2021. Meanwhile, HVAC facilities management notched up 12 deals in 2022, doubling the count from the preceding year.

Order your copy of the Facilities Management Services category procurement intelligence report 2023-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

Facilities Management Services Category - Total Cost of Ownership

Delve deeper into the landscape of FM M&A ventures and witness the changing tides! Trade buyers took the helm, steering 55% of deals in 2022, marking a 6% ascent from 2021. This strategic shift hints at private equity players treading cautiously amidst escalating debt costs. Trade buyers, cognizant of the potential for consolidation, are eyeing economies of scale while guarding their margins.

Venture into the British FM arena and be enthralled by the unfolding saga! Grant Thornton's FM 2023 revelation unveils a record-breaking 87 transaction deals in H1 2023, continuing the upward trajectory since 2019. Private equity flexes its financial muscles, funding nearly half of the FM deals in the region. Hard FM steals the spotlight yet again, dominating the landscape. Meanwhile, soft facilities management, particularly in the realm of cleaning services, is witnessing an unprecedented surge. With hygiene thrust into the limelight post-pandemic, soft FM deals in cleaning services soared to 23% in H1 2023, up from a modest 15% in H1 2022. Brace yourselves for a paradigm shift in the FM landscape!

Behold the illustrious highlights from the FM sector's dealmaking arena:

  • In July 2023, Cap10 Partners LLP announced the acquisition of Sureserve Group plc. The deal was valued at USD 260 million. The latter specializes in providing compliance and energy services. Through Cap10’s support, Sureserve aims to achieve the UK’s Net Zero targets of many public sector bodies and social housing.
  • In May 2023, Freshstream Investment Partners Limited announced the acquisition of MCR Group. The latter is an Irish provider of outsourced solutions such as security, personnel, engineering, and cleaning services. The deal aims to expand MCR’s operations further across Ireland.
  • In March 2023, Carbon Architecture was acquired by Bellrock Property & Facilities Management. This was Bellrock’s first venture in the decarbonization sector. The deal would enable Carbon Architecture to form a new division while expanding its analytics and software solutions to Bellrock’s 900+ clients. The solutions will help customers achieve their net-zero targets.
  • In March 2023, HIG Capital through its affiliates purchased Synecore and Meesons Future Limited. The Andwis Group will be formed by Meesons, Synecore, Classic Lifts and CPS. The last two are H.I.G.'s portfolio companies. With the help of this deal, they aim to form a combined integrated technical services provider serving all HVAC sub-segments across commercial, leisure, retail, and hospitality industries.

Facilities Management Services Sourcing Intelligence Highlights

  • The global facilities management services industry is highly fragmented. Compared to hard FM services, the soft FM services market is more consolidated. However, the number of transaction deals occurring in the hard facilities management services sector has been on the rise following the pandemic.
  • The four major cost inputs in this category are labor, materials and supplies, energy, and taxes and government policies.
  • The bargaining power of the global suppliers is moderate due to increased fragmentation. However, compared to general service providers, integrated facilities management suppliers command a higher bargaining power owing to the provision of specialized services and a higher global reach.
  • In this category, Germany is the most mature and the largest market in Europe.Innovations like personalized workspace concepts and active space management are what distinguish these markets in particular. Higher ESG standards and increased operation and maintenance costs force companies to make larger investments in their structures.

List of Key Suppliers

  • Jones Lang LaSalle IP Inc. (JLL)
  • Sodexo
  • CBRE Group, Inc.
  • Compass Group plc
  • Cushman & Wakefield Global, Inc.
  • MAB Facilities Management
  • Aramark Corporation
  • EMCOR Facilities Services, Inc.
  • OCS Group
  • Serco Group plc
  • Veolia Environment S.A.
  • Tenon Group
  • ISS A/S 

Browse through Grand View Research’s collection of procurement intelligence studies:

Facilities Management Services Procurement Intelligence Report Scope

  • Facilities Management Services Category Growth Rate : CAGR of 12% from 2023 to 2030
  • Pricing Growth Outlook : 10% - 18% (Annually)
  • Pricing Models : Cost Plus, contract-based, fixed and variable service-based pricing model
  • Supplier Selection Scope : Cost and pricing, past engagements, productivity, geographical presence
  • Supplier Selection Criteria : Type of FM service (cleaning, HVAC, food, laundry, building, etc.), technological software, operational capabilities, quality measures, certifications, data privacy regulations, and others
  • Report Coverage : Revenue forecast, supplier ranking, supplier positioning matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model 

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions. 

Our services include (not limited to):

  • Market Intelligence involving – market size and forecast, growth factors, and driving trends
  • Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
  • Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
  • Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions

Comments

Post a Comment

Popular posts from this blog

Blockchain Procurement Intelligence Report, 2030

Image
Blockchain Cost and Pricing Analysis In this blockchain procurement intelligence report, we have estimated the pricing of the key cost components. Block development, transaction volume, and transaction size form the largest cost component of blockchain implementation. Together with maintenance, node hosting, and designing they account for 60-70% of the total cost. The cost also depends on the type of blockchain such as private, public, or hybrid blockchain. For instance, in a private blockchain cost model, considering a daily transaction volume of 250,000, a transaction size of 500 bytes, and cloud-based node hosting, the total onboarding costs in the first-year range between USD 115,000 - 120,000. Cloud costs range between USD 50,000 - 52,000. Ongoing and maintenance costs range between USD 140,000 - 150,000. The costs of monitoring are between USD 19,000 - 22,000. Hence, over a period of five years, in a private blockchain model, on average, the annual costs range between USD 300,00...
Read more

Crude Oil Pricing and Cost Structure Intelligence Report 2030

Image
Crude Oil Procurement Intelligence The crude oil category is expected to grow at a CAGR of 3.42% from 2023 to 2030. APAC accounts for the largest share of the category. The rising energy demand across the world, as well as the adoption of unconventional exploration and production technology, are driving category growth. Major corporations are employing a variety of strategies, such as mergers and acquisitions, strategic partnerships and contracts, and the development, testing, and release of new products. For instance, In July 2023, Aramco completed a USD 3.4 billion transaction to purchase a 10% stake in Rongsheng Petrochemical Co. Ltd. through its Dutch subsidiary Aramco Overseas Company BV. Under this deal, the company will be able to deliver 480,000 barrels per day of crude oil to Zhejiang Petroleum and Chemical Co. Ltd (ZPC) in a long-term sale agreement. To communicate between various machinery & equipment engaged during crude oil production, artificial intelligenc...
Read more

Office Furniture Procurement – Sourcing and Intelligence 2030

Image
Office Furniture Category Overview Developing a strategic procurement plan for office furniture is crucial for two main reasons. First, to ensure that organizations procure good quality cost-effective items that meet the requirements of employees and supports a productive work environment. The second reason is that this strategy will help in effective space utilization and thereby promote better work collaboration. The market size was estimated at USD 62.3 billion in 2023. North America held the largest share of the global industry in 2023, accounting for 32%. This growth is attributed to an increased need for flexible designs and user comfort, high requirements for bespoke items, rising importance towards aesthetics, and increasing usage of biodegradable products. Asia Pacific is poised to witness the fastest growth rate during the forecast period due to the rapid expansion of urban areas, rising demand for innovative products, expansion of co-working spaces, and high adoption of e-c...
Read more