2020
9
UK Facilities Management Market Report 2020
2020-12-17T03:01:16+00:00
OX989508
1495
128863
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Report
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“The overall impact of COVID-19 has been significant on the facilities management sector, though the wide range of services offered and the varied client base have resulted in different sectors…

UK Facilities Management Market Report 2020

£ 1,495 (Excl.Tax)

Report Summary

Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the Facilities Management – UK market including the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Invaluable research, updated with the impact of the pandemic

  • Our core assumption since the start of the outbreak has been that there’d be a vaccine roll-out in early- to mid-2021, and this has been factored into our market analysis and forecast expectations.
  • All reports published in 2021 additionally factor in the new national lockdown and the outcome of Brexit negotiations.

Covered in this report

Facilities management (FM) covers a vast array of services, each of which have been impacted by COVID-19 to very different levels. Variations are also evident in end-use markets and have resulted in very different impacts for individual FM providers. Some sectors, notably catering, have been badly affected during 2020 by school closures, the banning of spectators at sporting events, the temporary closures of businesses and the encouragement of remote working. Even in this sector, some markets have held up well, with healthcare a particular example.

Expert analysis from a specialist in the field

Written by Terry Leggett, a leading analyst in the B2B sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The overall impact of COVID-19 has been significant on the facilities management sector, though the wide range of services offered and the varied client base have resulted in different sectors being impacted at very different levels. Some COVID-19-related public sector contracts have partially offset major reductions in other sectors, some of which are now structurally altered by the effects of the pandemic. At the same time, 2020 is witnessing concentration of the highly fragmented industry, notably with the acquisition by Mitie of the facilities management activities of Interserve, while G4S is also fending off two unsolicited offers.
Terry Leggett
Senior B2B Analyst

Table of Contents

  1. Overview

    • Key issues covered in this report
    • COVID-19: Market context
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • Impact of COVID-19 on facilities management
      • Figure 1: Short-, medium- and long-term impact of COVID-19 on facilities management, 27 November 2020
    • The market
    • Potential market size and forecast
      • Figure 2: Potential market for facilities management services, 2015-2025, prepared on 27 November 2020
    • Contracted-out services
      • Figure 3: Actual outsourced services typically defined as facilities management, 2015-2025, prepared on 27 November 2020
    • Integrated facilities management
      • Figure 4: Actual market for integrated facilities management, 2015-2025, prepared on 27 November 2020
    • Varied services – each with their own trends
      • Figure 5: Segmentation of contracted-out services, 2020 (£ billion)
    • Companies and brands
    • A fragmented sector
    • M&A activity
  3. Issues and Insights

    • The long-term structural changes from COVID-19
    • Is industry consolidation about to increase?
  4. The Market – Key Takeaways

    • Major COVID-19 impact
    • Some sectors subject to structural change
    • Major potential remains
    • Technology impact
  5. Market Size and Forecast

    • COVID-19 changes the facilities management landscape
      • Figure 6: Short-, medium- and long-term impact of COVID-19 on facilities management, 27 November 2020
    • A vast and varied market
      • Figure 7: Potential market for facilities management services, 2015-2025, prepared on 27 November 2020
    • The contracted-out market
      • Figure 8: Actual outsourced services typically defined as facilities management, 2015-2025, prepared on 27 November 2020
    • Integrated facilities management
      • Figure 9: Actual market for integrated facilities management, 2015-2025, prepared on 27 November 2020
    • Market drivers and assumptions
      • Figure 10: Key drivers affecting Mintel’s market forecast, 2015-2025, prepared on 27 November 2020
    • Forecast methodology
  6. Market Segmentation

    • The packages
      • Figure 11: Segmentation of the potential market for facilities management, by type of contract, 2015-2020
    • Individual services
      • Figure 12: Segmentation of contracted-out services, 2020 (£ billion)
    • M&E engineering
      • Figure 13: Market size for M&E contracting, 2015-25 (prepared on 27 November 2020)
    • PFI
      • Figure 14: PFI/PF2 unitary charges, 2015-2025
      • Figure 15: Capital value of outstanding PFI/PF2 contracts as at March 2018
    • Landscaping and gardening
      • Figure 16: Market size for landscaping & gardening addressable by facilities management companies, 2015-25 (prepared on 27 November 2020)
    • Office services
      • Figure 17: Market size for office services, 2015-25 (prepared on 27 November 2020)
    • Cleaning
      • Figure 18: Market size for cleaning services, 2015-25 (prepared on 27 November 2020)
    • Building fabric maintenance
      • Figure 19: Market size for building fabric maintenance services, 2015-25 (prepared on 27 November 2020)
    • Catering
      • Figure 20: Market size for catering services, 2015-25 (prepared on 27 November 2020)
    • Security
      • Figure 21: Market size for security services, 2015-25 (prepared on 27 November 2020)
    • Other
      • Figure 22: Market size for other services, 2015-25 (prepared on 27 November 2020)
  7. Market Drivers

    • Repair and maintenance activity
      • Figure 23: Housing repair and maintenance activity, by sector, 2015-24 (prepared on 12 November)
      • Figure 24: Public non-residential repair and maintenance activity, 2015-24 (prepared on 12 November)
      • Figure 25: Infrastructure repair and maintenance activity, 2015-24 (prepared on 12 November)
      • Figure 26: Private non-residential repair and maintenance activity, 2015-24 (prepared on 12 November)
    • Mechanical and electrical contracting
      • Figure 27: Market size for M&E contracting, 2015-24 (prepared on 13 November 2020)
      • Figure 28: Segmentation of the M&E contracting market, by type of work, 2015-24 (prepared on 13 November 2020)
      • Figure 29: Segmentation of the electrical contracting market, 2015-24 (prepared on 13 November 2020)
      • Figure 30: Segmentation of the mechanical contracting market, 2015-24 (prepared on 13 November 2020)
    • Distribution of workplaces
      • Figure 31: Number of PAYE/VAT registered business establishments, by sector, 2016-20 (000s)
      • Figure 32: Number of PAYE/VAT-registered business establishments, by industry and turnover with a turnover over £2 million, 2020
    • COVID-19 changing remote working practices
      • Figure 33: Number of people mainly working from home, 2015-19
    • Employment costs squeezing margins
    • National Minimum Wage and National Living Wage
      • Figure 34: Development of the NMW and NLW, 1999-2020 (£s per hour rate)
    • Apprenticeship Levy
    • Workplace pensions
      • Figure 35: Composition and progression of workplace pension contributions, 2012-20 (% of earnings)
    • The Coronavirus Job Retention Scheme
      • Figure 36: Number of furloughed employments, March-August 2020
      • Figure 37: Coronavirus Job Retention Scheme claims, at 31 August 2020
  8. Companies and Brands – Key Takeaways

    • Very mixed results in 2020
    • Highly fragmented sector
    • M&A activity
    • The move to technology
  9. Industry Structure

    • Varied boundaries
      • Figure 38: Development of the facilities management sector, 2016-20
      • Figure 39: Employment structure of facilities management sites (number of companies)
      • Figure 40: Turnover analysis of the facilities management sector, 2020 (£ 000)
  10. Competitive Strategies

    • Structural change for public sector supply alters the industry structure
    • Mitie cleared to acquire Interserve’s facilities management arm
    • Will 2021 see another major acquisition?
    • G4S attracts both GardaWorld and Allied Universal interest
    • Public sector balance or specialisation
    • Service specialisation
    • M&A activity
      • Figure 41: M&A activity in the facilities management sector, 2015-19
      • Figure 42: Segmentation of M&A activity in the facilities management sector by sub-sector, 2019
  11. Company Profiles

    • CBRE GWS
    • Activity
    • Performance
      • Figure 43: Financial performance of CBRE GWS in the UK, 2014-18 (£ million)
    • 2020 activity
      • Figure 44: Segmentation of CBRE GWS global revenues by sector, Q2 and Q3 2020
    • Strategy
    • Compass Group
    • Activity
    • Performance
      • Figure 45: Financial performance of Compass Group, 2016-20 (£ million)
      • Figure 46: Turnover segmentation of Compass Group, 2020
      • Figure 47: Organic revenue changes by sector and quarter for the Compass Group, 2020
      • Figure 48: European turnover segmentation of Compass Group, 2020
    • Strategy
    • G4S (formerly Group 4 Securicor)
    • Activity
    • Performance
      • Figure 49: Financial performance of G4S, 2015-19 (million)
      • Figure 50: Revenue segmentation of G4S, 2019
    • 2020 activity
    • Strategy
      • Figure 51: G4S target markets, 2020
    • ISS Facility Services
    • Activity
    • Performance
      • Figure 52: Financial performance of ISS facility Services, 2014-18 (£ million)
      • Figure 53: Segmentation of ISS Facility Services turnover, 2018
    • 2020 activity
    • Strategy
    • Mitie
    • Activity
    • Performance
      • Figure 54: Financial performance of Mitie, 2016-20 (£ million)
      • Figure 55: Revenue analysis of Mitie, 2020 (£ million)
      • Figure 56: Financial summary of Interserve Group, 2014-18 (£ million)
    • 2020 activity
    • Strategy
    • Serco Group
    • Activity
    • Performance
      • Figure 57: Financial performance of Serco, 2015-19 (£ million)
      • Figure 58: Geographic turnover analysis of Serco Group, 2019 (£ million)
      • Figure 59: Service turnover analysis of Serco Group, 2019 (£ million)
    • 2020 activity
    • Strategy
    • Sodexo
    • Activity
    • Performance
      • Figure 60: Financial performance of Sodexo, 2015-19 (£ million)
    • 2020 activity
    • Strategy
  12. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

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