Facilities Management Outsourcing-Health and Education Markets Report - UK 2011-2015 Analysis


June 23, 2011
80 Pages - SKU: AJLA6444932
License type:
Countries covered: United Kingdom

AMA Research are pleased to announce the publication of the 2nd edition of AMA Research’s ‘Facilities Management Outsourcing - Health and Education Market Report - UK 2011-2015’. The report offers a unique review of the market for outsourced management and delivery of non-core services with a specific focus on the Health and Education sectors.

Key areas covered by the report include:

Specific Analysis of FM Outsourcing market within Health & Education - sector sizes & trends, key market influences, government expenditure plans & PFI/PPP, penetration of FM outsourcing, forecasts and potential opportunities.
Review of Major Development Programmes providing opportunities for FM Providers - PFI/PPP, LIFT, Procure 21, Primary Capital Programme, Demise of BSF, Academies Programme and Higher Education.
Review of Market Structure and Leading Providers - changing supply structure, diversification of service provision and company profiles for the leading contractors within Health and Education sectors.
Overview of the broader UK FM outsourcing market - size, recent trends and key market influences, forecasts and future prospects.
“The government budget cuts and the cancellation of major programmes such as Building Schools for the Future are expected to have a negative impact on the growth of the Healthcare and Education sector as capital expenditure is reduced and associated FM contracts are no longer made available, resulting in more moderate growth in the sector in the medium to longer term even though the overall economy is expected to slowly recover in that period.”
The report contains a detailed assessment of these and other market trends and influences, with analysis of future prospects and potential areas of opportunity.

Areas of particular interest:-

Market activity within Health & Education from 2005 to 2010, with forecasts through to 2015.
Impact over the short to medium term arising from public sector expenditure plans, as the Government seeks to reduce national debt through significant budget cuts.
FM outsourcing anticipated to demonstrate moderate growth in the education and health sectors over the medium term.

Companies included:

Amey Group, Aramark UK, Atkins Facilities Management, Babcock International Group, Balfour Beatty Workplace, BAM Construct, Carillion Facilities Management, Cofeley, Crispin & Borst Support Services, EC Harris Solutions, Ecovert Facilities Management, Emcor Facilities Services, Enterprise Plc, Eric Wright Plc, G4S Facilities Management, Gardiner & Theobald Facilities Management, Initial Facilities Management, Integral UK, Interserve Facilities Management, ISS UK, John Laing Integrated Services, Kier Facilities Services, MITIE Plc, Morrison Facilities Services, Mouchel, Norse Group, OCS Group, Parkwood Holdings Plc, Pinnacle PSG, Robertson Facilities Management, Ryhurst, Serco, SGP Property and Facilities Management, Skanska Facilities Services, Sodexo Facilities Management, Turner Facilities Management, Vinci Facilities, VolkerFitzpatrick.

Key areas of coverage in the report include:-

FM OUTSOURCING WITHIN HEALTH AND EDUCATION

Review of FM Outsourcing market within Health & Education - estimates of market size from 2005-2010, with forecasts for the period from 2011 to 2015.
Key market influences - capital expenditure programmes, penetration of outsourcing, increasing market maturity in the healthcare sector, construction output and developments within the PFI/PPP sector. Future opportunities and threats.
Market mix among Health and Education - recent growth rates and changing market mix.
Penetration of Outsourcing in the Health and Education sectors - level of maturity, services outsourced, trend to TFM and bundled services.

HEALTH SECTOR

Market size from 2005-2010, with forecasts from 2011 - 2015. Key market influences, drivers for growth, future opportunities and threats.
Review of major capital expenditure programmes: PFI/PPP, LIFT, Procure 21, Treatment Centres Programme.
Service provision mix and mix of services provided through outsourcing.

EDUCATION SECTOR

Market size from 2005-2010, with forecasts from 2011 - 2015. Key market influences, factors influencing developing pace of growth. Influences behind anticipated growth levels over the medium term alongside a review of potential threats.
Review of major capital expenditure programmes: PFI/PPP, BSF, Primary Capital Programme, Academies Programme, Higher Education.
Estimation of the mix of end users and the services required in each sector.

CONTRACTORS REVIEW

Key trends - large number of recent acquisitions & mergers, market entrants, business failures, impact of market maturity, expansion and diversification of service provision, market polarisation.
Review of origins of FM companies and Supply Structure
Market Shares of and company profiles for leading FM providers to Health and Education covering over 40 major providers and niche specialists - outline includes company size, growth trends, areas of specialization, sector strengths and major contracts.

THE FM OUTSOURCING MARKET

Overview of the overall FM Market - estimates of total market size from 2005-2010, with forecasts for the period from 2011 to 2015.
Key market influences and future prospects - macroeconomic factors, diversification in service provision, increasing maturity in a number of end use sectors, trend towards TFM and ‘bundling’, public sector spending (including influence of PFI/PPP) and legislative influences.


Additional Information

The Facilities Management market has shown good growth since the early 1990’s, influenced by the desire to control operational efficiencies and costs, and a trend within the private sector for companies to refocus their business in order to concentrate on core competencies. Further growth since the turn of the millennium was influenced by the buoyant state of the economy and public sector developments. 2009 saw the market decline as the economy overall experienced a period of recession. This has contributed to an overall market value for outsourced ‘bundled’ services and TFM of over £14 billion in 2010.

This report is specifically focussed upon healthcare and education application sectors, representing some of the most dynamic end use sectors for outsourced FM services over the last decade. The market for outsourced ‘bundled’ services within healthcare and education is valued at more than £3 billion in 2010, with the development of this market between 2007 and 2012 illustrated in the chart above.

The UK economy appears to have stabilised and is forecast to start seeing some growth from 2011 continuing in the short to medium term. While the downturn in the economy had a negative impact on the growth of the overall FM market, the Healthcare and Education sector received a boost initially as the Government’s decision to bring forward £3bn of capital spending to 2009-10 from 2010-11 to provide some impetus to the economy saw increased investment in these sectors. However, following the general election in 2010 and the formation of the coalition government, policies have changed and budgets have been cut, along with a number of capital expenditure programmes, resulting in more moderate growth in the sector in the medium to longer term even though the overall economy is expected to recover in that period.

The penetration of FM outsourcing within the healthcare sector is estimated at around 40-50%, with outsourcing generally higher for ‘soft’ services. The healthcare sector is largely approaching maturity, with limited potential for growth particularly in the acute hospital sector, although there remain some opportunities in the primary care sector. In contrast, the education sector is less mature with outsourcing accounting for around 20-25% of overall FM provision by value, leaving more potential for growth. Historically outsourcing has often taken the form of single service contracts within education, although TFM provision increased, with a boost from the BSF programme. However, the cancellation of BSF means this growth in bundling and TFM is likely to slow.

The FM market has experienced an unprecedented number of mergers and acquisitions, as well as number of business failures and market withdrawals. The level of acquisitions has been largely influenced by the poor performance within the economy overall but also by market maturity, as well as by the increasing array of services being outsourced leading to larger companies seeking to ‘buy in’ specialist knowledge.   

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