A new report has cast doubts over the continued growth of integrated facilities management (IFM) in the UK as public sector organisations battle to reduce core costs and cancel outsourced contracts to realise identified savings. However, it is not all doom and gloom for integrated service offerings…
The new research into the industry indicates that large outsourcing groups are facing significant challenges, with a number of IFM arrangements cancelled and returned in-house, and the suitability of the model for roll-out across the public sector in question.
The market for facilities management services has grown steadily in recent years, showing resilience during the economic downturn. Indeed, evidence suggests that industry margins have held up remarkably well, as clients have continued to accept inflationary price increases and pay freezes have kept costs in check.
The transition from single to multi-service and IFM arrangements has gathered pace with leading providers such as MITIE, Compass and Carillion making a series of acquisitions to broaden their capabilities, leading to a market which, it is currently estimated, is now in excess of