FMJ Facilities Management magazine providing industry-specific intelligence to FM and property professionals
Research into the performance of the workplace and facilities management sector has revealed a dampened outlook for 2023, with higher costs, squeezed cash flows, and a stuttering economy being among the challenges causing the proportion of the sector expecting worse market conditions to double, compared to 2022 (31 per cent in 2023, up from 15 per cent in 2022).
The findings come from the Institute of Workplace and Facilities Management (IWFM) Market Outlook Survey, which the Institute issues every year to form a ‘state of the nation’ report for the FM sector. It puts the key questions direct to the professionals, providing IWFM members with vital insights into the sector’s performance over the past year, its expectations for the coming year, the biggest challenges it’s facing, and, new for 2023, IWFM thinking on how best to navigate them.
The research also found that although many respondents (41 per cent) believed the market will either improve or improve significantly in 2023, this is notably more pessimistic than the results of last year’s research, where most (59 per cent) expected an improvement. The top three factors identified as having a negative impact on the sector were supply chain disruption (89 per cent), increases in energy prices (86 percent), and the state of the UK economy, which rose 16 percentage points since 2022 (84 per cent in 2023, up from 68 per cent in 2022).
There is also more positive news inside the report. Among the factors identified as having either a positive or significantly positive impact on the sector are changes in building safety legislation (58 per cent), opportunities to support climate change measures (55 per cent), and financial investment to mitigate climate change impacts (41 per cent).
In other findings, EDI (equity, diversity and inclusion) continues to grow in importance. Almost seven in 10 respondents (69 per cent) indicated they had seen an increased demand for EDI measures within their organisation, while just over half (51 per cent) believe this is true for the market as a whole.
Sofie Hooper, Head of Policy and Research at IWFM, believes the future is bright for the sector, despite its challenges, she said: “Evidently, challenges old and new weigh heavily on the minds of FMs, and it is little wonder under current conditions. Yet our research underlines real opportunities for the sector to grow and make a difference, such as building safety, technology, and sustainability. This year’s report also provides a range of useful ideas to support IWFM members in mitigating the worst impacts of the challenges. Plan effectively, embrace change intelligently, and the rewards will follow.”
To access the full findings and discover IWFM’s recommendations, download the IWFM Market Outlook 2023 survey report which will be available from today (2 May) at iwfm.org.uk/insight.
IWFM will also be discussing its Market Outlook 2023 survey report findings and sharing ideas for navigating the sector’s key challenges in a webinar taking place at 12pm, Wednesday 3 May. To register for the event click here.
The past two years have been challenging resulting in the acceleration of change, including digital transformation and how we live and work. Global real estate software solutions business, MRI Software, would like to hear your views on what this means for the future of facilities management and has put together a short survey.
As professionals in property management, your views will help MRI Software to produce its first Voice of Facilities Management Report highlighting the key issues affecting the industry and actionable insights to help the industry thriving.
The survey should take approximately 10 minutes and three lucky respondents will have the chance of winning £150 worth of Amazon vouchers.
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