Abstract
INTRODUCTION and OVERVIEW
AMA Research are pleased to announce the publication of the 1st edition
of AMA Research's market report: 'Facilities Management Outsourcing:
Manufacturing and Warehousing Sector Report - UK 2011-2015 Analysis'. The
report offers a unique review of this sector valued at around £1.03bn,
focusing on the outsourced management and delivery of non-core services within
industrial end-use sectors including industries such as engineering,
food processing, chemicals, pharmaceuticals and warehousing services.
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Key areas covered by the report include:
- Specific Analysis of FM Outsourcing market within the Industrial
sector - sector sizes & trends, key market influences, penetration of FM
outsourcing, end user mix by sector, forecasts and potential opportunities as
the market sector recovers.
- Review of Key Industrial Application Areas - sector sizes, key
market influences and trends, implications for FM providers, future prospects
and areas of opportunity for FM provision.
- Review of Market Structure and Leading Providers - changing supply
structure, diversification of service provision and company profiles for the
leading contractors within the manufacturing and
- warehousing sector.
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The Industrial FM Outsourcing Market has followed the patterns of many
industries with strong performance in the middle of the decade followed by
weaker performance as the impact of the financial crisis and economic
stagnation set in.
The report contains a detailed assessment of these and other market trends and
influences, with analysis of future prospects and potential areas of
opportunity, identifying those within certain industrial end-sectors.
Areas of particular interest:
- Market activity within the Industrial FM sector from 2005 to 2010, with
forecasts through to 2015.
- Impact of economic downturn on contract sizes and nature of service
provision in the industrial sector.
- Identification of a number of niche sector application areas
expected to provide opportunities for FM providers over the next few years.
Some of the companies included:
Atkins Facilities Management, Balfour Beatty Workplace, Carillion Facilities
Management, CH2M Hill, Cofeley, Dalkia, EC Harris Solutions, Emcor Facilities
Services, Eric Wright Plc, Faceo FM UK, Fluor, Gardiner & Theobald Facilities
Management, Incentive FM, Initial Facilities Management, Integral UK,
Interserve Facilities Management, Invensys Operations Management, Inviron,
Johnson Controls, Keir Facilities Services, MITIE Plc, OCS Group, Reliance
Facilities Management, Rockwell Automation, SDI Group Ltd, Sodexo Facilities
Management, URS Corporation, Veolia Environmental Services UK, Vinci
Facilities.
Key areas covered in the report include:
FM OUTSOURCING WITHIN THE INDUSTRIAL SECTOR
- Review of Industrial FM Outsourcing market - estimates of market
size from 2005-2010, with forecasts for the period from 2011 to 2015.
- Key market influences - macroeconomic factors, construction output,
performance of the manufacturing sector, impact of the recession and
legislation. Growing influence of energy costs and environmental legislation
and increasing awareness of FM services in particular end use sectors. Future
opportunities and threats.
- Market mix among Industrial End Use Application Areas - Including
Food and Drink, Automotive and Aerospace, Chemicals, Electrical,
Pharmaceuticals and Warehousing.
- Penetration of Outsourcing in the Industrial sector.
KEY INDUSTRIAL END USE SECTORS
- Manufacturing - sector performance, key influences, future
prospects and opportunities.
- Services and key service providers together with FM service demands within
key manufacturing sub sectors.
- Warehousing - sector performance, key influences, future prospects
and opportunities.
- Services and key service providers together with FM service demands within
key manufacturing sub sectors.
CONTRACTORS REVIEW
- Review of origins of FM companies and Supply Structure.
- Market shares of leading FM providers.
- Market profiles for leading FM providers to Industrial Application
areas, covering over 25 major providers and niche specialists - outline
includes company size, growth trends, areas of specialisation, sector
strengths and major contracts.
THE OVERALL 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 and
legislative influences.
SUMMARY OF REPORT CONTENTS
After significant growth between 2005 and 2007, measured by contract value,
the FM market for manufacturing and warehousing slowed through to 2009. It is
estimated that the market continued to decline over the period 2010 and 2011.
This has contributed to a market value for outsourced 'bundled' services and
TFM within the manufacturing and warehousing market of about £1.03bn in
2010. Positive but modest growth is forecast in 2013 and 2014. Slightly more
positive conditions are expected in 2015, although still constrained by
continuing sluggish growth in the economy.
Manufacturing represents by far the largest end user within this market,
although there has been more recent expansion in use of FM services within
warehousing. However, it is estimated that the UK warehousing FM market still
only account for about 2% of the combining manufacturing and warehousing FM
market in 2010, measured by contract value. Food and Drink manufacturing
represents the largest end use sub sector, with an estimated 23% of the market
by value, followed by Automotive, Aerospace and other transport equipment with
15% of market share.
The recession has been a major driver for change in the FM market for
manufacturing and warehousing end users, as companies restructure and look to
reduce costs. Both the manufacturing and warehousing sectors face extreme
pressures on margins, which has impacted on capital investment programmes,
both for new build facilities and maintenance spend. Given this, there is an
increasing focus on maximising the value of built assets and production
systems. This has manifested itself in relation to a number of different
aspects of FM contracts, including:
Maintenance, repair and overhaul (MRO): It is becoming more common amongst
industrial companies to include the installation and maintenance of production
equipment within FM service contracts.
Energy management: Energy costs are and will remain one of the highest
production costs for every industrial operation. Increasingly, industrial
companies have turned to FM providers to help minimise these costs.
Increasingly stringent regulations on carbon emissions are also driving
changes in practices in relation to energy management and this is becoming an
increasingly important area of FM contract growth.
Regulatory compliance: Managing the process safety management lifecycle and
compliance environment within industrial settings is becoming increasingly
complicated as the regulatory framework impacting on manufacturing and
warehousing becomes more stringent. This is also the case with respect to the
need to comply with more complex and demanding waste disposal and management
regulations.
Monitoring of production and facilities: In order to ensure product quality
there is an increasing need to effectively monitor and regulate air, water and
temperature quality at production and storage facilities.
A range of other services are also provided including portering,
reprographics, reception, helpdesk, pest control, design, build and costing
support, project management, heating, ventilation and air conditioning (HVAC),
labour recruitment, emergency management and non production related electrical
and mechanical maintenance.
Table of Contents
CONTENTS and LIST OF TABLES & CHARTS
1 INTRODUCTION
- 1.1 BACKGROUND
- 1.2 SOURCES OF INFORMATION
2 SUMMARY & FUTURE PROSPECTS
3 ECONOMIC ENVIRONMENT
- 3.1 GDP
- 3.2 INFLATION & INTEREST RATES
- 3.3 UNEMPLOYMENT
- 3.4 HOUSEHOLD CONSUMPTION
- 3.5 HOUSING & CONSTRUCTION
- 3.6 STERLING
- 3.7 POPULATION PROFILE
- 3.8 CONCLUSIONS
4 FM IN THE MANUFACTURING AND WAREHOUSING SECTORS
- 4.1 FACILITIES MANAGEMENT OUTSOURCING MARKET
- 4.1.1 Definition
- 4.1.2 FM Market Size and Trends
- 4.2 INDUSTRIAL FACILITIES MANAGEMENT OUTSOURCING MARKET
- 4.2.1 Definition
- 4.2.2 Industrial FM Market Size and Trends
- 4.2.3 Future Prospects
- 4.2.4 Industrial FM Market Mix
- 4.2.5 Industrial FM Services
- 4.3 KEY MARKET INFLUENCES
- 4.3.1 Manufacturing and Warehousing Construction Output
- 4.3.2 Performance of the Manufacturing Sector
- 4.3.3 Performance of the Warehousing Sector
- 4.3.4 Legislation
5 KEY INDUSTRIAL END USER SECTORS
- 5.1 END USER MIX
- 5.2 MANUFACTURING FM
- 5.2.1 Market Size and Trends
- 5.2.2 Services and Service Provision
- 5.3 WAREHOUSING FM
- 5.3.1 Market Size and Trends
- 5.3.2 Future Prospects
- 5.3.3 Services and Service Provision
6 CONTRACTORS REVIEW
- 6.1 ORIGINS AND SUPPLY STRUCTURE
- 6.2 MARKET SHARES
- 6.3 LEADING FM CONTRACTORS IN MANUFACTURING AND WAREHOUSING
Tables and Charts
- CHART 1 UK FM OUTSOURCING MARKET WITHIN THE MANUFACTURING AND WAREHOUSING
SECTORS AT CURRENT PRICES 2005 - 2015
- CHART 2 INTEREST RATES AND INFLATION (CPI) FROM 1992-2015
- CHART 3 PDI & SAVINGS RATIO AT CURRENT PRICES 1992-2015
- TABLE 4 EXCHANGE RATE FLUCTUATIONS 2006-2011 - STERLING TO THE DOLLAR, AND
THE EURO, SPOT RATES
- CHART 5 AGE DISTRIBUTION OF THE RESIDENT UK POPULATION MID-2008 ('000)
- CHART 6 UK BUNDLED FM OUTSOURCING MARKET AT CURRENT PRICES 2005-2015
(£ BILLION)
- TABLE 7 UK MANUFACTURING AND WAREHOUSING BUNDLED FM OUTSOURCING MARKET
2005-2015 (AT CURRENT PRICES)
- CHART 8 MANUFACTURING AND WAREHOUSING FM MARKET MIX BY VALUE 2010 (%)
- TABLE 9 LEADING 10 HEATING, VENTILATING, AIR CONDITIONING, AND
REFRIGERATION CONTRACTORS BY TURNOVER 2010
- TABLE 10 INDUSTRIAL CONSTRUCTION NEW WORK OUTPUT 2005 - 2015 (£M) AT
CURRENT PRICES
- TABLE 11 CONSTRUCTION NEW ORDERS 2005 - 2010 (£M) AT CURRENT PRICES
- MANUFACTURING AND WAREHOUSING SECTORS
- CHART 12 PERFORMANCE OF THE MANUFACTURING SECTOR - TURNOVER 2005-2009
- TABLE 13 THE MANUFACTURING INDUSTRY (£M) 2005-2009
- TABLE 14 THE MANUFACTURING INDUSTRY BY SECTOR (£M) 2009
- CHART 15 PERFORMANCE OF THE WAREHOUSING SECTOR - TURNOVER £M
2005-2009
- TABLE 16 THE WAREHOUSING AND STORAGE INDUSTRY (£M) 2005-2009
- CHART 17 UK MANUFACTURING AND WAREHOUSING FM - MIX BY END USE APPLICATION
BY VALUE - 2010 (AUTOMOTIVE, CLOTHING, FOOD/DRINK, WOOD, CHEMICALS, METAL,
ELECTRICAL, WAREHOUSING ETC)
- TABLE 18 UK MANUFACTURING MARKET FOR BUNDLED FM OUTSOURCING 2005-2015
(CURRENT PRICES)
- TABLE 19 ESTIMATED SERVICE MIX IN OUTSOURCED FM IN THE MANUFACTURING
SECTOR (CLEANING, BLDG & ENG, CATERING ETC) 2009/10
- TABLE 20 UK WAREHOUSING MARKET FOR BUNDLED FM OUTSOURCING 2005-2015
(CURRENT PRICES)
- TABLE 21 ESTIMATED SERVICE MIX IN OUTSOURCED FM IN THE WAREHOUSING SECTOR
(SECURITY, CLEANING, CONSULTANCY, CATERING ETC) 2009/10
- TABLE 22 TOP 20 FM SUPPORT SERVICES COMPANIES IN THE UK
