Stuart O'Brien, Author at Facilities Management Forum | Forum Events Ltd - Page 16 of 87
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Stuart O'Brien

Global FM market hit $43.4 billion in 2021

The facility management market is growing at a high CAGR because of the rising investments towards infrastructure development and increasing construction activities across different parts of the world.

That’s according to a study conducted by BlueWeave Consulting, which reveals that the global facility management market was worth $43.4 billion in 2021, and is forecast to grow at a CAGR of 12.2% to reach revenues of around $94.1 billion by 2028.

The growth is attributed to rising investment towards infrastructure development and increasing construction activities along with flourishing tourism in different parts of the world.

Furthermore, the rising adoption of advanced technologies such as cloud computing, SaaS, IoT, artificial intelligence (AI), etc., is also offering lucrative growth opportunities.

Increased Tourism

Growing tourism is emerging as the major driving factor for the growth of the facility management market across the globe, with governments, along with private players, significantly investing post-pandemic in developing commercial spaces such as hotels, public houses, restaurants, etc., along with the management of historical sites, which is fuelling the demand for facility management services.

Rising Business Collaborations and Partnerships

With the increasing potential of facility management, several players are adopting various competitive strategies to exploit the growth potential of the market. Strategies such as partnerships, mergers, collaborations, etc., are increasingly becoming common. For instance, Dexterra Group Inc. recently announced the acquisition of the privately-owned TRICOM Facility Services group of companies. This acquisition is aimed at expanding the integrated facility management business unit of the Dexterra Group.

Facility Management Market – By End-User

Based on end-user, the global facility management market is segmented into commercial and retail, manufacturing and industrial, government, infrastructure, public entities, institutional, and others. The commercial segment accounts for the largest market share owing to the rising number of commercial spaces such as offices, hospitals, hotels, airports, sports facilities, restaurants, etc., in different parts of the world. These commercial facilities are opting for in-house facility management services to comply with regulatory guidelines regarding safety and hygiene. However, the manufacturing and industrial segment are projected to witness the highest growth rate during the forecast period.

Facility Management Market – Regional Insights

Geographically, the Asia-Pacific region dominates the facility management market. However, the Middle East & Africa is also growing at a substantial rate during the forecast period. The economic diversification in Middle Eastern countries such as Saudi Arabia, Israel, Iran, Turkey, etc., and the rising establishment of commercial facilities such as offices, manufacturing plants, hotels, etc., is significantly propelling the growth of the facility management market.

Impact of COVID-19 on Facility Management Market

The facility management market was among the worst affected industries due to the COVID-19 pandemic outbreak. The rapidly escalating COVID-19 cases around the world prompted the government of various countries to impose strict lockdown and social distancing measures. This resulted in the operations of different end users industries of facility management including construction, manufacturing, retail, commercial, etc. The commercial spaces including offices, hotels, airports, etc., were forced to close to prevent the community transmission of the virus. Due to this, the demand for facility management services witnessed a significant drop during the COVID-19 period.

Competitive Landscape

According to the report, the leading market players are Archibus Inc., Trimble Navigation Ltd, Broadcom Inc., Satnav Technologies, FM System Inc., SAP SE, IBM Corporation, Planon Corporation, iOffice Corporation, Oracle Corporation, CB Richard Ellis, Veolia Environment, Colliers International, Planon Corporation, Compass Group, Cushman & Wakefield, Jones Lang LaSalle Incorporated, GDI Integrated Facility Services, Inc., EMCOR Group, Inc., and others.

Veolia rolls out first renewable-fuelled fleet using hydrotreated vegetable oil

Broadland District Council’s latest contract for all waste collection services including residual, recycling and food waste and for street cleaning with Veolia will see the FM specialist utilise a renewably-fuelled fleet for the first time.

The 10 year contract that started in April 2022 has an option for an extension of up to a further 10 years.

Reducing energy consumption and reaching carbon neutrality is essential for combating climate change and the new contract includes a commitment to reduce operational emissions and to develop low carbon solutions. This supports Broadland District Council’s priority to protect the environment and for continuous environmental improvement.

Every vehicle in the fleet is fully powered by Hydrotreated Vegetable Oil (HVO), a bio-based liquid fuel made from vegetable oils and animal fats. HVO is a low carbon, low emission, fossil-free and sustainable alternative to conventional fossil diesel which eliminates up to 90% of net CO2 and reduces nitrogen oxide (NOX), particulate matter (PM) and carbon monoxide (CO) emissions.

HVO fuel is fully interchangeable with conventional diesel and can be used pure or blended with fossil diesel if required. The fleet in the Broadland district will be solely powered by HVO in a first for Veolia in the UK.

Councillor Judy Leggett, portfolio holder for Environmental Excellence, said: “We’re very pleased to be continuing our very successful working relationship with Veolia through the award of this major new contract. The contract brings together an excellent service for residents with innovative new approaches which will help to make our waste and recycling services more effective and even more environmentally friendly. This new contract will help drive us towards our aim of being carbon neutral well ahead of the Government’s 2050 target.”

Pascal Hauret, Managing Director Municipal, Veolia UK said: “We’re delighted to launch our first fully HVO powered fleet in Broadland. HVO significantly reduces CO2 emissions so this is a hugely positive step in our shared commitment to net zero. Importantly, whilst the availability of HVO is still limited in the UK, Veolia has secured a guaranteed supply for the entire contract term.”

The new contract also offers residents an enhanced service with the introduction of weekly kerbside collections of small electrical and electronic equipment (WEEE) and textile collections.

The Council will continue to roll out food waste collections and will now be able to achieve its goal of food waste collections to all Broadland residents in 2023.

NHS NSS awards SPIE five-year FM contract

SPIE UK has been appointed by NHS National Services Scotland to deliver planned and reactive maintenance of mechanical and electrical assets across nine National Services Scotland (NSS) properties in Glasgow, Scotland.

Under the five-year contract (three plus two), SPIE UK will be responsible for managing mechanical and electrical assets and will undertake planned and reactive maintenance. Sustainability is at the forefront of the work, which includes collaborating with the NHS Energy team to develop and promote energy conservation and technology improvements throughout the term of the contract.

Properties included within the scope represent critical infrastructure for the running of NHS services throughout Scotland, including NHS 24 call centres and the National Distribution Centres which distributes essential stock to hospitals throughout Scotland. To further add value, SPIE UK will be supplying energy management services to NHS NSS.

The SPIE UK team will be offering building energy surveys, an introduction of an energy management platform, behavioral analysis, and life cycle analysis.

Jim Skivington, Divisional Managing Director at SPIE UK, said: “NHS National Services Scotland works at the heart of the health service, providing national strategic support services and expert advice to NHS Scotland. SPIE UK being awarded this five-year contract is a testament to our excellence in delivering a range of specialist planned, reactive and statutory maintenance and Facility Management services. With our combined engineering ingenuity, excellent management capabilities and technological know-how, SPIE is best placed to deliver these works efficiently.”

Total Security Summit

Do you specialise in Energy Management services? We want to hear from you!

Each month on FM Briefing we’re shining the spotlight on a different part of the facilities management market – and in May we’ll be focussing on Energy Management.

It’s all part of our ‘Recommended’ editorial feature, designed to help FM industry buyers find the best products and services available today.

So, if you specialise in Energy Management and would like to be included as part of this exciting new shop window, we’d love to hear from you – for more info, contact Paige Aitken on p.aitken@forumevents.co.uk.

Here’s our full features list:

May – Energy Management
Jun – Security
July – Air Conditioning
Aug – Waste Management
Sep – Asset Management
Oct – FM Software
Nov – Intruder & Alarm Systems
Dec – Fire & Safety Equipment

Don’t miss the Facilities Management Forum this summer!

Don’t miss out on the chance to join other senior FM professionals in June, at the Facilities Management Forum.

It is FREE for you to attend, and takes place on the 27th & 28th June at the Radisson Blu Hotel, Manchester Airport. Register here to secure your place.

FM professionals attending include:

British Council
Crown Commercial Service
Denbighshire County Council
Derby City Council
Dr Organic
FI Real Estate Management
GPE
House of Daniel Thwaites
IPM Facilities
Kennedys
L’Oreal (UK) Ltd
LF Europe
Manchester Airport Group
Manchester City Football Club
Medicines Discovery Catapult
Menzies Distribution Ltd
Mills & Reeve LLP
MOD
Natwest Group
Plentific
SRL Traffic Systems
The Football Association
The Market Research Society
Trowers & Hamlins
United Learning
UnitedHealth Group
Urbanbubble
Waters Corporation
Whitbread Group Plc
Yorkshire Building Society

In addition to two days of business meetings with suppliers & networking, you will get the latest insights and advice on trends in the sector via a series of seminar sessions.

Overnight accommodation, all meals and refreshments, plus an invitation to our evening dinner with entertainment, are included with your free ticket.

Register today to start networking with these FM professionals.

Office occupiers told to expect higher fit out and servicing costs globally

Savills analysis of Q1 22 Prime Office Costs (SPOC) in global markets around the world has shown that higher fit-out costs, reflecting material and labour cost inflation, are beginning to creep through in some office markets.

While overall there has been no movement in the position of cities in the rankings since the end of 2021, says Savills, some markets are experiencing rising costs in fitting out space and increased service charges.

According to Savills this trend is most evident in Chinese cities, Kuala Lumpur, and in North American cities at the moment, but other markets across the globe are set to follow suit in the coming quarters.

Jeremy Bates, head of EMEA occupational markets at Savills, said: “From higher prices for raw materials to increasing labour costs to keep up with rising inflation, it’s likely that most office occupiers will have to pay more to rent and fit-out their space in global cities this year.

“Whilst rent is the usual indicator of increasing cost, service charge rises and higher capital expenditure will represent the largest contributions towards increased occupier costs in the coming quarters. Even in markets where landlords tend to pay for fit-outs, these costs will eventually be passed on to occupiers later in the form of higher rents. Nonetheless, for many office occupiers the expense is unlikely to deter them from selecting top quality spaces in prime central business districts to attract and retain talent, although they are carrying out extensive data gathering exercises on how employees are using space before making decisions on exactly how much to take.”

Savills says that overall headline rents have, on average, remained flat in local currencies and the increasing additional costs have yet to appear across many markets, according to the international real estate advisor, with fluctuating exchange rates due to increased uncertainty producing the appearance of declining costs for many markets in Dollar terms during the first quarter of 2022, while in local currencies they have broadly remained consistent with Q4 2021.

Read the Q1 2022 edition of Savills Prime Office Costs (SPOC)

Renewable Energy

Renewables drove global power additions in 2021

The International Renewable Energy Agency (IRENA) says renewable energy continued to grow and gain momentum despite global uncertainties. By the end of 2021, global renewable generation capacity amounted to 3,064 Gigawatt (GW), increasing the stock of renewable power by 9.1 per cent.

Although hydropower accounted for the largest share of the global total renewable generation capacity with 1 230 GW, IRENA’s Renewable Capacity Statistics 2022 shows that solar and wind continued to dominate new generating capacity. Together, both technologies contributed 88 per cent to the share of all new renewable capacity in 2021. Solar capacity led with 19 per cent increase, followed by wind energy, which increased its generating capacity by 13 per cent.

IRENA Director-General, Francesco La Camera said: “This continued progress is another testament of renewable energy’s resilience. Its strong performance last year represents more opportunities for countries to reap renewables’ multiple socio-economic benefits. However, despite the encouraging global trend, our new World Energy Transitions Outlook shows that the energy transition is far from being fast or widespread enough to avert the dire consequences of climate change.”

“Our current energy crisis also adds to the evidence that the world can no longer rely on fossil fuels to meet its energy demand. Money directed to fossil fuel power plants yields unrewarding results, both for the survival of a nation and the planet. Renewable power should become the norm across the globe. We must mobilise the political will to accelerate the 1.5°C pathway.”

To achieve climate goals, renewables must grow at a faster pace than energy demand. However, many countries have not reached this point yet, despite significantly increasing the use of renewables for electricity generation.

Sixty per cent of the new capacity in 2021 was added in Asia, resulting in a total of 1.46 Terawatt (TW) of renewable capacity by 2021. China was the biggest contributor, adding 121 GW to the continent’s new capacity. Europe and North America—led by the USA—took second and third places respectively, with the former adding 39 GW, and the latter 38 GW. Renewable energy capacity grew by 3.9 per cent in Africa and 3.3 per cent in Central America and the Caribbean. Despite representing steady growth, the pace in both regions is much slower than the global average, indicating the need for stronger international cooperation to optimise electricity markets and drive massive investments in those regions.

Highlights by technology:

  • Hydropower: Growth in hydro increased steadily in 2021 with the commissioning of several large projects delayed through 2021.
  • Wind energy: Wind expansion continued at a lower rate in 2021 compared to 2020 (+93 GW compared to +111 GW last year).
  • Solar energy: With an increase in new capacity in all major world regions in previous years, total global solar capacity has now outgrown wind energy capacity.
  • Bioenergy: Net capacity expansion increased in 2021 (+10.3 GW compared to +9.1 GW in 2020).
  • Geothermal energy: Geothermal capacity had an exceptional growth in 2021, with 1.6 GW added.
  • Off-grid electricity: Off-grid capacity grew by 466 MW in 2021 (+4%) to reach 11.2 GW.

Please read the full Renewable Capacity Statistics 2022 including the highlights, here.

INDUSTRY SPOTLIGHT: Visualise and manage your safety procedures with Brady Link360

One of the biggest challenges in maintaining a safe facility is information management. There are Lockout/Tagout procedures, confined space permits, maintenance schedules and other important documents. They all need to be regularly updated and reviewed. Discover how you can easily manage your safety procedures with LINK360 Software from Brady!

At Brady, we provide personalised consultation services to improve employee safety, productivity and equipment reliability, both today and down the road.

Link360™ Software is the first software to give you a complete view of the activities associated with creating, reviewing and updating visual information.

Link360 Software enables users to create, scale, update and validate visually instructive safety procedures. The software provides an easy way to keep safety procedures accurate, compliant and sustainable in multiple facilities.

  • Create clear and easy-to-follow, visually instructive safety procedures
  • Quickly scale and deploy standardised and approved safety procedures across facilities

Interested? Go for free 30 day trial!

Easily complete procedures using a smartphone

The Smart Lockout App sends the most recently approved, and relevant Lockout/Tagout procedures from LINK360 to the smartphones of coworkers servicing specific machines. Via their smartphone, coworkers receive one lockout instruction at a time and can confirm its completion before receiving the next step. The smart lockout app can send a report back to LINK360 including all lockout procedure steps marked as completed.

Watch the short video and discover benefits of LINK360 Software >>

Visit Brady’s booth at Safety & Health Expo in London, Stand SH1400 and discuss any workplace safety or facility identification topics with our specialists!

Is Fire Safety a priority for 2022? The FM Forum Recommended Supplier Directory can help!

If you need Fire Safety solutions for your building, venue, school or company, the FM Forum Recommended Supplier Directory is home to dozens of trusted partners ready to help make your project a reality!

Put simply, there’s something to suit every requirement.

Start Your Search Now

Are you an FM supplier? Get listed!

The FM Forum Recommended Supplier Directory is the perfect platform to raise your organisation’s profile and extend your reach.

Promoted via the FM Briefing newsletter, website and our renowned meet-the-buyer facilities events – this digital FM directory offers a comprehensive list of industry solution leaders.

Click Here To Get Listed!

Or, for more information, please contact Paige Aitken on 01992 374079 or p.aitken@forumevents.co.uk

Learn from the best at the Facilities Management Forum

Liz Kentish, Managing Director at Kentish & Co, is confirmed to speak at June’s FM Forum, which is entirely free for FM professionals, like you, to attend.

27th & 28th June, Radisson Blu Hotel, Manchester Airport 

Liz is an ambassador and role model for those in facilities management, the built environment and the many other sectors of industry that Kentish and Co work in. She was formerly Chairman of Women in FM, and Deputy Chairman of IWFM and has been a judge for both the IWFM Awards and FMME (FM Middle East) Awards.

Her seminar details are as follows;

“Putting the workplace at the heart of organisational trust”

We know from talking with hundreds of FM professionals around the world that today is a unique time to pause, listen and reflect with their teams, so that they can make their best contribution as workplaces come alive again.

  • Reconnecting those who’ve been working on site with those coming back to hybrid working
  • Refocusing our teams on our stakeholders’ new ways of working
  • ‘Live it don’t laminate it’ – we know as leaders we should role model desired behaviours but what are they and how do we do that?

Your complimentary invitation includes; your own itinerary with suppliers, a seat at our industry seminar sessions, a place at our networking dinner, all meals and overnight accommodation.

You can confirm your free place here via our online booking form – facilitiesmanagementforum.co.uk/fm-forum/delegates-booking-form