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Increasing university commerciality will create further student housing partnerships…
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A study by JLL’s Higher Education team has charted the rise of student housing partnerships between private sector operators and universities in the UK. 

Claiming to be the first to pull together comprehensive information on the student housing market, the study highlights the c. 27,000 new beds that these partnerships have created in the last 15 years, and the further c. 16,500 beds transferred from university portfolios. 

These partnerships have so far attracted £2.4 billion in capital investment and the number of partners has tripled in the last decade.

Robert Kingham, director in the management company’s Higher Education team, said: “As a market, the sector is maturing, evolving, and becoming more sophisticated. The scale of the challenge is huge. Universities own or lease a quarter of a million beds in the UK and we estimate that upwards of £5 billion is required to address their quality, in addition to creating more beds, to improve the student experience.”

JLL predicts a particular increase in the number of Design, Build, Finance and Operate (DBFO) schemes over the next five years, whereby a student housing partner takes a long lease of university-owned land, designs a scheme in conjunction with the university, raises finance, operates, builds, and takes the risk of finding occupants. In return, universities receive the expertise of a dedicated partner, a capital receipt and continued influence over creating a high-quality student experience. 

As a result, JLL expects universities who have not embarked upon this type of partnership before to look seriously at DBFO as an option. 

Martin Le Grice, head of Alternative Investment at JLL, added: “There is increased funder interest in the sector. This is partly driven by the opportunities in the DBFO and the emerging Strip Income markets, and the relative stability that Purpose Built Student Accommodation (PBSA) offers. When set against the difficulty in deploying equity, it demonstrates why funders are increasingly keen to enter what is currently a relatively closed market.”

The study concluded that affordability will be a major theme for all aspects of student accommodation over the next five years. This has become a priority concern for universities given the financial pressures on students, combined with high build costs and a lack of product which is driving up rents.

The full report can be downloaded here 

Guest Blog, Liz Allen – The Circular Economy: Re-thinking waste…
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We have become used to the idea of recycling.  We do it at home, and more businesses are recognising the financial benefits of waste segregation and recycling in the workplace.  But is this enough? What ‘matchmaking’ could you do for your business waste? Could your unwanted waste material be just what someone else needs?

Each time a material is recycled, its quality is generally reduced leading to a higher demand for virgin raw material.  According to Friends of the Earth, humans today extract and use around 50 per cent more natural resources than 30 years ago – that’s about 60 billion tonnes a year.  If we continue in the same way, the amount could be 100 billion tonnes of raw material by 2030. It’s not just the environmental problems associated with resource extraction, there are often social problems such as human rights violations and poor working conditions linked with these industries which we should be taking into account.

There is nothing wrong with recycling, and we should all keep up the good practice while looking out for opportunities to think a bit wider and add an extra loop into a products’ life cycle.  The challenge is to move away from the ‘take-make-dispose’ linear route, and move to a circular model where the life of products and materials are extended before they are repurposed, reused or reprocessed to provide new or different services.

The beauty of a ‘circular approach’ is that it can be tackled at any point of the value chain – anywhere from extraction of raw materials, design and manufacture, through to use and disposal. This affects everyone and is providing the inspiration for all kinds of new business models which appeal to the millennials, who are less materialistically-minded, and environmentalists alike.

All kinds of organisations are piloting new business models to try and rethink waste.  These range from product leasing – where you hand it back for someone else to use, to improving product performance by building in upgradability, through to remanufacturing.  All these approaches try to keep the original material in use for as long as possible to get the best out of it before recovering or regenerating products and materials at the end of their useful life.

Organisations such as WRAP and the Dame Ellen MacArthur Foundation are championing approaches to support innovative business models.  These are popping up all over the place including a company in Holland called Mud Jeans which lets you lease a pair of jeans for a year. After that, you can return them for repair, get a different style or purchase them. St Albans based office furniture specialist, JPA will collect, repair and refresh your office furniture, rather than it going to landfill, while businesses in the FMCG market are looking at ways to redesign products so they can minimise the use of virgin material.

We are great at accumulating ‘stuff’, and apparently up to 80 per cent of the products made are thrown away within the first six months. As a society, we have gotten used to wanting the latest trend and another bit of kit, but this cannot be sustainable? All these products have used other materials to make them and there is not an inexhaustible supply.  Think about the opportunities; we are happy to download music and no longer own CD’s, therefore eliminating (or at least significantly reducing) the production of plastic discs.  So what else could we do?

 

Liz Allen is an environmental consultant at Hosking Associates Ltd, and has many years’ experience working with diverse businesses to translate environmental issues into practical actions. She helps organisations prioritise risks and opportunities to reduce costs, and manage compliance. Liz is a chartered environmentalist with experience in designing and delivering CSR, sustainability and stakeholder engagement programmes.

Level 6 degree apprenticeship consultation launched by the BIFM…
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Working alongside a ‘Trailblazer’ group as well as higher education institutes and employers, the British Institute of Facilities Management (BIFM) is creating a new degree apprenticeship programme specifically aimed at senior facilities managers to equip individuals for a successful sector career.

A draft degree apprenticeship standard has been developed by the ‘Trailblazer’ group which details all requirements of someone working at a senior management level in FM. Furthermore, the standard is open for wider consultation to all employers and organisations not involved in the development process. The group is keen to ensure that the standard has the widest possible support and applicability across the sector(s), and represents good value for money for all potential end-users whatever the size of their company.

Fraser Talbot, Professional Standards and Education Manager at BIFM, commented: “Apprenticeships provide great benefits to both individuals and employers.  For individuals it can provide the knowledge and skills to launch their career within their chosen sector. 

“For employers it can provide them with a skilled, motivated and loyal workforce to meet their business objectives. That is why it is crucial that the trailblazer groups consult with employers and organisations in the wider industry to gather feedback on this proposed degree apprenticeship standard. This will ensure that the FM’s of the future have the knowledge, skills and behaviours required by industry.”

It comes after the government rolled out its ‘English Apprenticeships: Our 2020 Vision’ strategy in a bid to reach three million starts by the year 2020.

 

To complete the online consultation, click here

FM must digitalise to increase productivity, says JLL…
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A recent report from the professional services and investment management company, JLL predicts that companies will continue to implement and embrace a digital facilities management approach; with new technologies changing how businesses handle workforce and facility operations becoming more available.

As workplaces progress to deliver additional flexibility, the ‘Reinventing Facilities Management for the Digital World’ report warns the FM sector must become a ‘digital business’ to meet rising expectations and demands – focusing on employees as ‘end-users of space’ and distributing an experience that is consistent to increase productivity and attract and retain the best talent.
To find out more and access the full report, click here

Guest Blog, Sarah Bentley: Skills – our opportunity for recognition?
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It’s been a busy year politically; what with the referendum and Brexit, changes in party leadership, and the continuous questions about when we trigger Article 50. All this leading to endless speculation about what will or will not happen to UK PLC – how will it affect business, trade, commerce and the supply and movement of labour? Lots of unknowns.

Amidst all of these unknowns, the government has stood firm, however, with its continued commitment to introduce the apprenticeship levy in April 2017. It hasn’t made much noise about it – well, there’s been so much else going on. Even with a new skills minister and a shift in responsibility for apprenticeships from the Department of Business, Innovation & Skills (BIS) to the Department for Education (DfE) – it’s still going ahead. Announced in the summer of 2015, and despite words of warning from employer sector bodies and the CBI that it’s too soon and will wipe out the profits for some businesses, it’s still happening. May and her cabinet are sticking with their plans. April it is then.

During my 20 plus years working in the world of skills and workforce development, I’ve seen governments taking very different approaches to skilling the workforce with varying levels of carrot and stick; with initiatives that simply threw money at the problem, to co-investment and the more recent ‘employer ownership’ philosophy which basically means that businesses are expected to pay; not the public purse. The carrot has gone. It’s basically all stick now.

So how does this affect the facilities management (FM) sector? Well, given that FM service providers are by far some of the largest employers in the UK, there’s no doubt that the apprenticeship levy is going to have an impact; and at 0.5 per cent of their annual salary bill taken at source by HMRC it won’t be an insignificant amount either. Ouch!

I’ve spoken to lots of L&D managers recently and it’s fair to say that views range from “well it’s just a tax, the money’s gone” to “we’re just outsourcing all our levy spend to one provider” and those looking more under pressure have been told to “manage it all internally”. There’s also a general resignation to the fact that it’s just something else to deal with. I’m sure not the optimistic response government might have envisaged when it made the policy announcement.

As my time leading the Building Futures Group – which was the trade association for the FM sector – we fought hard to address its key challenges. FM has an image problem; it isn’t recognised by government as a key sector; young people are not attracted to FM; margins are too low for the service providers to really invest in skills.

Yet the reality is also that those that do work in the sector are passionate about it, there are great roles to be had, opportunities to progress and work in some amazing places. Most people fall into it by accident, but they seem to stay and are by far its biggest advocates.

So with an introduction of a compulsory levy, maybe we have an opportunity for FM businesses to take a step back; review their approach to recruitment and workforce development and address those issues that have held the sector back for far too long. Other sectors that have suffered from similar problems have taken huge strides to address them by taking a new approach to skills, progression and recruitment – take the logistics sector for example, and maybe we can learn from this.

Sure, the levy is only one component of a broader talent and workforce development piece, but if it’s the lever that triggers a change then I support it. Let’s start to look at how apprentices can truly be seen as an equivalent to our graduates; let’s understand what it takes to support our apprentices in their role so they become the FM advocates of the future; promoting the sector, encouraging others to join.

FM companies do already invest a great deal in skills; let’s use the levy creatively, to ensure the sector is getting the skilled workforce it needs. Employers remember, you are in the driving seat now. Its your money. It can only be accessed by providers when you’ve agreed a price and quality of provision that you’re happy with.

Together we can grasp this chance, engage and work it to your advantage. Let’s see the perception of FM change and let’s see our people and businesses thrive by doing so.

 

Sarah Bentley is joint founder and director of Spaghetti Junction, and an independent training advisor.

T: 07933 412311

E: sarah@spaghettijunction.org

 

Sarah is a business support, enterprise and skills policy professional. Specialising in the facilities management sector, Sarah is passionate about helping businesses and their employees get the best from each-other through access to, implementation and utilisation of skills in the workplace. Sarah is co-founder of Spaghetti Junction and FMCentral and owner of Upkeep Training.

Industry Spotlight – Adler & Allan: Riding out environmental forces…
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The winter can be a particularly costly time for businesses, with risks such as flooding, snowfall and freezing temperatures potentially causing equipment breakdowns and closures. Henry Simpson, commercial director for leading FM support provider and disaster response experts, Adler & Allan, explains how to mitigate seasonal risks and deal with issues effectively, safely and with minimal impact on business operations.

Flooding has hit the headlines in recent years with excessive rainfall, bursting river banks and extreme high tides a regular component to a modern British winter. Causing devastation to countless homes and businesses, it is a risk that is unfortunately here to stay; one that many more businesses have to deal with and should be prepared for…

Apart from flooding, winter can mean frozen pipes and equipment failures, with the knock-on effect of all of these problems resulting in issues such as power outages and subsequent downtime. The best line of defence is planning; to save machinery and keep staff safe.

Know your risk

The first step in mitigating risk is understanding what could possibly go wrong. When it comes to flooding, just because you haven’t been flooded yet, it doesn’t mean this won’t happen in the future. A Flood Risk Assessment (FRA) will help identify potential problems, which can then be dealt with before they become an issue. In general, risk assessing a business will help tighten up operations and safeguard employees.

Mitigate risk

Once you know where potential problems lie, you can take steps to minimise their impact or stop them all together. For businesses in high risk flooding areas, this could include installing flood defences, or less permanent steps such as putting together a plan designed to limit damage. Procedures like moving electronic equipment, stock and critical records, will save your business thousands of pounds and keep downtime to a minimum.

As far as safety goes, making sure electrical appliances are disconnected and the gas supply is shut off in the event of excessive rain or snowfall will reduce the risk of fire. Staff must all be briefed on evacuation procedure, with a designated person in charge of disaster planning and response.

In an ideal world, your business should have a ‘plan b’, for example, an alternative location to operate out of. This may be difficult for organisations that rely on heavy machinery, but for office staff at least, there are work spaces to rent or you could let staff work from home.

Essential maintenance

Keeping a building and its equipment in good order is essential to efficient operations regardless of any potential disaster. In the winter, issues caused by freezing can be minimised by keeping pipes and any associated tanks in good working order. This is particularly important for tanks that store fuel, used for back-up power supplies – often the case for data centres. And, regardless of the weather conditions, regular servicing and fuel testing will ensure that if disaster does strike, loss of productivity is avoided.

When it comes to reducing flood risk, maintaining drains is key. Floodwaters are often contaminated with sewage or other hazardous materials, which can cause pollution in addition to general water damage. Closing hand operated valves on piping will prevent backflow through floor drains or plumbing fixture.

If pollution is a risk to your business, then a designated employee in charge of correct spill procedure and any associated clean-up kits must be assigned. This is essential for ISO14001 compliance.

Best practice

As a facilities management provider, demonstrating your ability to keep businesses operational is essential. Organisations that are able to avoid losses most of the time, despite operating in environments where there is a high potential for error, are identified as ‘High Reliability Organisations’ (HROs). As an HRO, business streams may increase, with potential customers more likely to put their trust in a company that has a good asset resilience track record.

Be prepared

Strategy and planning is key to ensuring your business or that of your clients, rides difficult periods; be they due to market or environmental forces. Planned Preventative Maintenance (PPM) and preparing for the worst will help keep downtime to a minimum, stop pollution and safeguard employees.


Words by Henry Simpson, commercial director at Adler & Allan

 

Henry spent 10 years in the army before joining Adler & Allan in 1998. He has been commercial director since 2000. Adler & Allan was instrumental in the flood clean-ups in recent years and work alongside FM providers to deliver disaster planning and response, fuel services, PPM and asset resilience.

Adler & Allan supplies a range of FM support services; PPM, fuel polishing, flood mitigation and protective coating and linings. For more information, visit: www.adlerandallan.co.uk

 

Guest Blog, Colin Kenton: Stimulating the economy by simplifying FM delivery…
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The method and merit of Facilities Management (FM) delivery – be it in-house, total, bundled or single stream – has been debated for many years. Getting the correct delivery model for a specific contract has never been more important, especially so with market volatility arising from events such as Brexit. Uncertain times mean the correct service structure and management is essential to securing and meeting targets set out when the contract was tendered. In truth, these models are valid within certain circumstances, and it can never be a case of ‘one size fits all’. Public sector contracts in particular require an absolute assurance of delivery; the scrutiny which large central government departments face means that nothing other than exceptional service for the best possible value is acceptable. The requirement to improve productivity and efficiency is a key motivation not only in the public sector, but with FM in general. Additionally, the need to extract as much value as possible is crucial. This market development has seen a reduction in team resources and has consequently created challenges with delivery capability for both in-house and outsourced offerings.

With SME’s being championed by the government and encouraged to bid for large public sector contracts, the need for smaller businesses that are able to deliver is paramount. The demand to meet service expectations while simultaneously keeping costs to a minimum can be burdensome for smaller businesses, and the overall quality of their service can suffer if it is not managed correctly. The workload that a public sector contract generates can put disproportionate strain on the supplier’s resources and potentially be self-defeating. It is right that SME’s should be encouraged to win major contracts with central government departments; this competition is undoubtedly good for stimulating the economy and safeguarding future prosperity. However, if the contract creates serious issues for the entire business, then this needs to be addressed in a strategic way that helps an SME deliver on expectations while also safeguarding their resources so they are not stretched too thin.

In my experience at KBR, the best method for alleviating this problem is to use an integrated service delivery model (ISDM) that provides the client with a stand-alone matrix of processes, resources, skills and knowledge to manage the execution of its services. This particular model means that the service is capable of meeting the specific needs of each client. From the beginning of an agreement, the sourcing strategy is devised and the supply chain is mobilised while day-to-day management is continually monitored. The bespoke nature of this model means that an integrator can deal with issues – anticipated or unforeseen – while still ensuring that FM services are delivered throughout the contract term as agreed. The single integrated system also ensures that monitoring is non-intrusive and the data accrued is simple to interpret and utilise.

The ability to monitor FM and property performance data means trends can be established and delivery can be modified accordingly. This is a great opportunity for SME’s as the model allows for continual improvement while not physically interfering in the actual execution of FM services from the client itself. The SME can fulfill its contract while benefitting from the influence that an IDSM brings, thus alleviating the potential service stress of a major public-sector contract. If there is a particular issue, it will be identified and discussed with the provider who then makes changes as appropriate – essentially the process of troubleshooting and optimisation is simplified for all parties and the job gets done. Conversely, this model also allows for an integrator to deliver everything independently, if desired. A key benefit of ISDM is its flexibility and applicability.

This model has enjoyed demonstrable success. In 2013, the Metropolitan Police Service (MPS) went through the biggest transformation of its estate to date. KBR were employed to develop an integrator model which oversaw a total restructuring of its facilities management with the aim of saving £5 million pounds a year. Three years on, the MPS is now seeing £10 million a year in savings, service satisfaction has improved, and the number of SME’s working alongside the MPS has increased by 40 per cent. Integrator payment arrangements are also typically made on a fee basis, so no amount is taken from the original contract agreement itself. The SME is therefore never short-changed in the process; it is a mutually beneficial collaboration. Having an integrator involved is not a prerequisite to an SME’s success in major public contract negotiations, but the assured service they can bring for all parties will certainly make any prospective bid more desirable. Food for thought for those aspiring to supply in the public arena.

 

As managing director for Facilities Management Services, Colin holds strategic responsibility for the direction and growth of the FM Services business across the UK for KBR. His remit includes Business Development and acquisition: securing contracts, and negotiating at executive level with major clients in both the public and private sectors.

Top 5 global FM suppliers revealed by Technavio…
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Basing its findings on key factors such as ROI, sustainability, customer satisfaction, floor occupancy rate, pareto analysis and consistent performance measurement framework, a new report deriving from the global technology research and advisory company, Technavio, has affirmed the top 5 performing global facilities management suppliers up until the year 2020.

The report acknowledges that the FM market is dominated by large ‘global players’ as a majority of supplier companies are getting involved with mergers and acquisitions to achieve maximum international reach; in addition to enhancing their service capabilities. Therefore, it has been suggested that organisations prefer to outsource their FM services and the suppliers are developing environmental management plans to adhere to the industry’s regional and global regulations.

In order, the top 5 global FM suppliers are:

  1. Sodexo: Provides facility management and food services across different industries worldwide. The company serves more than 75 million people every day. It provides more than 234 services for the benefit of clients’ employees. In March 2016, Sodexo was awarded a 10-year contract by Rio Tinto to deliver facility management services for its operations in Australia. 
  2. Compass Group: A global leader in food services and FM support services. K-12 (part of the Compass Group) serves more than two million students every day in the US alone. Approximately, one-third of the top business schools in Europe are served by the company, and the Compass Service Framework was designed by the company to enhance their service capabilities and provide high-quality service to customers. 
  3. Aramark: Currently maintains approximately 1 billion square feet of facilities across multiple industries worldwide. It owns over one million square feet of meeting space globally. The company manages over 45 unique world-class residential and day centers across the US and Canada. In April 2016, Aramark won Citi’s Sustainable Partner Award in recognition of the high-value services provided to the Citi Group. 
  4. ISS A/S: Generates three million work orders on an annual basis. Annually, the company serves 13,809,467 square metres of office and industrial space globally. It caters to a large and diversified portfolio of B2B customers across industry sectors. The company performs 30 billion square meter of cleaning activities globally.
  1. CBRE: One of the largest FM service providers across the globe with a total workforce of 25,000 EFMs and 13,000+ engineering professionals. It caters to a client base of 25.8 million occupants and tenants in the global commercial real estate market. The company employs 300+ HSSE professionals, 40+ OSHA, and 501 trainers for health and safety as well as environmental management.

 

To request a sample report, click here

Mitie introduces thermal imaging drone…
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The facilities management company, Mitie, has announced the launch of the first thermal imaging drone to be used in the industry – corresponding with the growing popularity of implementing technology in FM operations.

The thermal imaging technology is the next stage of development for Mitie’s pest control drone service, which was announced earlier this year. The drone, named Inspire 1, will enable Mitie to deliver a wide range of services, from pest control to property and waste management. The thermal imaging applications for the Inspire 1 also include:

  • Concealed bird nesting in roof crevices. 
  • Building damage inspections and maintenance, in areas that aren’t readily visible. 
  • Wildlife management – thermal imaging for animal population control. 
  • Safety at landfill sites – the drone can find hot spots that pose a fire risk. 

    Roofing surveillance to detect excess humidity and water cooling on flat roofs. 

  • Thermal mapping – look at any heat leakage over the whole building to identify potential savings via improved insulation.

Regional director for Mitie’s pest control and drone operations, Gareth Davies, said: “The thermal imaging technology enables us to develop the precision of our existing drone fleet. The Inspire 1 will enable us to offer customers and increasingly comprehensive, safe and flexible service and is a great example of Mitie’s technological innovation in the FM sector.”

With the ability to reach 400ft, previously inaccessible places are reachable from the ground and without the need for specialist equipment. The small unmanned aircraft systems (SUAS) are operated by licensed Civil Aviation Authority (CAA) members, enhancing safety and reducing the cost of surveying at height.

London’s high office space costs leading occupants to move South East…

 800 450 Jack Wynn
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According to the Annual Occupiers Survey 2016 conducted by the Royal Institution of Chartered Surveyors (RICS), the next five years will see South East-bound office occupiers expanding their portfolios at a faster pace compared to those in the capital.

Produced in association with Savills and EY, the survey found that 20 per cent of UK property decision-makers expect to increase the amount of office space they own or rent in the South East; in comparison to decreasing (seven per cent). In addition, a net balance of 13 per cent more respondents in the South East expect to increase rather than decrease their property portfolio – equating to almost double the seven per cent in London.

RICS director of UK commercial property professional group, Paul Bagust, said of the results: “Among those who expect to expand (41 per cent), more than half cited quality of facilities (57 per cent) as the key driver for selecting their office space. Proximity to transport links and amenities is the next most important (39 per cent), with a third (35 per cent) citing technology and digital connectivity.”

He continued: “The figures indicate those taking on more property are doing so to find better quality spaces, which are better managed, and are equipped to deliver greater value to business – helping with recruitment and contributing to the bottom line. Occupiers are undoubtedly getting smarter about understanding the value good, well-managed premises can deliver.”

Elsewhere, when asked about the importance of location and the quality of workplace premises impacting employee performance and satisfaction, the top five factors recorded in the survey are: pay and benefits (64 per cent); company culture and reputation (62 per cent); proximity to transport links and amenities (49 per cent); flexibility of working arrangements (43 per cent); and quality of premises and facilities (34 per cent).