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Integrated facilities management market worth $802.4bn by 2020?

The global market for integrated facilities management (IFM) is expected to grow at a CAGR of 7 per cent until 2020, according to a new report.

The forecast from Beroe, a procurement intelligence firm, says demand for FM outsourcing and the adoption of an IFM strategy signals an increasing buyer maturity and willingness to partner with suppliers.

APAC remains the fastest growing market for outsourced FM services and the progressive growth of major economies in the region such as China and India are expected to keep the demand high.

Moreover, the increasing levels of commercial property creation and construction are accelerating the market for outsourced FM services.

The Beroe report says one major driver of the IFM market is the improvement in economic conditions across developing countries and large scale industrial development such as construction and real estate.

Alternatively, the low level of awareness among buyers in developing markets about the opportunities offered by outsourcing FM services is a constraint in the industry.

However, Beroe cautions that the IFM industry is facing impediments globally and the situation seems to be critical with several top Tier-2 suppliers such as Serco, G4S, MITIE, Interserve and Carillion struggling to upgrade their services.

Tier 2 companies, meanwhile, are developing skills to provide a wide range of services to various sectors such as housing corporation, oil & gas, retail, hotels, and manufacturing.

Key Report Findings:

  • The major cost factors involving a global IFM model are labor and materials costs, which account for nearly 80 – 90 percent of the total cost.
  • IFM is the commonly used model in the food and soft drinks industry as integrating the services to one principal supplier will contribute to reducing costs, driving greater consistency, and alignment.
  • Programmed FM companies have launched an innovative service in the IFM industry called sustainable solutions, which caters to the conservation of energy, water, and emission.
  • Large buyers such as Unilever and Heinz have adopted and integrated their FM services with a single service provider, which has resulted in 10-20 percent in cost savings.
  • IFM and TFM sourcing models provide the best savings opportunity for consumers with minimal involvement in the process.

From robotics and wearable technology to IoT, the IFM industry is becoming more interconnected, and the suppliers are looking forward to utilising technology to drive productivity and achieve cost savings for the client.

Additionally, outsourcing to a single FM player would enable buyers to regulate the level of services across various locations, and the productivity and efficiency could be improved through the initiation of various KPIs and compliance clauses.

Top trends impacting the global workforce in 2019

Artificial intelligence, people management and hiring practices are among the top six trends impacting the global workforce in 2019, according to a leading think tank.

The Workforce Institute at Kronos Incorporated asked its board members around the world what they think will be the most important workplace trends in the coming year, with employment law, flexible working and disaster management rounding out the list.

The full list of 2019 predicted trends is as follows:

  1. AI and machine learning unmask previously-hidden workforce data to make people-centric decisions. Artificial intelligence (AI) and machine learning will finally be woven into workforce management practices, revealing a treasure trove of data organizations have been collecting – but not using – for decades. With insight into their workforce data trends – like scheduling accuracy, absenteeism, overtime usage, and burnout – managers will be able to head-off potential issues before they arise. Intelligent automation will also free them from admin-heavy tasks – like managing schedules, approving time-off requests, and shift changes – while enabling data-driven decision-making that. Our board encourages caution here, though, warning that organizations must avoid a “one-size-fits-all” model.
  2. Historically tight labor markets and emerging technologies put people managers in the spotlight. With unemployment low and the exodus of baby boomers reaching critical mass, employers globally will face a historically tight labor market. Sourcing great candidates has never been more difficult, and retention will become an all-out dogfight. While an employer’s brand, innovative hiring technologies, and proactive recruiting practices are more important than ever, it’s organizations with the best people managers that will ultimately prevail. Organizations will place an increased focus on leadership development as a retention strategy – especially as Millennials assume middle management positions – and measuring manager effectiveness will be HR’s top challenge in 2019. If we’re right about prediction 1 above, then as AI and machine learning take over mundane managerial tasks, deficits in leadership competencies will be more readily exposed if managers aren’t using that extra time to support and develop workers.
  3. The changing face of education redefines trades and challenges traditional hiring practices. As the student loan debt crisis furthers the debate about the value of a college education and credentialing programs for job-specific skills emerge, tomorrow’s best employees may take an unconventional path to employment. Competencies that once required a degree – such as coding, robotics, and data analytics – are being redefined as skilled trades with the rise of certificate and micro-credential programs. As yesterday’s jobs become augmented by automation, new skills will be required for traditionally “blue-collar” roles. Employers need to revamp their hiring profiles and recruiting practices to tap into this new pool of qualified candidates who will staff the shop floor, store floor, hospital floor, and top floor of the future. Millennial parents, may urge their school-aged children to take an alternative educational path for a brighter financial future.
  4. Further fracturing of employment laws globally, nationally, and at the local level strain organizations. From minimum wage to sick pay, to fair scheduling proposals to the right to disconnect, governments around the world will continue to evolve employment laws. Ever-changing regulations around the world will put increased strain on organizations to avoid sanctions, fines, class action lawsuits, and reputation-damaging headlines. Technology will be vital for organizations to manage scheduling-related mandates, ensure unbiased practices, monitor fatigue and overtime management, and ensure employees are paid accurately and fairly – all while providing analytical insights that surface risky managerial practices otherwise buried in a sea of employment data.
  5. Employee-agnostic flexibility, consumer-grade tech, and the rise of the occasional time worker redefine “work your way.” All employees – salaried, hourly, and gig – crave control over when, where, and how they work. While employers have put more focus on flexibility and alternative work schedules, most have been slow to reengineer processes that underpin how the organization runs. Tools must meet employees where they naturally work – such as on their mobile phone, tablet, or favorite social networking platforms. The gig economy and emergence of the “occasional-time worker” will force organizations to replace traditional hiring and scheduling processes with systems that enable workers to choose when, where, and how long they work. Mobile-friendly processes, self-service features, and immediate access to real-time data in a consumer-grade technology wrapper will help drive the next iteration of the flexibility phenomenon, as predictability of anytime work will empower employees to be more productive, make more intelligent decisions, and be more engaged.
  6. Greater emphasis on disaster preparedness as part of a holistic human capital management strategy. Disasters large and small, natural and man-made, have unfortunately become the norm. Organizations worldwide have been challenged to respond effectively to increasingly frequent crises, with HR, operations, and payroll forced to take center stage in the lives of affected employees. With more emphasis on company culture, caring, and “doing what’s right” in a world where disasters – and a company’s response to them – are frequently in the news, there is a new level of expectation for an organization’s response, responsibility, and employee benefits. Organizations of all sizes must take a hard look at disaster policies, processes, and capabilities – including both taking care of employees in the moment and rebuilding in the wake of disaster, which will be near impossible for those operating on a DIY workforce management, HR, and payroll system. Sustainability plans that today primarily account for company assets and data will need to incorporate employees and their families.
Facilities Management

Facilities Management market set to reach $1,887 billion by 2024

The bundling of FM services by suppliers is driving significant growth in the sector, according to new research from TMR.

Its new report predicts that the global FM market is set to rise at a 13.6% CAGR to reach $1,887 billion by 2024, up from $606.4 billion in 2015.

TMR says an increasing number of companies have been providing bundled FM services – a combination of soft and hard offerings – in order to improve the efficiency of business processes and deliver quality and valued services to their clients.

The report cites several companies in the UK, including 14forty FM Support Services and G4S plc, that have been bundling security, cleaning, reception, food & hospitality and workplace management.

On the other hand, the report points out that single-point delivery services have successfully helped improve services and brought down overall cost.

Companies have also found that total FM services provide central control to the entire facilities management operation and minimise complexities in delivery.

Overall, more companies are aiming toward a reduction in maintenance and operation costs, which means facilities management has emerged as the ideal solution for firms in the short, medium, and long term.

The report asserts that FM services have been supporting companies in reducing capital expenditure and increasing investments in primary services, a goal which it says most organisations strive for.

Energy consumption is also a now a major consideration for firms when choosing their FM partners – as such, by developing an integrated design for business operations, FM services are now in high demand from companies seeking to curb their energy usage.