Mitie calls for 'wholesale recalibration' of facilities management industry

By Hamish Champ2018-06-07T09:14:00

Services group warns on industry’s viability after halving annual losses

Mitie Group has called for a “wholesale recalibration” of the facilities management sector in order for it to remain economically viable.

Announcing an annual loss of £24.7m Mitie said the collapse of Carillion, sector challenges and what it called “the failure of many other individual contracts to be delivered on budget, on time or at the quality required”, showed the sector needed a major re-jig to survive.

The firm, which operates its own facilities management arm, as well as care and security, professional services and engineering activities, said outsourcing and in particular facilities management was “a relatively new industry where the early benefits derived from economies of scale and expertise have now, largely, been eroded away.”

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