The third quarter report, tracking the value of outsourced and in-house provision, says growth in the sector has remained relatively stable in recent years at about 7 per cent, falling in 1999 to 2 per cent but rising again this year to 5 per cent. The value of services supplied is expected to reach £75.5 billion by the end of the year.
Although the value of both the total facilities management business sector and in-house provision has grown, the latter's share of the market has fallen, says the report.
Total facilities management suppliers saw their share of the market increase sharply during the review period, from 5 per cent in 1995 to
8 per cent during this year. The value of this chunk of the market now stands at £5.9 billion. In-house provision, meanwhile, has fallen from 41 per cent of the potential market in 1996 to an estimated 37 per cent, although positive economic conditions have ensured growth in the value of this sector, say the report's authors .
Although the value of internal facilities management declined by 1 per cent to £27.3 billion in 1999, the report's authors expect it to rise by 2 per cent to £27.8 billion during 2000.
Catering continues to lead the table of services contracted to third parties, while contracted out security has proved a strong sector, the report says. Cleaning services have also been increasingly subcontracted in recent years, notes the report. Sectors that have grown in value include IT strategy and energy management.
Source
The Facilities Business
Postscript
UK Facilities Management Market Development, Q3, is available from MBD on 0161 247 8600. It costs £395.
