Perspectives On FM
Perspectives on the FM market development
Glenn Hodge (ISS US), Reinhard Poglitsch (ISS AT)
& Peter Ankerstjerne (ISS Group)
This paper discusses the evolution of the Facility Management industry from the
1980s to the present and offers some predictions about where the industry is heading in the future.
The changing demands in the market require a new way of thinking about the delivery of FM. The industry is transforming from a predominantly single-service local outsourcing model to an integrated services delivery model that seamlessly meets the core needs of the customer on a national and even global scale.
ISS White Paper
September 2014
Proprietary information ISS Word Services A/S - Copyright © 2014
1
Table of Contents
Executive Summary
3
Introduction4
Evolution of FM
5
Drivers for Growth
7
Best Practices for FM Outsourcing
16
Conclusion17
References19
2
Proprietary information ISS Word Services A/S - Copyright © 2014
Executive Summary
The worldwide facilities management (FM) outsourcing market is expected to grow from $959.2 billion in 2012 to $1.314 trillion in 2018 (ISS estimates based on third party data, (ISS A/S Prospectus, March 2014)). Growth is evident across all markets, from North America and Europe to Latin America and Asia Pacific.
The market is not just expanding, however; it is evolving, with growing public- and private-sector demand for FM solutions that are both global and integrated. Along with this evolving market, customer expectations are broadening to include more value-added FM services: customers increasingly expect FM providers to assume responsibility (i.e., accept risk transfer) for regulatory and labour law compliance, for example, and to take an active role in advancing the company’s strategic mission
(Redlein, Redlein, Soborg, & Poglitsch, 2014). To this end, FM suppliers are having to evolve from service providers to strategic partners.
These changing demands require a new way of thinking about the delivery
Glenn Hodge (ISS US), Reinhard Poglitsch (ISS AT)
& Peter Ankerstjerne (ISS Group)
This paper discusses the evolution of the Facility Management industry from the
1980s to the present and offers some predictions about where the industry is heading in the future.
The changing demands in the market require a new way of thinking about the delivery of FM. The industry is transforming from a predominantly single-service local outsourcing model to an integrated services delivery model that seamlessly meets the core needs of the customer on a national and even global scale.
ISS White Paper
September 2014
Proprietary information ISS Word Services A/S - Copyright © 2014
1
Table of Contents
Executive Summary
3
Introduction4
Evolution of FM
5
Drivers for Growth
7
Best Practices for FM Outsourcing
16
Conclusion17
References19
2
Proprietary information ISS Word Services A/S - Copyright © 2014
Executive Summary
The worldwide facilities management (FM) outsourcing market is expected to grow from $959.2 billion in 2012 to $1.314 trillion in 2018 (ISS estimates based on third party data, (ISS A/S Prospectus, March 2014)). Growth is evident across all markets, from North America and Europe to Latin America and Asia Pacific.
The market is not just expanding, however; it is evolving, with growing public- and private-sector demand for FM solutions that are both global and integrated. Along with this evolving market, customer expectations are broadening to include more value-added FM services: customers increasingly expect FM providers to assume responsibility (i.e., accept risk transfer) for regulatory and labour law compliance, for example, and to take an active role in advancing the company’s strategic mission
(Redlein, Redlein, Soborg, & Poglitsch, 2014). To this end, FM suppliers are having to evolve from service providers to strategic partners.
These changing demands require a new way of thinking about the delivery
References: Andersen, M. K. & Ankerstjerne, P. (2012): How “New Ways of Working” affect our use of facilities Deloitte. (2013). Chartering the course: Why procurement must transform itself by 2020. Ernst & Young. (2012). Best in class organizational design for CRE. Frost & Sullivan. (2012). Global FM Market High Growth in Emerging Markets but Highest Revenues Remain in the West. ISS World Services A/S. (2011). ISS 2020 Vision: Scenarios for the future of the Global Facility Management Industry. ISS World Services A/S. (2013). ISS 2020 Vision: New Ways of Working - the workplace of the future. Jacob Kashiwagi, Kenneth Sullivan, Dean T. Kashiwagi, (2009),”Risk management system implemented at the US Army Medical Command”, Journal of Facilities Redlein, A., Redlein, B., Soborg, A., & Poglitsch, R. P. (2014). Managing and Mitigating risk within Strategic Facility Management. The Hackett Group. (2013). Category Insight Report: Facilities Management v5.2.