The European Integrated Facilities Management Services Markets

1
The European Integrated Facilities Management
Services Markets

• Interactive Analyst Briefing
• 29 May 2002

Frost Sullivan www.frost.com Email
paul.alexander_at_frost.com
2
Agenda

• Industrial Services At Frost Sullivan
• I-FM Market Overview
• Forecasts/National Trends
• Market Challenges for I-FM Providers
• Future Predictions
• Conclusion
• Forthcoming FM End-User Study
• Questions and Answers

3
FS Structure
4
FS Publications

• Existing
• Contract Energy Management (CEM) B004 Sept.
  2001
• Industrial Water Outsourcing B081 March
  2002
• Integrated Facilities Management (I-FM) 3997
  Sept. 2002
• Industrial Waste Management Services B005
  Nov. 2002
• Building Controls and Services B061 May
  2002
• Future Titles
• End-User I-FM B066 Aug. 2002
• Technical FM - TBA
• FM Service Procurement - TBA
• White Collar FM - TBA
• CEM End-User - TBA

5
FM Competitive Structure
6
Forecasts
7
National Trends
8
Market Challenges for Integrated-FM Providers
9
The Future for Integrated FM in Europe

• Growth
• Much depends on the UK
• Globalisation will dictate development
• Trade Union relationships will be of paramount
  importance
• Outsourcing will increase, but how much of this
  will be integrated?
• Local FM providers for local companies,
  multinational providers for multinational
  companies

10
Summary conclusion

• I-FM is a market of unrivaled potential
• Huge variation by country
• Massive struggle for providers to overcome the
  diverse cultural issues surrounding FM in Europe
• An increasingly competitive environment
• Currently I-FM is in a difficult transition stage
  in trying to move effectively from the
  theoretical Total outsource model, to actual,
  workable solutions

11
FM End User Study

• Highlights
• 150-200 Interviews
• Identification of current outsourcing situation
• Trends by Sector and by Nation
• Includes UK, Germany, France, Italy, Scandinavia
  and Benelux
• Outline discrepancies
• Identification of opportunities
• Company ranking in terms of performance and
  perception
• Future trends and strategic analysis

12
Progress so far...

• 50 Interviews completed
• Trends already becoming clear
• Desire to outsource more services
• Desire to increase the geographic scope of
  contracts
• Desire to minimise number of contracts, often to
  just one
• Low awareness of I-FM providers
• Skepticism of I-FM providers ability
• Feeling that I-FM market is being dishonest, and
  is still all hype, and little substance

13
Questions and Answers