Research revealed
by This email address is being protected from spam bots, you need Javascript enabled to view it on Sunday, 01 July 2007
New research into the Middle Eastern facilities management market (excluding Saudi Arabia) has concluded that the total facilities management sector will be worth US $575.9m (AED 2.1bn) by 2012.
But is this figure correct? What is driving the market? Is there a country leading the way? What services are most in demand? Does technology play a crucial role? And what does the future hold for the FM sector?
This overview of the findings aims to provide you with answers to all these questions and an insight into the reactions of some key industry professionals.
The research was commissioned by CMPi in the lead up to its launch of new facilities management exhibition, Working Buildings Middle East.
"The findings of the Frost & Sullivan report clearly demonstrate the exponential growth of FM in this region. It also highlights the variety of opportunities available to the suppliers of FM products and services in this largely unpenetrated sector," states event director, Chris Fountain.
However, what has become clear in the questioning of the report's findings is that FM professionals see the market as one that is still in its infancy with many developers still not understanding the true meaning of facilities management.
With this is mind, it seems industry insiders are still educating the developers and emphasising the benefits facilities management can bring.
As it stands, there are many facilities management companies operating that have been formed by developers. For example: Emrill is owned by property developer Emaar and UK-based facilities and property management company, Carillion; Idama is owned by Dubai Properties and ServeU is a Union Properties company.
Some people have argued that by developers owning their own FM company, the market is closed off to other FM service providers. While this maybe true, Mark Povey, general manager of marketing at Transguard, states that the region is simply going through a transitional period.
"The Middle Eastern facilities management sector is following in the footsteps of the UK market. All FM companies in the 80s either grew out of construction or soft service suppliers. It's a natural evolution thing, it's not wrong."
There are many levels of FM companies that currently occupy the market place. From basic soft service outfits to the more technical and strategic ones who practice international concepts and standards. Terms such as Total Facilities Management (TFM) are yet to be fully understood in the region.
What is TFM?
As with most industry terms, there are numerous definitions and explanations. However, during interviews, Terry John-Baptiste, senior facilities manager of Emrill gave a clear and simple statement.
"Total Facilities Management (TFM) incorporates a seamless solution to customers, which includes advice and best practice solutions from design, construction and transition, through to operations.
"It includes setting up tailor made policies and procedures to fit each client's needs efficiently and taking full responsibility for a wide range of services to maintain the essential aspects of a building."
There are many different kinds of benefits to applying TFM in a company.
David Graham, general manager of Farnek Services points out, "at a corporate level it (TFM) ensures you deliver strategic and operational objectives, including control of cost and realisation of savings and on a day-to-day level what we're speaking about is providing a safe and efficient working environment."
Tim Leech, vice president of AMC, adds: "TFM gives any business or environment an integrated approach to how it is managed and operated, provided that the solution designed always has reference to the business/life objectives of the client/user. Therefore, it could be said that total FM allows a business to focus on its core business and use its skills and resources accordingly. Good FM practitioners will add value and even profits to companies, similarly, they will improve service delivery."
Responding to the report, Fountain concludes: "FM is still seen as an emerging market in the Middle East, yet it's one of the fastest moving industries and one that will eventually outstrip the region's booming construction business. This comprehensive analysis provides a reliable study of the sector and pinpoints the key growth areas - something the industry has been in desperate need of. Only when a market understands it's true position can it begin to effectively evolve."
• Commercial - including banks, insurance companies, corporate offices, telecommunications companies and government offices
• Hotels - including resorts and hotels
• Retail - including shopping malls, leisure centres and entertainment complexes
• Mixed-use - including residential complexes, property developers and managers, and mixed-use developments.
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