By Staff writer
Frost & Sullivan report the integrated facilities management market will soar
The European integrated facilities management is predicted to bring in revenues of US $22.3 billion (AED81,900 billion) by 2011, accordingly to research company Frost & Sullivan.
Even though the private sector is the bulk of IFM end users, the public sector is quickly catching up and schools, cities, boroughs, municipalities, hospitals and the Army, has demonstrated an increasing interest in outsourcing IFM.
"IFM suppliers will need to expand the range of services they offer, in order to be competent," states a research analyst for the company.
"In view of the global competitive markets, trends are demonstrating the determination of former single IFM providers to penetrate the markets either through strategic partnerships or acquisitions."
In particular, contractors specialising in building operation and maintenance, support services and property management have experienced an increase in interest.
Frost & Sullivan said the excessive price competition is likely to result in aggressive price reduction strategies to attract potential customers.
The down side to this is adversely affect profit margins that could lead companies to financial difficulties.
Traditional soft service facilities management providers are expected to extend their business services to building operation and maintenance.
At the other end of the spectrum, companies specialising in maintenance, plumbing and heating controls are likely to augment their service offerings with support services.
The revenue increae comes after the economic slowdown in 2000 forced companies to look into alternative ways to save on budgets and cut costs.