Robust finances of service providers and rapid return to pre-Coronavirus performance levels have been outlined in the latest survey of the UK FM market.
The results are based on 80% of the FM sector and show that 85% of service providers are continuing to enjoy “healthy” finances, according to MTW Research.
It also predicts that that revenue levels will exceed those of 2019 by the first half of 2022, due to a 10% sales boost during the interim period.
Analysis of the impact of Brexit is also included in the report, amounting to £3bn of potential growth lost due to uncertainties arising.
There are also changes to the outsourcing market caused by the Covid-19 lockdown and recovery, but opportunities will continue to emerge amongst the £15bn growth levels expected by 2024 and overriding any impact caused by Brexit.
This year has seen FM market borrowing increase by more than £5bn, says the report, resulting in liabilities now accounting for 46% of total FM sales.
Although revenues for IFM service providers remained “reasonably resilient” in the first half of this year, industry net work reduced by 60%, says the report.
There is better news in that this is expected to be a short-term issue and profitably is expected to rise by 24% up to 2024.
Further results of the survey show sales reaching £33bn this year in the health, education and retail outsourcing sector, while the best performing area next year is predicted to be that of tech/comms outsourcing.
MTW director Mark Waddy described the FM market as two-tier this year: “Sales briefly dipped below £100 billion for the first time since 2016 though this contraction was not borne evenly by all FM companies.
“There are new, fundamental opportunities for growth in 2020 though the number of pitfalls have also increased.”
Source: Premises & Facilities Management
