12 Jun 2024

Why is the Facilities Management Sector Growing? - mpro5

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In recent years, the facilities management sector has experienced significant growth. In this piece, our team of experts explains why. Read on for more.

The facilities management (FM) sector is experiencing rapid growth, with reports painting a bright picture for the industry in the next ten years.

As experts in the FM sector, we’ll share our insights into the driving forces behind FM’s resilience in a harsh economic climate and what facilities managers can do to take advantage of new market demands.

 

Recent growth in the facilities management sector

The FM industry is booming. According to a recent report by MenaFM, the global FM market size is projected to reach $2,525.10 billion by 2030, growing at a CAGR (Compound Annual Growth Rate) of 7.1% from 2021 to 2030. Some experts, such as GMI (Global Market Insights), predict an even higher 13% CAGR between 2023 and 2032.

The UK market picture is just as positive, with an expected CAGR of 1.85% between 2023 and 2027. These numbers are hugely encouraging and demonstrate that despite the stiff competition within the UK market, there is room for innovation, disruption and new solutions.

 

Why is the Facilities Management sector growing?

5 key factors are driving this incredible growth in the sector:

1. Increasing complexity in building operations

The modern era, sometimes referred to as Industry 4.0, has seen a remarkable shift towards using smart systems, automation and technological integration in building operations. The use of sensors, intelligent HVAC systems, predictive maintenance and air quality monitoring are just some of the many complex solutions now implemented on physical sites.

As building operations become more sophisticated, there is a greater need for advanced FM solutions to manage these systems, provide reporting and enable facilities managers to act on the data. For example, mpro5’s sophisticated facilities management software can provide a single version of the truth, integrate disparate systems and drive productivity.

 

2. Increased demands for cost efficiency

Businesses are always looking for efficiencies, but this has become even more critical in the face of great inflationary pressures on energy, staffing and supplier costs. This is both a challenge and an opportunity for facilities managers to prove their value to clients.

Facilities managers will need to leverage new technology and software solutions that reduce energy consumption, cut operational costs, reduce waste and increase productivity. For example, mpro5 has helped several NHS Trusts deliver just this, in particular Coventry and Warwickshire Partnership Trust.

Acting as the essential link between their own Computer-Aided Facilities Management (CAFM) system and their 125 subcontractors, mpro5 has enabled them to cut their help desk staff from 9 people working full-time to just two, freeing up these staff to focus on quality assurance and delivery.

You can read the full case study here.

 

3. Responding to remote working trends

Accommodating diverse working patterns and enabling flexible working spaces has been key to the growth of the FM sector.

The COVID-19 pandemic brought about a dramatic shift in working patterns, with 44% of workers in the UK either working remotely or in a hybrid pattern between 2022 and 2023.

Facilities managers have had to adapt to this change in demand by becoming smarter about space utilisation. Software such as mpro5, combined with manual reporting and sensors, is now used by FM providers to better understand their use of spaces, and where efficiencies can be made.

 

4. Attitudinal Shifts

Asset management and maintenance have always been huge challenges, particularly for businesses with large estates. High inflation and supply chain issues are making it difficult to manage the cost and timing of maintenance.

Many larger FM providers are already moving away from reactive and preventative maintenance towards predictive maintenance models that use real-time monitoring and complex predictive data systems to maximise the use of assets, reduce downtime and cut maintenance costs without compromising on functionality.

At scale, this is a hugely effective strategy, and larger providers are already taking competitive advantage from these savings, as they can provide clients with highly efficient, smart asset management.

 

5. Improved FM Software Capabilities

The growth of the FM sector has also been driven by advancements in FM software. Smart integrations of the Internet of Things (IoT), combined with facilities management software such as mpro5 have transformed the industry. The ability to automate reporting, and audit while working and to drive action from integrated data sources, has boosted productivity.

 

Manage your facilities with mpro5

Technology and innovation have arguably played the most substantial role in the growth of the sector. New demands for increased efficiency and sustainability have also increased the need for innovative facilities managers and provided a considerable market opportunity for those who can react quickly.

As industry-leading experts in FM and facilities management software, mpro5 can help your business thrive in this period of rapid growth and development.

Explore our blog to see how mpro5 can revolutionise your facility's operations. You can also Book a demo to discover more insights and leverage the power of FM software.

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