Procurement Outlook
Facilities management can be defined as the tools and services that support the functionality, safety, and sustainability of buildings, grounds, infrastructure, and real estate. The services of facility management include (but are not limited to) Lease management, including lease administration and accounting, maintenance and operations, occupancy and space management, real estate management, energy management, etc. Based on the type of work, facilities management services can be classified into two categories. The hard services deal with the physical assets (for example, plumbing, maintenances, wiring, heating cooling, etc.), and the soft services focus on tasks performed by people. These include security forces, custodial services, lease accounting, etc.
Facilities management is primarily a service. The costing is directly related to the type of service provided, timespan, the difficulty of service, and other similar factors. Hence, value-based pricing and cost plus pricing are two of the most common pricing schemes prevalent in the industry.
Demand Outlook
The global facilities management services market is valued at USD 740.1 billion as of 2020 and is expected to grow at a CAGR of 4% till 2025. APAC, EMEA, and the North American facilities management market are more or less of the same size, each occupying approximately 30% of the overall market space.
The global pandemic has resulted in the short-term decline and medium to long-term profitability for the facilities management companies. While the social distancing has resulted in a short-term market decline, the vacant real estate spaces are in dire need of management to stay functional post-pandemic phase. This will result in competitive pricing and better value for the facilities management companies.
Cost Drivers
The requirement of security and maintenance will increase on a medium to long-term basis. This will not only see a rise in personnel deployed for facilities management but also the addition of technology and tools like CCTV and drones for security and remote servicing. All these will help in the growth of the facilities management market.
Grab your copy, or request for a free sample of the “Facilities Management Services Industry Procurement Intelligence Report, published by Grand View Research” for In-depth details regarding supplier ranking and selection, sourcing, and pricing criteria & strategies.
Add-on Services provided by Grand View Research Pipeline:
- Should Cost Analysis - Component wise cost break down for better negotiation for the client, highlights the key cost drivers in the market with future price fluctuation for different materials (e.g.: steel, aluminum, etc.) used in the production process
- Rate Benchmarking - Offering cost transparency for different products / services procured by the client. A typical report involves 2-3 case scenarios helping clients to select the best suited engagement with the supplier
- Salary Benchmarking - Determining and forecasting salaries for specific skill set labor to make decision on outsourcing vs in-house.
- Supplier Newsletter - A typical newsletter study by capturing latest information for specific suppliers related to: M&As, technological innovations, expansion, litigations, bankruptcy etc.
Brief about Pipeline by Grand View Research:
A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain which helps in efficient procurement decisions.
Our services include (not limited to):
- Market Intelligence involving – market size and forecast, growth factors, and driving trends
- Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
- Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
- Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions
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