© Copyright 2017 Beroe Inc. All rights reserved.
Scope for FM services procurement high in APAC and LATAM
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Table of Contents
01Executive Summary
• Global FM Industry Outlook – 2015• Supply Market Outlook• Focus Regions
– North America /Western Europe– Eastern Europe /Asia Pacific– Middle East /Africa /Latin America– Indian Market Outlook
• Procurement Best Practices– Sourcing Models
• Brexit – Impact
02Market Analysis
• Global IFM Market Maturity• Global FM Industry Trends • Global FM Drivers and Constraints • Regional Market Outlook• Industry Outlook - IFM Affecting Factors• Porter’s Five Forces Analysis: Developed
Markets • Porter’s Five Forces Analysis: Emerging Markets
03Supply Analysis
• Supply Market Outlook - Supply Trends and Insights
• Key Global FM Suppliers• Key Regional Suppliers: Service Portfolio• Key Global Supplier Profile• Supplier SWOT Analysis
04Cost and Pricing Analysis
• Cost Structure Analysis• Cost Analysis and Expected Savings• Cost Break-up - Should Cost Model• Cost Structure Analysis - Management and
Incentive Fee Benchmarking • Pricing Analysis – Price Forecast
05Procurement Best Practices
• Sourcing Models for FM Services• Sourcing Models – Comparative Analysis• Cross-industry Sourcing Model Adoption• Key Success Factors for IFM Implementation• Pricing Models – Comparative Analysis• Regional Pricing Best Practices• Key Services KPI and SLA Components
06End-use Industry Updates
• Food and Soft Drinks Sector• Pharmaceutical• BFSI• Personal Products• Retail• Mining
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Preview
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KPIsOn-site Management ResourceSkills Training RecordsStaff Appearance and ConductCustomer Service – Communications
EMERGING ENGAGEMENT STRATEGIES
IFM and TFM engagement strategies along with customized single services engagement
Executive Summary
MARKET OVERVIEWGlobal market size – $612 billion (2016)Expected to grow at a CAGR of 7 percent to $700 billion by 2018
TOP GLOBAL SERVICE PROVIDERS
Jones Lang LaSalle (JLL)
ISS
CBRE
Sodexo
Compass GroupBUYER POWERFor small contracts
($5 million to $25 million),buyers have lower bargaining power compared with large contracts (>$25 million)
Medium Market Maturity Regions UAE, Saudi Arabia, Qatar, Singapore, Canada, Eastern Europe
2High Market Maturity Regions U.S., UK, Australia, Germany, France, Spain, New Zealand
1Cushman and Wakefield
IFM CONTRACT PERIOD
Average period: Three Years
NEGOTIATION FACTORSManagement Fees
Incentive FeesRebates
PRICING IN IFMCost-plus Pricing Guaranteed Maximum Price
IMPACTFUL COST COMPONENTSLabour costs (wages and benefits)constitute nearly 50 percent of total costs
Sources: Primary Expert 1, Primary Expert 2, Beroe Analysis
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Executive Summary Global FM Industry Outlook - 2016
High Medium LowMarket Maturity
• The global FM market was valued at $612 billion in 2016• The market is forecasted to grow at a CAGR of 7 percent, to $700 billion by 2018• Regions such as Western Europe, North America, and some parts of APAC such as Australia, Japan, Hong Kong, and Singapore have high market
maturity• APAC and parts of Latin America are expected to be the potential growth markets for FM services by 2020
01
02
03
0405
01 North America
$185 billion growing
at 5–7 percent
02 Latin America
$34 billion
growing at 7–9 percent
03 Europe
$205 billion growing
at 5–7 percent
04 Middle East and Africa
$34 billion growing at
5–7 percent
05 APAC
$154 billion growing
at 10–12 percent
Sources: Primary Expert 1, Primary Expert 2, Beroe Analysis
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High Maturity Regions
Countries:
U.S., UK, Australia, Germany, France, Spain, New Zealand
Executive SummarySupply Market Outlook
Suppliers: Established service providers have been providing outsourced FM services for more than two contract generations
Widely adopted engagement
strategy
Upcoming engagement
strategies
Large bundled contracts
IFM and TFM contracts
Low Maturity Regions
Countries:
Major parts of Asia, Africa, South America
Suppliers: Owing to lower demand, the FM market is highly dispersed with local service providers that are more tactical in nature
Widely adopted engagement
strategy
Upcoming engagement
strategies
In-house FM services, Single
services contracts
Single services contracts
Medium Maturity Regions
Countries:
UAE, Saudi Arabia, Qatar, Singapore, Canada, Eastern Europe
Suppliers: With established global service providers having a good presence in the market, local service providers are providing higher service offerings and better quality
Widely adopted engagement
strategy
Upcoming engagement
strategies
Small-medium bundled contracts
IFM contracts
Low-Medium Maturity Regions
Countries:
India, South Korea, China, Mexico, Malaysia, Brazil
Suppliers: The suppliers market is largely driven by the presence of multinational FM firms trying to enter these emerging markets because of their high growth potential
Widely adopted engagement
strategy
Upcoming engagement
strategies
In-house FM services, Single
services contracts
Single services, Bundled service
contracts
Medium Medium-Low
LowHigh
Source: Beroe Analysis
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