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Rise in UK FM Market Debt

01.03.2019, 17:06

Rise in UK FM Market Debt

MTW Research reports the UK’s facilities management market is growing at its slowest rate since 2012, with uncertainty and Brexit-related delays eroding confidence and raising net debt levels by £1 billion.

 

The analysis finds almost half of FM contractors are reporting static or declining sales in 2019, with net worth generated by the FM industry rising by only 8 per cent since 2013 and even declining in 2018 – with a similar downward trend forecast for 2019.

Its authors also highlight a decline in the credit worthiness of FM service providers, with almost 30 per cent achieving only a ‘mediocre’ rating.

The integrated facilities management market has grown its market share by an average of 20 per cent in recent years but further gain is expected to be modest due to stronger pricing pressures within the sector. 

Despite the challenges, MTW predicts modest growth for the overall FM market in 2019, and cites the outperformance of specialist sectors including catering and security as evidence of the need for service differentiation and a shift away from low margin, high volume contracts. 

The report is available for purchase from www.marketresearchreports.co.uk.

CAMFIL HVAC Filtration Solutions

Staff Reporter

FMIndustry.com covers the latest news, trends and opinion from the facilities management (FM) and corporate real estate (CRE) sectors. The FM market is currently estimated to be worth USD 1 trillion annually and is projected to grow at a compounded annualised rate of approximately 5% between now and 2026.

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