Integrated Facilities Management Australia Market Intelligence

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Are you looking for answers on Integrated Facilities Management Australia?

  • What are the key trends in Integrated Facilities Management Australia?
  • Am I paying the right price?
  • Am I working with the right supplier?
  • What are the major challenges and risks in Integrated Facilities Management Australia?
  • How is Integrated Facilities Management Australia industry performing?

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Report Coverage

  • Sourcing Models – Comparative Analysis
  • Bundled Services Sourcing
  • Operational KPI's
  • Supply Trends and Insights

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Regional Market Outlook on Integrated Facilities Management

Trends (current/future) and characteristics of facilities management services

Market Consolidation

  • High level of regional consolidation is seen and within the next few years, we can expect a handful of national level service providers who will be able to extensively cover across the country
  • Apart from this, some section of the suppliers will continue to build industry related capabilities. This is especially growing for the retail and restaurant industry

Support through qualification

  • Various means of accreditation for expertise in Facilities management is being popularized in Australia
  • Several courses from the certificate level to the degree level are available
  • This will lead to FM being a more organized and well managed sector in the coming years, while also making it more operationally efficient

Early adopters of technology

  • Usage of RFID tags to track the consumables used for day to day engineering maintenance is prospective trends FM players can embrace. This can lead to savings of as much as 10 percent
  • Usage of BIM and IWMS technology, adopting usage of shared services will all be embraced to a larger extent by the FM industry in the coming years


Growth Drivers of Facilities Management Services

Real Estate

  • After the negative growth rate during the economic downturn, the construction industry has been slowly gaining momentum and commercial construction is averaging at about 6-7 percent
  • Along with growth of support buildings like data centers and warehouses will continue to aid FM demand

Buyer Industries

  • The growth of key buyer industries has resulted in them using more square footage of working space with top notch amenities
  • Increased activity in the financial space and increase in footfalls in retail banking locations will also be a major driver for FM services

Environmental Concerns

  • Energy consumption by HVAC systems accounts for 32 percent of the energy consumed by buildings
  • Thus, energy conservation efforts by all commercial buildings encourage regular maintenance and investment of these systems. This will be a key driver of growth

End-user Driven Demand

  • High level of demand from the end-users with respect to quality of facilities and work space will be a key driver for growth of FM outsourcing, especially in the technology space

Porter's Five Forces Analysis: Australia

  • Large buyers have strong power because of the large consolidated business volumes
  • Suppliers are trying to improve their supply capabilities to offer a holistic service portfolio and thereby gain some negotiation power

Supplier Power

  • Owing to the emergence of a global integrated business model, service providers are likely to enjoy significant leverage. However, supplier power will be constrained with the advent of open-book pricing
  • Buyers can strictly monitor pass-through costs to ensure no mark-ups and deny payment of profits to service providers in the case of the non-compliance of KPIs

Barriers to New Entrants

  • On adopting a global integrated business model, service providers should have significant capabilities in terms of service offerings and geographical spread

Intensity of Rivalry

  • Owing to the complexity of the outsourcing category and the volume of business involved, there will be considerable competition between major service providers

Threat of Substitutes

  • Threat of substitution will be very low as in-house manufacturing or partial outsourcing will not prove to be cost-efficient for buyers

Buyer Power

  • With the advent of complex, integrated outsourcing categories, buyers' power will increase because of the volume of business outsourced
  • Open-book pricing will also increase buyers' power, as they can decide on the subcontractors involved and make profit payments conditional on the compliance of KPIs

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