Facilities management: Growth from solid foundations
How we use buildings has changed since the pandemic. What they need to do has not.
Whether for schools, city offices or new logistics sheds, we are seeing a continued interest in businesses servicing buildings. These can range from traditional full-service facilities management to niche engineering servicing and maintaining lifts. Whilst the business models are different, their growth plans face the same challenges.
Depth or breadth?
Barriers to entering the sector are high and customers will need reassurance that switching is worthwhile. Investors and management teams will have to decide whether specialism is an advantage or bundling of services to create a ‘one stop shop’ is more appealing to their existing and future customers.
A robust understanding of the market and opportunities will help determine the best route for growth. These are some of the questions to ask:
- What is the organic growth plan for the business?
- How much influence does compliance with regulation and insurance drive customer spending decisions?
- What opportunities are there to grow into adjacent markets, regions or take market share from full-service providers?
Talking to customers and prospective customers is key to understanding the viability of growth plans and steps needed to achieve them.
Technology adoption is increasing rapidly across the sector. The ability to manage, monitor and measure is giving customers more value and a better user experience. Some businesses are investing in in-house technology offerings (e.g. asset management systems, security systems etc.), influencing customers’ expectations of what FM services can be, and ultimately making their contracts more ‘sticky’.
There are different levels of adoption and businesses that navigate this well will have an advantage with their more tech savvy customers.
Buy and build
There are still plenty of small local businesses servicing buildings. They have the skills and local goodwill to be part of an attractive buy and build strategy.
Read our article on laying the foundations for a buy-and-build strategy here.
Some recent deals we have worked on in the building services sector:
Find out more about some of these specialist areas:
Speak to a member of the team about your opportunities in facilities management.
Brandon Matthews, Senior ConsultantEmail Brandon
Matt McNally, DirectorEmail Matt