Construction of green shopping centers and redevelopment of existing outlets will enable Australian facilities management (FM) providers to offer integrated services, according to a new report from Frost & Sullivan.
The research firm’s analysis shows that market revenues are expected to grow at a compound annual growth rate of 0.8 percent from 2012 to 2019.
In 2012, 35 percent of FM services were outsourced and the remaining 65 percent, delivered in-house. Of the outsourced services, only 9 percent was estimated to have been delivered as an integrated facilities management (IFM) solution, while 91 percent was delivered as ‘other services’ (70 percent provided as single FM services and 30 percent as bundled FM services).
"FM providers will be able to extract greater benefit if they are successful in altering the perception among large shopping center owners that the operations and maintenance of the shopping center is ‘core business’," said Frost & Sullivan Industry Director, Ivan Fernandez.
As the state of the shopping center directly translates into higher rents and profits for building owners, they look to manage FM services in-house and outsource only single FM services (cleaning, security services, repairs).
Retaining FM in-house is also a cost-cutting measure, with some shopping mall owners reducing cleaning hours by as much as 20 percent. Moreover, the growing popularity of online shopping is reducing floor space and the requirement for certain FM services; but on the other hand, it also increases the need for services such as storage, logistics and delivery services.
"Another new trend that is influencing the FM market is the mushrooming of green buildings," noted Fernandez. "The sustainable management of these buildings will present FM providers with opportunities to strategise and innovate their offerings."