Join Beroe LiVE to access full report for free - http://beroeinc.co/LiVEmi APAC and parts of Latin America are expected to be the potential growth markets for FM services.

1. © Copyright 2017 Beroe Inc. All rights reserved.
Scope for FM services
procurement high in APAC
and LATAM

2. 2
Table of Contents
01
Executive 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
02
Market 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
03
Supply Analysis
• Supply Market Outlook - Supply Trends and
Insights
• Key Global FM Suppliers
• Key Regional Suppliers: Service Portfolio
• Key Global Supplier Profile
• Supplier SWOT Analysis
04
Cost 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
05
Procurement 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
06
End-use Industry Updates
• Food and Soft Drinks Sector
• Pharmaceutical
• BFSI
• Personal Products
• Retail
• Mining

3. 33
Preview

4. 4
KPIs
On-site Management Resource
Skills Training Records
Staff Appearance and Conduct
Customer Service – Communications
EMERGING ENGAGEMENT
STRATEGIES
IFM and TFM
engagement strategies along
with customized single services
engagement
Executive Summary
MARKET OVERVIEW
Global 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 Group
BUYER POWER
For 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
2
High Market
Maturity Regions
U.S., UK, Australia,
Germany, France,
Spain, New
Zealand
1
Cushman and Wakefield
IFM CONTRACT PERIOD
Average period: Three
Years
NEGOTIATION FACTORS
Management Fees
Incentive Fees
Rebates
PRICING IN IFM
Cost-plus Pricing
Guaranteed Maximum Price
IMPACTFUL COST COMPONENTS
Labour costs (wages and benefits)
constitute nearly 50 percent of
total costs
Sources: Primary Expert 1, Primary Expert 2, Beroe Analysis

5. 5
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
04
05
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

6. 6
High Maturity Regions
Countries:
U.S., UK, Australia, Germany, France,
Spain, New Zealand
Executive Summary
Supply 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

7. 7
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