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Greener Retail Facilities and Redevelopments Create Opportunities for FM Providers Finds Frost & Sullivan - Construction of green shopping centers and redevelopment of existing outlets will enable FM providers to offer integrated services
Greener Retail Facilities and Redevelopments Create Opportunities for FM Providers Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Sydney, Australia, 2014/03/04 - Construction of green shopping centers and redevelopment of existing outlets will enable FM providers to offer integrated services.

   
 
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The mature, yet highly fragmented Australian facilities management (FM) market for retail, wholesale and warehousing is likely to find new opportunities in the trend toward more sustainable facilities and redevelopments or extensions. While new construction activity remains subdued, the opportunity to offer bundled or integrated services represents a significant untapped market.

Recent analysis from Frost & Sullivan, Strategic Analysis of Facilities Management in Retail, Wholesale and Warehousing Australia, finds that market revenues are expected to grow at a compound annual growth rate of 0.8 percent over the period 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).

The FM market, like many others, has benefitted greatly from Australia's stable economic climate. While several economies in Europe and North America declined during the global downturn, Australia became even more prominent. Its retail market's forecast growth rate of 2.9 percent in 2012-2013, although modest, is still higher than Europe's or North America's.

"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. Added to this, 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."

Market participants will look to optimize energy use and make efficient use of materials, transport, cleaning, water use, heating, ventilation, air conditioning (HVAC) or insulation. These market trends are expected to drive demand for FM services for larger facilities through integrated service offers.

If you are interested in more information on this research, please send an email to djeremiah[.]frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Strategic Analysis of Facilities Management in Retail, Wholesale and Warehousing Australia is part of the Building Management Technologies (buildingtechnologies.frost.com) Growth Partnership Service program. Frost & Sullivan's related research services include: Total Facilities Management Market in Australia, Strategic Analysis of the Facilities Management Market in the Healthcare Sector in Australia, and Non-Residential LED Market in Asia-Pacific. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

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Strategic Analysis of Facilities Management in Retail, Wholesale and Warehousing Australia / P789-19

 
 
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Greener Retail Facilities and Redevelopments Create Opportunities for FM Providers Finds Frost & Sullivan

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Frost & Sullivan | FM Providers
Publisher Contact: Donna Jeremiah - Frost.com 
+61(2) 8247 8927 djeremiah[.]frost.com
 
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