the dutch facility management market 2014
DESCRIPTION
This publication contains the results of the study of the Dutch facility management market for 2014 as a result of the collaboration between Dutch professional association Facility Management Nederland (FMN) and Twynstra for management consultancy in The Netherlands. The results of the study contain both quantitative results (2013) in terms of the size (revenue) of the Dutch facility management market as well as qualitative results with the main trends and developments (2014) for facility management.TRANSCRIPT
9English Summary
This publication contains the results of the stu-
dy of the Dutch facility management market
for 2014 as a result of the collaboration be-
tween Dutch professional association Facility
Management Nederland (FMN) and Twynstra
for management consultancy in The Nether-
lands. The results of the study contain both
quantitative results (2013) in terms of the size
(revenue) of the Dutch facility management
market as well as qualitative results with the
main trends and developments (2014) for faci-
lity management.
9.1. Overview of the Dutch facility management market
The total size of the Dutch facility management market
(2013) is estimated at 77.2 billion euro. This contains both
real estate with a size of 39.9 billion euro as well as facility
management (services) with a size of 37.2 billion euro. A
total decline of 2.9 billion euro (-3.8 percent) compared to
the results of 2011. This is mainly caused by the significant
decline of the (commercial) real estate market with 2.3
billion euro (-5.7 percent) mainly due to the large amount of
vacant properties as a result of both the economic climate
and for example new ways of working for office buildings
and the increase of use of online shopping for retail. This
creates a distorted perception towards the facility manage-
ment market (37.2 billion euro) excluding real estate. As this
market demonstrates a turnaround with a decline in size of
only 0.6 billion euro (-1.7 percent) after the 1.8 billion euro
decline (-4.7 percent) in 2011.
125
Nearly 60.8 percent of the facility management market
excluding real estate has been outsourced to service
providers. An incline of the outsourcing rate of 1.4 per-
cent and an increase in the size of this market with 137
million euro compared to the results of the study in 2011.
This growth is remarkable since the workforce of service
providers (258.000 employees) has shrunk with about 8.000
employees; more revenue is being generated by fewer
employees.
9.2. Overview of facility management trends and developments
According to the results of the study, Dutch facility ma-
nagement professionals indicate (see figure 1) that cost
management is the most important trend and development
in facility management with 48 percent. Followed by trans-
forming towards or further developing their organization
as a demand management organization with 32 percent,
enhancing customer (demand) management with 30 per-
cent, use of new technologies and data with 29 percent and
improving quality of services with 29 percent.
Improving cost management
Reducing and controlling costs has again been chosen as
the main facility management trend and development. In
a climate of ongoing economic challenges and customer
ambitions of growth this presents the facility manager with
the task to look for other ways to reduce costs than the
structures and margins that have been revised in previous
years. Ways that include more complex considerations than
before with the ultimate goal of both sustainable value
creation and higher quality at lower costs. Ways that require
a vision beyond the reduction of costs alone. By seeking
innovative methods to more with less, reducing unneces-
sary complexity and remaining agile in order to cope with
the increasingly rapidly changing needs and desires of their
customers.
Implementing or further developing a demand
management organization
Where the advance of the demand management organiza-
tion model could already be called significant in 2010 and
2012, it has become the dominant organization model in
Figure 1. Top five most important facility management trends and developments in The Netherlands in 2014
Improving cost management
Implementing (or further developing) a demand manage-ment organization
Enhancing customer (demand)
management
Use of new technologies, data
and automating processes
Improving the quality of services
48% 32% 30% 29% 29%
126
2014. With both the second place in the most important
trends and developments as well as a sharp rise in the num-
ber of facility management organizations that have adopted
demand management in The Netherlands. And whereas the
initial emphasis in this transformation is traditionally being
put on supply management, improving customer (demand)
management and creating the right conditions for demand
management in terms of culture, competencies, attitude
and behavior of employees now present new challenges.
Use of new technologies, data and automating
processes
The use of technology, data and automating facility manage-
ment processes is a striking newcomer in between the
trends and developments that traditionally dominate the top
five. A newcomer with the same potency of a game chan-
ger for the field of facility management as the new ways of
working have presented in the past. In that perspective the
use of mobile internet, cloud computing and the internet of
things are viewed as the most important technology trends
for facility management in 2014. Looking ahead the techno-
logy trends big data analytics and wearables such as Google
Glass are also expected to have a major impact on facility
management in years to come. Promising to revolutionize
both the business itself, the relationship with customers as
well as the ability of facility management organizations to
adapt to new circumstances.
9.3. Research methodThe results described in this publication were obtained
using an online survey in which over 300 facility manage-
ment professionals (facility managers, service providers,
consultants, lecturers and students) participated, desk re-
search as well as a large number of interviews with facility
managers, service providers and other experts.
9.4. Further informationPlease contact Thijs van der Spil ([email protected]) of Twynstra
Gudde or Facility Management Nederland ([email protected])
for more information.
127
67%of facility managers have to reduce costs in 2014
10%average cost reduction in 2014 for facility managers
62%
60%
of facility managers aim
reduce costs
of facility management organizations have transformed to demand management
60%
64%
predict to have done so by the end of 2017
76% 34%42%
of facility managers focus on improving contract- and sup-ply management
of facility managers focus on improving customer (demand) management
set energy and climate savings goals towards a circular and inclusive economy
sees communication and
accelerator towards this
http://goo.gl/hW3Nlv
see the use of mobile internet for facilities as technology trend in 2014
predict the exponential growth of the Internet of Things as technology trend for 2017
predict the importance of big data analytics as technology trend for 2017
expect growth in revenue in 2014
opt for growth in revenue towards 2017
focus on new business models
expect growth in revenue in 2014
opt for growth in revenue towards 2017
focus on new business models
72%
55%
55%
49% 57% 57%
52%
50% 33%
Cost reduction
Technology
Organization
Corporate social responsibility