the dutch facility management market 2014

4
English 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 &TCCD NMD NE SGD KD@CHMF HMCDODMCDMS ƥQLR 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.

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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.

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Page 1: The dutch facility management market 2014

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.

Page 2: The dutch facility management market 2014

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%

Page 3: The dutch facility management market 2014

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.

Page 4: The dutch facility management market 2014

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