Healthy profits: Growing demand from health services providers has boosted revenue

The Facilities Management Services industry has benefited from the private and public sectors' increasing willingness to outsource non-core business activities over the past five years. Strong demand from the health sector and increased demand from the education sector have driven industry growth over the period. Industry revenue is expected to increase at an annualised 0.9% over the five years through 2018-19, to reach $10.3 billion. This includes an expected increase of 3.3% in the current year.Industry firms must control costs to succeed. Over the past five years, firms have begun to focus on procurement to control costs, as expenses are easier to manage when they are part of long-term contracts...read more.

Industry Statistics & Market Size
Revenue
$10bn
Annual Growth 14-19
0.9%
Forecast Growth 19-24
Profit
Employment
93,955
Businesses
102

Industry Threats & Opportunities

  • Industry firms have focused on procurement over the past five years to control costs
  • Businesses have been outsourcing non-core activities, aiding industry revenue growth
  • The public sector will continue to drive revenue growth over the next five years
  • Industry Report - Industry Key Buyers Chapter

    The Facilities Management Services industry is highly fragmented, displaying low market share concentration. In the current year, the industry's four largest players are expected to account for an estimated 31.8% of the market. An operator must offer a wide range of services to operate in the industry. For example, if a company only offers cleaning services or electrical maintenance services, it is not considered a facilities management company. This excludes many small businesses from the industry. However, small operators can successfully operate in the industry by providing a range of services to other small businesses in a limited geographic area...purchase to read more.

    Additional Insights for the Facilities Management Services Industry

    IBISWorld has determined the most important Key Success Factors for the Facilities Management Services are:

  • Scope of capabilities
  • Self-delivery
  • Flexibility
  • IBISWorld analysts also discuss how external factors such as Number of businesses and Demand from business process outsourcing in Australia in the Facilities Management Services industry impact industry performance..

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    What's in this report

    What is the Facilities Management Services Industry?

    Industry operators primarily provide non-core business services that allow buildings and precincts to operate effectively. These include monitoring, planning and management services such as cleaning, gardening, security and maintenance. Industry services are typically provided under contract. The industry does not include major maintenance services for infrastructure such as roads, tunnels, railway lines, bridges, dams or public utility networks.

    Industry Products
  • Major maintenance services
  • Minor maintenance services
  • Cleaning services
  • Workplace safety services
  • Accommodation services
  • Other services
  • Industry Activities
  • Providing cleaning services
  • Providing security services
  • Providing maintenance services
  • Providing workplace safety services
  • Providing operational management services
  • Providing accommodation services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of businesses
  • Demand from business process outsourcing in Australia
  • Demand from health care and social assistance
  • Government consumption expenditure

  • Current Performance
  • Industry structure
  • Service provision
  • Large-scale outsourcing
  • Regulation
  • Chart: Revenue Growth

  • Industry Outlook
  • Public sector demand
  • Procurement
  • Increased competition
  • Table: Facilities Management Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Facilities Management Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • Education and Training
  • General Hospitals
  • Office Property Operators
  • Industrial and Other Property Operators

  • Key Selling Industries
  • Air Conditioning and Heating Services
  • Computer System Design Services
  • Fire and Security Alarm Installation Services

  • Products & Services
  • Major maintenance services
  • Minor maintenance services
  • Workplace safety services
  • Cleaning services
  • Other services
  • Accommodation services
  • Chart: Facilities Management Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Private sector companies
  • Governments
  • Healthcare providers
  • Mining and defence firms
  • Education providers
  • Other
  • Chart: Major Market Segmentation for the Facilities Management Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Facilities Management Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Facilities Management Services Industry

  • Industry Globalization
    Spotless Group Holdings Limited, Ferrovial Services Australia Pty Ltd, Programmed Maintenance Services Limited, Serco Group Pty Limited,
  • Table: Spotless Group Holdings Limited - financial performance
  • Table: Ferrovial Services Australia Pty Ltd - financial performance
  • Table: Programmed Maintenance Services Limited - financial performance
  • Table: Serco Group Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Facilities Management Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Facilities Management Services Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Engineering Structures
  • Facilities that enable business activities such as transportation, telecommunication and energy transmission. Maintenance of these facilities is excluded from the industry.
  • Hvac
  • Stands for heating, ventilation and air conditioning.
  • Ppp
  • Stands for public-private partnership, which is a business venture between a government and a private corporation.
  • What Our Customers Say

    Why buy this report?

    The Facilities Management Services market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Facilities Management Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Facilities Management Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Facilities Management Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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