Double digit FM growth predicted for the next four years

11 May 2022

The latest study on the UK FM industry by MTW Research predicts robust growth for the sector for the next four years.

With the industry continuing to recover from the effects of the Coronavirus pandemic, this year will see a £3bn boost to sales revenue, says the report.

Additionally included in the 100-page report is consideration of near term labour, profitability and operational challenges, along with the impact of Covid-19, which is expected to amount to £11bn in lost revenue by 2026.

By the end of this year, total FM revenues are expected to reach 98% of the pre-Covid-19 value.

The impacts of the virus are compared with the overall positive growth within the industry, which are predicted to deliver double-digit expansion up to 2026 and offset the other negative influences.

One of the most positive developments will be the continuing rise of proptech, says the report, providing growth through disruptive technology and creating more sales opportunities.

MTW director Mark Waddy said technology trends and innovation "are enabling FM providers to develop an 'empathic response' to service provision, boosting added value by more closely integrating with the client and anticipating their needs".

The report further states that the growth in the public sector FM market seen over the last two years, that combined with reduced demand within the commercial market, is now reversing.

Further analysis shows that public sector growth will continue, however, following higher spending plans published in March this year.

Additional considerations within the industry include more selective tender submissions and enhanced margin protection, with more focus on value of service becoming increasingly evident throughout the FM industry.

Merger and acquisition (M&A) activity is expected to increase by 35% this year compared to 2019 levels.

The MTW report can be purchased for £595 and more information is available on the company's website.