Following an industry-wide survey into how technology is affecting facilities management, Service Works has released new research which investigates the position of the market in the UK and Ireland. Further reports to be released this month will look at the use of technology and its benefits, and uncover FM industry trends. See our infographic below for an overview of the facilities management marketplace in 2016.
Respondents included in-house facilities managers and engineers as well as FM service providers and industry consultants, coming from wide-ranging sectors including hospitality, education, charity, healthcare and property. The picture as whole is one is one of positivity, with an overall increase in budget of 33% compared to an increase of 20% last year. However, results by sector this year show that while the private sector reported increased budgets, 38% of public sector respondents reported a decrease in budget. This seems, in a large part, due to a cut in government funding as detailed in the infographic, but several respondents reported challenges as a result of moving to the National Living Wage.
The National Living Wage came into effect in April 2016, giving those aged 25 and over at least £7.20 per hour, an extra 50 pence on top of minimum wage. Running alongside the Government’s increased wage is a campaign from the Living Wage Foundation, advocating employers to pay those aged 18 and over £8.25 across the UK and £9.40 within London. This is a voluntary scheme, and is championed by many across the FM industry, including the British Institute for Facilities Management (BIFM). Reports from organisations supporting the scheme have reported greater productivity and service quality, although conflicting reports have surfaced that some organisations are offsetting these higher wage costs, for example by reducing the value of overtime paid. The longer term results of these policies remain to be seen; it will be interesting to observe if wage budgets continue to have a negative impact on the FM budget or if the effects of increased productivity become more widely accepted.
To see last year’s results infographic and overview, click here.
If you would like to be emailed the following two reports from our FM Software Survey 2016, please register your details here.