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Australian Facilities Managers Leverage Tech for Advantage, Says Frost & Sullivan

By Ken Briodagh February 23, 2017

The Australian Facilities Management (FM) sector is a mature market with a relatively high level of penetration of integrated FM services, but a new Frost & Sullivan study, Australian Facilities Management Market - Forecasts to 2023, seems to indicate that the impact of improved connectivity in the built environment and the need for improving FM efficiencies will cause disruption of the competitive landscape.

The mining sector has traditionally been one of the key drivers of FM demand in the Australian market, sustaining FM demand in a range of related sectors. According to the Australian Government Department of Employment, a 14.1 percent decline in employment growth in the mining sector is forecast between November 2015 and November 2020. This is likely to deter FM market growth in this sector, according to Frost & Sullivan.

Cost pressures continue to hamper FM sector revenue growth in several markets, the report said. While essential maintenance is unlikely to be compromised, it is likely that backlog maintenance levels will increase in the short term and potential projects with long payback periods may be reassessed. This may lead to reduced ongoing revenue for some FM providers, as well as fewer new business opportunities in the short term. In such an environment, where commoditized services are challenged by price pressure, the search for competitive differentiation becomes critical.

“Whilst the usual competitive factors remain valid, such as price competitiveness, compliance with regulatory requirements, expertise in FM service delivery, reputation and portfolio, as well as established client relationships, the FM industry must also leverage appropriate technologies in built environments,” said Ivan Fernandez, Industry Director, Frost & Sullivan Australia & New Zealand. “This will be for productivity benefits, as well as to engage the future workforce.”

The Australian Facilities Management Market - Forecasts to 2023 report is part of the Frost & Sullivan Energy & Environment Research program. For queries and more information email Ivan Fernandez, Frost & Sullivan Australia, at ifernandez@frost.com.




Edited by Alicia Young

Editorial Director

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