Strong support: Increased outsourcing by firms seeking cost savings has encouraged growth

Firms in this industry provide a range of services, including repairs and maintenance to buildings and equipment, cleaning, security and reception services. Industry revenue is expected to grow at a compound annual rate of 2.8% over the five years through 2019-20. Rebounding economic conditions during the initial stage of the period improved demand for industry services from the private sector, while demand from public-sector institutions also grew as they increased outsourcing activity to more effectively manage costs. Industry growth was further aided by downstream firms opting to spend on non-essential services that had been delayed in previous more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25

Industry Threats & Opportunities

  • Operators have emphasised cost savings that can be achieved through using their services
  • Consolidation has increased as operators have aimed to provide a wider range of services
  • A reduction in the corporation tax rate is expected to support growth in the number of UK firms
  • Industry Report - Starting a New Business Chapter

    There are low barriers to entering the industry due to small capital requirements to establish a new firm, few regulatory requirements, few licensing restrictions, and little need for highly trained and educated workers. Some larger firms benefit from economies of scale and scope by providing a wide range of facilities maintenance services and other complementary services.Some service segments in this industry, such as maintenance and cleaning, require larger capital inputs for equipment and vehicles than others. Overall, the industry has low capital requirements, with the majority of work carried out by manual labour. This allows new firms to enter the industry with minimal capital outlay, while they firms can also acquire used vehicles and equipment to reduce start-up costs...purchase to read more.

    Additional Insights for the Combined Facilities Support Activities Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Combined Facilities Support Activities Industry are

  • Ability to compete on tender
  • Having a good reputation
  • Provision of a related range of goods/services ("one stop shop")
  • IBISWorld analysts also discuss how external factors such as Business confidence index and Business profit in the Combined Facilities Support Activities industry impact industry performance..

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    What's in this report

    What is the Combined Facilities Support Activities Industry?

    Companies operating in this industry provide a combination of support services in a client’s facilities. These include general interior cleaning, maintenance, rubbish disposal, security, post distribution, reception, laundry and related services. These support activities are performed by staff not involved with or responsible for the core business or activities of the client.

    Industry Products
  • General and specialist cleaning
  • Repairs and maintenance
  • Security services
  • Catering services
  • Other support services
  • Industry Activities
  • Carrying out general cleaning
  • Providing waste disposal
  • Maintaining buildings and offices
  • Providing guards and security
  • Providing reception services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Business confidence index
  • Business profit
  • Index of services
  • Real government consumption expenditure
  • National minimum wage
  • Number of businesses

  • Current Performance
  • Continued outsourcing
  • Awareness fuels expansion
  • Consolidation activity
  • Industry woes
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand edges up
  • Potential troubles
  • Table: Combined Facilities Support Activities Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Combined Facilities Support Activities Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Accommodation and Food Service Activities
  • Financial and Insurance Activities
  • Public Administration and Defence; Compulsory Social Security
  • Education
  • Human Health and Social Work Activities

  • Key Selling Industries
  • Chemical Product Wholesaling
  • Temporary-Employment Placement Agencies

  • Products & Services
  • Other support services
  • General and specialist cleaning
  • Repairs and maintenance
  • Security services
  • Catering services
  • Chart: Combined Facilities Support Activities Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Offices
  • Public sector
  • Hospitality sector
  • Industrial sector
  • Other
  • Retailers
  • Chart: Major Market Segmentation for the Combined Facilities Support Activities Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesSubcontractor paymentsSubcontractor payments are the second largest expense for combined facilities support providers. These are included in ‘other’ in the accompanying chart. Combined facilities support activities require businesses to offer a full range of services to clients. Therefore, many small and medium-size enterprises need to some services that are outside their areas of expertise in order to fulfil contracts. IBISWorld expects that payments to subcontractors to account for 24.4% of revenue in 2019-20, a figure that has declined over the past five years as operators have expanded the range of services they provide in-house to compete effectively. PurchasesRent and utilitiesRent is expected to account for 1.8% of industry revenue in 2019-20, while utility costs are estimated to account for 1% of revenue. Utility costs relate to properties owned by industry operators and do not include utilities used on client premises.DepreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Combined Facilities Support Activities

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Combined Facilities Support Activities Industry

  • Industry Globalization
    MITIE Group plc, Interserve Group Ltd, ISS Facility Services Ltd,
  • Table: MITIE Group plc - financial performance
  • Table: Interserve Group Ltd - financial performance
  • Table: ISS Facility Services Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Combined Facilities Support Activities 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 Combined Facilities Support Activities Industry
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Hard Facilities Management
  • The physical maintenance of buildings, plant and equipment.
  • Outsourcing
  • When a firm contracts another business to carry out some services.
  • Soft Facilities Management
  • Support services such as cleaning, reception services, security and laundry services.
  • What Our Customers Say

    Why buy this report?

    The Combined Facilities Support Activities 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 Combined Facilities Support Activities:
    • 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 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 Combined Facilities Support Activities 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 Combined Facilities Support Activities, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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