Industry Trends

In the US, business outsourcing of facilities management has grown dramatically. Recent studies indicate a third of corporations outsource a significant percent of their facilities management activities. This growth has been driven by corporate real estate (CRE) management becoming more innovative and strategic in leading the drive for cost reductions, the occupation of less space, increased provision for business continuity and enhanced workplace security. This interest has been met by the rise of more capable and professional outsourced service providers.

— Corporate Awareness / Need: The time that highly compensated staff take from core business activities to address the many details necessary to get a local sales or service facility ready for business is the most expensive time of all. Business is recognizing that having outside professionals address these specialized administrative tasks brings better performance and lower costs. 

— Linking Office Outfitting with Company Branding: A critical facet of successful office outfitting is the ability to link the role of the office or retail locations to an organization’s core business strategies. It is especially important that the “look and feel” of a location support the brand image the organization is trying to project to its marketplace.

— Franchising Growth / Need: A recent PricewaterhouseCoopers study found that the franchising sector yields $1.53 trillion in economic output. Franchisors often lack extensive infrastructure to help franchises locate, lease, and outfit their stores. Utilizing a competent facilities outsourcer can lead to better results and happier franchisees.

— Government Outsourcing Trend / Need: The federal government is expected to increase spending. Research and defense-related spending are the biggest contracting sectors and services are the largest federal spending category. Federal, state, and local governments are increasingly aware of the value of assigning projects to a contractor that can “bring it all together” rather than to rely on traditional methods of piecemeal product procurement practices.