© Copyright 2017 Beroe Inc. All rights reserved.

Scope for FM services procurement high in APAC and LATAM

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Table of Contents

01Executive Summary

• Global FM Industry Outlook – 2015• Supply Market Outlook• Focus Regions

– North America /Western Europe– Eastern Europe /Asia Pacific– Middle East /Africa /Latin America– Indian Market Outlook

• Procurement Best Practices– Sourcing Models

• Brexit – Impact

02Market Analysis

• Global IFM Market Maturity• Global FM Industry Trends • Global FM Drivers and Constraints • Regional Market Outlook• Industry Outlook - IFM Affecting Factors• Porter’s Five Forces Analysis: Developed

Markets • Porter’s Five Forces Analysis: Emerging Markets

03Supply Analysis

• Supply Market Outlook - Supply Trends and Insights

• Key Global FM Suppliers• Key Regional Suppliers: Service Portfolio• Key Global Supplier Profile• Supplier SWOT Analysis

04Cost and Pricing Analysis

• Cost Structure Analysis• Cost Analysis and Expected Savings• Cost Break-up - Should Cost Model• Cost Structure Analysis - Management and

Incentive Fee Benchmarking • Pricing Analysis – Price Forecast

05Procurement Best Practices

• Sourcing Models for FM Services• Sourcing Models – Comparative Analysis• Cross-industry Sourcing Model Adoption• Key Success Factors for IFM Implementation• Pricing Models – Comparative Analysis• Regional Pricing Best Practices• Key Services KPI and SLA Components

06End-use Industry Updates

• Food and Soft Drinks Sector• Pharmaceutical• BFSI• Personal Products• Retail• Mining

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Preview

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KPIsOn-site Management ResourceSkills Training RecordsStaff Appearance and ConductCustomer Service – Communications

EMERGING ENGAGEMENT STRATEGIES

IFM and TFM engagement strategies along with customized single services engagement

Executive Summary

MARKET OVERVIEWGlobal market size – $612 billion (2016)Expected to grow at a CAGR of 7 percent to $700 billion by 2018

TOP GLOBAL SERVICE PROVIDERS

Jones Lang LaSalle (JLL)

ISS

CBRE

Sodexo

Compass GroupBUYER POWERFor small contracts

($5 million to $25 million),buyers have lower bargaining power compared with large contracts (>$25 million)

Medium Market Maturity Regions UAE, Saudi Arabia, Qatar, Singapore, Canada, Eastern Europe

2High Market Maturity Regions U.S., UK, Australia, Germany, France, Spain, New Zealand

1Cushman and Wakefield

IFM CONTRACT PERIOD

Average period: Three Years

NEGOTIATION FACTORSManagement Fees

Incentive FeesRebates

PRICING IN IFMCost-plus Pricing Guaranteed Maximum Price

IMPACTFUL COST COMPONENTSLabour costs (wages and benefits)constitute nearly 50 percent of total costs

Sources: Primary Expert 1, Primary Expert 2, Beroe Analysis

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Executive Summary Global FM Industry Outlook - 2016

High Medium LowMarket Maturity

• The global FM market was valued at $612 billion in 2016• The market is forecasted to grow at a CAGR of 7 percent, to $700 billion by 2018• Regions such as Western Europe, North America, and some parts of APAC such as Australia, Japan, Hong Kong, and Singapore have high market

maturity• APAC and parts of Latin America are expected to be the potential growth markets for FM services by 2020

01

02

03

0405

01 North America

$185 billion growing

at 5–7 percent

02 Latin America

$34 billion

growing at 7–9 percent

03 Europe

$205 billion growing

at 5–7 percent

04 Middle East and Africa

$34 billion growing at

5–7 percent

05 APAC

$154 billion growing

at 10–12 percent

Sources: Primary Expert 1, Primary Expert 2, Beroe Analysis

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High Maturity Regions

Countries:

U.S., UK, Australia, Germany, France, Spain, New Zealand

Executive SummarySupply Market Outlook

Suppliers: Established service providers have been providing outsourced FM services for more than two contract generations

Widely adopted engagement

strategy

Upcoming engagement

strategies

Large bundled contracts

IFM and TFM contracts

Low Maturity Regions

Countries:

Major parts of Asia, Africa, South America

Suppliers: Owing to lower demand, the FM market is highly dispersed with local service providers that are more tactical in nature

Widely adopted engagement

strategy

Upcoming engagement

strategies

In-house FM services, Single

services contracts

Single services contracts

Medium Maturity Regions

Countries:

UAE, Saudi Arabia, Qatar, Singapore, Canada, Eastern Europe

Suppliers: With established global service providers having a good presence in the market, local service providers are providing higher service offerings and better quality

Widely adopted engagement

strategy

Upcoming engagement

strategies

Small-medium bundled contracts

IFM contracts

Low-Medium Maturity Regions

Countries:

India, South Korea, China, Mexico, Malaysia, Brazil

Suppliers: The suppliers market is largely driven by the presence of multinational FM firms trying to enter these emerging markets because of their high growth potential

Widely adopted engagement

strategy

Upcoming engagement

strategies

In-house FM services, Single

services contracts

Single services, Bundled service

contracts

Medium Medium-Low

LowHigh

Source: Beroe Analysis

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