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Global FM market will reach $2,127bn by 2027

The global facility management services market was worth approximately $1,314 billion in 2018 and is expected to generate around $2,127.4 billion by 2027, at a CAGR of around 5.5%.

That’s according to a new report by Zion Research, which says there’s increasing demand for integrated facility management owing to growing awareness regarding the benefits associated with its adoption.

Furthermore, the rising concerns regarding corporate social responsibility due to various legislative requirements to decrease ecological footprint is further expected to drive the facility management services market globally.

However, the reports cites a presence of unorganised players delivering low-cost services is restraining the facility management services market growth.

Based on facility management type, the forecast market value includes in-house, outsourced, and integrated. Integrated facility management is expected to show the fastest CAGR over the forecast time period, owing to the growing software need to achieve economies of scale.

By solution, the forecast includes integrated workplace management system, building information modeling, facility operations, and security management, facility environment management, and lease accounting and real estate management.

The facility operations and security management segment held a major market share in 2018, due to the rising software demand from various organizations to manage different operational areas, such as facility lighting, video surveillance and access control, HVAC, and emergency incident management.

Carillion reduces full year revenue outlook after ‘disappointing’ first-half

Troubled British multinational FM and construction firm Carillion Group has revised its full year outlook after what it referred to as a disappointing set of first-half results.

Revenues are now expected to be £4.6bn-£4.8bn, down from £4.8bn-£5bn, with a further £200m provision in respect of 23 of its support services, adding to the £845m provision for loss-making construction contracts that it announced in July.

The debt accumulated by the company, from weak cash flow to failure to replace completed contracts, has climbed from £42m in 2007 to an average of £694m in the first half of 2017. The company forecasts full-year average net debt to be in the region of of £825m-£850m.

The results saw a significant drop in the company’s share price, down more than 70% for the year to date.

Discussing the results, Carillion Group’s interim chief executive Keith Cochrane said: “This is a disappointing set of results which reflects the issues we flagged in July and the additional £200m provision for our support services business that we have announced today. We now expect results for the full year to be lower than current market expectations.

“The strategic review that we launched in July has enabled us to get a firm handle on the group’s problems and we have implemented a clear plan to address them.”

Carillion Group has said previously that it would consider “all options to optimise value for the benefit of shareholders”. Conversations have already taken place to reduce cost and debt by selling off parts of its overseas business.

Cochrane added that the group had made “an encouraging start” to deal with the issues it faces.

“Supported by an operating model that manages risk much more effectively, and led by a fresh management team with a mandate to drive cultural change, I am confident a strong business can emerge,” he said.