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The Real Estate (RE) and Facilities Management (FM) market has been changing. Specialist single-service suppliers such as those providing catering, cleaning or maintenance services have seen relationships with their clients eroded or displaced by multi-service suppliers who have developed more strategic ties at senior levels.

Tier 2 & 3 relationships are often at operational levels and/or with a single site within a multi-site organization whereas the more strategic Tier 1 relationship covers all key executives in influential positions.

By understanding the totality of a major corporation’s culture and operational needs, service proposals can more accurately reflect these specific requirements.

As time moves on, even long-held Tier 2 & 3 relationships are eventually subjugated to Tier 1 suppliers at best. More often, the contract is lost to the Tier 1 provider

The trend within multi-site/multi-national organizations over recent years has been to centralize the RE/FM function, sourcing a limited number of outsourcing partners with which to share operational and financial risk. This market shift has best benefitted those suppliers that have been quick enough to adapt and, as such, there are numerous examples of multi-national RE/FM suppliers growing steadily even through recessionary times. Part of this growth has been through strategic acquisitions – addressing gaps in skills and expertise but much has been through the consolidation of the market towards those able to offer significant savings through economies of scale.

P&A’s understanding of market trends has been of significant value to those service providers seeking to improve their strategic approach to growth within the RE/FM market.

 

 

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