is of Facilities Management in Retail, Wholesale and Warehousing – Australia, finds that market revenues are expected to grow at a compound annual growth rate of 0.8 per cent over the period 2012 to 2019. In 2012, 35 per cent of FM services were outsourced, with the remaining 65 per cent, delivered inhouse. Of the outsourced services, only one percent was estimated to have been delivered as an integrated facilities management (IFM) solution, while 91 per cent was delivered as ‘other services’ (70 per cent provided as single FM services and 30 per cent as bundled FM services). The FM market, like many others, has benefitted greatly from Australia’s stable economic climate. While several economies in Europe and North America declined during the global downturn, Australia became even more prominent. The retail market’s forecast growth rate of 2.9 per cent in 2012-2013, although modest, is still higher than Europe’s or North America’s. “FM providers will be able to extract greater benefit if they are successful in altering the perception among large shopping centre owners that the operations and maintenance of the shopping centre is core business,” said Frost & Sullivan industry director, Ivan Fernandez. As the state of the shopping centre directly translates into higher rents and profits for building owners, they look to manage FM services inhouse and outsource only single FM services (cleaning, security services, repairs). Retaining FM inhouse is also a cost cutting measure, with some shopping mall owners reducing cleaning hours by as much as 20 per cent. Added to this, the growing popularity of online shopping is reducing floor space and the requirement for certain FM services, however, it also increases the need for services such as storage, logistics, and delivery services. “Another new trend that is influencing the FM market is the mushrooming of green buildings,” notes Fernandez. “The sustainable management of these buildings will present FM providers with opportunities to strategise and innovate their offering,” he said. Market participants will look to optimise energy use and make efficient use of materials, transport, cleaning, water use, heating, ventilation, air conditioning (HVAC), or insulation. These market trends are expected to drive demand for FM services for larger facilities through integrated service offers. For more information on this report, email djeremiah@frost.com.