Facilities Management Outsourcing - Health and Education Markets - UK 2009-2013

Table of Contents

CONTENTS and LIST OF TABLES & CHARTS

1. INTRODUCTION 5

2. SUMMARY AND FUTURE PROSPECTS 6

• 2.1 EXECUTIVE SUMMARY 6
• 2.2 FUTURE PROSPECTS 8

3. ECONOMIC ENVIRONMENT 11

• 3.1 GDP 11
• 3.2 INFLATION & INTEREST RATES 12
• 3.3 UNEMPLOYMENT 13
• 3.4 PUBLIC SECTOR EXPENDITURE 13
• 3.5 BUSINESS CONFIDENCE 15
• 3.6 STERLING 16
• 3.7 CONCLUSIONS 17

4. FACILITIES MANAGEMENT OUTSOURCING MARKET 18

• 4.1 DEFINITION 18
• 4.2 MARKET SIZE AND TRENDS 19
• 4.3 LEGISLATION 23
• 4.4 MARKET MIX BY END USE SECTOR 25

5. FM IN THE HEALTH & EDUCATION SECTORS 27

• 5.1 OVERVIEW, MARKET SIZE AND TRENDS 27
• 5.2 MARKET MIX 30
• 5.3 KEY MARKET INFLUENCES 32
  • 5.3.1 Healthcare and Education Construction Output 32
  • 5.3.2 Public Private Partnerships 34

6. FM IN THE HEALTH SECTOR 38

• 6.1 OVERVIEW, MARKET SIZE AND TRENDS 38
• 6.2 PPP/PFI 40
• 6.3 LOCAL IMPROVEMENT FINANCE TRUST (LIFT) PROGRAMME 47
• 6.4 PROCURE 21 51

7. FM IN THE EDUCATION SECTOR 55

• 7.1 OVERVIEW, MARKET SIZE AND TRENDS 55
• 7.2 PPP/PFI 57
• 7.3 BUILDING SCHOOLS FOR THE FUTURE 63
• 7.4 ACADEMIES PROGRAMME 67
• 7.5 HIGHER EDUCATION 68

8. CONTRACTORS REVIEW 71

• 8.1 ORIGINS AND SUPPLY STRUCTURE 71
• 8.2 CONSORTIA/SPV' S 73
• 8.3 KEY TRENDS 73
• 8.4 MARKET SHARES 76
• 8.5 COMPANY PROFILES 77
  • 8.5.1 Leading FM Contractors 77
  • 8.5.2 Other Large Companies in the FM Market 86

TABLES AND CHARTS

• CHART 1 UK BUNDLED FM OUTSOURCING MARKET WITHIN THE HEALTHCARE AND EDUCATION SECTORS AT CURRENT PRICES 2003 - 2013 6
• CHART 2 INTEREST RATES AND INFLATION (CPI) FROM 1992-2013 12
• TABLE 3 TOTAL PUBLIC SECTOR CAPITAL BUDGET - DEPARTMENTAL EXPENDITURE LIMITS OUTTURNS AND PLANS (£BILLION) 14
• CHART 4 BUSINESS CONFIDENCE - SERVICE & MANUFACTURING SECTORS 1992-2008 15
• TABLE 5 EXCHANGE RATE FLUCTUATIONS 2002-2008 - STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 16
• CHART 6 UK BUNDLED FM OUTSOURCING MARKET AT CURRENT PRICES 2003 - 2013 20
• CHART 7 UK FM SERVICES MARKET SHARE BY VALUE - 2008 26
• TABLE 8 UK EDUCATION AND HEALTHCARE FM OUTSOURCING MARKET 2003-2013 (CURRENT PRICES) 28
• TABLE 9 DEPARTMENTAL EXPENDITURE LIMITS FOR THE HEALTH AND EDUCATION RESOURCE BUDGETS £BILLION 30
• CHART 10 MIX OF FM MARKET BY VALUE BETWEEN THE HEALTH AND EDUCATION SECTORS - 2008 30
• CHART 11 FM OUTSOURCING LEVELS IN THE HEALTH AND EDUCATION SECTORS BY VALUE - 2008 31
• TABLE 12 CONSTRUCTION NEW WORK OUTPUT 2003 - 2013 (£M) AT CURRENT PRICES - PRIVATE & PUBLIC HEALTH AND EDUCATION SECTORS 33
• TABLE 13 SIGNED PFI PROJECTS BY GOVERNMENT DEPARTMENT 2003-2008 - CAPITAL VALUES £M 35
• TABLE 14 PROJECTED SERVICE PAYMENTS UNDER HEALTHCARE & EDUCATION PFI CONTRACTS - 2007/2008 TO 2014/2015 36
• TABLE 15 UK HEALTHCARE MARKET FOR FM OUTSOURCING 2003-2013 (CURRENT PRICES) 38
• TABLE 16 NHS PFI PROJECTS WITH CAPITAL VALUES £20M+. SIGNED & PREFERRED BIDDER STATUS AS OF JANUARY 2009 41
• TABLE 17 NHS PRIORITISED PFI HOSPITAL SCHEMES IN ENGLAND - STATUS AS OF NOVEMBER 2008 46
• TABLE 18 NHS LIFT PROJECTS - SIGNED & PREFERRED BIDDER STATUS AS OF JANUARY 2009 48
• TABLE 19 PROCURE 21 PRINCIPAL SUPPLY CHAIN PARTNERS & FM PROVIDERS AS AT JANUARY 2009 52
• TABLE 20 ISTC SCHEMES & PROVIDERS AS OF JANUARY 2009 53
• TABLE 21 UK EDUCATION FM OUTSOURCING MARKET 2003-2013 (CURRENT PRICES) 55
• TABLE 22 UK - ENDORSED SCHOOLS PFI PROJECTS - SIGNED & OTHER STATUS OVER £20M, AS OF JANUARY 2009 58
• TABLE 23 BUILDING SCHOOLS FOR THE FUTURE PROGRESS AS OF JANUARY 2009 64
• TABLE 24 PROJECTED NUMBER OF SCHOOL OPENINGS UNDER THE BSF PROGRAMME 2008/09 - 2011/12 67
• CHART 25 DIUS CAPITAL EXPENDITURE LIMITS 2003/04-2010/11 £M 69
• TABLE 26 THE LEADING 20 FM SUPPORT SERVICES COMPANIES IN THE UK HEALTHCARE AND EDUCATION SECTORS 77