FM market growing in Australia and New Zealand
Government backing is helping to boost the Australian and New Zealand facilities management (FM) market, according to new research from Frost & Sullivan.
Consumers have become more discerning and their preferences are constantly evolving, not only due to Australia’s and New Zealand’s positive economic conditions, but also due to the growth in the construction sector. Consumer choices regarding the outsourcing of FM in Australia and New Zealand are based on diverse factors such as regulations and costs.
New analysis from Frost & Sullivan, IFM Market in Australia and New Zealand, finds that the market earned revenues of $5.14 billion in 2009 and is likely to reach $7.87 billion in 2016 in Australia; in New Zealand, it was $1.22 billion in 2009 and is likely to reach $1.66 billion in 2016.
The FM markets in both countries have the strong backing of their governments and regulatory agencies. The efforts of bodies such as the Property Council of Australia have made the country one of the most sophisticated property sectors in the world, creating a plethora of opportunities for FM vendors.
Meanwhile, in New Zealand, green facilities management (GFM) has been garnering considerable attention due to its cost- and energy-saving features, gaining long-term investment potential.
End users in both countries prefer outsourcing GFM due to the high starting costs, which can be lowered by FM companies. Moreover, these companies can provide consultations on the better utilisation of GFM systems in different facilities.
“In Australia, the education and commercial office sectors remain the key outsourcing sectors for the FM market,” says Frost & Sullivan associate Janice Wung. “In New Zealand, the growth in the construction sector due to an increase in the number of buildings and the availability of advanced technology has stimulated the FM market.”
However, the constructions sector’s constant issues with the FM market, the economic slowdown, and the lack of qualified facility managers and skills development are restraining the Australian FM industry. The situation is similar in New Zealand, although the country has fewer regulatory hassles.
The proliferation of applications has compelled participants to equip their personnel with the required technology skills so that they do not become obsolete. Unlike neighboring countries, there are limited specialised FM courses in New Zealand and the awareness about the service is generally limited to property managers. This makes it difficult to recruit the right candidates.
In Australia, all building industry stakeholders such as contractors, architects, developers, building owners, and facility managers have to collaborate to bolster the FM market. It is essential to ensure that all parties interested in advancing any area that applies to construction, property ownership, or facility management concur on a single agenda, as it will create a powerhouse for addressing their vital issues.
The New Zealand market’s prospects are bright, as it is bound to expand with higher demand from end users and the passing of favorable regulations.
“The requirements of a facilities manager are not commonly standardised and certified in New Zealand due to the lack of an accreditation body for the FM,” notes Wung. “The formation of Facilities Management Association New Zealand (FMANZ) speeds up the growth of this market and sets up a benchmark for FM practices in the country.”