Market Trends of Singapore Facility Management Industry
The In-house Facility Management Segment is Expected to Witness Growth
- The deployment of in-house teams for facility management is a strategy in which a company leverages its internal resources and workforce to oversee its facilities and infrastructure. This strategy entails recruiting and retaining a dedicated team of professionals responsible for maintaining and supervising the organization's physical assets, such as buildings, equipment, security, and environmental sustainability. Furthermore, in-house facility managers may possess valuable location and business-specific knowledge, such as VIP arrival schedules. However, these managers typically receive a fixed salary.
- In-house facility management involves utilizing dedicated resources employed by the client organization to oversee and control performance within the traditional employee/employer relationship framework. In the realm of in-house facility management, specialized personnel are recruited to handle the maintenance and management of different aspects of a facility or area. While many services are outsourced to third-party providers, certain critical services like security or cybersecurity are kept in-house for enhanced safety and protection of the facilities.
- Increased economic activity, consumer spending, and tourism have all contributed to the rise in occupancy rates in large residential developments, hotels, and commercial properties. This has created a greater demand for enhanced facility management. Due to the increasing demand, the ongoing construction of office spaces is anticipated to propel growth in the in-house FM services sector. For instance, data from the Singapore Department of Statistics shows that in the third quarter of 2023, there was a planned supply of 1.17 thousand sq. m of office real estate in the pipeline, compared to 0.99 in Q2 2023.
- In addition, client organizations are rationalizing their facilities and operations to generate substantial profits in their business activities. It is essential for facilities to operate in an enhanced manner, which in turn enhances the efficiency of the business processes. One of the primary advantages of implementing the in-house FM approach is the extensive control and oversight that an organization maintains over its facilities. With an internal team, businesses can closely align their maintenance needs with specific requirements, objectives, and corporate culture.
- The sector is expected to witness a transformation in the way facilities management is perceived, leading to mutual benefits. It is predicted that companies will adopt collaborative efforts to enhance productivity through operational performance improvements, utilizing a unified tech-enabled strategy to optimize maintenance schedules from a distance. Organizations can establish and uphold uniform quality and service benchmarks with in-house teams. Direct employment of the team enables companies to guarantee alignment of policies, procedures, and performance with the values and expectations of the organization.
- Customization and adaptability are the crucial benefits of in-house FM. Internal teams are capable of swiftly adjusting to the evolving needs and priorities of the organization. They can introduce customized solutions and strategies to address specific challenges and opportunities that arise within the company. Additionally, teams within the organization facilitate better alignment with the company’s long-term goals and strategic objectives. The team in place can collaborate closely with other departments to ensure that facility-related decisions are in line with the overall mission and vision of the company.
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The Commercial Segment is Expected to Hold a Significant Share in the Market
- Commercial properties, from office spaces to retail centers, are experiencing many simultaneous changes. The technology supporting these buildings has evolved steadily over the past few decades. Tenant and user preferences have also been evolving gradually and then rapidly. The pandemic has altered the way individuals anticipate engaging with commercial properties, and the sector anticipates these changes to persist for an extended period. In order to meet these expectations and maintain financial sustainability, facilities management in commercial properties is heavily leveraging state-of-the-art technologies.
- Commercial establishments mainly include office buildings used by business services, such as IT and communication corporate offices, manufacturers, and other service providers. The emphasis on providing suitable fittings, interiors, decoration, and management in commercial buildings has become significantly important, boosting the country's commercial sector market. The Singaporean construction industry has a crucial role in its economic growth and development. Increasing investments in the regional commercial sector are expected to lead to an increased demand for FM solutions.
- Commercial properties necessitate property accounting, contract management, leasing, procurement management, and various other services, making it essential to enlist the expertise of professionals. As a result of these factors, the commercial sector presents growth prospects in the market, with the trend expected to persist significantly during the projected period. Rapid urbanization, increased mechanization, population expansion, and a rise in IT and infrastructure building projects are expected to drive the commercial construction industry in the region. These elements are expected to fuel the need for facility management solutions.
- For instance, in May 2023, Willowmore Pte Ltd and CBM Pte Ltd joined forces to collaborate on the creation of an innovative integrated facilities management platform to transform the facility management industry. This groundbreaking platform is expected to merge cutting-edge technologies such as 5G, IoT, digital twin, data analytics, RPA, and AI with robots and automation, resulting in a comprehensive and unified approach to managing facilities and infrastructure. The platform is expected to facilitate predictive maintenance, real-time monitoring, automated reporting, and seamless two-way communication among its many capabilities. Such vendor activities in the region are expected to enhance the potential of the market.
- The Singaporean facility management services market can experience a favorable impact due to the increased investments in infrastructure development. The construction of new infrastructure projects creates a higher need for efficient facility management to maintain, handle, and operate these facilities effectively. Consequently, the demand for facility management services is expected to grow as organizations and government entities seek to ensure the proper upkeep and functionality of their assets. As a result of these developments, economic growth, and ongoing diversification, the market is anticipated to present lucrative growth opportunities during the forecast period.
