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In the post-Great Recession period, as industrialization and urbanization increased, as residential and non-residential construction activities surged, services to manage and maintain the buildings and properties being generated grew in proportion. Then the COVID-19 pandemic changed everything.
The pandemic has forced many companies in the global facility-management services market to halt their business operations to comply with new government regulations for curbing the spread of COVID-19. In addition, there is a halt in providing facility-management services to end users such as commercial, industrial, and institutional facilities due to lack of manpower.
Facility-management services offer maintenance support and escalate the value of a building or infrastructure. In addition, these services have revolutionized commercial and industrial buildings, by maximizing returns on real estate investments for owners through value-added programs and superior management expertise. These services directly support owner’s financial and operational goals. The various types of facility-management services consist of cleaning, electrical services, landscaping, plumbing, security, and others. The scarcity of a skilled workforce, however, hinders market growth.
With stringent regulations in place, the COVID-19 pandemic has seen the rise of automation in facility management processes such as move-ins, energy management, service requests, and workspace customization. Technological advancements and investments in the infrastructure create new opportunities in the coming years. As government investments in the building infrastructure sector and technological advancements in facility-management services increase, growth opportunities will increase. For instance, drones can be used for inspection and security, holograms can be used for doors and electronic equipment, and elevator maintenance can be accessed through microchip implants. IoT (internet of things) technology is being used for indoor navigation, maintenance, security, and smart meeting rooms. Further, using RTLS (realtime locating systems), companies can track large numbers of supplies and people.
As no new consignments are being received by the companies operating in this sector, stoppage in construction activities and lockdowns for several months have affected the global market with slow recovery is anticipated during 2020-2027. Yet, according to a report from Allied Market Research, the global facility management services industry generated $954.0 billion in 2019, and is expected to reach $1,422.6 billion by 2027, witnessing a CAGR (compound annual growth rate) of 6.6% from 2020-2027.
The demand for facility-management services has grown as organizations, hotels, and manufacturing plants are beginning to restart their operations after lockdown restrictions are lifted. The properties have been trying to maintain the highest standard of hygiene and safety for their workers and customers. However, companies have been facing issues of lack of sufficient manpower as workers have not returned from furloughs.