NEWS & ANALYSIS FMJ.CO.UK
ASSOCIATION NEWS
RESEARCH SHOWS VALUABLE CONTRIBUTION
FM MAKES TO THE ECONOMY
8 MARCH 2021
Two important
pieces of
Building Cost
Information
Service (BCIS)
construction data
illustrate how the
maintenance and
repair of buildings
is a significant
contributor to
the wealth and wellbeing of the nation. This
highlights the central role played by FM in the
economy.
The BCIS Economic Significance of Maintenance
Report estimates the annual national expenditure
on maintenance work on a consistent basis, and
compares the results with the value of the stock
of buildings and works to be maintained and the
general level of national expenditure (GDP).
The estimates are compiled from a variety of
sources with adjustments made to show the
overall trends in maintenance expenditure.
Where possible, the information has been taken
from o icial sources – mainly departmental
reports from ONS. In some instances, BCIS have
produced estimates based on the combination of
information sources.
According to the reports, the BCIS estimates
that £66 billion was spent on maintenance in
2019. This represents nearly three per cent of
gross domestic product (GDP) according to BCIS
latest Economic Significance of Maintenance
Report.
For its part, the BCIS life cycle cost
benchmark (which helps to compare costs
and activities of components to support the
ongoing management of a property portfolio)
estimates that maintenance (fabric and services
maintenance and decorations) represents around
40 per cent of total facilities management costs
(maintenance, cleaning and utilities).
According to Building Running Costs Online (the
estimating expenditure tool which helps facility
managers and surveyors find maintenance and
operating costs), this would value the FM market
at around 7.5 per cent of UK GDP.
Said James Fiske, Global Director and Data and
Information Products at RICS: “The FM sector
is a significant contributor to the wealth and
wellbeing of the nation. It already contributes
significantly to GDP but the sector will also
continue to play a critical part in transitioning
our work spaces into safe and productive
environments – something that will have a
much wider impact on our economy over the
forthcoming months.”
Of the £66 billion maintenance expenditure,
£34 billion was spent on housing and £32 billion
on non-housing. At constant prices, this shows
an annual growth of 0.7 per cent in maintenance
spending in 2019, which is the seventh successive
annual increase; output having increased by over
18 per cent since 2012.
In 2019, the value of the gross capital stock of
building and works, at replacement cost, was
£6,448 billion. This suggests that spending on
maintenance represented just over one per cent
of the value, at replacement cost, of the stock of
the building and works maintained.
For more information visit: www.rics.org/uk/
LEAD US TO A BETTER TOMORROW
The British weather is quite like the
COVID-19 situation: following Boris
Johnson’s announcement of the
Government’s roadmap out of lockdown, the
dark blanket of clouds is starting to dissipate,
promising better times to come – times when
we can thrive in the sun again, surrounded by
the buzz of life and invigorated by the opportunity to begin again. However,
just like our unpredictable weather, the path to those brighter days remains
uncertain. But the sun is coming and when it does fully emerge, we will find
our profession presented with an extraordinary opportunity to lead the
charge for a fresh start.
In the past year, workplace and facilities managers have proven their
indispensable value through the outstanding service and crucial support
provided to communities, colleagues, organisations, infrastructure and
the economy during this unprecedented crisis. Their powerful influence is
recognised like never before and now, to borrow an IWFM value, they must be
‘confident and bold’ in helping organisations and the country to reimagine the
future.
A key part of this will be the future of the workplace – particularly for o icebased
workers. Research on the e ects of the pandemic, including our own
time-series research (which we are about to update), has shown that the o ice,
whilst not dead, is no longer the hallowed summit for productivity. Thanks to
our profession’s hard work in enabling a smooth transition to home-working,
eyes are now open to new possibilities and a future where work is no longer
a destination, but an activity which can be carried out with equal or greater
quality in multiple settings, including at home.
In short, the future for many of us will be hybrid working, but whilst we must
be ‘confident and bold’ in realising a new way of doing things, it is equally
important to make carefully considered, data-informed decisions that consider
the views of employees. We have heard of some organisations rushing their
people back to o ices or rushing to shut o ices and imposing home-working;
this simply will not do. Rather than impulsively veering to extremes, we must
listen, observe, learn and build a workplace strategy based on evidence.
You will hear more from IWFM on hybrid working in the coming weeks, so
watch this space. A er that, we have World FM Day on 12 May, which we are
especially proud to support this year as its theme is ‘Standing tall beyond the
pandemic’. I hope you will join me in not only celebrating what our profession
has achieved, but in looking ahead at what we can go on to achieve.
Then on 13 September, IWFM Conference 2021 will guide, inform and lead
our profession on the theme of ‘Emerging stronger’ so that you are equipped
to exert your powerful influence and help us all to
‘build back better’. Tickets go on sale this month and
my sincere hope is that I will be able to see some of
you in person. Either way, better times are coming
and we will help you make the most of them.
Paul Bagust - Global Property
Standards Director, RICS
IWFM CEO, Linda Hausmanis
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