Market Trends of North America Soft Facility Management Industry
This section covers the major market trends shaping the North America Soft Facility Management Market according to our research experts:
Healthcare Industries is Expected to Bring New Opportunities for SFM Vendors
- Healthcare has become one of the leading sectors, owing to the increasing number of patients and rising healthcare expenditure by the public and private players in healthcare systems. As per the data published by the Centers for Medicare and Medicaid Services (CMS), in the United States, national healthcare spending is projected to grow at an average rate of 5.4% per year during 2019-2028, reaching nearly USD 6192.5 billion by 2028.
- Healthcare industries are also expanding their operations worldwide, which might create opportunities for the SFM Market. For instance, ISS, headquartered in the United States, is planning to strengthen its position in the healthcare segment in Turkey. ISS will provide Facility Management (FM) services (cleaning, security, food, pest control, landscaping, reception, patient transport, laundry services, and waste management) in a Public-Private-Partnership at four newly built hospitals (Adana, Elazıg, Bursa, and Yozgat) in Turkey until 2045.
- Healthcare establishments require various facility management services, such as waste management, security services, catering services, cleaning services, technical support services, and many more, whose demand is likely to increase soon. With increased investments in healthcare infrastructure, the demand for Soft Facilities Management is expected to grow.
- Furthermore, in May this year, Penn Highlands Healthcare started construction of a new hospital with an investment of USD 70 million, which includes a technologically advanced hospital and medical office building in State College. It is anticipated that the new healthcare construction trends will continue in the upcoming years. Increasing awareness of the need for cleanliness, security, and maintenance will fuel the North America Soft Facility Management market.
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United States is Expected to Witness Significant Growth
- In addition, increased investments in infrastructure developments drive the demand for Soft Facility Management across the United States. For instance, ISS awarded a 5-year contract to provide integrated facilities management services with a major US retailer. ISS will provide integrated facilities management services across the retail, office, and industrial space. ISS's integrated facilities management service includes providing technical, food, workplace experience, and cleaning services.
- The growth in construction activities across the United States is significantly boosting the demand for FM services in the region. For example, the rising global population is increasing the demand for food and beverage industries. For instance, Biotics Research Corporation, a nutritional supplement maker, is planning to spend USD 9 million to build an 88,000-square-foot warehouse, laboratory, and office facility in the United States and expects to complete it by 2023.
- Similarly, in June last year, Darigold announced the plan to spend USD 500 million to build a 400,000-square-foot processing facility in the United States by the end of 2023. Such projects are expected to drive the demand for SFM services in the country.
- Key players offer soft facility management services and contribute significant growth in the market. For instance, CBRE Group Inc. provides soft facility services such as cleaning, catering, etc. The company's services saw a significant slump due to COVID-19. Post-COVID-19, the demand for cleaning and catering is expected to create new opportunities for the SFM market.
- According to the CMM survey, approximately 40% of the respondents spent between 21% and 40% of their operating budget on facility management services, especially cleaning /maintenance equipment and supplies. This indicates that the rising demand for cleaning/maintenance services will contribute to growth in the market.
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