Predictably Unpredictable. The General Election and what comes for facilities management in the public sector…
General election periods always produce a great deal of uncertainty for our customers…whether that’s with our public sector clients who are waiting to see what impact new policies and political direction will have on their local strategies and plans, or with the service providers we work with who are waiting to see how new economic management will affect risk and investment appetites.
The context for this election has been a tumultuous global socio-economic backdrop meaning that, to some extent, the country and economy can’t afford to indulge in the more extreme political ideologies that some protagonists are extolling. With this in mind, apart from a few eye-catching headline policies, it’s difficult to know what to expect and, therefore, what we should all hope for our sector under the new Government – whatever colour it is.
We’ve been speaking to our customers to find out, in terms of property and facilities management, what they want from the future. A few themes have become clear and, repeatedly, we’re hearing that the same three headline concerns.
Employment Market.
Facilities Management is, at heart, a people business that relies on, quite often, low paid colleagues to deliver services. Across our portfolio, we’re consistently hearing that recruitment of people into these roles is a challenge that is increasing, driving higher costs. Can the new Government unlock this challenge and create a more sustainable market for employers, employees and service stakeholders.
Sustainability.
For a number of years, Government procurement policies have mandated social value as a key part of public sector evaluation processes. However, the balance hasn’t quite been found between ensuring this important topic is considered seriously and not making these considerations more important than fundamental deliverables. All our clients would like to see this addressed so they can provide their local communities (or the communities of their customers) with tangible value that doesn’t come at the expense of service delivery.
Value over price.
It’s a cliché but, given the maturity of our market, this is becoming increasingly important as it’s ever more difficult to drive short term cash savings through facilities management contracts. Areas of the public sector (I’m looking at you healthcare) are beginning wake up to this, but the fact remains that there isn’t a lot of cash washing round the sector. How the new Government deals with this conundrum – without unpopular tax rises – is the most discussed issue we come across when talking to our customers.