Cost Savings Drive End Users in Europe to Embrace Integrated Facilities Management, Finds Frost & Sullivan

LONDON, May 4, 2010 - Although the integrated facilities management (IFM) market is growing,
the extent to which end users are embracing the concept of IFM varies
significantly by region and vertical. As such, while IFM is already widely
adopted among large office sites of international corporations across Europe,
it is still in an initial stage in various public sector markets. Common to
all end users, the main appeal of switching to IFM lies in the promise of
further cost savings. IFM providers that can leverage synergies from the
integration of services to help reduce administration, create economies of
scale and ultimately provide cost savings to the client's organisation, will
benefit from the rising demand for single contact solutions across all the
end-user verticals.

(Logo: www.newscom.com/cgi-bin/prnh/20081117/FSLOGO)

New analysis from Frost & Sullivan (
www.buildingtechnologies.frost.com), European IFM Market: Opportunity
Analysis by Vertical Customer Sector, finds that the market earned revenues
of euro 11.6 billion in 2008 and estimates this to reach euro 17 billion in
2015. The end users covered in this research are the public sector, which
includes healthcare, education, government and semi-public institutions, as
well as the private sector that covers commercial offices, financial services
and manufacturing.

"While the government is currently investing in the public sector to
mitigate the impact of the economic downturn, debts are mounting and cost
pressures will drive the public sector to save wherever possible by adopting
outsourcing in the medium and long-term," says Frost & Sullivan Industry
Analyst Michael Meyer. "The private sector is quicker to react to the
economic slump than the public sector."

Real estate management and facility management have gained greater
importance in the boardrooms, especially of financial companies. Cost-saving
measures like further outsourcing and tendering for combined services are
benefiting the IFM market and cushioning the impact of reduced costs in
discretionary spending.

Although the growth of the private sector in the IFM market has been
affected by smaller contracts and the economic crisis, it will continue to
grow in the long term. During the economic downturn, the growth of the public
sector in the IFM market was sustained due to continued spending. Medium- and
long-term growth is due to a constantly increasing propensity to outsource as
a solution for dealing with amassing debts in the public sector.

However, the United Kingdom's private sector in the IFM market has been
maturing for some time, and the challenge for all IFM participants is to
reach a balance between being competitive and achieving minimum margins. In
the current economic crisis, this challenge has become significant as IFM
providers are accommodating requests to reduce spending on services that are
seen as discretionary, to avoid risking long-term partnerships with their
clients.

The increasing demand for value-added services will continue to drive
service integration, especially where synergies with other services can be
demonstrated. This is particularly relevant for environmental services as end
users demand that their facility managers should also function as their
sustainability managers.

"The drive towards energy efficiency offers opportunities for IFM
providers with capabilities in environmental services and a way to
differentiate their service offer," concludes Meyer.

If you are interested in more information on this study, please send an
e-mail to Chiara Carella, Corporate Communications, at
chiara.carella@frost.com, with your full name, company name, title, telephone
number, company e-mail address, company website, city, state and country.

European IFM Market: Opportunity Analysis by Vertical Customer Sector is
part of the Building Management Technologies Growth Partnership Services
programme, which also includes research in the following markets: Growth
Opportunities in the European I-FM Market (2009), European Facility
Management Markets: Impact on Growth of Integration and Globalization (2009),
Opportunities for Smart Buildings in Europe (2009), and Integrated Facility
Management (I-FM) - Customers' Opinions in the Hospital Sector in Europe
(2008). All research services included in subscriptions provide detailed
market opportunities and industry trends that have been evaluated following
extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to
accelerate growth and achieve best-in-class positions in growth, innovation
and leadership. The company's Growth Partnership Service provides the CEO and
the CEO's Growth Team with disciplined research and best-practice models to
drive the generation, evaluation, and implementation of powerful growth
strategies. Frost & Sullivan leverages over 45 years of experience in
partnering with Global 1000 companies, emerging businesses and the investment
community from 40 offices on six continents. To join our Growth Partnership,
please visit www.frost.com.

     European IFM Market: Opportunity Analysis by Vertical Customer Sector
                                    M4E7

    Contact:
    Chiara Carella
    Corporate Communications - Europe
    P: +44-(0)-20-7343-8314
    M: +44-(0)-753-3017689
    E: chiara.carella@frost.com

www.frost.com

Chiara Carella of Frost & Sullivan Corporate Communications - Europe, +44-(0)-20-7343-8314, mobile, +44-(0)-753-3017689, chiara.carella at frost.com