The facilities management sector has always played a pivotal role in supporting public sector services, but today's landscape presents a particularly complex set of challenges and opportunities. Economic pressures, sustainability commitments, and the rapid advancement of technology are redefining expectations and reshaping priorities across the industry.
In response to this, the recent Public Sector FM Strategic Roundtable brought together leading voices from across the sector to address these pressing issues head-on. Chaired by John Kenny, Commercial Deputy Director – FM and Estates Support Services, the event fostered a space for candid discussions, knowledge sharing, and the exploration of actionable strategies to strengthen outcomes for clients, suppliers, and the FM workforce.
The session underscored that while the challenges are significant, so too are the opportunities for transformation. By embracing innovation, improving collaboration, and sharing knowledge, the public sector FM industry can deliver:
Stronger Partnerships: Building trust and transparency between clients, suppliers, and stakeholders.
Future-Ready Strategies: Leveraging technology and best practice to address long-term barriers.
Sustainable Outcomes: Aligning services with net-zero targets and wider social value goals.
Reflecting on the session, Pareto Founder and Vice Chair, Andrew Hulbert, shared:
"Today’s session was a crucial platform for exploring the complex challenges and opportunities shaping the facilities management (FM) sector. From macroeconomic pressures like hyperinflation and wage growth to client-side demands such as deferred maintenance and greening commitments, the discussion highlighted the urgent need for systemic change. Key themes included addressing low margins, improving risk apportionment, and embracing advances in artificial intelligence and technology to drive innovation. By focusing on public sector FM, commissioning improvements, and the evolving role of PFI, we identified actionable steps to enhance outcomes and tackle critical barriers. Despite the challenges, it’s clear that collaboration, innovation, and shared learning can create a stronger, more resilient FM industry for the future."
Below is the full hypothesis from John Kenny framing the session, highlighting the key themes explored and areas for discussion:
As we are all aware, the sector is facing some substantial development and challenges, many of which are outside of the direct influence of us all. Equally, whereas the sector is seeing some great innovation, it is also seeing signs of distress amongst its suppliers, clients and workforce. To understand the context we take it as given the following emergence and challenges facing the sector;
MacroEconomic - Hyperinflation, Wage growth, consumer quality expectation, statutory obligations, technological change, sustainability commitments, resource and talent acquisition pressures, ageing workforce, martyn’s law, climate and socio economic changes.
Client Side - Reduced fiscal envelopes, deferred maintenance crisis, change in usage patterns, greening commitments, imminent facility failures, emergencies, change in functional requirements, government manifesto
Industry - low margins, constant bidding, variation based business model, increased compliance, bad handovers, low quality data, insourcing
The intent of this first session is to understand our mutual perspectives and distill the knowledge with the following aims:
Build a richer picture of challenges facing the client and industry - and get a better view of ‘what’s going on here’ at a systemic levelExchange ideas on what clients and suppliers will change if their roles were reversed - as a window into small and big frustrations / opportunities. Identify common ground of ‘easy picking’ to be fixed in the short to medium term to respond better to challenges and improve the status quoIdentify ‘wicked’ issues, that need resolution to make any material changes to our approach but require long term sustained focus
Whilst our aim to start to build a collective picture of where we are now, we will be aiming to focus on 4 main thematic areas, where we'd like you to come prepared to share your views, these being;
The state of public sector FM - explore the key structural challenges faced and barriers to innovation in delivery of FM services, examples of which could include;
Non-standard maintenance approaches; outcome/output based
Specifications; excessive over-specification of labour inputs; options to improve asset lifecycle though efficiency measures
Employment rights, Making work Pay, supplier staff improvement of terms - to discuss the impact of all of the above and explore how any or all of them could impact this may have on overall affordability and cost pressures
Risk apportionment - explore the challenges faced by the market when bidding excessive risk transfer; high IRT's (circa £10k); margin erosion; are playbook commitments being eroded on risk transfer?
Commissioning and evaluation of 'modern FM' - Profession upskilling challenges for buyers; how can we upskill our people to buy better; need to change buying behaviour to improve overall outcomes
Artificial Intelligence/advances in Technology - how can we maximise and capitalise on the tech, culture and relationship advances in FM; what lessons can be learnt from the private sector and market leaders; what stifles innovation in the adoption of tech advances; challenges in evaluation of proposal
PFI - challenges faced by the operator sector for discussion. Cost pressures on reduction of lifecycle funding into new service contracts; asset condition risks; handback challenges; joint appointment surveying; shared acceptance of condition;
Finally, it's not all negative! What's working really well and what can we build on?
The Public Sector FM Strategic Roundtable was a powerful reminder that, while the facilities management industry faces considerable challenges, it also holds immense potential for transformation. Through
open dialogue, knowledge sharing, and a collective drive for innovation, the sector can pave the way for stronger partnerships, future-ready strategies, and truly sustainable outcomes.
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