The BGL Consumer Products & Retail Services Insider addresses capital markets and mergers and acquisitions activity, financial and operating performance of certain publicly-traded companies, and trends and issues affecting the industry.

In this edition we include a sector spotlight on  Facilities Management.  The market for outsourced facilities maintenance services is large and growing and is attracting significant investor interest, as evidenced by healthy transaction activity from strategic and private equity buyers alike. The trend toward service integration has fueled acquisition volumes, as industry participants focus on building vertical expertise and broadening their footprints in a highly fragmented marketplace.

Trends expected to drive future industry growth and consolidation:

  • Increased outsourcing as retail platforms look to reduce operating costs and concentrate resources on core revenue generating activities
  • Continued shift toward service integration to fuel growth in integrated facilities management
  • Importance on service quality, vendor management and integrated reporting
  • Use of technology to improve service delivery and service reporting to the customer
  • Increasing focus on sustainability presenting opportunities in energy management and green building construction
  • Recovery in the commercial construction market and improving levels of industrial/commercial investing