REGION: WEST AND NORTH YORKSHIRE

As elsewhere in the UK, volume and value in the contract cleaning market in Yorkshire has historically been driven by the public sector. While that will continue to be the case, budget constraints and reorganisation of facilities management (FM), particularly within the NHS, is changing the nature of public sector awards in the region.

Companies are likely to see rationalisation and consolidation of tenders on a scale not seen before. Where, for example, 2,300 agreements were in place with 1,000 different suppliers across the UK to provide soft and hard FM for NHS offices, primary care trust facilities and community health centres, NHS Property Services announced in February 2016 that it would be looking to award just 50 primary contracts in future.

The impact of this on the contract cleaning supply chain is likely to be two-fold: primary FM contractors will look to sub-contract or build strategic alliances with specialist cleaning services; while others will seek to acquire such companies, leading to further consolidation in an industry that has already seen considerable vertical integration.

For those companies that remain independent, however, other doors are opening.

Yorkshire benefitted from a £100m government investment under the Priority School Building Programme in 2014/15 with eight construction sites underway in the North and West of the region. Meanwhile, at least five new Academy funded schools are due to open over the next two years, bringing further opportunity in the regional education sector which is noticeable for its preferred use of locally based contractors.

This report will provide a strategic framework for SMEs in the regional contract cleaning industry by:

• Examining the drivers affecting both the public and private sector contract cleaning market in North and West Yorkshire;
• Highlighting opportunities for segmentation and specialisation that have not been exploited by SMEs to the same extent as those in other regions;
• Providing a detailed list of tender opportunities likely to come to the market over the next five years, including key dates, current incumbent and awarding body.

Contact Us on 0845 83 85 441 to receive the full report.

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Published: March 2016