Mexico Facility Management Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Mexico Facility Management Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Mexico facility management market is expected to grow at a CAGR of 7.23% during the forecast period, 2022-2027. The growing emphasis on outsourcing non-core operations and growth in the real estate sector is expected to drive the Mexico market for facility management services. The government regulation on safety measures and environmental concerns to follow green practices is expected to drive the market.

• Facility management (FM) consists of multiple disciplines to influence the efficiency and productivity of organizations. Conforming with the industry best practices, the new management system standard constitutes a benchmark for developing and driving practical strategic, tactical, and operational FM principles across Mexico.
• With infrastructure development projects rising across Mexico for economic growth, allied FM services are also required. Hence, a Facility Management Standard that sets apart the industry by adopting global best practices and policies offered a win-win situation for FM organizations and customers in the country.
• Services in the FM industry have been commoditized to a great extent. Also, end-users are very price-sensitive, and contracts are thus aimed at shorter terms. A real estate over-supply has created pressure on rent yields, thus leading the customers to cut costs on FM services.
• The increased spending on the infrastructural aspect can be cited as one of the primary drivers of the growth of the FM market. Moreover, the increasing focus on optimization processes and energy efficiency improvements are the main driving forces for developing the facility management market.
• The outbreak of COVID-19 has had a mixed business impact on facilities management firms, as the restrictions on the movement of people have resulted in a decline in project work and a reduced level of activity across many customer sites. Major players in the market, such as JLL Limited, CBRE Group, and others, were adversely affected due to the pandemic lockdown.

• Working with a single facility management service provider entails primarily delegating task management to separate entities. It also entails having a different service provider for each service the organization requires, such as cleaning, reception, and vending machines. Using the services of specialized service providers has several advantages.
• It enables the customers to concentrate on their core business, while single-service providers provide adequate services to customers and help operational efficiency. Having experts handle task management will result in higher efficiency and service quality. It will also free up company employees to focus on the most critical business areas while saving resources for non-core activities.
• The outsourced FM has been successfully used in various sectors, including the public sector, retail, professional services, healthcare, technology, logistics, manufacturing, and education. The areas that FM services look after vary widely, primarily depending on their type, the size of the company, and the sector in which it operates. Some organizations will only require a single service solution provider. This is driving the demand for single FM in the country.
• When businesses choose a single service provider, they outsource their day-to-day operations to a specialist provider. They can be assured of superior service quality and efficiency by hiring the help of specialists. Using several service providers is a time-consuming activity that necessitates the management of multiple vendors and the associated hazards.​ This helps create significant opportunities for the market vendors to expand single FM services in the country.
• In Mexico, FM vendors have been mainly concentrating on improving their service offerings and establishing themselves as a single-point option for end-to-end FM services. Single service provision is relatively straightforward; a purchasing organization procures a single FM service from a single supplier under a single service contract.

• The commercial end-user sector cover office buildings occupied by business services, such as corporate offices of manufacturers, IT and communication, and other service providers. Owing to this, the provision of necessary fitments and interiors and commercial buildings decoration and management has gained significant importance, driving the country's retail sector market.
• Moreover, the commercial sector covers office buildings occupied by business services, such as corporate offices of manufacturers, IT and telecommunication, finance and insurance, property, and other service providers. The rise in the IT sector across Mexico will allow more commercial sector expansion and facility management services.
• In September 2021, the Government submitted the 2022 budget proposal, with a USD 350 billion (MXN 7.3 trillion) budget proposal for 2022 to promote economic growth, social equality, financial stability, regional development projects, and fiscal discipline.
• As per the Budget 2022 proposal, the Government stated that the policies would continue to focus on social programs, healthcare, and investments. It would prioritize ongoing investment projects, such as the Mayan train project and Istmo de Tehuantepec inter-oceanic rail project.

The Facility Management Landscape is highly competitive, with several local and international players active in the Mexico Market. International FM participants operate in the country through partnerships with local players. With the market expected to broaden and yield more opportunities, more players are expected to enter the market soon. The major players in the market are CBRE Group, JLL Limited, ISS Mexico, etc. These major players have adopted various growth strategies, such as mergers and acquisitions, new product launches, expansions, joint ventures, partnerships, and others, to strengthen their position in this market.

• May 2021 - CBRE Group announced that it had been named as in charge of the sale of the British and Northern Ireland Embassy headquarters in Mexico City. The property has housed the operations of the British Government in Mexico, which has supported a wide range of bilateral interests and programs in the country.
• Feb 2021 - JLL Mexico has partnered with GoSpace AI, a workplace and occupancy management provider, to provide drive dynamic resource and space allocations through intelligent, automatic seating assignment methods.

• The market estimate (ME) sheet in Excel format
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