Australian Market for Facilities Management in Remote Sites

This Frost & Sullivan research service titled Australian Market for Facilities Management in Remote Sites provides market forecasts, demand trends and competitive analysis relating to facilities management (FM) for remote mining camps. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: integrated facilities management (IFM), single or bundled services, hard FM and soft FM and FM by specific service type.

This analysis is available through our Building Management Technologies Growth Partnership Services programme. With continuous access to intelligence and resources from all seven perspectives of the Complex Business Universe, the Growth Partnership Services programme ensures that you and your Growth Team™ are able to maintain a 360 Degree Perspective of the market. This comprehensive, objective information allows your company to mitigate risk, identify new opportunities and drive effective strategies for growth. For more information on this custom subscription service, please click here.

Market Overview

Around 55,000 Employees Located in Remote Sites Fuels Long-term Demand for Facilities Management at Mining Camps in Australia

Higher Customer Expectations Present Significant Opportunities for FM Providers

A remarkable 53 per cent growth in its capital expenditure over 2009-2010 gives an indication of the opportunities afforded by the Australian mining industry. The industry’s expansion spawns a need for increased workforce at remote sites, stoking demand for FM services. In 2011, the mining industry employed 142,000 people, of which, an estimated 110,000 worked in remote mining locations, and half of them were located in remote sites. The presence of a large workforce has raised the demands on FM services to operate and maintain mining camps and villages. The intensifying competition is forcing FM service providers to not only provide services to maintain the camp site as efficiently as possible, but also to focus on the wellbeing of residents. “FM providers are distinguishing themselves through the improved provision of services and facilities for recreation, fitness and entertainment,” says the consultant of this research. “In some cases, nutritionists, fitness and health coaches are provided as part of a service package.”

While these services help FM providers stand out in the crowd, they will find takers only if they are cost-effective. Further, mining companies have corporate policies that compel them to employ locally available resources, services and business to support the growth of remote communities. They usually build residential housing and other facilities to retain locals in these communities. However, these communes could reduce the number of fly-in/fly-out (FIFO) employees, shrinking the sizes of mining camps. FIFO employees’ dependence on flights makes them less available than residential employees, and they also incur additional costs for the company by losing productivity and work hours in transit. However, if the nearest town is unable to provide the number of skilled workers required, initial FIFO deployments may lead to a residential workforce.

FM providers need to form strategic partnerships and alliances to overcome logistical challenges of remote locations and offer a more holistic and cost-effective solution. They have to find ways to attract and retain qualified labour in remote areas to provide services. By 2018, 90.0 per cent of FM services in these locations are likely to be outsourced. “In remote locations, where mining companies already contend with the issue of work force shortage, the use of external service providers becomes a productivity enhancement tool,” notes the consultant. “Also, specialist equipment, compliance requirements and the remote location of work sites drives the demand for expertise to safeguard the health and safety of employees.”

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

• Integrated facilities management (IFM)
• Single or bundled services
• Hard FM and soft FM
• FM by specific service type

Frost & Sullivan Growth Partnership Services

Frost & Sullivan's Growth Partnership Services empower companies to accelerate their growth by achieving top-line improvements and bottom-line results. This is accomplished by helping our clients execute successful growth strategies and providing their Growth Teams™ with the skills, know-how, and tools to generate growth opportunities, evaluate these opportunities to create a growth pipeline, and implement a growth strategy to deliver measurable business results.

Our growth solutions support the entire growth process:

TEAM Research is a program that furnishes clients with access to market research, competitive intelligence, financial benchmarking, and market strategies and analysis, and provides access to industry experts to aid in generating growth opportunities.

Growth Consulting Services unite clients with our industry experts to evaluate opportunities and develop customized strategies and business plans to drive top-line revenue and margin growth.

Growth Team Membership™ is a career-focused offering that was developed to address the unique challenges that senior executives face when implementing strategies to achieve aggressive corporate growth targets.