For the future, contractors have recognised that their market is becoming more competitive. At the client level, the number of potential sales is limited by the overall maturity of the B&I sector (where most growth activity is due to client churn as opposed to market growth) and the uncertainties and lower margins in the institutional sector.

The pressure, therefore, is on contractors to seek to expand outside their own core competencies. For some companies, this means becoming general facilities management organisations. For others, it means taking a step into new areas, most notably in the profit sector. Examples abound of where this is happening. Contractors now operate airport lounges, hotels, and even pubs. And contractors are also becoming branded high street operators, albeit in areas where concessions offer a certain level of security.

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