Learnings from an Egyptian FM stalwart

 

Facility Management current market size of USD 2.25 billion is expected to rise to USD 3.06 billion by 2029. This surge is being driven by rapid urban expansion, thriving real estate development, and a surge in foreign investments.

 

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Facilities Management
 
April 15, 2024
 
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Learnings from an Egyptian FM stalwart
 

As the Operations Director at EFS Egypt, I have observed the remarkable growth of Egypt's FM industry firsthand. Facility Management current market size of USD 2.25 billion is expected to rise to USD 3.06 billion by 2029, (according to: Mordor Intelligence - A Market Intelligence and Advisory Firm). This surge is being driven by rapid urban expansion, thriving real estate development, and a surge in foreign investments.

The trend is shifting from basic services like Housekeeping Service or Maintenance Service to a more holistic approach - Integrated FM. Clients are increasingly demanding integrated facility management (IFM) that encompasses everything from Soft Service and Hard Services to waste management, energy optimization, and even IT support. Technology plays a crucial role in this transformation. Tools like CMMS, CAFM systems and IoT are being adopted to optimize operations, analyze data for preventive maintenance, and enhance efficiency.

Despite the remarkable progress of Egypt's FM industry, challenges remain. There's a price-sensitive client base, companies need to be informed about the long-term cost savings and improved efficiency that professional facilities management (FM) services can provide.

While global challenges exist, Egypt faces some unique ones. A fragmented market with diverse players, and a lack of skilled labor pose hurdles. Regulations governing the industry are still under development, impacting standardization.

However, there are success stories. We see this in the healthcare sector, where specialized FM services are creating a niche market and healthcare FM Specialized Service Providers; for instance, Egypt Healthcare Facilities Services EHFS Company – the Specialized Healthcare FM Service Provider in Egypt (www.ehfs.health). Additionally, government outsourcing of FM contracts presents a promising avenue.

Sustainability also is playing a vital role currently in the Egyptian FM Market as organizations recognize its environmental and economic benefits. through implementing energy-efficient solutions, reducing carbon footprint and operational costs.

Training and skill development are critical. Fortunately, organizations like EGYFMA, Egyptian Cleaning institute and international bodies like IFMA and MEFMA are working to bridge this gap through educational programs and certifications.

Key Learnings from the Egyptian FM Landscape:

Value Proposition is Key
Clients initially focus on price, but successful FM companies showcase the long-term benefits like cost savings, efficiency gains, and improved occupant well-being. Clear communication about the value proposition is crucial.

Embrace Innovation 

Technology is a game-changer. Companies utilizing tools like CMMS and IoT gain a competitive edge. Staying informed about the latest advancements and integrating them into operations is essential.

Sustainability Matters 

Clients are increasingly environmentally conscious. FM companies offering eco-friendly solutions like energy optimization and waste management attract businesses looking to reduce their environmental impact.

Invest in People 

A skilled workforce is the backbone of any FM company. Investing in training programs, certifications, and fostering a culture of continuous learning empowers employees and drives success.

Collaboration is Key 

Building strong relationships with clients, vendors, and industry associations fosters knowledge sharing and facilitates the development of best practices for the entire Egyptian FM landscape.

By adopting these learnings, FM companies in Egypt can navigate the evolving market effectively and contribute to the industry's overall growth and success.

About the author:

Dr. Mohamed Hesham is the Director of Operations at EFS Egypt.