Future Trends In Facility Management

2015 Cleaning Industry Report

aics.com

In business, everything begins and ends

with customers; therefore, knowing,

understanding, and applying customer

trends and insights will forever be a holy

grail to industry professionals.

Trend Watching

Upper Management Intervention

White collar decision maker

Outcome and results driven

Bottom line focused

Uses business intelligence metrics

Attracted to a menu of business solutions

Seeks operational efficiencies – most

efficient way to deploy resources

IndustryTrends

1

Millennial buyers entering workforce

Technically savvy

Access to industry knowledge

Employ data-based decision making

Seek transparency and relevant metrics

Attracted to salespeople with financial capabilities

(white collar skills)

Increased Buyer SophisticationIndustryTrends

2

Focus on Supply Chain Management

Fact-based strategic sourcing

Improved planning for procurement

Lower operational expenses

Increased visibility

Ability to track and monitor compliance

Real-time business intelligence

Supply chain partners that are aligned with current

business priorities to improve overall performance

Supplier Alignment &

Sourcing

Logistics

Customers

IndustryTrends

3

Buyer Bargaining Power on the Rise

Reverse auctions

Buying cooperatives / groups

Federal Strategic Sourcing Initiative (FSSI)

Group Purchasing Organizations (GPO)

BSCAI Purchasing Advantage Program

Purchasers combining locations to drive price concessions

IndustryTrends

4

Outsourcing Prevails

All market verticals are evaluating outsourcing

Total cost reductions

Integrated service providers

Reducing human resource responsibilities

Defining outcomes (clean buildings)

Managing the contractor

Measuring quality and developing an effective RFP are the greatest challenges

IndustryTrends

5

Departmental Financial Analytics

Operational forensic techniques

Benchmark data

Workloading

Risk assessment of area types

Labor optimization techniques

Inspection and improvement

Zero-based budget methodology

Return on investment (ROI)

IndustryTrends

6

Industry Standards

Validate business processes

Define best practices

Establish standard operating

procedures

Provide a prequalification tool for

outsourcing

Serve as a department gap-analysis

framework for evaluation and

improvement

IndustryTrends

7

Human Resources Complexity

Management, supervision and worker skill training

Worker productivity

Effective human resources management policies

Worker safety compliance. OSHA is more active.

The Affordable Care Act (ACA) will become fully

effective in 2015 for companies with 50 or more

employees

Equal Employment Opportunity Commission

(EEOC) enforcement

National Labor Relations Board (NLRB)

compliance

IndustryTrends

8

Sustainability Sustains

Corporate social responsibility (CSR)

Sustainability policy creation

Life cycle cost – value engineering

Health and welfare of building occupants

Cost-neutral approach

IndustryTrends

9

Action Plan

Trend Implications

Greater Upper Management Intervention Shift message from operational/tactical to strategic

Increased Buyer Sophistication Match sales model / process to buyer

Focus on Supply Chain ManagementIntegrate supply chain management into key account

marketing

Buyer Bargaining Power on the Rise Position your organization to profitably participate

Outsourcing Prevails Develop service provider-specific programs

Departmental Financial AnalyticsBecome fluent in the financial metrics that drive your

customers’ success

Industry StandardsCommit to industry standards and learn how to help your

customers achieve compliance

Human Resource Complexity Leveraging labor-saving solutions is at a premium

Sustainability Sustains Weave sustainability into the fabric of your organization

Questions & Answers

About AICS

The American Institute for Cleaning Sciences (AICS) is the commercial cleaning industry’s leading authority. AICS is the architect of the comprehensive Cleaning Industry Management Standard Green Building (CIMS-GB) and acts as the registrar for the ISSA certification program. AICS is trusted by the cleaning industry for its objective assurances of quality and integrity.

Our involvement with hundreds of industry firms expands our expertise and knowledge to bring you the most comprehensive information and business solutions available.

Eastern United States:James Peduto1505 Buffalo StreetEndicott, NY 13760607.748.9507jim@aics.com

Western United States:Dave Frank

2432 East Terraridge DriveHighlands Ranch, CO 80126

303.906.1818 dave@aics.com