Gulf Construction Online - EFS group ends half year with $109m deals

Facilities Management

Chauhan ... FM growth.

EFS group ends half year with $109m deals

01 August 2014

EFS Facilities Service Group, a leading integrated facilities management (FM) service provider in the Middle East, Africa and South Asia (Measa) region, has recorded impressive business growth as the regional FM market sees renewed vibrancy in the real estate industry in the region.

The value of its new contracts in the first half of the fiscal year 2014 have exceeded Dh400 million ($109 million).

This is thanks to its success in securing regional contracts from international banks and multinational corporations across the region along with significant local contracts in the UAE, India and Egypt.

The new deals included contracts for the provision of integrated facilities management services for Abu Dhabi Education Council (ADEC) schools, Abu Dhabi government buildings, local and international banks as well as Fortune 500 multinationals. These new contracts have enhanced the company’s impressive portfolio which included more than 200 prestigious contracts operated by EFS, regionally.

“The new contracts across its regional portfolio have given the company the confidence of achieving 25 per cent growth by the end of 2014, which is substantially higher than its previous year’s performance,” says a company spokesman. “The bright business outlook in the Middle East has demonstrated the company’s capability to address the changing needs of the facilities management industry and maintain a sustainable and consistent growth over the past years.”

Tariq Chauhan, Group CEO of EFS Facilities Services, says the industry’s continued growth is evident from the high demand for FM services by the private residential sector, social housing developments and commercial establishments.

More than $2.5 trillion worth of construction contracts are planned or under way in the GCC, while the Middle East and North Africa (Mena) region, as a whole, is expected to have more than $4 trillion worth of projects, he says.

“EFS is looking to play a key role in this expected influx of projects as a larger number of projects are completed — making its presence known for its reputation of providing services with the highest technical standards, environmental practices and its compliance with sustainable delivery,” says Chauhan.

He says the UAE will get special attention as investments will be made for the World Expo 2020 in Dubai. Some $100-billion worth of new projects are on the agenda for the emirate.

A recent report by the Middle East Facility Management Association (Mefma) suggests that around Dh80 billion ($21.78 billion) was spent on FM services in 2012 while the growth by 2020 has been projected at Dh300 billion ($81.6 billion).

The boom in the FM industry has prompted EFS to implement a strategic expansion initiative in the GCC, South Asia and Africa. The company continues to remain strongly focused on training and development of its human resources as it firmly believes that the people are its most valuable assets. It has effectively used the progression tool to develop its human resources while improving efficiencies and productivity across all levels.

Chauhan continues: “Today, stakeholders and corporate players understand the importance of having efficient infrastructure, improved building management, as well as the importance of moving from an in-house fixed-cost model to a variable outsourced model. This realisation will facilitate an increased demand for outsourced services in the region.

“As such, the UAE, Egypt and India continue to remain strong FM markets due to the increasing GDP (gross domestic product) contributions of their construction and real estate segments. The African and South Asian countries have been witnessing fast-paced growth, which presents ample growth opportunities for the FM industry.”

The industry veteran says there has been a heightened awareness to move to a variable cost model by outsourcing more of the non-core services that will allow businesses to maintain their focus on core operations. EFS’s growth, he added, is being driven by its strong regional presence across 19 countries, providing large multinational corporations and banks a truly integrated service experience.

He highlights key trends that have been playing a significant role in the industry’s continued growth. Energy efficiency tops the list as the move to ensure that buildings are more energy-efficient has now become a primary requirement not only for new infrastructure but also for existing buildings as well.

The availability of data and the presence of rapidly-evolving technology have been identified as another key development as professionals have now demonstrated the need to understand how building functions, the outputs and the way in which FM can contribute to an efficient building.

Also, FM has now been integrated into a building’s design stage, giving owners and architects the ability to design and construct buildings that can be effectively and efficiently maintained for the long term. Experts estimates that FM services could contribute to more than 80 per cent of the property and project value over a building’s predicted 25-year life cycle.

Chauhan comments: “We believe that the driver to further growth for EFS will be through further increasing awareness about the benefits and advantages of having a good FM services provider. The industry is now moving towards technologically advanced equipment and processes to ensure high quality services.”

EFS recently participated as the silver sponsor in FM Expo, the flagship event for the FM Industry, held from May 19 to 21, at the Dubai World Trade Centre in Dubai.

EFS provides total integrated FM services, including operations and maintenance solutions across the Menasa region. It currently manages more than 200 projects, valued in excess of $500 million and employs more than 8,000 FM professionals in 16 countries across the Menasa region.

The company’s regional success has helped in attracting and retaining a talent pool with diverse cultures, ethnicities and experience, to ensure the ideal balance of global and local knowledge. The company’s senior management team has over 500 years of collective facilities management experience, with a unique mix of backgrounds and individual expertise to provide a broad spectrum of service capability.