Brexit and Facilities Management - 5 years on

Today marks the fifth anniversary of Britain’s withdrawal from the European Union.

As we exited, few in the facilities management industry knew what to expect: five years and a global pandemic later, many are still adjusting to the changes.

So, what have been the challenges, how have these been successfully overcome and what were the benefits in “taking back our freedom”?

• Labour shortages: were the biggest fear of most in FM following the referendum. FM is a people’s industry, where the availability and skills of a workforce can make the difference between the success and failure of a contract and reputations.

Many companies across the sector relied on workers from the EU for a variety of roles in a pre-Brexit world. We have definitely seen an impact in a shortage of skills, and higher staff turnover.

• Increased wage costs: Restrictions on accessing workers and an increased cost of recruitment have hit an industry where up to 80% of revenues can be spent on employee costs. Businesses are having to pay more to attract, and retain skilled workers.

This for many has led to an increased focus on the domestic labour market, with companies working harder to recruit, train and retain staff. Whilst more difficult, the benefits from being able to draw staff who fundamentally understand the area in which they work is undoubtedly an asset.

• Supply chain disruptions were inevitable as the country implemented generational changes to the UK’s borders. Increased border checks and tariffs have pushed up the cost of cleaning supplies, food and equipment and led to buyers changing procurement strategies to explore the domestic market.

• Economic uncertainty it is tough to blame this solely on Brexit but it is no doubt a contributing factor. Volatility in UK markets caused by Brexit but also Liz Truss, a change in the war in Ukraine, Covid-19, change in government and many other factors has forced businesses to adjust the way in which they budget and forecast long term.

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Inevitably, uncertainty has led to caution in investments, altering business outsourcing decisions as well as reducing confidence in suppliers when tendering for new business.

So what of the next five years? Businesses will continue to build on the initial lessons learned over the last five years in a new post-Brexit world.

As businesses look to future proof the impetus is on investment in technology, the use of AI, automation, and IoT to streamline operations, data led solutions, evidence of an increased commitment to training and the use of Apprenticeships as more employers invest in upskilling UK workers to fill the skills gap.

The replacement of the Official Journal of the European Union (OJEU) procurement process with the Find a Tender Service (FTS) for publishing of all UK Public sector procurement notices has provided the UK with its own procurement rules.

The amendments reflect Brexit changes and provide greater flexibility to simplify processes, encourage innovation, and give more opportunities to smaller businesses.

This has also included a visible shift towards greater emphasis on Social Value & ESG as Government tenders now emphasise sustainability, social impact, and innovation.

The new Labour government has made plenty of overtures towards the European Union as they "attempt" to reset relations with our closest, geographic neighbours.

How that will look is anybody's guess but a thawing in the relationship could open up opportunities for relationships with European companies and labour markets which have been made more difficult by our decision to leave.

Author: Tracy Wilson, Director - Wilson Jane Consultancy

Featured Image: Credit: Pippa Fowles / No10 Downing Street

Copyright: Crown Copyright