The new Market Intelligence Report from IWFM marks the institute’s most comprehensive and valuable analysis of the workplace and facilities management market to date. Building on its long-standing role as a global standard-setter and publisher of the annual Market Outlook report, IWFM has produced over 100 pages of detailed insights.
The IWFM Market Intelligence Report 2025 paints a clear picture: the UK’s facilities management (FM) sector is thriving economically but wrestling with a critical challenge—people. Budgets are growing, technology is transforming workplaces, and outsourcing remains strong. But beneath the surface, a shortage of skilled talent is testing the industry’s resilience.
Few understand this better than our Managing Director Peter Forshaw, who was asked to provide his insights gained through more than 25 years of experience in the sector. His reflections in the report cut to the heart of FM’s biggest people challenges: recruitment, retention, and skills gaps. Here are some of the insights that Peter shared within this report:
Peter highlighted that recruitment is proving especially difficult for client-side organisations. Skilled staff often find themselves in smaller, isolated teams without strong peer networks or professional development opportunities. Some may perceive these roles as dead-end positions, which in turn may lead to high turnover and making them less attractive compared to service providers.
On the service provider side, the pressure points are managerial roles such as commercial managers, contract managers, and FM managers. These positions are increasingly complex, with responsibilities across multiple sites and higher stakeholder demands. Yet salaries don’t always reflect the extra stress, leaving employers fighting an uphill battle to bring in top candidates.
Retention is another sticking point. Peter stressed that losing people can hit client-side organisations particularly hard because their employees often carry greater autonomy and ownership of day-to-day operations. In contrast, larger service provider teams can absorb turnover more easily.
The solution isn’t just about pay. Peter highlighted that that flexible working, training, and career progression can’t be treated as tick-box policies and they must be embedded into workplace culture. Genuine investment in people, not just surface-level perks, is what keeps staff loyal.
Peter also shared his thoughts on widening skills gaps in FM. Technological advancements, from AI to smart buildings, have advanced faster than some professionals can adapt. FM is no longer just about maintenance and operations; today’s workforce needs digital literacy, business acumen, and commercial insight to prove FM’s value to the bottom line.
Looking back over his 25 years in the industry, Peter noted that the sector has grown into multiple specialisms, each demanding its own expertise. Salaries are rising to reflect this shift, but too many professionals are self-funding their upskilling which he sees as an unsustainable model for a sector that underpins so much of the UK economy.
